Evertz Technologies (ET) AI Stock Analysis

• Market Cap: C$944.90M
• Dividend Yield: 8.81%
• Average Volume (3M): 17.59K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.71
• Revenue Growth: -4.64%
• EPS Growth: -19.57%
• Country: CA
• Employees: 1,591
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): 0.17
• Shares Outstanding: 75,591,970
• 10 Day Avg. Volume: 25,637
• 30 Day Avg. Volume: 17,588
• PEG Ratio: -1.29
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.92
• Price Target Upside: 11.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: ―

Evertz Technologies' strong financial performance, characterized by low debt and robust cash flows, underpins the stock's appeal. Positive earnings call sentiment and strong sales growth in key markets bolster confidence. However, the stock faces challenges such as declining international revenue and technical indicators showing potential resistance. The reasonable valuation and attractive dividend yield provide further support.

Positive Factors

Competitive Position

Evertz should benefit from its strong competitive position in the broadcast technology market, driving ongoing earnings and dividend growth.

Financial Performance

Evertz reported significantly above consensus on EBITDA, helped in part by a record-high gross margin, as software/services revenue is becoming a growing proportion of the mix.

Valuation

The stock's valuation is considered attractive due to Evertz's dividend yield, cash generation, and ongoing improvements to its revenue mix.

Negative Factors

Backlog

The backlog at quarter-end showed a decrease, indicating potential challenges in meeting future revenue expectations.

Production Costs

The potential impact of tariffs on Evertz's production costs might affect gross margins.

Revenue Expectations

Evertz's Q4/25 revenue is expected to be below consensus estimates, with February shipments pointing to a lower figure.

Evertz Technologies Business Overview & Revenue Model

Company Description

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution encoder, decoder, receiver, processing, and modulation products; and control panels, unified controls, accessories, and network management systems. It also provides encoding, transcoding, and multiplexing products comprising ASI/IP converters, multiplexers, scramblers, and modulators; contribution encoders/decoders; transport stream processors; and software defined accelerated encoding/transcoding/muxing products, as well as audio/data/RF transporters, CWDM/DWDM multiplexors, fiber routers, SONET/SDH transporters, and video transporters. In addition, the company offers infrastructure and conversion products, including audio/data embedder/de-embedder, keyers, media and logo inserters, master control switchers, audio processing, closed captioning, conversion, audio/video delay system, distribution amplifier, and frame synchronizer products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides 3D, auto changeover, film/post graticule generator, master clock/SPG, slave clock, test/reference generator, and timecode products for live media production; EMS media server, mediator content manager, and live integrated playout products; and multi viewers. Additionally, the company offers antennas, demodulators, fiber transporters, routers/switchers, and splitters and distribution amplifiers; and audio, bypass and auto changeover, data/LTC/tally, fiber/RF, magnum unified control, video routers, and panels. It serves content creators, broadcasters, specialty channels, and television service providers. The company was founded in 1966 and is headquartered in Burlington, Canada.

How the Company Makes Money

Evertz Technologies generates revenue primarily through the sale of its advanced hardware and software solutions tailored for the media and entertainment industry. The company's key revenue streams include the sale of broadcasting equipment, such as video routers and signal processors, and software solutions, including automation and media asset management systems. Additionally, Evertz offers support and maintenance services, which provide a steady stream of recurring income. Significant partnerships with major broadcasters and media companies around the world further bolster Evertz's market presence and contribute to its earnings. The company's focus on innovation and the development of new technologies also plays a crucial role in maintaining its competitive edge and driving revenue growth.

Evertz Technologies Financial Statement Overview

Summary

Evertz Technologies demonstrates a resilient financial standing with strong profitability and efficiency, especially in its operational management and cash conversion. The income statement shows mixed performance with efficient cost management but a contraction in sales. The balance sheet reflects a strong position with low debt and effective equity utilization. Cash flows are healthy, indicating strong cash generation despite revenue concerns.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at around 58.4%, indicating efficient cost management. However, the TTM net profit margin is relatively lower at 12.1%, suggesting that while gross profits are high, operational and other expenses are impacting the bottom line. The revenue growth rate from the previous annual period to TTM is negative, indicating a contraction in sales, which is a concern. Despite this, EBIT and EBITDA margins remain healthy, suggesting strong operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.08, indicating low financial leverage and risk. The return on equity (ROE) for TTM is approximately 22.3%, demonstrating effective use of shareholders' equity to generate profit. The equity ratio is robust at 57.1%, indicating a strong capital structure with a significant portion of assets financed by equity rather than debt.

Cash Flow

The cash flow statement is strong, with a healthy operating cash flow to net income ratio of 1.65, indicating that the company effectively converts its earnings into cash. The free cash flow to net income ratio is also robust at 1.52. Although the free cash flow growth rate is negative, due to a decrease compared to the previous year, the company maintains solid cash generation capabilities.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	496.59M	514.62M	454.58M	441.02M	342.89M	436.59M
Gross Profit	290.06M	293.97M	268.26M	255.31M	199.42M	248.38M
EBITDA	97.36M	110.99M	100.28M	107.10M	62.65M	102.48M
Net Income	60.15M	70.17M	64.03M	71.75M	41.76M	68.61M
Balance Sheet
Total Assets	472.21M	484.72M	436.65M	420.98M	451.79M	443.67M
Cash, Cash Equivalents and Short-Term Investments	96.28M	86.33M	12.47M	33.90M	108.77M	75.03M
Total Debt	20.21M	23.22M	28.82M	26.85M	25.37M	30.10M
Total Liabilities	199.56M	218.04M	190.57M	187.33M	156.89M	146.25M
Stockholders Equity	269.61M	263.27M	243.10M	230.94M	292.73M	295.01M
Cash Flow
Free Cash Flow	91.42M	135.12M	47.24M	63.20M	91.42M	99.24M
Operating Cash Flow	99.51M	144.67M	53.81M	68.67M	101.00M	109.29M
Investing Cash Flow	-7.90M	-2.26M	-17.12M	-4.96M	-18.64M	-5.74M
Financing Cash Flow	-67.47M	-70.21M	-58.02M	-137.52M	-49.38M	-132.66M

Evertz Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ET, the sentiment is Positive. The current price of 12.47 is above the 20-day moving average (MA) of 12.03, above the 50-day MA of 11.63, and above the 200-day MA of 11.47, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ET.

Evertz Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	79 Outperform	C$944.90M	16.00	22.35%	8.81%	-4.64%	-19.57%
BEW	77 Outperform	C$68.14M	119.40	7.04%	―	41.67%	-23.86%
VCM	60 Neutral	C$230.75M	62.39	1.61%	3.22%	9.13%	-77.24%
TSAT	60 Neutral	C$521.68M	8.35	-12.49%	―	-20.40%	-161.60%
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%
QTRH	47 Neutral	C$154.60M	―	-11.53%	―	4.23%	47.22%
CMI	46 Neutral	C$41.83M	24.42	-4.55%	5.05%	-41.82%	-149.06%

Evertz Technologies Corporate Events

Evertz Technologies Achieves Record Revenue in Q3 2025

Evertz Technologies reported a record quarterly revenue of $136.9 million for the third quarter ending January 31, 2025, marking a 9% increase from the previous quarter. The company saw significant growth in its reoccurring software and services revenue, which rose by 6% from the prior year, alongside an 8% increase in earnings from operations. This financial performance underscores Evertz’s strong market positioning and operational efficiency, particularly in the United States and Canada, despite a decline in international revenues.