Evertz Technologies (ET) AI Stock Analysis

• Market Cap: C$1.21B
• Dividend Yield: 5.97%
• Average Volume (3M): 44.56K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.67
• Revenue Growth: 2.96%
• EPS Growth: 11.50%
• Country: CA
• Employees: 1,591
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.24
• Shares Outstanding: 75,498,900
• 10 Day Avg. Volume: 74,107
• 30 Day Avg. Volume: 44,564
• PEG Ratio: 1.59
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 7.85
• 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$16.67
• Price Target Upside: 4.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): C$515.14M

• Rating: 77 Outperform
• Price Target: C$18.00 ▲(12.71% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial quality (low leverage, high ROE, and solid margins) and a constructive uptrend. Valuation is supported by a reasonable P/E and a high dividend yield. The main risks tempering the score are cash-flow volatility and, from the latest call, the sharp cash/working-capital decline tied to large dividend payouts and near-term operational lumpiness.

Positive Factors

High gross margins and strong ROE

Sustained high gross margins and a ~24% ROE indicate structural pricing power and efficient capital use across product and service lines. These metrics support durable profitability and the ability to reinvest in R&D or weather project timing swings over the next several months.

Growing recurring software & services mix

A nearly half-revenue share from software and services, growing double digits, reduces cyclicality tied to hardware. Recurring, higher-margin revenue improves revenue visibility and supports more stable margins and cash flows as customers adopt software-enabled workflows and subscriptions.

Significant R&D investment and product adoption

Heavy R&D spending and demonstrated adoption (600+ IP SDN deployments) build durable competitive advantages in IP/cloud workflows. Continued investment sustains differentiated product suite, supports higher-margin software offerings, and helps capture ongoing industry migration to modern broadcast infrastructures.

Negative Factors

Free cash flow volatility

A steep TTM FCF decline and moderate operating cash-to-earnings ratio point to working-capital and timing sensitivity. Persistent cash volatility can limit funding flexibility for capex, R&D or large project fulfilments and raises execution risk over the coming quarters.

Dividend-driven liquidity strain & lower cash buffer

Large shareholder distributions materially reduced cash and working capital cushions. With a smaller liquidity buffer, the company is more exposed to procurement delays, project timing gaps, or unexpected cash needs, constraining operational flexibility in the near term.

Hardware revenue softness & project timing lumpiness

Declining hardware sales and management's emphasis on project-timing variability highlight continued cyclicality in large deployments. Reliance on lumpy project schedules can create revenue and shipment unevenness, complicating forecasting and straining working capital management across quarters.

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 makes money primarily through the sale of its broadcast and media production equipment, software solutions, and related services. The company's revenue streams include direct sales of its hardware products, licensing fees from its software solutions, and ongoing support and maintenance services. Evertz also generates income from custom solutions tailored to specific client needs and from partnerships with major broadcasters and media companies. Its earnings are significantly influenced by the adoption of new technologies in the media industry, such as the shift to IP-based workflows and the increasing demand for high-definition and ultra-high-definition content delivery.

Evertz Technologies Financial Statement Overview

Summary

Overall fundamentals are solid: strong revenue rebound and healthy profitability (TTM ~59% gross margin, ~13% net margin) with a conservatively financed balance sheet (debt-to-equity ~0.10; ROE ~24%). The main drag is cash-flow consistency, with TTM free cash flow down sharply (-29%) and only moderate operating cash flow relative to earnings (~0.63), suggesting recent working-capital/timing volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+47.4%), while profitability remains solid with a ~59% gross margin and ~13% net margin. However, margins have drifted down versus prior annual periods (net margin ~16% in 2023 vs ~13% in 2025/TTM), suggesting some pricing/volume mix pressure or cost creep despite higher sales.

Balance Sheet

The balance sheet looks conservatively financed with low leverage (TTM debt-to-equity ~0.10) and modest absolute debt. Returns on equity are strong (TTM ~24%), supporting the view that the company is generating healthy profits without relying heavily on borrowing, though equity has come down versus 2021–2025 levels which slightly reduces the cushion.

Cash Flow

Cash generation is generally healthy (TTM operating cash flow ~$91M; free cash flow ~$73M) and free cash flow is close to net income (TTM ~0.89x), indicating earnings quality is decent. The main concern is volatility: free cash flow growth swung to a steep decline in TTM (-29%) after being positive in the prior annual period, and operating cash flow relative to reported earnings is only moderate in TTM (~0.63), implying more working-capital or timing noise recently.

Breakdown	TTM	Apr 2024	Apr 2022	Apr 2021	Apr 2020	Apr 2019
Income Statement
Total Revenue	512.02M	501.62M	454.58M	441.02M	342.89M	443.56M
Gross Profit	303.19M	298.50M	268.26M	255.31M	199.42M	253.36M
EBITDA	95.49M	99.56M	100.28M	107.10M	62.65M	117.00M
Net Income	61.83M	59.39M	64.03M	71.75M	41.76M	77.88M
Balance Sheet
Total Assets	417.04M	469.49M	436.65M	420.98M	451.79M	466.60M
Cash, Cash Equivalents and Short-Term Investments	24.79M	111.67M	12.47M	33.90M	108.77M	108.61M
Total Debt	15.06M	18.87M	28.82M	26.85M	25.37M	533.00K
Total Liabilities	217.49M	198.19M	190.57M	187.33M	156.89M	111.19M
Stockholders Equity	196.53M	268.12M	243.10M	230.94M	292.73M	353.12M
Cash Flow
Free Cash Flow	72.95M	91.68M	47.24M	63.20M	91.42M	76.82M
Operating Cash Flow	90.97M	99.63M	53.81M	68.67M	101.00M	88.47M
Investing Cash Flow	-16.02M	-6.73M	-17.12M	-4.96M	-18.64M	-23.51M
Financing Cash Flow	-147.91M	-71.43M	-58.02M	-137.52M	-49.38M	-54.83M

Evertz Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Positive

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 15.97 is above the 20-day moving average (MA) of 14.89, above the 50-day MA of 13.88, and above the 200-day MA of 10.56, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 79.30 is Negative, neither overbought nor oversold. The STOCH value of 12.62 is Positive, 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	77 Outperform	C$1.21B	14.79	24.24%	5.97%	2.96%	11.50%
VCM	64 Neutral	C$301.50M	565.37	-8.77%	2.14%	-11.70%	-199.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QTRH	56 Neutral	C$122.94M	-6.48	-15.76%	―	1.48%	11.75%
BEW	55 Neutral	C$85.38M	35.74	7.47%	―	27.55%	-39.69%
CMI	50 Neutral	C$42.26M	67.38	-4.10%	1.52%	-46.11%	-149.26%
TSAT	44 Neutral	C$701.02M	-5.31	-22.61%	―	-25.79%	-413.48%

Evertz Technologies Corporate Events

Evertz Delivers Record Revenue but Cash Dips After Special Dividend

Evertz Technologies reported record third-quarter revenue of $139.3 million for the period ended January 31, 2026, up 2% year-over-year, driven by a 15.5% increase in international sales to $43.7 million even as U.S. and Canadian revenue declined. Gross margin rose to 58.3% and earnings from operations before foreign exchange climbed 16% to $28.1 million, but net earnings fell to $18.7 million, or $0.24 per diluted share, reflecting foreign exchange impacts and a higher dividend payout.

The company’s balance sheet showed a sharp reduction in cash and working capital, with cash falling to $24.8 million from $111.7 million and working capital dropping to $133.2 million, largely due to $91 million in dividends, including a sizable special dividend, and capital spending such as a $4.4 million airplane purchase. Despite lower cash generation from operations versus a year earlier, Evertz reported a robust purchase order backlog exceeding $246 million at the end of February 2026, indicating strong future demand and underpinning its competitive position in global broadcast and media infrastructure markets.

The most recent analyst rating on (TSE:ET) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.

Evertz Technologies Reports Strong Q2 Financial Results and Declares Special Dividend

Evertz Technologies reported a quarterly revenue of $132.7 million for the second quarter ended October 31, 2025, marking a 6% increase from the previous year. The company also saw significant growth in international revenue and net earnings, with a special dividend declared, indicating strong financial performance and shareholder value enhancement.

The most recent analyst rating on (TSE:ET) stock is a Hold with a C$12.00 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.

Evertz Technologies Secures TSX Approval for Share Buyback Program

Evertz Technologies Limited has received approval from the Toronto Stock Exchange to initiate a Normal Course Issuer Bid, allowing the company to repurchase up to 3,774,227 of its common shares over a 12-month period. This move reflects Evertz’s belief that its shares are undervalued and represents a strategic use of corporate funds. The company has also established an automatic securities purchase plan to facilitate share repurchases during blackout periods, underscoring its commitment to enhancing shareholder value.

The most recent analyst rating on (TSE:ET) stock is a Buy with a C$15.50 price target. To see the full list of analyst forecasts on Evertz Technologies stock, see the TSE:ET Stock Forecast page.