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Evertz Technologies
(TSX:ET)
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Rating:78Outperform
Price Target:
C$22.00
▲(31.42% Upside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by solid financial fundamentals (strong profitability and low leverage) tempered by uneven cash-flow strength, plus supportive technical trend signals with the stock trading above all key moving averages. Valuation is helped by a very high dividend yield but moderated by a mid-range P/E. Earnings-call takeaways are constructive on backlog and margin targets, but liquidity drawdown and cash-flow/hardware pressures keep the overall score in the high-70s rather than higher.
Positive Factors
Conservative balance sheet
Evertz's very low leverage and strong ROE provide durable financial flexibility: it supports continued R&D and product investment, enables capacity to fund dividend policy and special payouts when appropriate, and cushions the firm versus cyclical project timing or industry downturns without relying heavily on external debt.
Negative Factors
Sharp cash decline
A steep drop in cash reserves driven largely by CAD 136M of dividends materially reduces liquidity buffers. Over the medium term this limits the company's ability to fund working-capital swings, cushion project timing mismatches, pursue opportunistic investments or absorb supply‑chain shocks without raising external capital or cutting discretionary spend.
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Positive Factors
Negative Factors
Conservative balance sheet
Evertz's very low leverage and strong ROE provide durable financial flexibility: it supports continued R&D and product investment, enables capacity to fund dividend policy and special payouts when appropriate, and cushions the firm versus cyclical project timing or industry downturns without relying heavily on external debt.
Read all positive factors
Evertz Technologies (ET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.35B
Dividend Yield5.97%
Average Volume (3M)44.56K
Price to Earnings (P/E)20.9
Beta (1Y)0.58
Revenue Growth2.82%
EPS Growth8.34%
CountryCA
Employees1,591
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.85
Shares Outstanding75,583,950
10 Day Avg. Volume74,107
30 Day Avg. Volume44,564
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)6.10
Price to Sales (P/S)2.34
P/FCF Ratio20.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.50Price Target Upside4.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.92
Revenue Forecast (FY)C$538.37M
Evertz Technologies Business Overview & Revenue Model
Company Description
Evertz Technologies Limited develops, manufactures, and distributes advanced video and audio infrastructure solutions globally. These offerings serve the demanding requirements of the production, post-production, broadcasting, and telecommunicatio...
How the Company Makes Money
Evertz makes money primarily by selling broadcast and media-network equipment and associated software to customers building or upgrading production, playout, and distribution facilities. Key revenue streams include: (1) Hardware and systems sales:...
Evertz Technologies Earnings Call Summary
Earnings Call Date:Jun 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 14, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful progress toward a software- and services-driven revenue mix, record annual sales, strong international growth, product awards and expanding government/defense opportunities. These positives were tempered by notable liquidity reduction driven by sizeable dividends and special payouts, a decline in hardware revenue, short-term operating cash variability, and supply-chain/cost pressures. Overall the company presents solid operational momentum and margin stability within target ranges, but with increased focus needed on cash levels and hardware margin pressures.Positive Updates
Record Annual Revenue
Annual sales reached CAD 515.8 million, a year-over-year increase of CAD 14.2 million or +2.8%, marking a record year for the company.
Negative Updates
Significant Cash Reduction
Cash declined sharply to CAD 19.1 million as of April 30, 2026 from CAD 111.7 million a year earlier — a drop of ~82.9% — primarily driven by CAD 136 million of dividends paid (including special dividends).
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Q4-2026 Updates
Positive
Negative
Record Annual Revenue
Annual sales reached CAD 515.8 million, a year-over-year increase of CAD 14.2 million or +2.8%, marking a record year for the company.
Read all positive updates
Company Guidance
Management's forward-looking comments emphasized a target gross margin range of 56%–60% and that the company is entering fiscal 2027 with momentum, citing combined purchase order backlog plus May shipments in excess of CAD 270 million (purchase order backlog > CAD 237 million; May shipments CAD 33 million). They pointed to continued software/services strength (CAD 240.7 million for FY2026, ~47% of revenue), meaningful government/defense traction (over CAD 50 million of sales, >10% of revenue and ~12% growth year‑over‑year), readiness to scale U.S. manufacturing if trade rules change (six months to implement), and announced a regular quarterly dividend of CAD 0.205 per share.Evertz Technologies Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
62
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 515.78M | 501.62M | 514.62M | 454.58M | 441.02M |
| Gross Profit | 305.99M | 298.50M | 302.44M | 268.26M | 255.31M |
| EBITDA | 104.57M | 99.56M | 114.12M | 100.28M | 107.10M |
| Net Income | 63.97M | 59.39M | 70.17M | 64.03M | 71.75M |
Balance Sheet | |||||
| Total Assets | 424.99M | 469.49M | 484.72M | 436.65M | 420.98M |
| Cash, Cash Equivalents and Short-Term Investments | 19.12M | 111.67M | 86.33M | 12.47M | 33.90M |
| Total Debt | 13.74M | 18.87M | 23.22M | 28.82M | 26.85M |
| Total Liabilities | 223.71M | 198.19M | 218.04M | 190.57M | 187.33M |
| Stockholders Equity | 198.17M | 268.12M | 263.27M | 243.10M | 230.94M |
Cash Flow | |||||
| Free Cash Flow | 57.55M | 91.68M | 135.12M | 47.24M | 63.20M |
| Operating Cash Flow | 76.25M | 99.63M | 144.67M | 53.81M | 68.67M |
| Investing Cash Flow | -17.83M | -6.73M | -2.26M | -17.12M | -4.96M |
| Financing Cash Flow | -147.13M | -71.43M | -70.21M | -58.02M | -137.52M |
Evertz Technologies Technical Analysis
Positive
16.74
Price Trends
15.62
Positive
15.18
Positive
12.89
Positive
Market Momentum
0.64
Negative
68.51
Neutral
31.05
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 16.74 is above the 20-day moving average (MA) of 16.12, above the 50-day MA of 15.62, and above the 200-day MA of 12.89, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 68.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.05 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$1.35B | 20.87 | 24.86% | 5.97% | 2.82% | 8.34% | |
63 Neutral | C$74.77M | 41.27 | 15.83% | ― | 20.27% | 182.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | C$918.11M | -4.69 | -32.99% | ― | -27.51% | -102.19% | |
57 Neutral | C$309.04M | -23.65 | -6.16% | 2.14% | -8.60% | -455.10% | |
50 Neutral | C$283.14M | -4.06 | -50.09% | ― | 4.41% | -227.05% | |
47 Neutral | C$38.45M | -94.35 | -4.10% | 1.52% | -26.68% | -92.00% |
* Technology Sector Average
TSE:ET
Evertz Technologies
17.69
9.60
118.56%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.