Evertz Technologies (TSE:ET)
TSX:ET
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Evertz Technologies
(TSX:ET)
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Rating:77Outperform
Price Target:
C$18.50
▲(14.55% Upside)
Action:ReiteratedDate: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
Recurring Revenue Mix
Nearly half of revenue now comes from software and services, which grew 12.3% YoY. This structural shift toward recurring, higher-margin revenue increases revenue visibility, supports recurring cash flows and upsell opportunities, and reduces sensitivity to one-off project cycles over coming quarters.
Negative Factors
Cash-Flow Volatility
A steep TTM free cash flow decline and operating cash flow materially below reported earnings point to working-capital and timing variability. This reduces predictability of internally generated funding for capex, inventory and dividends, raising execution risk across project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Mix
Nearly half of revenue now comes from software and services, which grew 12.3% YoY. This structural shift toward recurring, higher-margin revenue increases revenue visibility, supports recurring cash flows and upsell opportunities, and reduces sensitivity to one-off project cycles over coming quarters.
Read all positive factors
Evertz Technologies (ET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.22B
Dividend Yield5.97%
Average Volume (3M)44.56K
Price to Earnings (P/E)14.8
Beta (1Y)0.59
Revenue Growth2.96%
EPS Growth11.50%
CountryCA
Employees1,591
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.24
Shares Outstanding75,498,900
10 Day Avg. Volume74,107
30 Day Avg. Volume44,564
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)4.03
Price to Sales (P/S)2.06
P/FCF Ratio7.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.67Price Target Upside3.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.84
Revenue Forecast (FY)C$515.14M
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 internati...
How the Company Makes Money
Evertz makes money primarily by selling media infrastructure products and related services to customers building or upgrading video/audio production and distribution facilities. Its main revenue stream is the sale of equipment and systems (e.g., h...
Evertz Technologies Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 24, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and market picture: record quarterly sales, strong international growth, double-digit software and services expansion, robust gross margin within target band, healthy backlog and ongoing product adoption. These positives are tempered by near-term liquidity effects from large dividend distributions (including a special dividend), a significant decline in reported cash and working capital, a Q3 foreign exchange loss, a YoY decline in hardware revenue, and inventory build to secure constrained components. Management attributes regional softness and some variability to project timing and lumpiness rather than structural demand weakness.Positive Updates
Record Quarterly Sales
Sales for Q3 FY2026 reached a record $139.3 million, up 5% sequentially and up 2% year-over-year (from $136.9 million in Q3 FY2025).
Negative Updates
Significant Cash and Working Capital Decline
Cash declined to $24.8 million as at January 31, 2026 (from $111.7 million as at April 30, 2025). Working capital fell to $133.2 million from $206.9 million, primarily driven by dividend distributions of $91 million (including a $75.5 million special dividend).
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Sales
Sales for Q3 FY2026 reached a record $139.3 million, up 5% sequentially and up 2% year-over-year (from $136.9 million in Q3 FY2025).
Read all positive updates
Company Guidance
Guidance in the call was limited but specific: management said the company is entering Q4 with momentum after record Q3 sales of $139.3M (software & services $62.5M, ~45% of revenue) and gross margin of 58.3% (inside the 56–60% target; 9‑month margin 59.3%); February shipments were ~$32M with a purchase‑order backlog >$246M (backlog + Feb shipments >$278M). The board declared a regular quarterly dividend of $0.205/share (payable ~Mar 20); cash was $24.8M and working capital $133.2M at Jan 31, shares outstanding ~75.5M (diluted 76.7M). For Q4 management expects selling & admin to increase roughly $1.5–$2.0M sequentially for NAB activity, plus about $0.5M extra in R&D materials/prototypes, noted a Q3 FX loss of $2.3M and a ~ $10M use of cash/inventory to secure components (and ~$91M dividends paid in the quarter, including a $75.5M special dividend), and emphasized results remain subject to project timing, procurement dynamics and other risks.Evertz Technologies Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| 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
Positive
16.15
Price Trends
14.76
Positive
13.15
Positive
11.10
Positive
Market Momentum
0.42
Positive
65.19
Neutral
33.69
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 16.15 is above the 20-day moving average (MA) of 15.79, above the 50-day MA of 14.76, and above the 200-day MA of 11.10, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 33.69 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | C$1.22B | 14.79 | 24.24% | 5.97% | 2.96% | 11.50% | |
64 Neutral | C$319.98M | 565.37 | -5.37% | 2.14% | -11.70% | -199.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | C$76.66M | 35.74 | 7.47% | ― | 27.55% | -39.69% | |
54 Neutral | C$154.56M | -2.00 | -15.76% | ― | 1.48% | 11.75% | |
50 Neutral | C$821.71M | -3.73 | -24.05% | ― | -25.79% | -413.48% | |
47 Neutral | C$40.14M | -88.13 | -4.10% | 1.52% | -46.11% | -149.26% |
* Technology Sector Average
TSE:ET
Evertz Technologies
16.15
9.83
155.34%
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Evertz Technologies Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Evertz Delivers Record Revenue but Cash Dips After Special Dividend
Positive
Mar 5, 2026
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....
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.