EVERTEC, Inc. (NYSE: EVTC)

Sector: Technology Industry: Software - Infrastructure CIK: 0001559865
P/B 2.81
P/E 12.82
P/S 2.07
Market Cap 1.87 Bn
ROIC (Qtr) 11.53
Div Yield % 0.51
Rev 1y % (Qtr) 7.93
Total Debt (Qtr) 1.09 Bn
Debt/Equity (Qtr) 1.64

About

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 499.74M provide 18.07x coverage of short-term debt 27.65M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 232.16M provides exceptional 110.55x coverage of minority interest expenses 2.10M, showing strong core operations.
  • Strong operating cash flow of 232.16M provides 1.58x coverage of SG&A expenses 146.64M, showing efficient operational cost management.
  • Robust free cash flow of 145.64M exceeds capital expenditure of 86.52M by 1.68x, indicating strong organic growth funding capability.
  • Tangible assets of 921.55M provide exceptional 18.84x coverage of deferred revenue 48.91M, showing strong service capability backing.

Cons

  • Operating cash flow of 232.16M barely covers its investment activities of (122.42M), with a coverage ratio of -1.90, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 232.16M provides thin coverage of dividend payments of (12.76M) with a -18.19 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 499.74M provide limited coverage of acquisition spending of (34.03M), which is -14.69x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 223.63M show weak coverage of depreciation charges of 119.11M, with a 1.88 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 119.11M relative to operating cash flow of 232.16M, which is 0.51x suggests significant maintenance capital requirements affecting free cash flow.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.17 2.56
EV to Cash from Ops. 10.80 38.32
EV to Debt 2.30 -11.37
EV to EBIT 11.21 -12.79
EV to EBITDA 8.08 7.72
EV to Free Cash Flow [EV/FCF] 17.22 24.22
EV to Market Cap 1.34 0.58
EV to Revenue 2.78 -35.00
Price to Book Value [P/B] 2.81 3.74
Price to Earnings [P/E] 12.82 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 11.45 -0.30
Dividend Payout Ratio % 8.80 2.69
Dividend per Basic Share 0.15 0.10
FCF Dividend Payout Ratio % 6.59 1.67
Interest Coverage 3.31 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 16.95 -404.11
Cash and Equivalents Growth (1y) % 66.01 226.02
Dividend Growth (1y) % -25.00 -0.27
EBIAT Growth (1y) % 36.52 31.15
EBITDA Growth (1y) % 11.91 49.02
EBIT Growth (1y) % 39.12 25.85
EBT Growth (1y) % 77.15 17.82
EPS Growth (1y) % 72.73 70.69
FCF Growth (1y) % 9.00 295.45
Gross Profit Growth (1y) % 6.46 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.42 0.68
Cash Payout Ratio 0.04 0.02
Cash Ratio 1.95 1.21
Current Ratio 2.91 2.57
Debt to Equity Ratio 1.64 -0.93
Interest Cover Ratio 3.31 -13.15
Times Interest Earned 3.31 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 37.90 -544.82
EBIT Margin % 24.76 -197.78
EBT Margin % 17.27 -602.74
Gross Margin % 49.80 52.06
Net Profit Margin % 16.20 -605.52