Financial Analysis: Evertec (EVTC) and Its Rivals

Evertec (NYSE: EVTC) is one of 165 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Evertec to related businesses based on the strength of its profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Volatility and Risk

Evertec has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Evertec’s rivals have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Profitability

This table compares Evertec and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Evertec 15.92% 95.54% 13.45%
Evertec Competitors -18.65% -308.02% -4.01%

Institutional & Insider Ownership

79.3% of Evertec shares are held by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Evertec shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Evertec and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evertec 1 4 1 0 2.00
Evertec Competitors 693 4390 6855 159 2.54

Evertec currently has a consensus target price of $17.80, suggesting a potential upside of 30.40%. As a group, “IT Services & Consulting” companies have a potential downside of 11.55%. Given Evertec’s higher possible upside, analysts plainly believe Evertec is more favorable than its rivals.

Dividends

Evertec pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Evertec pays out 44.9% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 37.3% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Evertec and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Evertec $389.51 million $75.03 million 15.34
Evertec Competitors $2.92 billion $303.95 million 346.56

Evertec’s rivals have higher revenue and earnings than Evertec. Evertec is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Evertec rivals beat Evertec on 8 of the 15 factors compared.

About Evertec

EVERTEC, Inc. is a transaction processing company. The Company provides a range of merchant acquiring, payment processing and business process management services. The Company operates through three segments: Merchant Acquiring, Payment Processing and Business Solutions. As of December 31, 2016, it managed a system of electronic payment networks that processed over two billion transactions annually. It offers a range of services for core bank processing, cash processing and technology outsourcing. It owns and operates the ATH network, which is a personal identification number (PIN) debit network in Latin America. It serves a range of financial institutions, merchants, corporations and government agencies with solutions that enable them to issue, process and accept transactions securely. The Company’s range of services spans the entire transaction processing value chain and includes a range of front-end customer-facing solutions.

Receive News & Ratings for Evertec Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Evertec and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply