📊 EVTC Key Takeaways
Is EVTC a Good Investment? Thesis Analysis
EVERTEC demonstrates solid operational execution with 10.2% revenue growth, strong profitability metrics (20% operating margin, 15.2% net margin), and excellent cash generation (21.9% FCF margin). The company maintains healthy liquidity (2.07x current ratio) and serviceable leverage (1.69x debt/equity, 9.4x interest coverage), though the modest net income growth (0.0% YoY despite revenue growth) warrants close monitoring.
Why Buy EVTC? Key Strengths
- Strong free cash flow generation ($203.7M) covering 89.7% of operating cash flow demonstrates capital efficiency
- Healthy operating margins (20%) and net margins (15.2%) indicate solid pricing power and operational control
- Robust return metrics (22.8% ROE, 6.3% ROA) show effective capital deployment despite high leverage
- Solid liquidity position with $306M cash and 2.07x current ratio provides financial flexibility
- Revenue growth of 10.2% YoY shows market demand for services
EVTC Investment Risks to Consider
- Flat net income growth (0.0% YoY) despite 10.2% revenue growth suggests margin compression or increased expenses
- High leverage (1.69x debt/equity, $1.1B long-term debt) limits financial flexibility and increases refinancing risk
- Significant insider trading activity (19 Form 4 filings in 90 days) may signal uncertainty or cash needs
- Missing gross margin data obscures pricing trends and product mix dynamics
- ROA of only 6.3% relative to 22.8% ROE indicates heavy reliance on leverage rather than asset efficiency
Key Metrics to Watch
- Net income growth trajectory - critical to confirm margin expansion resumes
- Operating margin sustainability - verify 20% margin is maintainable amid competitive pressures
- Debt reduction progress - monitor ability to delever and reduce financial risk
- Free cash flow consistency - ensure 21.9% FCF margin continues to fund operations and debt service
EVTC Financial Metrics
💡 AI Analyst Insight
The 21.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.07x current ratio provides a solid financial cushion.
EVTC Profitability Ratios
EVTC vs Technology Sector
How EVERTEC, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EVTC Overvalued or Undervalued?
Based on fundamental analysis, EVERTEC, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EVTC Balance Sheet & Liquidity
EVTC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EVERTEC, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.21 reflects profitable operations.
EVTC Growth Metrics (YoY)
EVTC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $211.8M | $24.7M | $0.38 |
| Q2 2025 | $212.0M | $31.9M | $0.49 |
| Q1 2025 | $205.3M | $16.0M | $0.24 |
| Q3 2024 | $173.2M | $10.0M | $0.15 |
| Q2 2024 | $167.1M | $28.2M | $0.43 |
| Q1 2024 | $159.8M | $16.0M | $0.24 |
| Q3 2023 | $145.8M | $10.0M | $0.15 |
| Q2 2023 | $160.6M | $28.2M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EVTC Capital Allocation
EVTC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EVERTEC, Inc. (CIK: 0001559865)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EVTC
What is the AI rating for EVTC?
EVERTEC, Inc. (EVTC) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EVTC's key strengths?
Claude: Strong free cash flow generation ($203.7M) covering 89.7% of operating cash flow demonstrates capital efficiency. Healthy operating margins (20%) and net margins (15.2%) indicate solid pricing power and operational control.
What are the risks of investing in EVTC?
Claude: Flat net income growth (0.0% YoY) despite 10.2% revenue growth suggests margin compression or increased expenses. High leverage (1.69x debt/equity, $1.1B long-term debt) limits financial flexibility and increases refinancing risk.
What is EVTC's revenue and growth?
EVERTEC, Inc. reported revenue of $931.8M.
Does EVTC pay dividends?
EVERTEC, Inc. pays dividends, with $12.8M distributed to shareholders in the trailing twelve months.
Where can I find EVTC SEC filings?
Official SEC filings for EVERTEC, Inc. (CIK: 0001559865) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EVTC's EPS?
EVERTEC, Inc. has a diluted EPS of $2.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EVTC a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EVERTEC, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EVTC stock overvalued or undervalued?
Valuation metrics for EVTC: ROE of 22.8% (sector avg: 22%), net margin of 15.2% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy EVTC stock in 2026?
Our dual AI analysis gives EVERTEC, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EVTC's free cash flow?
EVERTEC, Inc.'s operating cash flow is $227.0M, with capital expenditures of $23.3M. FCF margin is 21.9%.
How does EVTC compare to other Technology stocks?
Vs Technology sector averages: Net margin 15.2% (avg: 18%), ROE 22.8% (avg: 22%), current ratio 2.07 (avg: 2.5).