📊 EVTC Key Takeaways
Is EVERTEC, Inc. (EVTC) a Good Investment?
EVERTEC demonstrates solid revenue growth (10.2% YoY) and positive free cash flow, but faces deteriorating profitability with net income declining despite growing revenue. Critically weak returns on capital (ROE 3.6%, ROA 1.0%) coupled with elevated leverage (1.56x D/E) and tight interest coverage (2.2x) suggest capital is not being deployed efficiently and debt service capacity is limited.
EVERTEC shows strong fundamental quality through double-digit revenue growth, solid 20.0% operating margins, and excellent free cash flow generation with a 21.9% FCF margin. Financial health is generally sound given strong liquidity and 9.4x interest coverage, but flat net income and relatively elevated leverage suggest the business is solid rather than exceptionally de-risked.
Why Buy EVERTEC, Inc. Stock? EVTC Key Strengths
- Double-digit revenue growth at 10.2% YoY indicates market demand for processing services
- Strong liquidity with current ratio of 1.97x and cash reserves of $290.9M provide financial flexibility
- Positive free cash flow of $24.9M (10% FCF margin) demonstrates underlying business cash generation capability
- Revenue grew 10.2% year over year while maintaining strong 20.0% operating and 15.2% net margins
- Free cash flow generation is robust at $203.67M, with a high 21.9% FCF margin and low capital intensity
- Liquidity is healthy with a 2.07x current ratio, and interest coverage of 9.4x supports debt servicing capacity
EVTC Stock Risks: EVERTEC, Inc. Investment Risks
- Net income declining 2.1% YoY despite revenue growth signals operating efficiency deterioration or margin compression
- Dangerously low interest coverage ratio of 2.2x leaves minimal cushion for debt service given $1.0B long-term debt obligations
- Extremely poor returns on capital (ROE 3.6%, ROA 1.0%) indicate significant capital destruction and inefficient asset deployment
- Elevated debt-to-equity ratio of 1.56x amplifies financial risk if operating performance further deteriorates
- Net income was flat year over year, which may indicate profit growth is lagging revenue growth
- Leverage is elevated with debt-to-equity at 1.69x and long-term debt of $1.05B
- Missing gross profit and gross margin data limits visibility into underlying cost structure trends
Key Metrics to Watch
- Operating margin trend and net income growth trajectory
- Interest coverage ratio sustainability and debt refinancing capacity
- Return on equity and asset utilization efficiency improvements
- Free cash flow consistency and debt reduction progress
- Net income growth relative to revenue growth
- Debt reduction and interest coverage trends
EVERTEC, Inc. (EVTC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
EVERTEC, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EVTC Profit Margin, ROE & Profitability Analysis
EVTC vs Technology Sector: How EVERTEC, Inc. Compares
How EVERTEC, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EVERTEC, Inc. Stock Overvalued? EVTC Valuation Analysis 2026
Based on fundamental analysis, EVERTEC, Inc. shows some fundamental concerns 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.
EVERTEC, Inc. Balance Sheet: EVTC Debt, Cash & Liquidity
EVTC Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
EVTC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $228.8M | $23.8M | $0.38 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EVERTEC, Inc. Dividends, Buybacks & Capital Allocation
EVTC SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EVTC's key strengths?
Claude: Double-digit revenue growth at 10.2% YoY indicates market demand for processing services. Strong liquidity with current ratio of 1.97x and cash reserves of $290.9M provide financial flexibility. ChatGPT: Revenue grew 10.2% year over year while maintaining strong 20.0% operating and 15.2% net margins. Free cash flow generation is robust at $203.67M, with a high 21.9% FCF margin and low capital intensity.
What are the risks of investing in EVTC?
Claude: Net income declining 2.1% YoY despite revenue growth signals operating efficiency deterioration or margin compression. Dangerously low interest coverage ratio of 2.2x leaves minimal cushion for debt service given $1.0B long-term debt obligations. ChatGPT: Net income was flat year over year, which may indicate profit growth is lagging revenue growth. Leverage is elevated with debt-to-equity at 1.69x and long-term debt of $1.05B.
What is EVTC's revenue and growth?
EVERTEC, Inc. reported revenue of $247.9M.
Does EVTC pay dividends?
EVERTEC, Inc. pays dividends, with $3.1M 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 $0.38.
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 May 2026, EVERTEC, Inc. has a BUY rating with 67% 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 3.6% (sector avg: 22%), net margin of 9.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
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 $31.2M, with capital expenditures of $6.3M. FCF margin is 10.0%.
How does EVTC compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.6% (avg: 18%), ROE 3.6% (avg: 22%), current ratio 1.97 (avg: 2.5).
Is EVERTEC, Inc. carrying too much debt?
EVTC has a debt-to-equity ratio of 1.56x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.97 suggests adequate short-term liquidity.