📊 EVTC Key Takeaways
Is EVERTEC, Inc. (EVTC) a Good Investment?
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.
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
- 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
- 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
- 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
- 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
- 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
- Net income growth relative to revenue growth
- Debt reduction and interest coverage trends
EVERTEC, Inc. (EVTC) Financial Metrics & Key Ratios
💡 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 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. 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.
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 |
|---|---|---|---|
| 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.
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 (BUY) and ChatGPT (BUY) with 77% combined 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. 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: 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. 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 $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 April 2026, EVERTEC, Inc. has a BUY rating with 77% 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).
Is EVERTEC, Inc. carrying too much debt?
EVTC has a debt-to-equity ratio of 1.69x, which is above the Technology sector average of 0.5x. However, the current ratio of 2.07 suggests adequate short-term liquidity.