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Everforth
(NYSE:EFOR)
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Rating:56Neutral
Price Target:
$37.00
▲(17.24% Upside)
Action:Reiterated
Date:08/18/26
EFOR’s score is held back primarily by deteriorating fundamentals (sharp TTM revenue decline, margin compression, weakening cash flow momentum and rising leverage). The earnings call provides a partial offset due to execution versus guidance and improving commercial bookings/AI initiatives, while technicals are supportive in the intermediate term but look overbought. Valuation is roughly neutral with a mid-range P/E and no dividend yield support provided.
Positive Factors
Commercial bookings momentum
Strong commercial bookings and a 1.2x trailing book-to-bill indicate demand is exceeding recognized revenue in this segment. Sustained booking momentum can support future revenue visibility, improve utilization, and help offset weakness elsewhere in the business.
Negative Factors
Revenue decline and margin compression
A sharp revenue contraction combined with materially lower net margins signals weakened operating leverage and reduced earnings resilience. Even with stable gross margins, sustained pressure below gross profit can constrain reinvestment, debt reduction, and the company's ability to absorb further demand weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial bookings momentum
Strong commercial bookings and a 1.2x trailing book-to-bill indicate demand is exceeding recognized revenue in this segment. Sustained booking momentum can support future revenue visibility, improve utilization, and help offset weakness elsewhere in the business.
Read all positive factors
Everforth (EFOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend YieldN/A
Average Volume (3M)710.82K
Price to Earnings (P/E)19.3
Beta (1Y)0.91
Revenue Growth-0.95%
EPS Growth-38.61%
CountryUS
Employees2,800
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.94
Shares Outstanding41,000,000
10 Day Avg. Volume694,685
30 Day Avg. Volume710,815
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.16
Price to Sales (P/S)0.53
P/FCF Ratio7.26
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit1.84
Enterprise Value/Ebitda6.70
Forecast
1Y Price Target
$36.25Price Target Upside14.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)3.62
Revenue Forecast (FY)$3.97B
Everforth Business Overview & Revenue Model
Company Description
Everforth, Inc. delivers a comprehensive array of information technology services and solutions, structured into two core operational divisions: Commercial and Federal Government. The Commercial division focuses on offering expert consulting, inno...
Everforth Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and strategic backdrop: revenue beat, adjusted EBITDA and margin exceeded guidance, commercial bookings accelerated (notably Workday), AI productization and internal automation initiatives showed meaningful progress, and Quinnox integration and refinancing improved strategic positioning. Offsetting these positives were modest year-over-year revenue declines in both segments, margin pressure from mix and FX, free cash flow conversion below target (48% of adjusted EBITDA), elevated net leverage (3.1x), a cautious federal book-to-bill (0.8x TTM), and continued near-term strategic spend that contributes to guidance uncertainty. On balance, the positives (beat, bookings momentum, AI/product and capital actions) outweigh the negatives, but management still faces execution tasks to improve cash conversion and lower leverage.Positive Updates
Revenue Beat and Guidance Outperformance
Q2 revenues exceeded $1.0 billion, coming in above the high end of management's guidance range. Third-quarter revenue guidance is $994 million to $1.024 billion.
Negative Updates
Year-over-Year Revenue Declines
Commercial revenues were $701.7 million, down 0.9% year-over-year. Federal Government revenues were $305.3 million, down 2.3% year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Guidance Outperformance
Q2 revenues exceeded $1.0 billion, coming in above the high end of management's guidance range. Third-quarter revenue guidance is $994 million to $1.024 billion.
Read all positive updates
Company Guidance
Management's Q3 guidance calls for revenues of $994 million to $1.024 billion, net income of $14.5 million to $23 million, adjusted EBITDA of $95 million to $105 million and an adjusted EBITDA margin of 9.6%–10.3%, and assumes no further market deterioration while including $7.5 million–$9.5 million of strategic planning expenses (down from $12.8M in Q1 and $9.8M in Q2). For context, Q2 results were: revenues >$1.0B, adjusted EBITDA $96.7M (9.6% margin), net income $14.2M, gross margin 28.3% (Commercial 32.1%, Federal 19.6%), SG&A $226.2M, and free cash flow $46.3M (48% of EBITDA); the company targets 60%–65% FCF-to-EBITDA conversion for the full year. Balance-sheet and capital-allocation metrics highlighted: cash $152.9M, $11.5M deployed to repurchase 0.4M shares at an average $30.07 (≈$923M remaining authorization), $23.9M debt repaid in Q2, ~$180M available on the prior $500M revolver, net leverage 3.1x (new 5‑year $600M facility closed leverage‑neutral at 3.1x) with a goal to reach ≤2.5x, and a stated priority of debt repayment followed by opportunistic share repurchases.Everforth Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.97B | 3.98B | 4.10B | 4.45B | 4.58B | 4.01B |
| Gross Profit | 1.13B | 1.15B | 1.18B | 1.28B | 1.37B | 1.14B |
| EBITDA | 311.30M | 343.80M | 400.70M | 464.40M | 500.90M | 440.50M |
| Net Income | 83.00M | 113.50M | 175.20M | 219.30M | 268.10M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 4.02B | 3.68B | 3.43B | 3.54B | 3.59B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 52.20M | 161.20M | 205.20M | 175.90M | 70.30M | 529.60M |
| Total Debt | 1.44B | 1.17B | 1.10B | 1.11B | 1.12B | 1.10B |
| Total Liabilities | 2.22B | 1.87B | 1.65B | 1.65B | 1.68B | 1.64B |
| Stockholders Equity | 1.81B | 1.80B | 1.78B | 1.89B | 1.90B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | 221.10M | 288.10M | 364.70M | 417.00M | 270.30M | 159.00M |
| Operating Cash Flow | 256.90M | 327.90M | 400.00M | 456.90M | 307.80M | 193.70M |
| Investing Cash Flow | -317.40M | -343.90M | -35.30M | -40.50M | -510.00M | 246.50M |
| Financing Cash Flow | 74.60M | -29.40M | -333.20M | -310.90M | -256.50M | -184.40M |
Everforth Technical Analysis
Positive
31.56
Price Trends
32.52
Positive
26.09
Positive
32.81
Positive
Market Momentum
1.36
Negative
65.74
Neutral
69.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFOR, the sentiment is Positive. The current price of 31.56 is below the 20-day moving average (MA) of 33.97, below the 50-day MA of 32.52, and below the 200-day MA of 32.81, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFOR.
Everforth Risk Analysis
Everforth disclosed 30 risk factors in its most recent earnings report. Everforth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Everforth Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.57B | 14.05 | 5.33% | ― | -1.26% | 2.59% | |
67 Neutral | $5.84B | 15.28 | 11.19% | ― | 10.76% | 4.93% | |
66 Neutral | $644.96M | 289.27 | 0.54% | ― | 8.57% | -83.36% | |
65 Neutral | $16.64B | 12.87 | 15.58% | 5.10% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.54B | 19.33 | 4.59% | ― | -0.95% | -38.61% | |
46 Neutral | $112.98M | -0.19 | -88.28% | ― | -2.00% | -2798.10% |
* Technology Sector Average
EFOR
Everforth
37.50
-9.39
-20.03%
EPAM
Epam Systems
113.24
-33.46
-22.81%
WIT
Wipro
1.70
-0.90
-34.69%
GLOB
Globant SA
36.32
-23.03
-38.80%
DAVA
Endava
2.01
-6.38
-76.04%
GDYN
Grid Dynamics Holdings
7.95
0.26
3.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.