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Everforth
(NYSE:EFOR)
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Rating:55Neutral
Price Target:
$33.00
▲(60.19% Upside)
Action:Reiterated
Date:07/30/26
EFOR scores in the mid-range primarily due to deteriorating fundamentals (sharp TTM revenue decline, compressed margins, rising leverage, and weakening FCF growth). The earnings call provides some stabilization positives (Q2 margin improvement guidance, strong commercial book-to-bill and sizable federal backlog), while valuation is relatively modest (P/E ~10.3). Technically, the stock shows a short-term rebound above the 20/50-day averages but remains in a longer-term downtrend below the 100/200-day averages.
Positive Factors
Federal backlog visibility
A ~ $2.8B federal backlog representing ~2.4x coverage of federal TTM revenues gives multi-quarter revenue visibility and reduces near-term top-line volatility. This backlog supports steady utilization of delivery teams and underpins planning for higher-margin federal work over coming quarters.
Negative Factors
Steep revenue decline
A 34% TTM revenue decline materially erodes scale and operating leverage. Sustained top-line contraction pressures utilisation, pricing power and the ability to invest in higher-margin offerings. Recovery requires durable demand improvements and successful conversion of backlog and bookings.
Read all positive and negative factors
Positive Factors
Negative Factors
Federal backlog visibility
A ~ $2.8B federal backlog representing ~2.4x coverage of federal TTM revenues gives multi-quarter revenue visibility and reduces near-term top-line volatility. This backlog supports steady utilization of delivery teams and underpins planning for higher-margin federal work over coming quarters.
Read all positive factors
Everforth (EFOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)16.3
Beta (1Y)0.96
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. Volume884,954
30 Day Avg. Volume1,003,425
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.80Price Target Upside30.10% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.64
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...
How the Company Makes Money
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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
Neutral
20.60
Price Trends
22.13
Positive
25.01
Positive
35.22
Negative
Market Momentum
3.50
Negative
71.73
Negative
79.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFOR, the sentiment is Neutral. The current price of 20.6 is below the 20-day moving average (MA) of 27.03, below the 50-day MA of 22.13, and below the 200-day MA of 35.22, indicating a neutral trend. The MACD of 3.50 indicates Negative momentum. The RSI at 71.73 is Negative, neither overbought nor oversold. The STOCH value of 79.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $687.65M | 6.30 | 24.65% | ― | 11.38% | 69.06% | |
69 Neutral | $1.68B | 2.67 | 59.71% | 1.77% | 3.32% | 665.04% | |
67 Neutral | $1.61B | 14.49 | 5.33% | ― | -1.26% | 2.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.30B | 16.32 | 4.59% | ― | -0.95% | -38.61% | |
54 Neutral | $1.72B | 14.20 | 4.06% | ― | -2.42% | -65.01% | |
45 Neutral | $1.54B | -2.96 | -63.91% | ― | -35.67% | -49.96% |
* Technology Sector Average
EFOR
Everforth
31.67
-21.10
-39.98%
FORTY
Formula Systems
107.99
-7.84
-6.77%
GLOB
Globant SA
37.38
-30.90
-45.25%
DXC
DXC Technology
10.79
-3.13
-22.49%
AI
C3ai
9.93
-8.27
-45.44%
TASK
TaskUs
7.50
-3.76
-33.36%
Everforth Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Everforth Upsizes Revolving Credit Facility, Boosts Liquidity
Positive
Jul 9, 2026
On July 7, 2026, Everforth, Inc. amended its credit agreement to refinance and upsize its revolving credit facility from $500 million to $600 million, extend the potential maturity to 2031 and adjust pricing to a SOFR-based range tied to leverage,...
Executive/Board ChangesShareholder Meetings
Everforth Shareholders Back Directors, Pay and Auditor Choices
Positive
Jun 16, 2026
At Everforth’s 2026 Annual Meeting of Stockholders, held with 38,990,956 shares represented by proxy as of the April 16, 2026 record date, shareholders elected Mark A. Frantz, Carol J. Lindstrom and Arshad Matin to the Board to serve until t...
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.