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Evertec
(NYSE:EVTC)
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Rating:71Outperform
Price Target:
$35.00
▲(17.73% Upside)
Action:Upgraded
Date:08/06/26
EVTC scores well on technical momentum and a supportive earnings outlook (raised 2026 guidance and strong operational performance). The overall score is held back by fundamental risks—most notably higher leverage and margin compression—while valuation is reasonable but the dividend yield is modest.
Positive Factors
Raised growth outlook
Higher full-year guidance, backed by strong first-half execution, indicates sustained demand across payments and technology services. The outlook supports continued revenue expansion and earnings growth over the next several quarters.
Negative Factors
Elevated leverage
Debt increased materially after financing the Dimensa acquisition, reducing financial flexibility. Higher interest obligations and refinancing exposure could constrain investment or shareholder returns if earnings weaken or integration takes longer.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised growth outlook
Higher full-year guidance, backed by strong first-half execution, indicates sustained demand across payments and technology services. The outlook supports continued revenue expansion and earnings growth over the next several quarters.
Read all positive factors
Evertec (EVTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend Yield0.67%
Average Volume (3M)356.75K
Price to Earnings (P/E)19.3
Beta (1Y)0.71
Revenue Growth12.36%
EPS Growth-28.24%
CountryUS
Employees5,327
SectorTechnology
Sector Strength88
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.54
Shares Outstanding59,752,540
10 Day Avg. Volume420,801
30 Day Avg. Volume356,749
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)2.98
Price to Sales (P/S)1.99
P/FCF Ratio13.68
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
$37.00Price Target Upside24.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.99
Revenue Forecast (FY)$1.09B
Evertec Business Overview & Revenue Model
Company Description
EVERTEC, Inc. specializes in transaction processing services, with a strong presence throughout Latin America and the Caribbean. The company's operations are divided into distinct segments: Payment Services for Puerto Rico & the Caribbean, Payment...
How the Company Makes Money
Evertec makes money by charging fees for processing and enabling electronic transactions and for providing outsourced technology and business services. Its core revenue streams include: (1) Payment services: fees tied to merchant acquiring and pay...
Evertec Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational momentum: strong top-line growth (+20% reported, +16% constant currency), robust adjusted EBITDA and EPS expansion, meaningful commercial wins (Transbank, Clip), successful M&A to expand capabilities (Dimensa, BBChain), and an increased full-year revenue outlook. Offsetting items include a decline in Business Solutions revenue due to the Popular contract discount, margin mix pressure from lower-margin LatAm contributions, increased leverage after Dimensa financing, several nonrecurring charges and remediation costs from a cybersecurity incident, and below-EBITDA items tempering net income growth. Overall the positives — revenue/EBITDA growth, strategic commercial wins, raised guidance, and active capital allocation — outweigh the negatives, though margin mix and one-time items warrant monitoring.Positive Updates
Strong Quarter Revenue Growth
Total revenue of ~$275 million, up ~20% year-over-year on a reported basis and ~16% on a constant currency basis, driven by organic growth, recent acquisitions (Tecnobank, Dimensa) and favorable FX (notably Brazilian real).
Negative Updates
Business Solutions Revenue Decline
Business Solutions revenue of $59 million, down ~9% year-over-year; adjusted EBITDA fell ~13% to $23 million and margin contracted ~200 bps to 38.3% primarily due to a pre-announced 10% contractual discount to Popular that will pressure revenue (expected mid-single-digit decline for the division in 2026).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarter Revenue Growth
Total revenue of ~$275 million, up ~20% year-over-year on a reported basis and ~16% on a constant currency basis, driven by organic growth, recent acquisitions (Tecnobank, Dimensa) and favorable FX (notably Brazilian real).
Read all positive updates
Company Guidance
EVERTEC raised its 2026 guidance to reported revenue of $1.085–$1.095 billion (up 16.4%–17.5% YoY; constant-currency revenue growth 14.5%–15.6%), incorporating roughly a 200-basis-point foreign-currency tailwind, and expects adjusted EBITDA margin of 39%–40%. Adjusted EPS is now guided to grow 8.8%–11.7% from the $3.62 reported in 2025 (7.2%–10% on a constant-currency basis), with Dimensa expected to be EPS-neutral to slightly accretive in 2026. The outlook assumes an effective tax rate of ~11%–12%, capital expenditures of $90 million, and that higher interest expense, depreciation & amortization, and noncontrolling interest will temper net earnings conversion.Evertec Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
54
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 996.16M | 931.82M | 845.49M | 694.71M | 618.41M | 589.80M |
| Gross Profit | 431.96M | 462.69M | 439.07M | 357.95M | 325.79M | 339.63M |
| EBITDA | 359.93M | 344.74M | 322.20M | 211.29M | 371.24M | 279.58M |
| Net Income | 97.58M | 141.59M | 112.62M | 79.72M | 239.01M | 161.13M |
Balance Sheet | ||||||
| Total Assets | 2.48B | 2.24B | 1.86B | 2.06B | 1.13B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 260.66M | 305.99M | 273.64M | 295.60M | 185.27M | 266.35M |
| Total Debt | 1.32B | 1.13B | 966.58M | 986.41M | 446.97M | 486.57M |
| Total Liabilities | 1.76B | 1.53B | 1.34B | 1.42B | 657.00M | 674.49M |
| Stockholders Equity | 641.45M | 621.61M | 472.52M | 594.29M | 471.51M | 466.21M |
Cash Flow | ||||||
| Free Cash Flow | 191.12M | 135.51M | 171.64M | 126.24M | 137.37M | 146.76M |
| Operating Cash Flow | 231.57M | 227.01M | 260.06M | 211.19M | 219.90M | 228.42M |
| Investing Cash Flow | -424.50M | -238.24M | -118.28M | -507.93M | -133.32M | -83.82M |
| Financing Cash Flow | 146.53M | 28.45M | -152.56M | 416.37M | -153.31M | -81.28M |
Evertec Risk Analysis
Evertec disclosed 39 risk factors in its most recent earnings report. Evertec 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
Evertec Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.41B | 50.28 | 7.27% | ― | 6.31% | -48.91% | |
71 Outperform | $1.77B | 19.31 | 15.04% | 0.67% | 12.36% | -28.24% | |
67 Neutral | $1.93B | 42.92 | 19.61% | 0.70% | 12.20% | -13.97% | |
66 Neutral | $426.12M | 40.46 | 3.18% | ― | -8.15% | -91.81% | |
63 Neutral | $1.76B | 54.47 | 4.74% | ― | -6.77% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EVTC
Evertec
29.73
-5.81
-16.35%
ATEN
A10 Networks
25.53
8.72
51.89%
IIIV
I3 Verticals
16.65
-13.85
-45.41%
PAYO
Payoneer
7.09
0.44
6.62%
EVCM
EverCommerce
9.68
-1.51
-13.49%
Evertec Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Evertec Raises 2026 Outlook Amid Strong Q2 Performance
Positive
Aug 4, 2026
On August 4, 2026, Evertec reported second-quarter 2026 revenue of $274.8 million, up 20% year on year, with adjusted EBITDA rising 18% to $109.3 million and adjusted earnings per share climbing 18% to $1.05. Despite GAAP net income falling to $5....
Business Operations and StrategyDividends
Evertec Board Declares Ongoing Quarterly Cash Dividend
Positive
Jul 23, 2026
On July 23, 2026, Evertec’s board of directors declared a regular quarterly cash dividend of $0.05 per share on its common stock, to be paid on September 4, 2026 to shareholders of record as of August 3, 2026. The board indicated it anticipa...
Business Operations and StrategyRegulatory Filings and Compliance
Evertec Investigates Potential Data Breach at Third-Party Platform
Negative
Jun 9, 2026
On May 13, 2026, Evertec discovered potential unauthorized access to customer data involving a third-party support platform used by its financial institution clients. The company says the breach appears to involve transaction records, some custome...
Executive/Board ChangesShareholder Meetings
Evertec Stockholders Approve Directors, Pay and Auditor Oversight
Positive
May 21, 2026
On May 21, 2026, Evertec, Inc. held its 2026 Annual Meeting of Stockholders, where a quorum of 58,025,701 shares out of 61,620,344 outstanding shares was present in person or by proxy. Stockholders voted to elect the full slate of director nominee...
Business Operations and StrategyPrivate Placements and Financing
Evertec amends credit agreement, adds Term Loan B
Neutral
May 20, 2026
On May 18, 2026, Evertec, Inc. and its subsidiary Evertec Group, LLC entered into a sixth amendment to their existing credit agreement with a syndicate of lenders, with Truist Bank serving as administrative and collateral agent. The amendment esta...
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.