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Evertz Technologies
(TSX:ET)
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Rating:65Neutral
Price Target:
C$14.50
▼(-7.70% Downside)
Action:Reiterated
Date:09/17/26
Overall score reflects solid fundamentals (profitability and low leverage) and supportive valuation (moderate P/E and very high dividend yield), partially offset by sharply weaker recent cash generation/liquidity and clearly bearish technicals with the stock trading below key moving averages.
Positive Factors
Software and Services Growth
Rapid software and services growth is improving the mix toward solutions and support agreements rather than hardware alone. A larger recurring or repeat-use component can deepen customer integration, support revenue durability, and reduce dependence on individual equipment projects over time.
Negative Factors
Weaker Cash Conversion
Cash generation has weakened materially relative to reported earnings, and the sharp reduction in net cash leaves less immediate financial flexibility. If working-capital demands remain elevated, the company may have less capacity to fund investment, dividends, or unexpected operating needs internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Software and Services Growth
Rapid software and services growth is improving the mix toward solutions and support agreements rather than hardware alone. A larger recurring or repeat-use component can deepen customer integration, support revenue durability, and reduce dependence on individual equipment projects over time.
Read all positive factors
Evertz Technologies (ET) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.00B
Dividend Yield13.43%
Average Volume (3M)79.11K
Price to Earnings (P/E)17.2
Beta (1Y)0.71
Revenue Growth3.94%
EPS Growth-2.30%
CountryCA
Employees1,591
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.79
Shares Outstanding75,718,100
10 Day Avg. Volume45,705
30 Day Avg. Volume79,106
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)6.10
Price to Sales (P/S)2.34
P/FCF Ratio20.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.38Price Target Upside4.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.92
Revenue Forecast (FY)C$538.37M
Evertz Technologies Business Overview & Revenue Model
Company Description
Evertz Technologies Limited develops, manufactures, and distributes advanced video and audio infrastructure solutions globally. These offerings serve the demanding requirements of the production, post-production, broadcasting, and telecommunicatio...
How the Company Makes Money
Evertz primarily makes money by selling its proprietary hardware and software solutions used in professional video/audio and IP media workflows, and by providing related services and ongoing support. Key revenue streams typically include: (1) Prod...
Evertz Technologies Earnings Call Summary
Earnings Call Date:Sep 14, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. Revenue increased 5.5%, software and services revenue grew 14%, international revenue grew 17.5%, backlog and August shipments exceeded $289 million in total, and management cited strong order intake, product adoption and continued strategic investment. The principal concerns were the year-over-year gross margin decline, substantially lower cash balances due to inventory purchases, supply-chain delays during the quarter, higher stock compensation expense and a foreign exchange loss. Management nevertheless stated that margins were within target, supply constraints were not currently limiting shipments, tariffs were not materially affecting results, and it remained pleased with the quarter's performance.Positive Updates
Revenue Growth and Technology-Driven Demand
First-quarter sales totaled $118.3 million, up 5.5% from $112 million in the prior-year quarter. Management attributed the strong financial performance and combined shipments and purchase order backlog to channel and video services proliferation, increasing global demand for high-quality video, the transition to IP, IT and cloud-based architectures, and growing adoption of Evertz IP-based software-defined video networking and cloud solutions.
Negative Updates
Gross Margin Decline
Gross margin decreased to 58.6% from 61.4% in the prior-year quarter, although management stated that the current-quarter result remained within its target range.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth and Technology-Driven Demand
First-quarter sales totaled $118.3 million, up 5.5% from $112 million in the prior-year quarter. Management attributed the strong financial performance and combined shipments and purchase order backlog to channel and video services proliferation, increasing global demand for high-quality video, the transition to IP, IT and cloud-based architectures, and growing adoption of Evertz IP-based software-defined video networking and cloud solutions.
Read all positive updates
Company Guidance
Management said gross margins were “within our target range,” that component costs were “not affecting our margins at the moment,” and “we don't forecast a decrease at this time”; tariffs are “not materially impacting us” and are “not materially” expected to affect margin structure or U.S. growth, while AI-embedded software costs are “relatively negligible” and do not change the “margin profile.”Evertz Technologies Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 521.89M | 515.78M | 501.62M | 514.62M | 454.58M | 441.02M |
| Gross Profit | 301.40M | 305.99M | 298.50M | 302.44M | 268.26M | 255.31M |
| EBITDA | 95.79M | 104.57M | 99.56M | 114.12M | 100.28M | 107.10M |
| Net Income | 59.88M | 63.97M | 59.39M | 70.17M | 64.03M | 71.75M |
Balance Sheet | ||||||
| Total Assets | 443.62M | 424.99M | 469.49M | 484.72M | 436.65M | 420.98M |
| Cash, Cash Equivalents and Short-Term Investments | 18.78M | 19.12M | 111.67M | 86.33M | 12.47M | 33.90M |
| Total Debt | 29.09M | 13.74M | 18.87M | 23.22M | 28.82M | 26.85M |
| Total Liabilities | 245.58M | 223.71M | 198.19M | 218.04M | 190.57M | 187.33M |
| Stockholders Equity | 194.70M | 198.17M | 268.12M | 263.27M | 243.10M | 230.94M |
Cash Flow | ||||||
| Free Cash Flow | 23.29M | 57.55M | 91.68M | 135.12M | 47.24M | 63.20M |
| Operating Cash Flow | 42.44M | 76.25M | 99.63M | 144.67M | 53.81M | 68.67M |
| Investing Cash Flow | -19.42M | -17.83M | -6.73M | -2.26M | -17.12M | -4.96M |
| Financing Cash Flow | -126.27M | -147.13M | -71.43M | -70.21M | -58.02M | -137.52M |
Evertz Technologies Technical Analysis
Positive
15.71
Price Trends
13.23
Positive
13.98
Negative
13.41
Positive
Market Momentum
0.15
Negative
64.48
Neutral
85.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ET, the sentiment is Positive. The current price of 15.71 is above the 20-day moving average (MA) of 12.74, above the 50-day MA of 13.23, and above the 200-day MA of 13.41, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 85.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ET.
Evertz Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$326.30M | 100.75 | 1.49% | 1.64% | 5.15% | ― | |
65 Neutral | C$1.00B | 17.15 | 27.94% | 13.43% | 3.94% | -2.30% | |
63 Neutral | C$68.33M | 33.33 | 14.53% | ― | 10.20% | 223.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | C$338.52M | -4.73 | -56.86% | 3.45% | 2.65% | -154.00% | |
51 Neutral | C$877.01M | -2.39 | -76.45% | ― | -26.09% | -240.46% | |
43 Neutral | C$36.34M | -92.39 | -1.69% | 4.17% | -26.68% | -92.00% |
* Technology Sector Average
TSE:ET
Evertz Technologies
13.58
5.13
60.69%
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Evertz Technologies Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Evertz Shareholders Back Board Slate and Auditor at 2026 AGM
Positive
Oct 7, 2026
Evertz Technologies reported the results of its 2026 annual general meeting of shareholders held in Burlington, Ontario, where all seven management-nominated directors were elected to the board with strong majority support. The voting results show...
Financial Disclosures
Evertz Technologies Sets Date for Q1 2027 Earnings Release and Call
Neutral
Sep 4, 2026
Evertz Technologies Limited, a TSX-listed provider of video and audio infrastructure solutions, supplies hardware and software that underpin complex broadcast and media workflows across television, telecoms, professional AV, education, government,...
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.