EVTC — EVERTEC, Inc.
Snapshot dated August 31, 2026.
EVERTEC, Inc. operates as a transaction processing business primarily serving the Caribbean and Latin American regions. The company provides a range of merchant acquiring, payment processing, and business solutions, utilizing proprietary technology infrastructure that supports a wide array of financial institutions and merchants. Its operations are organized into segments that include Merchant Acquiring, Payment Services, and Business Solutions, which collectively enable the digital movement of money across diverse retail and commercial ecosystems. The company maintains an extensive footprint in Puerto Rico, where it serves as a central player in the local financial technology infrastructure, and has expanded its presence into multiple other Latin American markets. While it acts as a provider to large financial institutions, it also develops its own point-of-sale software and payment gateway technologies for smaller enterprises. Recently, the company has focused on strategic geographic expansion, increasing its investments in software-as-a-service platforms to diversify its revenue streams beyond traditional processing fees.
Fair Value / Share
$37.43
Price on August 31, 2026
$29.64
Upside to fair value
26.28%
Margin of safety 20.8%
Upside is measured against what you pay; margin of safety is measured against what the business is worth.
Data by Equibles and SEC filings. Figures are as of August 31, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$29.64
Market Cap
$1,821,270,525
Net Income (TTM)
$97,578,000
Diluted Shares
61.4 million
EPS (TTM)
$1.59
Earnings Yield
5.36%
AI Analysis
At a share price of $29.64 and an EPS (TTM) of $1.59, EVERTEC, Inc. currently produces an earnings yield of 5.36%. This figure sits slightly above the 4-5% annual return typically available from a safe alternative like a bond. Mechanically, this yield indicates that the current market price is not discounting future growth as heavily as companies with lower yields, suggesting the current price is less sensitive to expectations of aggressive earnings expansion. The yield would rise if the stock price fell relative to earnings, or if the company increased its annual net income while the price remained constant. This measure captures the current cost of earnings but does not account for the company's debt levels, future capital expenditures, or the stability of its underlying cash flows.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$178,653,000
Net Working Capital
$46,019,000
Net Fixed Assets
—
Invested Capital
—
Return on Capital
—
AI Analysis
EVERTEC, Inc. reports EBIT of $178.7M. The provided data indicates that net working capital is $46M, while net fixed assets are not available for this calculation. Consequently, the return on capital is not applicable, as the total invested capital figure required for the denominator cannot be derived from the provided components. When calculating this metric, the framework aims to identify how much profit a company generates for every dollar of tangible operating capital tied up in the business, with a benchmark of 30% or more considered an efficient use of capital. Because specific figures for net fixed assets were not available, this analysis cannot determine the company's precise capital efficiency relative to that standard. Future assessments would require a complete breakdown of net fixed assets to allow for a calculation of the total invested capital and the subsequent return on capital ratio.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| EVTCEVERTEC, Inc. | $178.7M | $2.9B | 16.4x |
Where EVTC sits: There is no usable peer multiple to compare against, so no comparison can be drawn.
Show the enterprise value bridge for each companyHide the enterprise value bridge
EVTC
Debt $1.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $37.6M of operating lease liabilities as of 2026-06-30 ($31.8M non-current, $5.8M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — EVTC
AI Analysis
The Acquirer's Multiple for EVERTEC, Inc. (EVTC) is 16.4x, calculated by dividing its enterprise value of $2.9B by its TTM operating earnings of $178.7M. This multiple indicates the number of years of operating earnings required to equal the business's enterprise value. Regarding the computed comparison, there is no usable peer multiple to compare against, so no comparison can be drawn. This measure provides a view of core operating profitability independent of financing or tax distortions, though it does not account for capital structure differences or variations in reinvestment needs. The multiple would shift if the company's operating earnings changed or if the market-determined enterprise value fluctuated.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
Current Profitability is strong, with the business clearing all three checks for current-period income and cash generation.
- The company generated a positive Return on Assets of 6.31%
- Free Cash Flow to Total Assets reached 9.08%
- Operating cash flow is 1.6 times higher than net income, suggesting high-quality earnings
This score indicates the company is generating real cash alongside accounting profits, and a reversal in cash conversion or a drop in return on assets below zero would weaken this result.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
3/3
Stability is strong as the company successfully managed its debt levels and share count while improving its short-term liquidity.
- Long-term debt relative to total assets decreased from 0.5 to 0.47
- The current ratio rose from 1.89 to 2.07, indicating improved liquidity
- Diluted shares outstanding fell from 65.1 million shares to 64.4 million shares
The score reflects a stable capital structure; it would change if the company were to issue new equity or if debt levels rose relative to the asset base.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
1/4
Recent Operational Improvements are weak, with three out of four checks failing to show year-over-year progress.
- Return on Assets improved slightly from 6.06% to 6.31%
- Free Cash Flow to Total Assets declined from 12.63% to 9.08%
- Gross Margin data for the period is not available
- Asset Turnover fell from 0.46 to 0.42
This section flags a slowdown in operational efficiency, specifically in asset turnover and cash flow generation, which suggests the business is becoming less productive with its assets.
Change in ROA (↑)
PassChange in FCFTA (↑)
FailChange in Gross Margin (↑)
—Change in Asset Turnover (↑)
FailFramework conclusion
The company earned a total score of 7/10, which indicates a solid but mixed financial profile. While current profitability and stability remain high, the weak score in operational improvements suggests a slowdown in efficiency. This total score helps distinguish whether the company's valuation reflects a temporary lack of momentum or a more fundamental deterioration in its ability to generate cash and manage its balance sheet.
- Return on Assets improved year-over-year to 6.31%
- Asset Turnover declined from 0.46 to 0.42
- Free Cash Flow to Total Assets dropped from 12.63% to 9.08%
- Net dilution decreased as share count fell to 64.4 million shares
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$208.4M
+ After-Tax Interest Expense
$57.5M
= Unlevered Free Cash Flow
$265.9M
Business value (10-year DCF)
PV of Years 1–10
$1.8B
PV of Terminal Value
$1.5B
= Business Value
$3.3B
Terminal value share
45.7%
Business value → share value
Intrinsic Value (business)
$3.3B
+ Cash & Equivalents
$260.7M
− Debt
$1.3B
= Shareholders' Value
$2.3B
÷ Diluted Shares
61.4 million
= Fair Value / Share
$37.43
Divided by 61.4 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$265.9M
Trailing twelve months.
FY2023 $189.8M · FY2024 $234.7M · FY2025 $203.7M
Growth rate (yrs 1–10)
5%
Terminal growth (after yr 10)
3%
AI Analysis
The valuation of EVERTEC, Inc. uses a mid-risk discount rate of 12%, reflecting a business model centered on payment processing that faces inherent market pressures, balanced against relatively stable historical cash flows. The forecast begins with a fixed Year-1 FCF of $265.9M. To project the next decade, a growth rate of 5.00% is applied, aligning with the company's historical cash flow fluctuations. Beyond year 10, the model applies a fixed 3% terminal growth rate, intended to approximate long-term economic expansion rather than specific company performance. The terminal value represents 45.7% of the total business value, highlighting that a significant portion of this estimate depends on long-term projections. The fair value per share is computed by summing the present value of forecasted cash flows ($1.8B) and the present value of the terminal value ($1.5B), adding cash of $260.7M, subtracting debt of $1.3B, and dividing by 61.4 million shares. This results in a fair value per share of $37.43. Against the current price of $29.64, this indicates a margin of safety of 26.28%, which serves as the buffer for potential errors in the underlying assumptions. Because such a large portion of the intrinsic value relies on the terminal value, the result is most sensitive to the growth rate assumption applied to the first 10 years, as even minor adjustments here compound significantly across the entire model.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
5.36% vs ~4-5% bond-yield benchmark
Return on Capital
No usable signal for this company
Acquirer's Multiple
No usable signal for this company
FS-Score
7/10 — Solid but mixed
Intrinsic Value
26.28% upside to fair value
The measurements for EVTC present a split view between the company's operational health and its price relative to our framework. The FS-Score of 7/10 suggests a solid operational performance, indicating stability, though the score is not perfect. On the valuation side, the Earnings Yield of 5.36% sits slightly above the bond-yield benchmark of ~4-5%, and the Intrinsic Value shows a 26.28% margin of safety, pointing toward a price below the estimated fair value. However, the framework could not produce a Return on Capital or an Acquirer's Multiple, meaning two key inputs for assessing capital efficiency and acquisition-based valuation are unavailable. This gap limits the ability to confirm if the operational metrics fully support the current valuation. The overall picture is centered on a disagreement between the measurable margin of safety and the missing data points regarding capital efficiency. An improvement or availability of the Return on Capital figure would shift this assessment most significantly by clarifying the company's internal efficiency.
Comments
Notes from readers on EVTC — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
Loading comments…