EVTC — EVERTEC, Inc.
Snapshot dated August 20, 2026.
EVERTEC, Inc. operates as a transaction processing business in Latin America and the Caribbean, providing merchant acquiring, payment processing, and business solutions. The company serves a diverse client base that includes financial institutions, retailers, and government agencies, managing a massive electronic transaction network across the region. It primarily generates revenue through service fees based on the volume and value of transactions processed through its systems.
Fair Value / Share
$37.04
Price on August 20, 2026
$29.83
Margin of Safety
24.17%
Data by Equibles and SEC filings. Figures are as of August 20, 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
$29.83
Market Cap
$1,832,945,336
Net Income (TTM)
$97,578,000
Diluted Shares
61.4 million
EPS (TTM)
$1.59
Earnings Yield
5.32%
AI Analysis
With a stock price of $29.83 and an EPS (TTM) of $1.59, EVERTEC, Inc. currently displays an earnings yield of 5.32%. This sits above the 4-5% return available from a safe, guaranteed bond alternative. Mechanically, this indicates that for every dollar of the company's current annual earnings, the market price reflects a slightly higher return than that benchmark. If the share price were to rise while earnings remained constant, the yield would compress toward the benchmark, implying higher growth expectations from the market. Conversely, if earnings were to increase without a price change, the yield would expand. This measure does not account for potential future shifts in interest rates or the specific risks affecting the company's operating 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
$51,810,000
Net Fixed Assets
$66,297,000
Invested Capital
$118,107,000
Return on Capital
151.26%
AI Analysis
EVERTEC, Inc. (EVTC) demonstrates a high level of capital efficiency according to this framework. By taking the TTM EBIT of $178.7M and dividing it by the total invested capital of $118.1M—calculated as the sum of $51.8M in net working capital and $66.3M in net fixed assets—the result is a return on capital of 151.26%. This significantly exceeds the 15% benchmark used to identify efficient capital use. This result indicates that the business is able to generate substantial operating profit relative to the tangible capital currently tied up in its operations. This figure would change if the company’s operating profitability shifted or if its requirement for tangible assets, such as property or equipment, increased significantly. This measure focuses strictly on tangible operating capital, meaning it does not capture the value of intangible assets or the potential impact of heavy reinvestment cycles often seen in early-stage growth businesses.
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 |
|---|---|---|---|
| FISVFiserv, Inc. | $4.5B | $54.9B | 12.3x |
| EVTCEVERTEC, Inc. | $170.9M | $2.9B | 17.2x |
Where EVTC sits: 17.2x against a peer median of 12.3x (peers: 12.3x) — 39.7% above the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
EVTC
Debt $1.3B. Reported total debt of $1.3B less $37.6M of operating lease liabilities, which the filing shows are operating leases rather than borrowings. Operating lease cost is already inside operating earnings, so counting the liability again as debt would charge the business twice for the same thing. That is 2.8% below the $1.3B the data provider reports as total debt.
FISV
Named as a competitor: provides global merchant acquiring, card processing, and core financial technology services
Debt $27.9B. This is the company's reported total debt, kept in full. Lease treatment not verified against the filing. The data provider reports $126M of lease obligations inside total debt, and the filing does not say clearly whether those are finance leases (which count as debt here) or operating leases (which do not). The larger figure has been kept, which overstates debt rather than understating it.
Operating earnings — EVTC
AI Analysis
The Acquirer’s Multiple is calculated by dividing a company's enterprise value—the total cost to purchase the business—by its operating earnings, a measure of core profitability excluding financing and tax effects. EVERTEC, Inc. (EVTC) has an enterprise value of $2.9B and operating earnings of $170.9M, resulting in an Acquirer’s Multiple of 17.2x. Competitor FISV trades at an Acquirer’s Multiple of 12.3x, derived from an enterprise value of $54.9B and operating earnings of $4.5B. EVTC shows 17.2x against a peer median of 12.3x (peers: 12.3x) — 39.7% above the median. In this comparison, EVTC holds the higher multiple. Differences in this ratio would require either a shift in operating earnings through changes in core margins, or an adjustment in enterprise value due to changes in debt levels, cash positions, or the market’s capitalization of the equity. Since this metric assumes a uniform capital structure and business model, the gap may also reflect underlying variations in how each company utilizes debt or manages capital intensity.
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
This section is Strong because the business remains profitable and cash-generative, meeting all three benchmarks for current results.
- ROA is positive at 6.31%
- FCFTA is positive at 6.04%
- Accruals show cash-backed earnings with a CFO / Net Income ratio of 1.6
The score reflects high-quality earnings where cash flow from operations exceeds accounting profit, though a decline in cash conversion relative to assets 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
The stability metrics are Strong, indicating a healthier balance sheet and a reduction in the total share count over the last year.
- Leverage decreased from 0.5 to 0.49
- Liquidity improved as the current ratio rose from 1.89 to 2.07
- Net Dilution was negative as shares fell from 65.1 million to 64.4 million
Maintaining this score requires continued discipline in debt management and the absence of significant new equity issuance for acquisitions or compensation.
Change in Leverage (↓)
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, as the company failed to improve three out of four efficiency and margin benchmarks compared to the prior year.
- ROA improved slightly from 6.06% to 6.31%
- FCFTA declined from 9.24% to 6.04%
- Gross Margin contracted from 51.93% to 49.65%
- Asset Turnover fell from 0.46 to 0.42
This score would only improve if the company reversed the current trend of declining gross margins and generated more revenue per dollar of assets.
Change in ROA (↑)
PassChange in FCFTA (↑)
FailChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
FailFramework conclusion
The total FS-Score of 7/10 suggests the company is in a solid but mixed financial position, with high current profitability and stability offset by a lack of operational momentum. While the business is cash-generative and reducing its share count, the decline in margins and asset turnover indicates that its fundamental efficiency is currently under pressure rather than improving. This total score helps distinguish whether the current price reflects a temporary period of operational cooling or a more permanent deterioration in the company's financial health.
- CFO / Net Income of 1.6 indicates earnings are well-supported by cash flow
- Diluted shares outstanding decreased from 65.1 million to 64.4 million
- Gross Margin fell to 49.65% from 51.93% a year ago
- Asset Turnover moved lower to 0.42 from 0.46
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)
$191.1M
+ After-Tax Interest Expense
$57.5M
= Unlevered Free Cash Flow
$248.6M
Business value (10-year DCF)
PV of Years 1–10
$1.8B
PV of Terminal Value
$1.5B
= Business Value
$3.3B
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
$37.04
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
$248.6M
Growth rate (yrs 1–10)
6%
Terminal growth (after yr 10)
3%
AI Analysis
The 12% discount rate, categorized as mid-risk, reflects the company's stable tech-enabled payments processing model, tempered by moderate leverage and cyclical exposure. Using the fixed Year-1 FCF of $248.6M as the base, the model applies a 6.00% growth rate over the next decade to reflect modest long-term expansion aligned with industry trends. The terminal growth rate, fixed at 3% for all companies in this framework to align with long-run economic expectations, accounts for 46.9% of the total business value. To determine the fair value, the model adds $260.7M in cash and subtracts $1.3B in debt from the discounted cash flows to arrive at $2.3B in value belonging to shareholders. Dividing by 61.4 million shares results in a fair value per share of $37.04. Compared to the current price of $29.83, the calculation reflects a margin of safety of 24.17%. This buffer represents the model’s allowance for potential estimation error. This valuation is most sensitive to the 6.00% growth assumption; changes to this forecast over the ten-year period would most significantly alter the output.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
5.32% vs ~4-5% bond-yield benchmark
Return on Capital
151.26% ROC vs ~15% benchmark
Acquirer's Multiple
17.2x against a peer median of 12.3x (peers: 12.3x) — 39.7% above the median.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
24.17% margin of safety
The analysis of EVERTEC, Inc. presents a divergence between operational efficiency and current market pricing. The framework gauges operational health through Return on Capital, which stands at 151.26%, and the FS-Score of 7/10, both suggesting the business is generating returns well above the 15% benchmark. Conversely, price-focused metrics indicate a premium. The Acquirer's Multiple of 17.2x sits 39.7% above the peer median of 12.3x, and the Earnings Yield of 5.32% remains near the bond-yield benchmark, resulting in a yellow signal. While the Intrinsic Value check provides a 24.17% margin of safety, this valuation relies on specific assumptions about future cash flows that are not captured by the Acquirer's Multiple. The tension here lies in the contrast between high operational returns and a valuation multiple that exceeds peer averages. A significant shift in the Acquirer's Multiple would most alter the overall picture, as it highlights the current discrepancy between the stock's price and the relative cost of similar peer assets.