EVERTEC, Inc. (EVTC) AI Stock Analysis

EVERTEC, Inc. operates in the transaction processing industry across Latin America and the Caribbean. Headquartered in San Juan, Puerto Rico, the company operates across several segments, including Payment Services - Puerto Rico & Caribbean, Payment Services - Latin America, Merchant Acquiring, Business Solutions, and Corporate and Other. Its solutions include merchant acquiring services for point of sale and e-commerce, card processing, fraud monitoring, automated teller machine management, and electronic benefit transfer programs. It also delivers business process management services such as core bank processing, network hosting, and IT consulting to financial institutions, corporate entities, and government agencies.

EVERTEC increased its annual revenue from $589.8M in FY2021 to $931.8M in FY2025, reflecting a 5-year revenue CAGR of 12.8%. Over this period, net income moved from $161.1M in FY2021 to $141.6M in FY2025, while gross margin decreased from 57.6% to 49.7%. Operating margin was 20.0% in FY2025 and 19.4% over the trailing twelve months, which generated $996.2M in revenue. For the latest quarter ending June 30, 2026, quarterly revenue grew 19.7% year-over-year, while quarterly earnings declined 85.7% year-over-year. Free cash flow stood at $135.5M in FY2025.

As of June 30, 2026, EVERTEC held $260.7M in cash and short-term investments against $1.32B in total debt, resulting in net debt of $1.06B. The company recorded a current ratio of 1.70 and a debt-to-equity ratio of 2.06, supported by shareholders' equity of $641.4M. In FY2025, operating cash flow reached $227.0M, funding capital expenditures of $91.5M, share buybacks of $69.3M, and dividends paid of $12.8M. Over the past five years, the company reduced its share count by 15.8%.

EVERTEC trades at a trailing P/E of 20.3x and a forward P/E of 14.9x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value-to-EBITDA multiple of 7.9x is lower than the peer median of 16.6x, and its price-to-sales ratio stands at 1.9x compared to 2.8x for peers. Over the past year, EVTC gained 6.1%, trailing the S&P 500 return of 16.8%. Over five years, the stock fell 33.0%, while the S&P 500 rose 83.0%.

EVERTEC pays a quarterly dividend with an annual forward payout of $0.20 per share, representing a dividend yield of 0.64%. The company has paid dividends for 14 consecutive years with a payout ratio of 5.6%. Its 5-year annualized dividend growth rate is 0.0%, and its last ex-dividend date occurred on August 3, 2026.

Wall Street analysts hold 1 Strong Buy, 2 Buy, and 3 Hold ratings on EVERTEC. The mean price target is $35.20, representing a 12.9% upside from the last close of $31.19. For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.00 and revenue of $1.09B. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings release is scheduled for November 5, 2026.

This page is an AI-written research summary of EVERTEC, Inc. (EVTC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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