# Evertec (EVTC.US)

Canonical: https://gigainvestors.com/s/EVTC

Analysis as of: 2026-10-16T07:28:23.841Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.40 per share; close as of 2026-10-15.

Estimated value: low $37.49 per share, central $42.12 per share, high $48.28 per share. Buy at or below the central value $42.12 per share. Valuation as of 2026-10-16T07:28:23.841Z; scenarios are not confidence intervals.

Expected annual return: 12.8% at the stated quote. About 12.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.28×

- FY2019: 0.30×

- FY2020: 0.28×

- FY2021: 0.33×

- FY2022: 0.25×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.20×

- LTM to Jun 2026: 0.18×

### moat: fail

- Recent gross margin fell 4.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 37.3%

- ROIC, second-lowest year: 25.8%

- Typical minus recent gross margin: 4.1 pp

- Typical gross margin (annual median): 53.8%

- Recent gross margin (lower of latest and 3-year median): 49.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.7%

- ROIC including acquisitions, ten-year median: 14.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 29.3%

- FY2017: 25.5%

- FY2018: 38.3%

- FY2019: 41.1%

- FY2020: 45.9%

- FY2021: 59.5%

- FY2022: 45.3%

- FY2023: 25.8%

- FY2024: 36.2%

- FY2025: 31.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $820M

- Net income, five-year total: $734M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.2 pp

- Working capital / revenue, final three-year average: 12.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.05×

- FY2022: 1.00×

- FY2023: 1.11×

- FY2024: 1.35×

- FY2025: 1.21×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.3% vs 31.5%

- Per-share earnings: 0.97 to 1.73 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.8%

- Ordinary dilution, 5-year annual growth: -2.5%

- Market cap gain: $507M

- Cumulative retained earnings: $571M

- Diluted shares, 10-year annual growth: -1.8%

- Diluted shares, 5-year annual growth: -2.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.6%

- Per-share value change: $0.76

- Per-share value, starting three-year median: $0.97

- Per-share value, ending three-year median: $1.73

- Buybacks concentrated in cheaper years (correlation): 0.72

- Average buyback yield: 2.0%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $999M

- Cumulative net income, 10 years: $1.2B

- ROIC, first three-year median: 29.3%

- ROIC, last three-year median: 31.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.01

- FY2017: $0.76

- FY2018: $1.16

- FY2019: $1.41

- FY2020: $1.43

- FY2021: $2.21

- FY2022: $3.45

- FY2023: $1.21

- FY2024: $1.73

- FY2025: $2.20

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 13.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.60×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.5%

- FY2017: -10.1%

- FY2018: -9.3%

- FY2019: -7.6%

- FY2020: -8.8%

- FY2021: -5.9%

- FY2022: 1.4%

- FY2023: -6.4%

- FY2024: -7.9%

- FY2025: -3.8%

## Holders

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 37% since Dec 2021 · "EVTC Is Up 10.0% After Raising 2026 Outlook And Expanding US$150 Million Buyback Program" (finance.yahoo.com, Mar 2026) · sales +6.9%

Story as of 2026-10-16T09:58:43.426Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.2% a year for ten years

- 2026-03-03: EVTC Is Up 10.0% After Raising 2026 Outlook And Expanding US$150 Million Buyback Program ([finance.yahoo.com](https://finance.yahoo.com/news/evtc-10-0-raising-2026-140944749.html))

### Sales · FY2025–2026

sales +6.9%; source https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm; observed 2026-03-02.

- FY2017: $407M 

- FY2018: $454M 

- FY2019: $487M 

- FY2020: $511M 

- FY2021: $590M 

- FY2022: $618M 

- FY2023: $695M 

- FY2024: $845M 

- FY2025: $932M 

- FY2026: $996M 

### Gross margin · FY2025

gross margin 49.7%; source https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm; observed 2026-03-02.

- FY2016: 54.9% 

- FY2017: 50.7% 

- FY2018: 56.6% 

- FY2019: 56.2% 

- FY2020: 55.6% 

- FY2021: 57.6% 

- FY2022: 52.7% 

- FY2023: 51.5% 

- FY2024: 51.9% 

- FY2025: 49.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 931.8 million.

- Source: https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm (filed 2026-03-02); FY2025: revenue 931818000; grossProfit 462690000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); EVTC.US: EVERTEC, Inc. provides transaction processing and financial technology services in Latin America, Puerto Rico, and the Caribbean. It operates through four segments: Payment Services - Puerto Rico & Caribbean; Latin America Payments and Solutions; Merchant Acquiring; and Business Solutions. The company offers merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards. It also provides payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers. In addition, the company offers business process management solutions comprising core bank processing, network hosting, managed services and managed security services, IT professional services, business process outsourcing, item processing, cash processing, and fulfillment. Further, it owns and operates the ATH network, a personal identification number debit network. The company processes approximately ten billion transactions annually through a system of electronic payment networks. It sells and distributes its services primarily through direct sales force. The company serves financial institutions, merchants, corporations, and government agencies. EVERTEC, Inc. was founded in 1988 and is headquartered in San Juan, Puerto Rico.

### Why customers stay

Margins ranged from 49.7% to 51.9% during 2023–25; it earns 37.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: grossProfit / revenue = 51.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: grossProfit / revenue = 51.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm (filed 2026-03-02); FY2025: grossProfit / revenue = 49.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); 10-year return on capital observations [[2016,0.2931687136044555],[2017,0.2549371555055151],[2018,0.3830788348013755],[2019,0.4112220553662144],[2020,0.4587139039821198],[2021,0.5945679571451336],[2022,0.45306903531760634],[2023,0.25825346377234293],[2024,0.3624442577807851],[2025,0.3151372308942251]]; median 0.37276154629108027. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 69.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2016: growth capex 0; upkeep 42269000; owner earnings 92334000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2017: growth capex 0; upkeep 33464000; owner earnings 85840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2018: growth capex 0; upkeep 41319000; owner earnings 108018000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2019: growth capex 0; upkeep 59873000; owner earnings 111678000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2020: growth capex 0; upkeep 48640000; owner earnings 127314000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2021: growth capex 0; upkeep 66907000; owner earnings 169293000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2022: growth capex 3472291.301958889; upkeep 79057708.69804111; owner earnings 238569291.3019589. Growth capex / owner earnings = 0.014554644828801476.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2023: growth capex 0; upkeep 84952000; owner earnings 88391000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); FY2024: growth capex 0; upkeep 88423000; owner earnings 152043000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm (filed 2026-03-02); FY2025: growth capex 0; upkeep 91501000; owner earnings 171546628.04371887. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Dividend observations: [[2016,29696000],[2017,21762000],[2018,7273000],[2019,14420000],[2020,14382000],[2021,14409000],[2022,13773000],[2023,13025000],[2024,12873000],[2025,12781000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm (filed 2026-03-02); FY2025: cash repurchases 69293000 USD.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); EVTC.US SharesStats.PercentInsiders = 1.359 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 3.2% yearly over ten years; actual growth was 8.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-02); Ten-year compound average after fade. Initial solved rate -0.058417213264828335. Price 31.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.199697495979684 → FY2025 2.662851437424266. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $15.15 per share

- 2016-11: $18.25 per share

- 2016-12: $17.75 per share

- 2017-01: $17.05 per share

- 2017-02: $16.85 per share

- 2017-03: $15.90 per share

- 2017-04: $15.85 per share

- 2017-05: $16.50 per share

- 2017-06: $17.30 per share

- 2017-07: $17.85 per share

- 2017-08: $18.40 per share

- 2017-09: $15.85 per share

- 2017-10: $15.00 per share

- 2017-11: $13.90 per share

- 2017-12: $13.65 per share

- 2018-01: $15.65 per share

- 2018-02: $16.20 per share

- 2018-03: $16.35 per share

- 2018-04: $18.25 per share

- 2018-05: $21.80 per share

- 2018-06: $21.85 per share

- 2018-07: $23.30 per share

- 2018-08: $24.05 per share

- 2018-09: $24.10 per share

- 2018-10: $26.08 per share

- 2018-11: $27.33 per share

- 2018-12: $28.70 per share

- 2019-01: $27.67 per share

- 2019-02: $28.62 per share

- 2019-03: $27.81 per share

- 2019-04: $31.31 per share

- 2019-05: $28.66 per share

- 2019-06: $32.70 per share

- 2019-07: $32.02 per share

- 2019-08: $34.86 per share

- 2019-09: $31.22 per share

- 2019-10: $30.59 per share

- 2019-11: $32.42 per share

- 2019-12: $34.04 per share

- 2020-01: $33.57 per share

- 2020-02: $29.68 per share

- 2020-03: $22.73 per share

- 2020-04: $25.34 per share

- 2020-05: $29.12 per share

- 2020-06: $28.10 per share

- 2020-07: $31.05 per share

- 2020-08: $35.02 per share

- 2020-09: $34.71 per share

- 2020-10: $33.28 per share

- 2020-11: $37.17 per share

- 2020-12: $39.32 per share

- 2021-01: $34.70 per share

- 2021-02: $38.90 per share

- 2021-03: $37.22 per share

- 2021-04: $39.90 per share

- 2021-05: $43.53 per share

- 2021-06: $43.65 per share

- 2021-07: $43.70 per share

- 2021-08: $46.25 per share

- 2021-09: $45.72 per share

- 2021-10: $45.21 per share

- 2021-11: $41.99 per share

- 2021-12: $49.98 per share

- 2022-01: $43.64 per share

- 2022-02: $40.36 per share

- 2022-03: $40.93 per share

- 2022-04: $39.40 per share

- 2022-05: $37.94 per share

- 2022-06: $36.88 per share

- 2022-07: $38.99 per share

- 2022-08: $33.60 per share

- 2022-09: $31.35 per share

- 2022-10: $35.81 per share

- 2022-11: $33.77 per share

- 2022-12: $32.38 per share

- 2023-01: $36.94 per share

- 2023-02: $36.81 per share

- 2023-03: $33.75 per share

- 2023-04: $34.69 per share

- 2023-05: $34.48 per share

- 2023-06: $36.83 per share

- 2023-07: $39.33 per share

- 2023-08: $39.57 per share

- 2023-09: $37.18 per share

- 2023-10: $31.78 per share

- 2023-11: $36.97 per share

- 2023-12: $40.94 per share

- 2024-01: $40.16 per share

- 2024-02: $36.13 per share

- 2024-03: $39.90 per share

- 2024-04: $37.53 per share

- 2024-05: $34.97 per share

- 2024-06: $33.25 per share

- 2024-07: $34.47 per share

- 2024-08: $34.25 per share

- 2024-09: $33.89 per share

- 2024-10: $32.76 per share

- 2024-11: $36.00 per share

- 2024-12: $34.53 per share

- 2025-01: $32.47 per share

- 2025-02: $37.34 per share

- 2025-03: $36.77 per share

- 2025-04: $33.94 per share

- 2025-05: $36.23 per share

- 2025-06: $36.05 per share

- 2025-07: $36.15 per share

- 2025-08: $35.68 per share

- 2025-09: $33.78 per share

- 2025-10: $28.47 per share

- 2025-11: $28.90 per share

- 2025-12: $29.09 per share

- 2026-01: $30.01 per share

- 2026-02: $28.31 per share

- 2026-03: $28.22 per share

- 2026-04: $29.53 per share

- 2026-05: $24.47 per share

- 2026-06: $27.78 per share

- 2026-07: $30.44 per share

- 2026-08: $29.63 per share

- 2026-09: $26.95 per share

- 2026-10: $31.40 per share

## Annual estimated value (USD per share)

- FY2016: low $14.79 per share, central $16.75 per share, high $19.35 per share

- FY2017: low $15.06 per share, central $17.05 per share, high $19.71 per share

- FY2018: low $16.68 per share, central $18.87 per share, high $21.78 per share

- FY2019: low $18.57 per share, central $20.93 per share, high $24.09 per share

- FY2020: low $20.74 per share, central $23.24 per share, high $26.57 per share

- FY2021: low $24.55 per share, central $27.45 per share, high $31.32 per share

- FY2022: low $26.81 per share, central $30.16 per share, high $34.63 per share

- FY2023: low $33.05 per share, central $37.02 per share, high $42.30 per share

- FY2024: low $39.35 per share, central $44.24 per share, high $50.74 per share

- FY2025: low $33.47 per share, central $37.49 per share, high $42.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1559865/000155986526000012/evtc-20251231.htm); period 2025-12-31, filed 2026-03-02.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.