Lumida
/EVTC
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Evertec Inc

Evertec Inc

EVTC
$29.27USD↑+0.41%+0.12 today

MARKET CAP

1.7B

P/E (TTM)

7.7x

FWD P/E

6.9x

DAY RANGE

$29 – $30

52W RANGE

$22
$35

AI Summary

Stalk
StalkMedium

EVTC is range-bound near the middle of its annual range following a Stage 2 accumulation context, with a Bullish medium-term bias anchored by rising 200 SMA and SMA50 support. Short-term price behavior is Neutral as the stock trades below the 9/20 EMA cluster within a tight $29.25–$30.10 range, suggesting indecision and timing restraint. Deferred engagement is recommended on a pullback and hold around the SMA50/200 support zone near $29.27–$28.37. A decisive break and retest above the EMA9/20 zone at $29.59–$29.79 would warrant immediate buying.

  • ↑Q2 revenue +20% YoY to $275M; adjusted net income +12% to $65M
  • ↑Raised FY26 revenue guidance to $1.085–1.095B, implying 16.4–17.5% growth
  • ↓Q2 boost partly from Puerto Rico tax relief; non-recurring revenue risks future declines
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Evertec Inc. (NASDAQ: EVTC) is a leading financial technology and transaction processing company focused on the Latin American and Caribbean markets. The company provides essential payment solutions, including merchant acquiring and payment services, positioning itself as a key player in the growing fintech landscape of the Latin American region. Evertec has established a strong competitive edge through strategic acquisitions and partnerships, particularly in the dynamic markets of Chile and Mexico, reinforcing its potential for future growth amid evolving economic conditions.

Bull says

  • ↑Q2 revenue +20% YoY to $275M; adjusted net income +12% to $65M
  • ↑Raised FY26 revenue guidance to $1.085–1.095B, implying 16.4–17.5% growth
  • ↑$420M liquidity and moderate leverage (net debt ~$1B) support investments
  • ↑Dementia and Technobank acquisitions expand software suite and market reach
  • ↑High earnings yield and favorable book-to-price ratio signal undervaluation
  • ↑Strong Transbank partnership bolsters regional payment processing

Bear says

  • ↓Q2 boost partly from Puerto Rico tax relief; non-recurring revenue risks future declines
  • ↓Acquisition integration remains early; execution missteps could slow growth
  • ↓Profit margins pressured by expansion into lower-margin segments
  • ↓High short interest reflects investor skepticism and downward stock bias
  • ↓Complex Latin American regulations could raise compliance costs and slow expansion
  • ↓Dependence on non-recurring drivers and volatile macro raises growth uncertainty

Investment themes with EVTC

Payments↓ -1.82%

Digital and traditional payment processing solutions

XYZ · MA · V

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 04-21-2025neutral

Transcript signals

Bull points

  • Total revenue for the quarter was $194.6 million, up approximately 20% compared to the prior year reflecting strong growth in our Latin America segment that benefited in the last two months of the year from the Sinqia acquisition as well as continued strong organic growth.
  • total revenue was $694.7 million, an increase of approximately 12% from the prior year and above our initial expectations.
  • In Latin America, we saw strong organic growth from new and existing customers as well as revenue contribution from the acquisitions completed in 2022 and 2023.

Bear points

  • 36.8%, down approximately 590 basis points from the prior year, partially as a result of the Sinqia acquisition, which, as expected is coming in at lower overall margins.
  • Adjusted net income was $40.8 million, a decrease of approximately 6% year-over-year driven by higher interest expense resulting from the increased debt raised to finance the Sinqia acquisition, higher operating depreciation and amortization partially offset by a lower adjusted effective tax rate.
  • Adjusted EBITDA was $20 million, down approximately 19% from a year ago and adjusted EBITDA margin was down approximately 770 basis points from the prior year to 34.6%, below our expectations for the quarter.
Read full transcript analysis ›