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1. Company Snapshot

1.a. Company Description

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally.The company offers contribution encoder, decoder, receiver, processing, and modulation products; and control panels, unified controls, accessories, and network management systems.It also provides encoding, transcoding, and multiplexing products comprising ASI/IP converters, multiplexers, scramblers, and modulators; contribution encoders/decoders; transport stream processors; and software defined accelerated encoding/transcoding/muxing products, as well as audio/data/RF transporters, CWDM/DWDM multiplexors, fiber routers, SONET/SDH transporters, and video transporters.


In addition, the company offers infrastructure and conversion products, including audio/data embedder/de-embedder, keyers, media and logo inserters, master control switchers, audio processing, closed captioning, conversion, audio/video delay system, distribution amplifier, and frame synchronizer products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products.Further, it provides 3D, auto changeover, film/post graticule generator, master clock/SPG, slave clock, test/reference generator, and timecode products for live media production; EMS media server, mediator content manager, and live integrated playout products; and multi viewers.Additionally, the company offers antennas, demodulators, fiber transporters, routers/switchers, and splitters and distribution amplifiers; and audio, bypass and auto changeover, data/LTC/tally, fiber/RF, magnum unified control, video routers, and panels.


It serves content creators, broadcasters, specialty channels, and television service providers.The company was founded in 1966 and is headquartered in Burlington, Canada.

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1.b. Last Insights on ET

Evertz Technologies' recent performance was driven by its solid Q1 2026 results, with revenue of $112.1 million, a slight increase from the prior year. The company's software and services segment showed strength, particularly in the US and Canada, where revenue rose 7% to $79.5 million. Additionally, the company's dividend payout of CA$0.20 per share and the election of directors at the Annual General Meeting have contributed to a positive outlook. Its position in the Software Defined Video Network (SDVN) technology space.

1.c. Company Highlights

2. Evertz Technologies' Q1 FY2026 Earnings: A Strong Performance

Evertz Technologies reported Q1 fiscal 2026 results with $112.1 million in revenue, including $51.6 million (46%) in software and services. Gross margin rose to 61.4% ($68.8 million) from 59.4% in 2025, driven by higher-margin software. Net earnings increased 22% to $11.9 million, with fully diluted earnings per share at $0.15, slightly below estimates of $0.18.

Publication Date: Sep -15

📋 Highlights
  • Total Revenue:: $112.1M, with software/services contributing $51.6M (46%).
  • Gross Margin:: 61.4% ($68.8M) in Q1 2026, up from 59.4% in the prior year.
  • Net Earnings:: $11.9M, a 22% increase YoY, with diluted EPS at $0.15.
  • R&D Investment:: $37M, cash reserves at $124.3M, and working capital of $202.6M.
  • Backlog & Shipments:: Purchase order backlog >$252M, August shipments reached $41M.

Revenue Breakdown and Regional Performance

Regional revenue showed $79.5 million in U.S./Canada (vs. $73.9 million in 2025) and $32.7 million internationally (vs. $37.7 million). Sales were diversified across 114 orders over $200,000, with no single customer exceeding 9% of sales.

Expenses, Cash Flow, and Backlog

R&D investment totaled $37 million, and S&A expenses rose to $18.6 million (16.6% of revenue) from $17.6 million. Cash from operations was $33.5 million, with $20.2 million used for dividends ($15.1 million) and stock repurchases ($3.8 million). The purchase order backlog exceeded $252 million.

Valuation and Growth Prospects

With a P/E Ratio of 15.82, P/S Ratio of 1.87, and EV/EBITDA of 8.47, the market seems to have reasonable expectations. The Dividend Yield is 7.6%, and ROE is 22.37%. Analysts estimate next year's revenue growth at 2.3%. As per the management, growth is attributed to IP, cloud-based solutions, and 4K/8K technologies.

Management's Outlook and M&A Activity

The company plans to purchase its leased U.S. facility for $2.5–$3 million and expects cash balances to decrease in Q2 due to working capital swings. M&A activity remains selective, aligned with strategic growth areas. Evertz highlighted strong demand for IP-based solutions in broadcast and adjacent markets.

3. NewsRoom

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Evertz Technologies Limited to Announce Second Quarter 2026 Results on December 10, 2025

Dec -02

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Top 3 TSX Dividend Stocks To Consider

Nov -05

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Top TSX Dividend Stocks To Watch In October 2025

Oct -07

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Evertz Technologies Announces Results of Annual General Meeting

Oct -01

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There May Be Some Bright Spots In Evertz Technologies' (TSE:ET) Earnings

Sep -18

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Evertz Technologies (TSE:ET) Will Pay A Dividend Of CA$0.20

Sep -15

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Evertz Technologies Reports a Fiscal Q1 Earnings Beat, But a Miss on Revenues

Sep -10

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Evertz Technologies Reports First Quarter Results for The Quarter Ended July 31, 2025

Sep -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.14%)

6. Segments

Hardware and Software

Expected Growth: 8%

Evertz Technologies' 8% growth in Hardware and Software is driven by increasing demand for high-quality broadcast equipment, growing adoption of IP-based infrastructure, and rising need for cloud-based solutions. Additionally, the company's focus on innovation, strategic partnerships, and expansion into new markets contribute to its growth momentum.

Services, including Warranty, Maintenance and Commissioning

Expected Growth: 10%

Evertz Technologies' Services segment, including Warranty, Maintenance, and Commissioning, is driven by increasing demand for broadcast and media solutions, expansion into new markets, and growing adoption of cloud-based services. The 10% growth rate is also fueled by the company's strategic partnerships, innovative product offerings, and a strong reputation for delivering high-quality services.

Long Term Contract

Expected Growth: 7%

Evertz Technologies' 7% long-term contract growth is driven by increasing demand for high-quality broadcast equipment, expansion into new geographic markets, and strategic partnerships. Additionally, the company's focus on research and development, leading to innovative products and services, contributes to its growth momentum.

7. Detailed Products

Dreamcatcher

A comprehensive monitoring and control system for broadcast and media facilities

EXE IPX

A high-density, scalable IP routing platform for broadcast and media facilities

Maestro

A comprehensive orchestration and control system for broadcast and media facilities

VIP

A high-performance, modular video processing platform for broadcast and media facilities

Neuron

A software-defined networking platform for broadcast and media facilities

XPS

A high-performance, modular audio processing platform for broadcast and media facilities

OvertureRT

A real-time, low-latency video processing platform for broadcast and media facilities

VUE

A comprehensive monitoring and analytics platform for broadcast and media facilities

8. Evertz Technologies Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Evertz Technologies Limited faces moderate threat from substitutes, as there are limited alternatives to its specialized broadcast equipment and services.

Bargaining Power Of Customers

Evertz Technologies Limited has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Evertz Technologies Limited relies on a few key suppliers for critical components, giving them moderate bargaining power.

Threat Of New Entrants

The high barriers to entry in the broadcast equipment industry, including significant capital requirements and technical expertise, reduce the threat of new entrants.

Intensity Of Rivalry

The broadcast equipment industry is highly competitive, with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.60%
Debt Cost 8.11%
Equity Weight 89.40%
Equity Cost 8.11%
WACC 8.11%
Leverage 11.85%

11. Quality Control: Evertz Technologies Limited passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Evertz Technologies

A-Score: 6.9/10

Value: 5.5

Growth: 3.8

Quality: 8.0

Yield: 10.0

Momentum: 5.0

Volatility: 9.3

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Frequency Electronics

A-Score: 5.6/10

Value: 3.7

Growth: 5.2

Quality: 7.6

Yield: 5.0

Momentum: 10.0

Volatility: 2.0

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Knowles

A-Score: 4.3/10

Value: 3.6

Growth: 1.4

Quality: 6.3

Yield: 0.0

Momentum: 8.0

Volatility: 6.3

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Vecima Networks

A-Score: 4.0/10

Value: 7.0

Growth: 5.4

Quality: 2.9

Yield: 3.0

Momentum: 0.0

Volatility: 5.7

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Clearfield

A-Score: 3.3/10

Value: 2.4

Growth: 4.2

Quality: 4.5

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

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ClearOne

A-Score: 3.1/10

Value: 7.4

Growth: 2.1

Quality: 3.9

Yield: 5.0

Momentum: 0.5

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.25$

Current Price

13.25$

Potential

-0.00%

Expected Cash-Flows