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1. Company Snapshot

1.a. Company Description

EVERTEC, Inc.engages in transaction processing business in Latin America and the Caribbean.The company operates through Payment Services - Puerto Rico & Caribbean; Payment Services - Latin America; Merchant Acquiring; Business Solutions, and Corporate and Other segments.


It provides 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.The company also offers 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; and EBT services.In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers.


Further, the company owns and operates the ATH network, an automated teller machine and personal identification number debit networks.It manages a system of electronic payment networks that process approximately three billion transactions.The company sells and distributes its services primarily through direct sales force.


It serves financial institutions, merchants, corporations, and government agencies.EVERTEC, Inc.was founded in 1988 and is headquartered in San Juan, Puerto Rico.

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1.b. Last Insights on EVTC

Negative drivers behind Evertec's recent performance include a decrease in GAAP Net Income attributable to common shareholders by 11.2% to $35.6 million, and a decrease in diluted earnings per share by 9.7% to $0.56. Additionally, the company's revenue growth of 13.1% to $244.8 million, while impressive, may be tempered by the fact that it was largely driven by a 11.4% increase on a constant currency basis, suggesting that currency fluctuations may have played a role.

1.c. Company Highlights

2. EVERTEC's Strong 2025 Performance and Promising 2026 Outlook

EVERTEC delivered a robust financial performance in 2025, with total revenue reaching $931.8 million, a 10% increase compared to the prior year, or 11% on a constant currency basis. Adjusted EBITDA for the year was $373.4 million, up approximately 10% with an EBITDA margin of 40.1%. The company's actual EPS came out at $0.93, beating analyst estimates of $0.91. The strong execution across all segments, coupled with continued momentum in Latin America and disciplined cost management, drove this growth.

Publication Date: Mar -08

📋 Highlights
  • Record Revenue Growth: 2025 revenue reached $932 million, a 10% increase YoY, with constant currency growth of 11%.
  • Strong EBITDA Performance: Adjusted EBITDA hit $373.4 million (+10% YoY), maintaining a 40.1% margin for the year.
  • Latin America Expansion: Segment revenue grew 22% YoY, driven by Tecnobank and two 2024 acquisitions, contributing to $227 million operating cash flow.
  • 2026 Guidance: Revenue expected to rise 9.9–11.2% YoY ($1.024B–$1.036B), with Brazil and Tecnobank integration as key growth drivers.
  • Strategic M&A Impact: Sinqia and Dimensa acquisitions added new verticals (e.g., insurance) and cross-selling opportunities, with $66 million in Q4 share repurchases.

Segmental Performance

Latin America Payments & Solutions grew 22% year-over-year, benefiting from the full year contribution of the 2 acquisitions closed in the fourth quarter of 2024, as well as the results from Tecnobank during the fourth quarter of 2025. The company's strong presence in Puerto Rico also continued to drive growth, with positive trends in employment and tourism, and healthy sales volume and transaction growth driven by merchant acquiring and ATH Movil.

Outlook for 2026

EVERTEC expects reported revenue to be in the range of $1.024 billion to $1.036 billion, representing growth of 9.9% to 11.2% year-over-year. On a constant currency basis, revenues are expected to grow between 8.7% to 10%. The company anticipates growth to be driven by key client implementations and the continued pipeline conversion in Latin America, with Brazil remaining a key driver of growth, including the benefit from 9 additional months of Tecnobank.

Valuation and Return Metrics

With a P/E Ratio of 12.71 and an EV/EBITDA of 7.6, EVERTEC's valuation appears reasonable. The company's ROE stands at 23.21%, indicating strong profitability. Additionally, the Net Debt / EBITDA ratio is 2.37, suggesting a manageable debt burden. The Dividend Yield is 0.7%, and the Free Cash Flow Yield is 8.77%, providing a decent return for shareholders.

Strategic Focus

EVERTEC remains focused on executing on targeted cost initiatives to offset the impact of the 10% Popular discount and lower margin contribution from Latin American organic growth. The company is also committed to deploying capital for growth through M&A, while continuing to invest in its business and products, and returning cash to shareholders via dividends and share repurchases.

3. NewsRoom

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EVERTEC Achieves Amazon Web Services' Highest Designation as a Premier Tier Partner

Apr -09

Source: businesswire.com

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EVTC or MA: Which Is the Better Value Stock Right Now?

Apr -08

Source: zacks.com

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Evertec, Inc. $EVTC Shares Bought by SG Americas Securities LLC

Apr -08

Source: defenseworld.net

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Brokerages Set Evertec, Inc. (NYSE:EVTC) Price Target at $35.80

Mar -27

Source: defenseworld.net

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EVTC vs. MA: Which Stock Is the Better Value Option?

Mar -23

Source: zacks.com

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EVTC or MA: Which Is the Better Value Stock Right Now?

Mar -06

Source: zacks.com

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American Century Companies Inc. Increases Stake in Evertec, Inc. $EVTC

Mar -02

Source: defenseworld.net

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Evertec (NYSE:EVTC) Shares Gap Up After Earnings Beat

Feb -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.54%)

6. Segments

Business Solutions

Expected Growth: 8%

EVERTEC's 8% growth in Business Solutions is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer-centric approach, and investments in technology infrastructure also contribute to its growth. Additionally, the growing need for businesses to optimize their operations and improve customer experience fuels the demand for EVERTEC's solutions.

Payment Services - Puerto Rico & Caribbean

Expected Growth: 9%

Strong demand for digital payments, increasing adoption of e-commerce, and government initiatives to promote financial inclusion drive EVERTEC's Payment Services growth in Puerto Rico and the Caribbean. Additionally, the company's strategic partnerships, innovative product offerings, and expanding merchant network contribute to its 9% growth.

Latin America Payment and Solutions

Expected Growth: 11%

EVERTEC's 11% growth in Latin America Payment and Solutions is driven by increasing adoption of digital payments, government initiatives promoting financial inclusion, and growing e-commerce penetration. Additionally, the company's strategic partnerships, innovative product offerings, and expanding merchant network have contributed to its growth momentum in the region.

Merchant Acquiring, Net

Expected Growth: 12%

Strong merchant acquiring growth driven by increasing e-commerce adoption, expansion into new markets, and strategic partnerships. EVERTEC's diversified merchant base, innovative payment solutions, and efficient processing capabilities also contribute to the 12% growth. Additionally, the company's focus on digital transformation and investment in technology infrastructure support its growth momentum.

Corporate and Other

Expected Growth: 7%

EVERTEC's Corporate and Other segment growth of 7% is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and effective capital allocation contribute to its growth momentum.

7. Detailed Products

Payment Processing

EVERTEC's payment processing services enable businesses to accept and process payments securely and efficiently, providing a range of payment methods and channels.

Merchant Acquiring

EVERTEC's merchant acquiring services provide businesses with the ability to accept credit and debit card payments, offering competitive rates and flexible pricing models.

Point of Sale (POS) Solutions

EVERTEC's POS solutions provide businesses with integrated payment processing, inventory management, and customer management capabilities, streamlining operations and improving customer experience.

E-Commerce Solutions

EVERTEC's e-commerce solutions enable businesses to create online stores, process online payments, and manage orders and inventory, providing a comprehensive e-commerce platform.

Digital Wallets

EVERTEC's digital wallet solutions enable consumers to store payment information securely, making online and in-store payments convenient and secure.

Loyalty and Rewards Programs

EVERTEC's loyalty and rewards programs enable businesses to create and manage loyalty programs, rewarding customers and driving repeat business.

Data Analytics and Insights

EVERTEC's data analytics and insights solutions provide businesses with actionable insights into customer behavior, sales trends, and operational performance.

8. EVERTEC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EVERTEC, Inc. operates in the financial technology industry, which is characterized by a moderate threat of substitutes. While there are alternative payment processing solutions, EVERTEC's diversified product offerings and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

EVERTEC, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers and its ability to provide customized solutions reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

EVERTEC, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term contracts with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial technology industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, EVERTEC, Inc.'s strong brand recognition and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players competing for market share. EVERTEC, Inc. faces intense competition from companies such as FIS, Fiserv, and Global Payments, which could potentially erode its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.19%
Debt Cost 4.40%
Equity Weight 37.81%
Equity Cost 9.91%
WACC 6.48%
Leverage 164.46%

11. Quality Control: EVERTEC, Inc. passed 4 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

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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

30.42$

Current Price

30.42$

Potential

-0.00%

Expected Cash-Flows