Evertec Inc. Common Stock (EVTC)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $112 million in annual free cash flow (6.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 23.4% demonstrating efficient capital deployment

Concerns

• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Evertec Inc. Common Stock is a micro-cap technology company valued at $1.8 billion. The business generates $932 million in annual revenue with a 3.8% net margin and $112 million in free cash flow. From a quality standpoint, Evertec shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is attractively valued at 13.3x earnings, with trades above its Graham Number with a negative 32% margin. Growth dynamics show revenue growing at 13.1% and profit growth of -11.2%. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Evertec's consistent 23% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $112 million in annual free cash flow (6.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer