Evertec Inc. Common Stock (EVTC)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, honest accounting, and a price that leaves room for error. Evertec processes payments and provides financial technology in Puerto Rico, the Caribbean, and Latin America, markets where local relationships, regulation, and switching costs can create a modest moat. The filed record shows revenue rising from $694.7M in fiscal 2023, the year ended 2023-12-31, to $845.5M in fiscal 2024, the year ended 2024-12-31, and $931.8M in fiscal 2025, the year ended 2025-12-31. Diluted EPS rose from $1.21 to $1.73 to $2.20 over those years. That is respectable, and FairStock's 7.3% FCF yield is based on trailing free cash flow of $134.5M and a $1.8B market cap. But the latest quarter is troubling: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $274.8M, up from $229.6M in fiscal Q2 2025, the quarter ended 2025-06-30, yet net income collapsed to $5.4M from $40.5M, and diluted EPS fell to $0.09 from $0.62. Net income fell roughly -86.6%, and the quarter's net margin was only 1.97%. Financial health is mixed. FairStock's calculated ROE is 14.85%, but FairStock's calculated ROCE is 5.03%, debt-to-equity is 1.84, and the FairStock Altman Z-Score of 1.29 signals balance-sheet risk. Valuation is not Graham-friendly: at the 2026-10-13 close of $30.86, the FairStock Graham Number is $19.29, a negative margin of safety near -60%. FairStock's calculated P/E is 20.04 and P/B is 2.88. FairStock categorizes Evertec as a slow grower, with five-year profit growth of 6.3% and revenue growth of 12.8%. I would want to see whether the Q2 earnings drop is temporary or a permanent impairment before calling this a bargain.

In plain English: Evertec handles payment processing and financial technology services in Puerto Rico, the Caribbean, and Latin America. The business is profitable and produces cash, but the latest quarter showed a sharp drop in profit, and the company carries a lot of debt. At the recent price, the stock looks expensive compared with a conservative estimate of its value based on its earnings and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer