Evertec Intrinsic Stock Value – Evertec Acquires Sinqia, Expanding Technology, Digital Payments Reach to Brazil
July 28, 2023
🌥️Trending News
EVERTEC ($NYSE:EVTC), a Puerto Rican electronic transactions processing company, recently announced their entry into Brazil with the acquisition of Sinqia. This deal involves loans, technology, digital payments, and equity from both the United States and Brazil. The acquisition furthers EVERTEC’s goal to become a global leader in digital payments and will give them access to Sinqia’s technology in the Brazilian market. The company has operations in Latin America and the Caribbean across both debit and credit card processing, e-commerce, and bill payment services. With this acquisition, EVERTEC is expected to significantly expand their reach, allowing them to explore new markets and open up new revenue streams. The acquisition of Sinqia will provide EVERTEC with access to Brazil’s rapidly growing digital payments market. The addition of Sinqia’s technology and expertise will add value to EVERTEC’s already established offerings, giving them a competitive edge in the Brazilian market.
Additionally, the combination of EVERTEC’s international experience and Sinqia’s local know-how will help the company capitalize on the opportunities that exist in the Brazilian digital payments market.
Stock Price
On Monday, EVERTEC, Inc., a Puerto Rico-based electronic payment processing company, announced the acquisition of Sinqia, a Brazilian leader in the provision of technology-based financial solutions. The move is expected to expand EVERTEC’s reach into the digital payments market in Brazil. EVERTEC’s stock opened at $41.6 on Monday and closed at $41.3, down by 0.3% from its previous closing price of $41.4. The acquisition is expected to create substantial long-term value for shareholders by providing EVERTEC with access to Sinqia’s established technology, market presence and customer base.
Sinqia, which has been operating for over two decades, provides a wide range of digital banking and payment solutions including payment processing, fraud prevention, virtual payments cards, prepaid cards and payroll cards. By leveraging Sinqia’s technology, EVERTEC will be able to make significant strides in the Brazilian financial technology market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Evertec. More…
| Total Revenues | Net Income | Net Margin |
| 634.48 | 224.73 | 17.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Evertec. More…
| Operations | Investing | Financing |
| 219.7 | -145.5 | -156.59 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Evertec. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.17k | 633.49 | 8.24 |
Key Ratios Snapshot
Some of the financial key ratios for Evertec are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 3.0% | 43.1% |
| FCF Margin | ROE | ROA |
| 22.3% | 32.8% | 14.6% |
Analysis – Evertec Intrinsic Stock Value
At GoodWhale, we have been closely analyzing EVERTEC‘s financials and have come to the conclusion that the fair value of an EVERTEC share is around $45.0. We arrived at this figure through our proprietary Valuation Line that evaluates a company’s balance sheet, income statement, and cash flow statement. Currently, EVERTEC stock is trading at $41.3, which is a fair price, yet slightly undervalued by 8.3%. Therefore, investing in EVERTEC stock right now presents an opportunity for investors to benefit from an upside potential of 8.3%. More…
Peers
The company offers a wide range of products and services that enable businesses to accept and process electronic payments. Evertec Inc’s competitors include Euronet Worldwide Inc, EVO Payments Inc, and DLocal Ltd.
– Euronet Worldwide Inc ($NASDAQ:EEFT)
Euronet Worldwide is a leading global provider of electronic transaction processing solutions for the financial and retail industries. The company has a market cap of 4.5 billion and a return on equity of 18.5%. Euronet provides a comprehensive range of services that enable financial institutions, retailers and other businesses to process transactions electronically. These services include ATM and point-of-sale (POS) services, card issuing and acquiring, mobile payments, cross-border money transfer, and other payment-related services. Euronet has a strong presence in Europe, Asia Pacific, the Middle East, Africa and the United States.
– EVO Payments Inc ($NASDAQ:EVOP)
Evo Payments, Inc. is a holding company, which engages in the provision of payment processing services. It offers merchant acquiring and processing solutions, which enable merchants to accept a variety of payment types, including credit, debit, prepaid, and alternative payments. The company was founded in 1989 and is headquartered in Atlanta, GA.
– DLocal Ltd ($NASDAQ:DLO)
DLocal is a leading cross-border payments platform that enables businesses to make and receive payments in local currencies across Africa, Asia, Latin America, and the Middle East. The company has a market cap of 4.11B as of 2022 and a return on equity of 23.96%. DLocal is headquartered in London, UK.
Summary
Evertec Inc. is a Puerto Rican digital payments company that has recently acquired Sinqia, a payments technology company located in Brazil. This strategic move allows Evertec to expand its presence into the Brazilian market, thus increasing its potential customer base and overall revenue. This acquisition will involve both equity and loan financing, and will provide Evertec with access to Sinqia’s various digital payments technologies.
The acquisition of Sinqia highlights Evertec’s commitment to expanding its global footprint and diversifying its business operations in the world of digital payments. Investors should be aware of the potential that this move provides as it could increase the company’s market share and revenue stream from both its local operations and the Brazilian market.
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