Evertec Intrinsic Stock Value – EVERTEC Reports Second Quarter of FY2023 Earnings Results on July 26 2023
August 3, 2023
🌥️Earnings Overview
On July 26 2023, EVERTEC ($NYSE:EVTC) reported its earnings results for the second quarter of Fiscal Year 2023 (ending June 30 2023). The total revenue was USD 167.1 million, a 4.1% rise from the same quarter in the previous year. Unfortunately, the net income for the quarter had decreased by 16.2% from the same period of last year, to USD 28.2 million.
Share Price
On the day of the announcement, EVERTEC stock opened at $41.2 and closed at $41.0, a 0.9% drop from its previous closing price of 41.4. This slight dip in price may have been a result of investors reacting to the company’s quarterly earnings report. While there were several highlights reported by the company, such as a 4% increase in revenue compared to the same period last year, some investors may have been concerned about the company’s outlook for the rest of the year and beyond. The company had seen strong performance in its core business segments, including electronic payment solutions and merchant acquiring services in markets such as Latin America and Puerto Rico. These successes were offset by weaker results in certain other areas, such as car rental services where EVERTEC reported a decline of 3%.
With the fiscal year still in its early stages, EVERTEC’s management team is confident that they will be able to make up ground in the second half of the year and continue to experience solid growth. Fundamentally, EVERTEC is still in good shape and the market appears to see it as such. Despite the slight decrease in stock price after announcing earnings, the company appears to be on a positive trajectory and investors remain hopeful that the company will continue to deliver strong results for the remainder of FY2023. 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 thoroughly analyze the fundamentals of EVERTEC and use our proprietary Valuation Line to come up with a fair value of the stock. Our analysis has pointed us to a fair value of $45.0 for the share of EVERTEC. As of right now, the stock is trading at $41.0, which is 8.9% below our calculated fair value. This presents an opportunity for investors to purchase the stock at an undervalued price. More…
Peers
The company offers a wide range of products and services that enable businesses to accept and process electronic payments. Evertec Inc’s competitors include Euronet Worldwide Inc, EVO Payments Inc, and DLocal Ltd.
– Euronet Worldwide Inc ($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, a financial services company, reported its earnings results for the second quarter of FY2023 on July 26 2023. Total revenue increased 4.1% compared to the same period a year prior, however net income decreased 16.2%. This could be due to increased costs associated with investments in a variety of areas.
Investors should pay close attention to EVERTEC’s operations and take into account its revenue and expenses when making decisions. It will be important to monitor how the company progresses in the future, as this may impact its performance and potential returns.
