As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of EVERTEC, Inc. (NYSE:EVTC), it is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on EVERTEC here.
Solid track record with adequate balance sheet
EVTC delivered a bottom-line expansion of 76% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, EVTC also outperformed its industry, which delivered a growth of 8.2%. This is an optimistic signal for the future. EVTC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that EVTC manages its cash and cost levels well, which is a key determinant of the company’s health. EVTC appears to have made good use of debt, producing operating cash levels of 0.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For EVERTEC, there are three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for EVTC’s future growth? Take a look at our free research report of analyst consensus for EVTC’s outlook.
- Valuation: What is EVTC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EVTC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EVTC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.