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1. Company Snapshot

1.a. Company Description

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally.The company offers contribution encoder, decoder, receiver, processing, and modulation products; and control panels, unified controls, accessories, and network management systems.It also provides encoding, transcoding, and multiplexing products comprising ASI/IP converters, multiplexers, scramblers, and modulators; contribution encoders/decoders; transport stream processors; and software defined accelerated encoding/transcoding/muxing products, as well as audio/data/RF transporters, CWDM/DWDM multiplexors, fiber routers, SONET/SDH transporters, and video transporters.


In addition, the company offers infrastructure and conversion products, including audio/data embedder/de-embedder, keyers, media and logo inserters, master control switchers, audio processing, closed captioning, conversion, audio/video delay system, distribution amplifier, and frame synchronizer products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products.Further, it provides 3D, auto changeover, film/post graticule generator, master clock/SPG, slave clock, test/reference generator, and timecode products for live media production; EMS media server, mediator content manager, and live integrated playout products; and multi viewers.Additionally, the company offers antennas, demodulators, fiber transporters, routers/switchers, and splitters and distribution amplifiers; and audio, bypass and auto changeover, data/LTC/tally, fiber/RF, magnum unified control, video routers, and panels.


It serves content creators, broadcasters, specialty channels, and television service providers.The company was founded in 1966 and is headquartered in Burlington, Canada.

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1.b. Last Insights on ET

Evertz Technologies' recent momentum is fueled by a 17% year-on-year increase in fiscal Q2 earnings, prompting a special dividend declaration. The company's quarterly revenue rose 6.0% to $132.7 million, with international revenue surging 12.5%. A Normal Course Issuer Bid to purchase up to 3,774,227 outstanding common shares has been approved, reducing the number of outstanding shares and bolstering shareholder value.

1.c. Company Highlights

2. Evertz Technologies Q3 Earnings: A Strong Performance

Evertz Technologies reported record sales of $139.3 million for Q3, with recurring software, services, and other software revenue increasing 12.3% year-over-year to $62.5 million. Gross margin was $81.2 million, or 58.3%, compared to 57.8% in the third quarter of the prior year. Net earnings were $18.7 million, resulting in fully diluted earnings per share of $0.24 for the quarter.

Publication Date: Mar -09

📋 Highlights
  • Record Quarterly Sales:: Sales reached $139.3 million, a 5% sequential increase and 2% year-over-year growth.
  • Software & Services Revenue Growth:: Recurring software, services, and other software revenue rose 12.3% YoY to $62.5 million (45% of total revenue).
  • Gross Margin Expansion:: Gross margin improved to 58.3% ($81.2 million) from 57.8% in Q3 FY2025.
  • Earnings Per Share:: Net earnings of $18.7 million ($0.24 diluted EPS), despite a $2.3 million foreign exchange loss.
  • Backlog & Momentum:: Combined purchase order backlog and February shipments totaled $278 million, with $32 million shipped in February alone.

Revenue Mix and Growth Drivers

The company's revenue mix continues to shift towards software and services, with these segments driving growth. Quarterly hardware revenue was $76.8 million, while software and services revenue was $62.5 million. According to Brian Campbell, "North American growth was slower," but the company is optimistic about its prospects, driven by its strong product portfolio. The growth was driven by a couple of projects in Europe that were completed during the quarter.

Operational Highlights and Outlook

The company's disciplined expense management yielded quarterly earnings of $0.24 per share, beating analyst estimates of $0.1867. With a strong order backlog and significant momentum heading into the last quarter of fiscal 2026, Evertz is well-positioned to build upon its leadership position in the broadcast and media technology sector. As Brian Campbell noted, "We're entering the last quarter of fiscal 2026 with significant momentum, with over $32 million in shipments in February and a combined purchase order backlog plus February shipments totaling over $278 million."

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 4.9%. With a P/E Ratio of 19.54 and an EV/EBITDA of 12.55, the company's valuation appears reasonable. The company's Return on Equity (ROE) of 24.86% and Return on Invested Capital (ROIC) of 30.27% indicate strong profitability. The dividend yield is not explicitly stated, but the company's financial performance and growth prospects suggest that it is well-positioned to continue delivering value to shareholders.

3. NewsRoom

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How The Evertz Technologies (TSX:ET) Story Is Shifting As Analyst Valuations Converge

May -02

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How The Evertz Technologies (TSX:ET) Investment Story Is Shifting With Higher Analyst Targets

Apr -18

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Why The Evertz Technologies (TSX:ET) Story Is Shifting As Analysts Lift Fair Value Targets

Mar -20

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Evertz Technologies Ltd (EVTZF) Q3 2026 Earnings Call Highlights: Record Sales and Strategic ...

Mar -06

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Evertz Technologies Q3 Earnings Call Highlights

Mar -05

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Why The Narrative Around Evertz Technologies (TSX:ET) Is Shifting With New Valuation And Payout Moves

Mar -04

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Evertz Technologies Reports Record Quarterly Revenue of $139 Million in The Third Quarter Ended January 31, 2026

Mar -04

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Evertz Technologies Limited to Announce Third Quarter 2026 Results on March 4, 2026

Feb -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.14%)

6. Segments

Hardware and Software

Expected Growth: 8%

Evertz Technologies' 8% growth in Hardware and Software is driven by increasing demand for high-quality broadcast equipment, growing adoption of IP-based infrastructure, and rising need for cloud-based solutions. Additionally, the company's focus on innovation, strategic partnerships, and expansion into new markets contribute to its growth momentum.

Services, including Warranty, Maintenance and Commissioning

Expected Growth: 10%

Evertz Technologies' Services segment, including Warranty, Maintenance, and Commissioning, is driven by increasing demand for broadcast and media solutions, expansion into new markets, and growing adoption of cloud-based services. The 10% growth rate is also fueled by the company's strategic partnerships, innovative product offerings, and a strong reputation for delivering high-quality services.

Long Term Contract

Expected Growth: 7%

Evertz Technologies' 7% long-term contract growth is driven by increasing demand for high-quality broadcast equipment, expansion into new geographic markets, and strategic partnerships. Additionally, the company's focus on research and development, leading to innovative products and services, contributes to its growth momentum.

7. Detailed Products

Dreamcatcher

A comprehensive monitoring and control system for broadcast and media facilities

EXE IPX

A high-density, scalable IP routing platform for broadcast and media facilities

Maestro

A comprehensive orchestration and control system for broadcast and media facilities

VIP

A high-performance, modular video processing platform for broadcast and media facilities

Neuron

A software-defined networking platform for broadcast and media facilities

XPS

A high-performance, modular audio processing platform for broadcast and media facilities

OvertureRT

A real-time, low-latency video processing platform for broadcast and media facilities

VUE

A comprehensive monitoring and analytics platform for broadcast and media facilities

8. Evertz Technologies Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Evertz Technologies Limited faces moderate threat from substitutes, as there are limited alternatives to its specialized broadcast equipment and services.

Bargaining Power Of Customers

Evertz Technologies Limited has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Evertz Technologies Limited relies on a few key suppliers for critical components, giving them moderate bargaining power.

Threat Of New Entrants

The high barriers to entry in the broadcast equipment industry, including significant capital requirements and technical expertise, reduce the threat of new entrants.

Intensity Of Rivalry

The broadcast equipment industry is highly competitive, with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.60%
Debt Cost 8.11%
Equity Weight 89.40%
Equity Cost 8.11%
WACC 8.11%
Leverage 11.85%

11. Quality Control: Evertz Technologies Limited passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Evertz Technologies

A-Score: 7.0/10

Value: 5.3

Growth: 3.8

Quality: 8.0

Yield: 10.0

Momentum: 7.0

Volatility: 8.0

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Frequency Electronics

A-Score: 5.6/10

Value: 3.3

Growth: 5.3

Quality: 8.4

Yield: 5.0

Momentum: 10.0

Volatility: 1.7

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ClearOne

A-Score: 4.2/10

Value: 8.1

Growth: 2.1

Quality: 3.5

Yield: 5.0

Momentum: 6.0

Volatility: 0.3

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Vecima Networks

A-Score: 4.0/10

Value: 6.0

Growth: 5.4

Quality: 2.8

Yield: 3.0

Momentum: 0.5

Volatility: 6.3

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Knowles

A-Score: 3.9/10

Value: 2.8

Growth: 1.4

Quality: 6.0

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

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Clearfield

A-Score: 3.6/10

Value: 3.0

Growth: 4.7

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.24$

Current Price

16.24$

Potential

-0.00%

Expected Cash-Flows