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1. Company Snapshot

1.a. Company Description

EVERTEC, Inc.engages in transaction processing business in Latin America and the Caribbean.The company operates through Payment Services - Puerto Rico & Caribbean; Payment Services - Latin America; Merchant Acquiring; Business Solutions, and Corporate and Other segments.


It provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer (EBT) cards.The company also offers payment processing services that enable financial institutions and other issuers to manage, support, and facilitate the processing for credit, debit, prepaid, automated teller machines, and EBT card programs; credit and debit card processing, authorization and settlement, and fraud monitoring and control services to debit or credit issuers; and EBT services.In addition, it provides business process management solutions comprising core bank processing, network hosting and management, IT consulting, business process outsourcing, item and cash processing, and fulfillment solutions to financial institutions, and corporate and government customers.


Further, the company owns and operates the ATH network, an automated teller machine and personal identification number debit networks.It manages a system of electronic payment networks that process approximately three billion transactions.The company sells and distributes its services primarily through direct sales force.


It serves financial institutions, merchants, corporations, and government agencies.EVERTEC, Inc.was founded in 1988 and is headquartered in San Juan, Puerto Rico.

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1.b. Last Insights on EVTC

EVERTEC, Inc.'s recent performance was impacted by a change in its third-quarter 2025 financial results release date, now scheduled for November 6, 2025, due to an unforeseen management scheduling conflict. The company also announced the appointment of new executives, including a COO and CFO. Additionally, EVERTEC's acquisition of a controlling stake in Tecnobank, a fintech company in Brazil, may influence its short-term performance. A comparison with Cantaloupe (NASDAQ:CTLP) highlights differences in earnings, valuation, and analyst recommendations.

1.c. Company Highlights

2. Evertec's Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Evertec's third-quarter 2025 revenue was $228.6 million, up 8% year-over-year, with constant currency revenue at approximately $227.9 million, representing growth of 8%. Adjusted EBITDA increased to $92.6 million, up approximately 6% year-over-year, and adjusted EBITDA margin was 40.5% for the quarter. The company's adjusted EPS of $0.92 was up 7% year-over-year, beating analyst estimates of $0.89. The revenue growth was driven by strong performance across various segments, including Latin America, where revenue increased 19% year-over-year.

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $228.6M (+8% YoY), with constant currency revenue at $227.9M (+8%).
  • Adjusted EBITDA Performance:: Adjusted EBITDA rose to $92.6M (+6% YoY), maintaining a 40.5% margin.
  • Latin America Momentum:: Region grew 19% YoY (18% constant currency), driven by Brazil’s reacceleration and Grandata/Nubity acquisitions.
  • Cybersecurity Incident Update:: Brazil’s PIX system breach was isolated, with most funds recovered; no broader operational impact reported.
  • 2025 Outlook:: Revenue guidance raised to $921M–$927M (+8.9–9.6% growth), with adjusted EPS growth of 8.5–10.4% and 40% EBITDA margin target.

Segment Performance

In Puerto Rico, Merchant Acquiring revenue grew 3% year-over-year, driven by higher sales volume, while Payment Services grew 5% year-over-year, driven by strong performance in ATH Móvil. Business Solutions revenue grew 1%, primarily driven by projects completed during the quarter. In Latin America, revenue growth was driven by strong organic growth across the region, fueled by the reacceleration in Brazil and the contribution from the Grandata and Nubity acquisitions.

Cybersecurity Incident Update

The company provided an update on its cybersecurity incident in Brazil, stating that the investigation has nearly concluded and the incident was isolated to the PIX real-time payment system in Brazil, with the vast majority of funds recovered. This incident did not have a significant impact on the company's business momentum.

Outlook and Guidance

For 2025, Evertec updated its outlook, expecting revenues to be between $921 million and $927 million, representing growth of 8.9% to 9.6%, and adjusted EPS growth between 8.5% and 10.4%. The company expects an adjusted EBITDA margin of approximately 40% and an adjusted effective tax rate to range from 6% to 7%. For 2026, the company expects continued momentum in Latin America, driven by organic growth and strategic M&A, including the recent acquisition of Tecnobank.

Valuation and Metrics

Evertec's current valuation metrics, including a P/E Ratio of 12.62, P/B Ratio of 2.78, and EV/EBITDA of 7.91, indicate a reasonable valuation. The company's return on equity (ROE) of 25.51% and return on invested capital (ROIC) of 9.34% demonstrate its ability to generate strong returns. With a Net Debt / EBITDA ratio of 1.98, the company's leverage is manageable. Analysts estimate next year's revenue growth at 5.4%, which is slightly lower than the company's historical growth rate.

Capital Allocation

The company has $150 million available under its share repurchase program and will evaluate opportunities for tuck-in deals and potential stock buybacks. Evertec remains focused on executing its strategic priorities and cost initiatives to support long-term value creation.

3. NewsRoom

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EVTC or RBA: Which Is the Better Value Stock Right Now?

Dec -03

Source: zacks.com

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Head to Head Survey: Evertec (NYSE:EVTC) and Pax Global Tech (OTCMKTS:PXGYF)

Dec -02

Source: defenseworld.net

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Creative Planning Purchases 6,646 Shares of Evertec, Inc. $EVTC

Nov -27

Source: defenseworld.net

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Banco Bilbao Vizcaya Argentaria S.A. Buys 3,991 Shares of Evertec, Inc. $EVTC

Nov -19

Source: defenseworld.net

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Evertec, Inc. (NYSE:EVTC) Receives Average Rating of “Hold” from Brokerages

Nov -19

Source: defenseworld.net

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Evertec (EVTC) Upgraded to Buy: Here's What You Should Know

Nov -17

Source: zacks.com

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EVERTEC, Inc. (EVTC) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Evertec (EVTC) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.54%)

6. Segments

Business Solutions

Expected Growth: 8%

EVERTEC's 8% growth in Business Solutions is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. The company's focus on innovation, customer-centric approach, and investments in technology infrastructure also contribute to its growth. Additionally, the growing need for businesses to optimize their operations and improve customer experience fuels the demand for EVERTEC's solutions.

Payment Services - Puerto Rico & Caribbean

Expected Growth: 9%

Strong demand for digital payments, increasing adoption of e-commerce, and government initiatives to promote financial inclusion drive EVERTEC's Payment Services growth in Puerto Rico and the Caribbean. Additionally, the company's strategic partnerships, innovative product offerings, and expanding merchant network contribute to its 9% growth.

Latin America Payment and Solutions

Expected Growth: 11%

EVERTEC's 11% growth in Latin America Payment and Solutions is driven by increasing adoption of digital payments, government initiatives promoting financial inclusion, and growing e-commerce penetration. Additionally, the company's strategic partnerships, innovative product offerings, and expanding merchant network have contributed to its growth momentum in the region.

Merchant Acquiring, Net

Expected Growth: 12%

Strong merchant acquiring growth driven by increasing e-commerce adoption, expansion into new markets, and strategic partnerships. EVERTEC's diversified merchant base, innovative payment solutions, and efficient processing capabilities also contribute to the 12% growth. Additionally, the company's focus on digital transformation and investment in technology infrastructure support its growth momentum.

Corporate and Other

Expected Growth: 7%

EVERTEC's Corporate and Other segment growth of 7% is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and effective capital allocation contribute to its growth momentum.

7. Detailed Products

Payment Processing

EVERTEC's payment processing services enable businesses to accept and process payments securely and efficiently, providing a range of payment methods and channels.

Merchant Acquiring

EVERTEC's merchant acquiring services provide businesses with the ability to accept credit and debit card payments, offering competitive rates and flexible pricing models.

Point of Sale (POS) Solutions

EVERTEC's POS solutions provide businesses with integrated payment processing, inventory management, and customer management capabilities, streamlining operations and improving customer experience.

E-Commerce Solutions

EVERTEC's e-commerce solutions enable businesses to create online stores, process online payments, and manage orders and inventory, providing a comprehensive e-commerce platform.

Digital Wallets

EVERTEC's digital wallet solutions enable consumers to store payment information securely, making online and in-store payments convenient and secure.

Loyalty and Rewards Programs

EVERTEC's loyalty and rewards programs enable businesses to create and manage loyalty programs, rewarding customers and driving repeat business.

Data Analytics and Insights

EVERTEC's data analytics and insights solutions provide businesses with actionable insights into customer behavior, sales trends, and operational performance.

8. EVERTEC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EVERTEC, Inc. operates in the financial technology industry, which is characterized by a moderate threat of substitutes. While there are alternative payment processing solutions, EVERTEC's diversified product offerings and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

EVERTEC, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers and its ability to provide customized solutions reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

EVERTEC, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term contracts with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial technology industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, EVERTEC, Inc.'s strong brand recognition and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The financial technology industry is highly competitive, with many established players competing for market share. EVERTEC, Inc. faces intense competition from companies such as FIS, Fiserv, and Global Payments, which could potentially erode its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.19%
Debt Cost 4.40%
Equity Weight 37.81%
Equity Cost 9.91%
WACC 6.48%
Leverage 164.46%

11. Quality Control: EVERTEC, Inc. passed 4 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

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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

29.59$

Current Price

29.59$

Potential

-0.00%

Expected Cash-Flows