EVERTEC, Inc. (EVTC)

Price$30.35Cached quoteAs of 2026-09-06 03:26 UTC

AI: Undervalued

Price checkValuation multiples look modest for current growth, though leverage and acquisition execution deserve a discount.

EVERTEC, Inc. is listed on the New York Stock Exchange as EVTC. At the latest close, market data put its equity value near $1.8 billion and enterprise value, which adds net debt, near $2.8 billion. The stock trades around 19 times trailing GAAP earnings, about 7 times forward earnings, and roughly 10 times enterprise value to EBITDA, meaning earnings before interest, tax, depreciation and amortization. Those are modest multiples for current growth, supporting an undervalued view, but the low rating partly compensates investors for leverage and acquisition risk.

Big pictureGrowth guidance improved, but cash generation must support a much heavier debt load after acquisitions.

Second-quarter revenue rose 20% to $274.8 million and adjusted EBITDA rose 18% to $109.3 million. Management raised 2026 revenue guidance to $1.085-$1.095 billion and adjusted EPS guidance to $3.94-$4.04. GAAP net income attributable to common holders was only $5.4 million, so adjusted profit should not be treated as cash. First-half operating cash flow was $90.7 million against $47.8 million of capital investment. At June 30, cash was $260.7 million versus $1.29 billion of debt; secured net leverage was 2.55 times, no default was reported, and the revolver had $159.4 million of additional capacity.

Business strengthRecurring payment services are sticky, while customer concentration, consumer spending, and currencies add cyclicality.

EVERTEC has attractive payment-processing economics: much of revenue is recurring, services are embedded in customer operations, and contracts are generally multi-year. Latin America is becoming a larger growth engine, reducing reliance on Puerto Rico over time. Still, Popular generated about 25% of first-half 2026 revenue, and a contractual 10% discount is already pressuring Business Solutions. Payment volumes also follow consumer spending and holiday seasonality, while Brazilian and other Latin American results add foreign-exchange exposure. That combination supports durable demand but not fully defensive earnings.

What could change the storyDeleveraging and successful integrations could unlock upside; execution, cyber, rates, or concentration could erase it.

Bull case: management delivers the raised 2026 outlook, Transbank, Clip, Dimensa, Tecnobank and BB Chain deepen Latin American growth, margins hold, and cash left after business investment goes toward debt reduction. Bear case: acquisitions disappoint, consumer spending or currencies weaken, Popular concentration and discounts drag results, cybersecurity costs or litigation grow, or higher rates keep interest expense elevated. First-half buybacks of $67.0 million and the $150 million authorization can reduce the share count, but $15.7 million of stock compensation still represents a real cost and potential dilution.

AI: News

Q2 outlook raisedStrong second-quarter growth led management to raise full-year revenue and adjusted earnings guidance.

On August 4, EVERTEC reported second-quarter revenue of $274.8 million, up 20%, and adjusted EBITDA of $109.3 million, up 18%. Management raised 2026 revenue guidance to $1.085-$1.095 billion and adjusted EPS guidance to $3.94-$4.04. The same update also highlighted strategic wins with Transbank and Clip and a larger share-repurchase authorization, signaling confidence while the company continues integrating recent acquisitions.

BB Chain stake closesEVERTEC added blockchain infrastructure exposure through a majority investment in Brazilian startup BB Chain.

On July 31, Evertec Brasil completed the purchase of a 67% stake in BB Chain, a startup focused on blockchain infrastructure for financial institutions. The investment was approximately $5.6 million and was funded from existing liquidity. The deal is small relative to EVERTEC's balance sheet, but it broadens the technology portfolio and adds another integration task as management expands across Brazil and other Latin American markets.

Cyber incident reaches litigationA third-party support platform breach created remediation costs and class-action exposure without reported service outages.

EVERTEC disclosed on June 9 that it had learned of unauthorized access to customer data through a third-party support platform, primarily affecting financial-institution clients in Puerto Rico. The company said no customer service disruption had occurred at that point, but expected investigation and remediation expenses. Its August quarterly filing said putative class actions began on June 12; potential liabilities and insurance recovery remained uncertain.

Transbank agreement expands ChileA strategic processing agreement with Transbank strengthens EVERTEC's position in a major Latin American payments market.

On May 18, EVERTEC announced a strategic agreement with Transbank, Chile's leading payment solutions operator and one of Latin America's largest acquirers. EVERTEC will operate Transbank's transactional scope along with selected platforms and services. The contract supports the bull case for geographic diversification and organic growth beyond Puerto Rico, although execution quality, implementation costs and the timing of revenue contribution will determine how much value it ultimately creates.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011
Revenue	$931.8M	$845.5M	$694.7M	$618.4M	$589.8M	$510.6M	$487.4M	$453.9M	$407.1M	$389.5M	$373.5M	$361.8M	$358.4M	$342.5M	$321.1M
Gross profit	$462.7M	$439.1M	$358.0M	$325.8M	—	—	—	—	$404.2M	$387.3M	$371.8M	$359.8M	$350.0M	$342.1M	$320.9M
Gross margin	49.65%	51.93%	51.53%	52.68%	—	—	—	—	99.28%	99.44%	99.54%	99.46%	97.65%	99.88%	99.94%
Operating expenses	$745.4M	$679.8M	$558.5M	$461.0M	$393.3M	$369.2M	$342.9M	$328.7M	$321.1M	$282.4M	$270.2M	$264.8M	$272.2M	$262.8M	$258.6M
Operating income	$186.4M	$165.7M	$136.2M	$157.4M	$196.5M	$141.4M	$144.5M	$125.1M	$86.1M	$107.1M	$103.4M	$97.0M	$86.2M	$79.6M	$62.5M
Operating margin	20.01%	19.59%	19.60%	25.45%	33.32%	27.69%	29.65%	27.57%	21.14%	27.51%	27.67%	26.81%	24.06%	23.25%	19.47%
EBITDA	$208.7M	$188.0M	$157.8M	$175.9M	$213.9M	$158.8M	$161.1M	$139.6M	$100.8M	$121.3M	$118.5M	$112.5M	$102.4M	$96.0M	$77.8M
EBITDA margin	22.40%	22.23%	22.71%	28.44%	36.27%	31.10%	33.06%	30.76%	24.75%	31.15%	31.71%	31.09%	28.58%	28.04%	24.23%
Net income	$141.6M	$112.6M	$79.7M	$239.0M	$161.1M	$104.4M	$103.5M	$86.3M	$55.1M	$75.0M	$85.4M	$66.2M	−$27.1M	$77.4M	$24.2M
Net profit margin	15.20%	13.32%	11.48%	38.65%	27.32%	20.45%	21.23%	19.01%	13.52%	19.26%	22.86%	18.29%	−7.57%	22.59%	7.54%
Basic EPSper basic share	$2.22	$1.75	$1.23	$3.48	$2.24	$1.45	$1.44	$1.19	$0.76	$1.01	$1.11	$0.84	-$0.34	$1.06	$0.33
Diluted EPSper diluted share	$2.20	$1.73	$1.21	$3.45	$2.21	$1.43	$1.41	$1.16	$0.76	$1.01	$1.11	$0.84	-$0.34	$1.01	$0.33

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

15.33%of listed shares

BlackRock, Inc.9.16M shares · Jun 30, 2026

View holders

Top 20 reported holders of EVTC
Holder	% owned
BlackRock, Inc.	15.33%9.16M shares
FMR LLC	14.73%8.8M shares
AMERICAN CENTURY COMPANIES INC	8.68%5.19M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	6.63%3.96M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.63%2.77M shares
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	4.54%2.71M shares
STATE STREET CORP	4.36%2.6M shares
FULLER & THALER ASSET MANAGEMENT, INC.	3.45%2.06M shares
GEODE CAPITAL MANAGEMENT, LLC	2.63%1.57M shares
DIMENSIONAL FUND ADVISORS LP	2.39%1.43M shares
PRICE T ROWE ASSOCIATES INC /MD/	1.59%949.59K shares
HEARTLAND ADVISORS INC	1.41%840.4K shares
AMERIPRISE FINANCIAL INC	1.39%830.62K shares
NORTH STAR ASSET MANAGEMENT INC	1.35%809.55K shares
NORTHERN TRUST CORP	1.33%793.8K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.27%758.03K shares
AQR CAPITAL MANAGEMENT LLC	1.19%708.23K shares
LONE PEAK GLOBAL INVESTORS LLC	0.98%584.69K shares
Clark Capital Management Group, Inc.	0.94%562.39K shares
PANAGORA ASSET MANAGEMENT INC	0.79%472.64K shares

Percentages use 59.75M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$2.25M disclosed value

Sells (SEC code S)19$14.24M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 12, 2026Form 4	SMITH BRIAN JOHNDirector	BuyCommon Stock	16.2K	$26.42	$428.1K	88.2K
May 11, 2026Form 4	Vizcarrondo MiguelExecutive Vice President	BuyCommon Stock	21.0K	$23.37	$490.8K	142.2K
May 8, 2026Form 4	D'ANGELO FRANK G.Director	BuyCommon Stock	20.0K	$23.40	$468.0K	41.1K
May 8, 2026Form 4	Castrillo-Salgado Joaquin A.Senior EVP & COO	BuyCommon Stock	5.5K	$24.33	$132.9K	144.0K
May 8, 2026Form 4	Castrillo-Salgado Joaquin A.Senior EVP & COO	BuyCommon Stock	1.7K	$22.95	$38.4K	138.5K

Review ownership filings at SEC.gov ↗

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