EVTCEVERTEC, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EVTC?
EVERTEC, Inc. earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.54 points below what the capital costs: growth destroys value
- Operating margin
- 18%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.63×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 28% |
| FY2021 | 33% |
| FY2022 | 25% |
| FY2023 | 20% |
| FY2024 | 20% |
| FY2025 | 20% |
Details›
- Operating margin12 months to Q2 2026
- 18%
- Net margin12 months to Q2 2026
- 9.8%
- Free cash flow margin
- 21%
- Revenue, trailing twelve months
- $996M
- Free cash flow, trailing twelve months
- $208M
- Net income, trailing twelve months
- $98M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #14 of 80 by RyuScore