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Evertec Inc – Data Processing, Hosting, and Related Services
evertec, inc. (nyse: evtc) is a leading full-service transaction processing business in latin america, providing a broad range of merchant acquiring, payment processing and business solutions services. the company manages a system of electronic payment networks that process more than 2.1 billion transactions annually, and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing. in addition, evertec owns and operates the ath® network, one of the leading personal identification number (“pin”) debit networks in latin america. based in puerto rico, the company operates in 19 latin american countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions.
Analysis Results
Intrinsic Value $36.36
Latest Price $37.49
Relative Value 3% overvalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 2.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 151 139
2024 155 132
2025 159 125
2026 163 119
2027 167 113
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2770 million. This corresponds to a present value of 1730 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 629 million. Adding in the terminal value gives a total present value of 2360 million.

There are presently 64.8 million outstanding shares, so the intrinsic value per share is 36.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 389,129,000
Current Cash 197,229,000
Current Liabilities 208,410,000
Current Debt 40,750,000
Non-Cash Working Capital (NCWC) 24,240,000
Change in NCWC -12,625,000
EBIT 160,368,000
Tax Provision 28,983,000
Depreciation and Amortization 84,730,000
Capital Expenditure -71,923,000
Unlevered Free Cash Flow 143,197,336
Current Assets 436,350,000
Current Cash 266,351,000
Current Liabilities 152,884,000
Current Debt 19,750,000
Non-Cash Working Capital (NCWC) 36,865,000
Change in NCWC 19,210,000
EBIT 198,227,000
Tax Provision 20,562,000
Depreciation and Amortization 80,930,000
Capital Expenditure -66,907,000
Unlevered Free Cash Flow 209,028,346
Current Assets 359,046,000
Current Cash 202,649,000
Current Liabilities 152,992,000
Current Debt 14,250,000
Non-Cash Working Capital (NCWC) 17,655,000
Change in NCWC -17,269,000
EBIT 142,528,000
Tax Provision 19,002,000
Depreciation and Amortization 77,395,000
Capital Expenditure -48,640,000
Unlevered Free Cash Flow 132,146,810
Current Assets 276,018,000
Current Cash 111,030,000
Current Liabilities 144,314,000
Current Debt 14,250,000
Non-Cash Working Capital (NCWC) 34,924,000
Change in NCWC 11,159,000
EBIT 145,438,000
Tax Provision 12,975,000
Depreciation and Amortization 68,082,000
Capital Expenditure -59,873,000
Unlevered Free Cash Flow 148,632,371
Current Assets 216,193,000
Current Cash 69,973,000
Current Liabilities 136,705,000
Current Debt 14,250,000
Non-Cash Working Capital (NCWC) 23,765,000
Change in NCWC -5,789,000
EBIT 125,820,000
Tax Provision 12,596,000
Depreciation and Amortization 63,067,000
Capital Expenditure -41,319,000
Unlevered Free Cash Flow 125,797,265
Current Assets 168,706,000
Current Cash 50,423,000
Current Liabilities 147,216,000
Current Debt 58,487,000
Non-Cash Working Capital (NCWC) 29,554,000
Change in NCWC 4,583,000
EBIT 86,687,000
Tax Provision 4,780,000
Depreciation and Amortization 64,250,000
Capital Expenditure -33,464,000
Unlevered Free Cash Flow 115,172,765
Current Assets 158,265,000
Current Cash 51,920,000
Current Liabilities 129,163,000
Current Debt 47,789,000
Non-Cash Working Capital (NCWC) 24,971,000
Change in NCWC -18,254,000
EBIT 107,093,000
Tax Provision 8,271,000
Depreciation and Amortization 59,567,000
Capital Expenditure -42,269,000
Unlevered Free Cash Flow 95,515,920
Current Assets 134,723,000
Current Cash 28,747,000
Current Liabilities 102,501,000
Current Debt 39,750,000
Non-Cash Working Capital (NCWC) 43,225,000
Change in NCWC 3,244,000
EBIT 103,507,000
Tax Provision -3,335,000
Depreciation and Amortization 64,974,000
Capital Expenditure -46,982,000
Unlevered Free Cash Flow 124,743,000
Current Assets 134,606,000
Current Cash 32,114,000
Current Liabilities 104,511,000
Current Debt 42,000,000
Non-Cash Working Capital (NCWC) 39,981,000
Change in NCWC -2,349,000
EBIT 98,488,000
Tax Provision 7,578,000
Depreciation and Amortization 65,988,000
Capital Expenditure -25,944,000
Unlevered Free Cash Flow 126,246,346
Current Assets 116,413,000
Current Cash 22,485,000
Current Liabilities 121,798,000
Current Debt 70,200,000
Non-Cash Working Capital (NCWC) 42,330,000
Change in NCWC 1,839,000
EBIT 86,696,000
Tax Provision -1,990,000
Depreciation and Amortization 70,366,000
Capital Expenditure -28,466,000
Unlevered Free Cash Flow 130,435,000

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