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what it is
It runs payment rails, bank software, and merchant processing across Puerto Rico, Latin America, and the Caribbean.
how it gets paid
Last year Evertec made $932M in revenue. merchant acquiring was the main engine at $335M, or 36% of sales.
why it's growing
Revenue grew 10.2% last year. EDGAR data says trailing revenue is $932 million.
what just happened
The latest report showed revenue of $687M and EPS of $1.64, but that number stack needs context because it sits above the $932M trailing annual revenue base provided.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
15.2x trailing p/e — the market's not buying it — or you found a deal
0.7% dividend yield — cash in your pocket every quarter
10.7% return on capital — nothing to write home about
xvary composite: 46/100 — below average
What they do
It runs payment rails, bank software, and merchant processing across Puerto Rico, Latin America, and the Caribbean.
This business sits in the plumbing. EVERTEC says it processes more than 6 billion transactions a year, and it owns the ATH network, one of the leading PIN-debit rails in Latin America. Switching costs (changing providers → ripping out core payment and bank systems → expensive and annoying) are real, so your bank or merchant usually sticks with the incumbent.
How they make money
$932M
annual revenue · their business grew +10.2% last year
merchant acquiring
$335M
+8.0%
payment services puerto rico
$255M
+7.5%
latin america payments and solutions
$198M
+19.0%
business solutions
$144M
+8.7%
The products that matter
pin debit network
ATH Network
core local rail
this is the local payments plumbing people forget about until they need it. inside a company that did $931.8M of revenue at a 49.8% gross margin, that local rail is part of why the business still earns real money.
moat
merchant payment processing
Merchant Acquiring
~$560M revenue
roughly 60% of total revenue sits here. That's why this segment matters more than the story around it. If merchant volumes slow, you feel it almost immediately in the whole company.
core
back-office transaction services
Business Process Management
11-country footprint
this business adds service revenue across 11 Latin American and Caribbean markets. It is useful ballast, but at about $93M of the mix it is still support cast, not the lead actor.
ballast
Key numbers
20.0%
operating margin
Operating margin → what the company keeps after running the business → so what: EVERTEC is not just moving money around, it is doing it profitably.
$1.1B
long-term debt
Debt → money owed to lenders → so what: the business has less room for bad surprises when debt equals 37% of capital.
15.2x
trailing p/e
P/E → price compared with annual profit → so what: you are paying a market-average multiple for a niche payments asset.
10.7%
return on capital
Return on capital → profit earned on money invested in the business → so what: decent, but not elite, which keeps the stock from getting a premium multiple.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $1.1B (37% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for EVTC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest report showed revenue of $687M and EPS of $1.64, but that number stack needs context because it sits above the $932M trailing annual revenue base provided.
EDGAR data says trailing revenue is $932 million, up 10.2% vs. prior year. The quarterly figure provided looks unusually large versus the annual base, so you should focus on the confirmed annual trend and the latest EPS strength.
$687M
revenue
$1.64
eps
49.8%
gross margin
the number that mattered
The number that mattered was 10.2% annual revenue growth on a $932 million base, because steady compounding matters more than one noisy quarter.
source: company earnings report, 2026
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What could go wrong
the risk here is not abstract. too much still runs through a small set of dependencies: Popular, Puerto Rico, Latin America execution, and a balance sheet carrying $1.1B of long-term debt.
high
Popular concentration
Popular has historically represented a material slice of revenue. On the figures in this snapshot, more than $140M of annual revenue is tied to that relationship. That's not concentration in theory. That's concentration with a dollar sign on it.
> $140M revenue exposure
high
Latin America mix shift
management expects Latin America to exceed 40% of revenue in 2026. That's the growth engine. It also means more of the thesis sits in markets with higher regulatory, currency, and macro noise than the legacy Puerto Rico base.
40%+ of revenue mix in motion
med
Debt plus integration
EVTC has $305.99M of cash against $1.1B in long-term debt. That debt supported acquisitions, including the R$950M Dimensa deal. If integration slips, the market stops seeing strategic expansion and starts seeing a more fragile balance sheet.
$1.1B debt vs. $305.99M cash
med
Good business, not elite economics
return on capital is 10.7%. That's respectable, not special. If growth slows, the stock loses the benefit of being called a payments company pretty quickly because the underlying economics are good, not spectacular.
10.7% return on capital
between more than $140M tied to one customer, a 40%+ Latin America mix target, and $1.1B of debt, the risk profile is concentrated rather than mysterious.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings
first report after the $1.02B–$1.04B full-year guide. if the first quarter comes in soft, the market starts doing subtraction fast.
revenue
the path to $1B
management has put the billion-dollar revenue milestone in play. you want quarterly revenue building toward that number without help from one-off noise.
concentration
Popular exposure
the key question is whether new growth reduces dependence on the legacy bank relationship, or just sits on top of it and leaves the core risk untouched.
integration
Dimensa close and ramp
the R$950M acquisition is expected to close in Q2 2026. watch for integration costs first, revenue contribution second, and margin quality the whole time.
Analyst rankings
earnings predictability
60 / 100
in human-speak, analysts think the business is steady enough to model, but not steady enough to remove surprises.
risk profile
3 / 5
middle-of-the-pack safety. you are not buying a distressed story, but you are not buying a no-drama compounder either.
source: institutional data
Institutional activity
institutional ownership data for EVTC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$30
current price
n/a
target midpoint · n/a from current
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