Definitive Analysis
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EVERTEC, Inc. (EVTC)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$52.88 - $140.27$80.86
Multi-Stage$35.45 - $38.77$37.08
Blended Fair Value$58.97
Current Price$33.78
Upside74.56%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-2.24%-8.52%0.200.200.210.220.220.220.110.340.460.48
YoY Growth---1.17%-5.43%-4.41%0.19%-0.26%98.27%-66.58%-26.72%-3.96%-1.40%
Dividend Yield--0.54%0.52%0.63%0.54%0.60%0.98%0.39%2.05%2.88%3.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)146.09
(-) Cash Dividends Paid (M)9.56
(=) Cash Retained (M)136.53
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)29.2218.2610.96
Cash Retained (M)136.53136.53136.53
(-) Cash Required (M)-29.22-18.26-10.96
(=) Excess Retained (M)107.31118.27125.57
(/) Shares Outstanding (M)64.8164.8164.81
(=) Excess Retained per Share1.661.821.94
LTM Dividend per Share0.150.150.15
(+) Excess Retained per Share1.661.821.94
(=) Adjusted Dividend1.801.972.09
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$52.88$80.86$140.27
Upside / Downside56.54%139.37%315.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)146.09155.59165.70176.47187.94200.16206.16
Payout Ratio6.55%23.24%39.93%56.62%73.31%90.00%92.50%
Projected Dividends (M)9.5636.1566.1699.92137.78180.14190.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)32.8333.1433.45
Year 2 PV (M)54.5555.5956.63
Year 3 PV (M)74.8076.9579.13
Year 4 PV (M)93.6597.26100.96
Year 5 PV (M)111.18116.55122.13
PV of Terminal Value (M)1,930.162,023.392,120.18
Equity Value (M)2,297.172,402.872,512.49
Shares Outstanding (M)64.8164.8164.81
Fair Value$35.45$37.08$38.77
Upside / Downside4.93%9.76%14.77%

High-Yield Dividend Screener

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