MeritValue

EVERTEC, Inc.

EVTCdata completeness 100%15 fiscal years on file
The thesis, from the filings

EVERTEC, Inc. earns about 13% on invested capital, comfortably above its ~9% cost of capital, and has bought back 12% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $22.78 and $36.84 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$589.8M1$618.4M2$694.7M3$845.5M3$931.8M3
Net income$161.1M4$239M5$79.7M6$112.6M6$141.6M6
Operating cash flow$228.4M7$219.9M8$211.2M9$260.1M9$227M9
Capital expenditure$25.1M10$27.1M11$21.4M12$25.4M12$23.3M12
Free cash flow (derived)$203.3M7$192.8M8$189.8M9$234.7M9$203.7M9
Total debt$929.8M13$840.5M14$1.95B15$948.9M16$1.09B16
Cash & equivalents$257.9M17$185.3M18$295.6M19$273.6M19$306M19
Diluted shares72.9M69.3M65.8M65.1M64.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$96.49
your share of equity
Profit it earned you last year
$21.98
Free cash flow it threw off
$31.62
Debt you’d be carrying
$168.71

10 shares is a claim on $96.49 of net worth that earned you $21.98 and generated $31.62 of cash last year, against $168.71 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
13% avg · 5y
FY21 16%FY22 23%FY23 5%FY24 10%FY25 10%

It earned about 13% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−12% shares · 5y

Share count is down 12% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 17% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $22.78 and $36.84 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$35.83
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth1.8%
  • fcfBase$203.7M
DCF · Growth Exit 5Y
$36.84
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth1.8%
  • fcfBase$203.7M
Earnings Power Value
$22.78
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$141.6M
  • growthAssumed0.0%
Graham Number
$21.85
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years1.8%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $36.84
The three cases
Bear0.0%$33.05
Base1.8%$36.84
Bull6.8%$48.53

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 1.8%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001559865-24-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001559865-25-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001559865-26-000012 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001559865-24-000008 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001559865-25-000007 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001559865-26-000012 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001559865-24-000008 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001559865-25-000007 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001559865-26-000012 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001559865-24-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001559865-25-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001559865-26-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001559865-23-000007 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001559865-24-000008 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001559865-25-000007 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001559865-26-000012 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001559865-24-000008 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001559865-25-000007 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001559865-26-000012 (CashAndCashEquivalentsAtCarryingValue)