WEBULL

Evertec (EVTC): Valuation Check After $150 Million Term Loan Restructures Debt and Lifts Market Sentiment

Simply Wall St · 1d ago

EVERTEC (EVTC) just locked in a new 150 million dollar term loan and immediately used it to pay down its revolving credit line, a balance sheet shuffle the market has welcomed.

See our latest analysis for EVERTEC.

The move comes after a choppy stretch, with a roughly 3.7% 1 month share price return but a weaker 1 year total shareholder return near 16% in the red, hinting that short term momentum is stabilising while longer term sentiment is still rebuilding.

If this kind of balance sheet reset has your attention, it could be a good moment to explore other fast growing stocks with high insider ownership that might be setting up for their next leg higher.

With shares still down over the past year despite steady revenue and profit growth, markets seem cautiously optimistic but unconvinced. Is EVERTEC quietly undervalued here, or already reflecting its next chapter of expansion?

Most Popular Narrative: 9.8% Undervalued

With EVERTEC last closing at $29.59 against a narrative fair value of $32.80, the story implies room for upside if its expansion plays out.

Ongoing modernization of proprietary technology platforms (including Sinqia's integration and upgrades) and repricing legacy contracts are improving operational efficiencies and margins, with management indicating these benefits will continue into the next year, supporting higher EBITDA and free cash flow.

Read the complete narrative.

Curious how modest growth targets, rising margins and a re rated earnings multiple combine to justify a higher value? Want to see the full playbook?

Result: Fair Value of $32.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story could unravel if Popular contract pressure or Latin American currency swings erode revenue momentum and squeeze EVERTEC's expanding margins.

Find out about the key risks to this EVERTEC narrative.

Build Your Own EVERTEC Narrative

If you are not fully convinced by this take or want to dig into the numbers yourself, you can craft a personalised view in minutes: Do it your way.

A great starting point for your EVERTEC research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for your next investing move?

Set yourself apart from the crowd and use the Simply Wall St Screener to uncover focused ideas that match your strategy before the market fully wakes up.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.