EVERTEC’s Sales Growth Outpaces Per-Share Earnings Gains

EVERTEC’s revenue grew at a 12.2% annualized rate over five years, while earnings per share grew at a slower 7.6% pace, according to a StockStory analysis. The publisher also cited the payment processor’s average return on equity of 26.1% over that period.

EVERTEC provides payment processing services to merchants and financial institutions across Latin America and the Caribbean. It also operates ATH, a PIN debit network in the region, according to the analysis.

StockStory said the stock returned 1% over the six months before its report and trailed the S&P 500, which gained 21.4%. The publisher listed the shares at $28.20 in that analysis.

The analysis described the five-year return on equity as a strength and said it pointed to a competitive moat. It also noted that the figure exceeded the roughly 10% average it cited for financial firms.

The slower growth in earnings per share than in revenue was the publisher’s main caution. StockStory said the gap suggested EVERTEC had become less profitable on a per-share basis as it expanded.

As of 17:32 UTC on Sept. 28, EVERTEC shares traded at $27.63, down 1.95% from the previous close. StockStory cited a forward price-to-earnings ratio of 6.8 in its report.