Operating Margin

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Price: 29.04 USD -0.41%

Market Cap: $1.9B

21.5%

Declining

by 2.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

21.5%

Operating Income

$194.1m

Revenue

$903.4m

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

21.5%

Operating Income

$194.1m

Revenue

$903.4m

Peer Comparison

Country	Company	Market Cap	Operating Margin
PR	Evertec Inc NYSE:EVTC	1.9B USD	Loading...
US	Visa Inc NYSE:V	626.5B USD	Loading...
US	Mastercard Inc NYSE:MA	467.8B USD	Loading...
US	Automatic Data Processing Inc NASDAQ:ADP	103.1B USD	Loading...
US	PayPal Holdings Inc NASDAQ:PYPL	51.7B USD	Loading...
NL	Adyen NV AEX:ADYEN	40.9B EUR	Loading...
US	Paychex Inc NASDAQ:PAYX	37B USD	Loading...
US	Fiserv Inc NYSE:FI	34.3B USD	Loading...
US	Fidelity National Information Services Inc NYSE:FIS	30.1B USD	Loading...
ES	Amadeus IT Group SA MAD:AMS	24.4B EUR	Loading...
US	Broadridge Financial Solutions Inc NYSE:BR	24.1B USD	Loading...

Market Distribution

Min	-891 373.7%
30th Percentile	-247%
Median	-3%
70th Percentile	18.9%
Max	21.5%

Other Profitability Ratios

Evertec Inc
Glance View

Economic Moat

None

Market Cap

1.9B USD

Industry

Technology

Evertec Inc., a dynamic player in the financial technology sector, has woven itself into the fabric of the Caribbean and Latin American markets with a business model rooted in critical infrastructure solutions. Headquartered in San Juan, Puerto Rico, Evertec acts as a digital backbone in the regions it serves, providing an array of transaction processing services that include merchant acquiring, payment processing, and business solutions. Its primary operation is spearheaded through its proprietary network, often likened to a comprehensive circulatory system of the region’s financial framework, facilitating electronic transactions with remarkable efficiency and security. Evertec's integrated technology platforms manage the complex dance of thousands of transactions daily, from banks to retailers and direct to customers, ensuring seamless monetary exchanges vital for any thriving economy. Evertec's revenue model hones in on three major divisions: Merchant Acquiring, Payment Processing, and Business Solutions. By capturing a distinct slice of the payment processing pie, it charges fees based on transaction value engineered through its systems, creating a robust stream of recurring revenue. For example, its merchant acquiring services offer businesses the infrastructure needed to accept card payments, collecting fees per transaction. Meanwhile, its payment processing arm handles the backend work for banks and financial institutions, earning money from the service and processing fees. On the business solutions front, Evertec provides software and consulting services that cater to entities of all sizes, delivering custom-tailored access to vital payment channels. By positioning itself as an indispensable partner in financial operations, Evertec anchors its growth in meeting the increasingly digital needs of a cash-light economy.

View EVTC Analysis

EVTC Intrinsic Value

Undervaluation 36%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Evertec Inc
NYSE:EVTC

Peer Comparison

Market Distribution

Other Profitability Ratios

Evertec Inc
Glance View

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Evertec Inc NYSE:EVTC