$Evertec (EVTC.US)$Since sustainability after a one-time sur...

The Puerto Rican company, which was listed in 2013, is mainly engaged in transaction processing and payment services. 78% of the market is in Puerto Rico, and the current price is 41.26.

Revenue has continued to grow over the past 5 years, with an average growth rate of 8.7%. The average growth rate was 12.8% due to fluctuations in operating profit. Among them, it shrank 19.9% in 2022, and net profit increased sharply to 239 million in 2022 due to business sales revenue. Interest expenses account for 13.8% of operating profit in 2022, and the interest burden is heavy. Gross profit margin has declined from 56.6% to 52.7% in the past 5 years.

In the first three quarters of 2023, revenue increased by 9.5%, operating profit shrank 1.8%, and net profit shrank 68%.

Currently, the price-earnings ratio is 12, and the price-earnings ratio is TTM 27.3. Considering that the price-earnings ratio is based on serious one-time revenue distortion, the price-earnings ratio TTM is more meaningful and less attractive compared to the recent downward trend in profit.