Can EVTC's earnings growth sustain in the next year?

**Evertec's (EVTC) earnings growth may face challenges in sustaining in the next year.** Here's why:

1. **Geographical Concentration Risks**: Evertec's business is concentrated in Latin America and the Caribbean, which poses risks due to economic, political, and social instability in these regions. This concentration could lead to volatility in the company's financial performance if conditions in any of these countries deteriorate.
2. **Competitive Pressures**: The financial technology sector is competitive, and Evertec faces pressures from other players offering similar services. The company's ability to maintain its market share and profitability could be affected by competitive actions such as pricing pressures or innovative service offerings.
3. **Market Penetration and Growth**: While Evertec has seen growth in revenue and net income, the 3-year CAGR for diluted EPS is negative, indicating a decline in earnings per share over the last three years. The company will need to continue its strategic investments and market penetration efforts to sustain growth.
4. **Financial Ratios**: The P/E ratio of 19.14 suggests that the stock is relatively expensive compared to earnings, which could indicate that the high earnings growth has been priced in. The P/B ratio of 4.56 also points to a premium valuation, which may limit the stock's upside if earnings do not continue to grow at a similar rate.

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|EVTC|EVTC.N|Evertec|20240405|37.890508|0|4.253305789198257|169|
|EVTC|EVTC.N|Evertec|20240408|38.381064|0|4.308371892113822|169|
|EVTC|EVTC.N|Evertec|20240409|38.645964|0|4.338107587688228|169|
|EVTC|EVTC.N|Evertec|20240410|36.752419|0|4.059882253602179|169|
|EVTC|EVTC.N|Evertec|20240411|37.242975|0|4.114071819186832|169|
|EVTC|EVTC.N|Evertec|20240412|36.664119|0|4.050128131796942|169|
|EVTC|EVTC.N|Evertec|20240415|36.870153|0|4.072887749342495|169|
|EVTC|EVTC.N|Evertec|20240416|36.222619|0|4.001357522770755|169|
|EVTC|EVTC.N|Evertec|20240417|36.389408|0|4.019781975069537|169|
|EVTC|EVTC.N|Evertec|20240418|36.487519|0|4.030619888186467|169|

5. **Executive Actions**: Recent sales of common stock by an executive vice president could be interpreted as a lack of confidence in the company's short-term prospects. Such actions could influence investor sentiment and potentially affect the stock's performance.

In conclusion, while Evertec has demonstrated strong growth in recent years, the challenges of sustaining this growth in a competitive and geographically concentrated market, along with the potential impact of executive actions, suggest that continued earnings growth may be difficult to maintain in the next year.