Evertz (TSX:ET) is a leading solutions provider to the television, telecommunications, and new media industries. Evertz is a leading supplier of software, equipment and virtualized technology solutions to content creators, broadcasters, specialty channels, and television service providers. The company designs, manufactures, and markets video and audio infrastructure solutions for the television, telecommunications, and new media industries.
The company has a price-to-earnings ratio of 18.18, price-to-book ratio of 3.39, dividend yield of 3.99%, and market capitalization of $1.03 billion. Debt is very sparingly used at Evertz, as evidenced by a debt-to-equity ratio of just 0.09. The company has excellent performance metrics with an operating margin of 23.52% and a return on equity of 19.31%.
Diverse target market
The company’s solutions are purchased by content creators, broadcasters, specialty channels, and television service providers to support increasingly complex multi-channel digital and high definition television and next generation high bandwidth network environments. Evertz’s products allow the company’s customers to generate additional revenue while reducing costs through more efficient signal routing, distribution, monitoring and management of content.
Evertz has developed a track record of rapid innovation and is a leader in the software defined video network technology. A significant portion of the company’s staff is focused on research and development to ensure that products are at the forefront of the industry. This commitment contributes to Evertz being consistently recognized as a leading broadcast and video networking industry innovator by the company’s customers.
The company’s solutions are purchased by content creators, broadcasters, and television service providers to support increasingly complex multi-channel digital broadcast, on-demand content-environments, and new-media companies. The essential functions of the company’s products include the ability to implement advanced digital systems, monitor data signals, and deliver television services over telecommunications networks.
The company’s infrastructure solutions are used across the broadcasting industry for various signal processing, routing and distribution functions, such as conversion from analog to digital and electrical to optical.
The company’s visualization and monitoring products enable customers to view, monitor, and manage a large number of broadcast signals locally or across a geographically dispersed infrastructure.
The company’s playout and content management solutions enable customers to improve operational workflow. Products offer a scalable, feature-rich, and cost-effective solution for content management.
The company’s compression and media transport products allow for broadcasters and service providers to deliver video and audio content over small and large geographical distances. The company’s software defined video networking solution is an exciting new architecture offering a flexible format that easily supports 8K video, and the use of virtualized services.
Evertz’s replay system and live media production suite of tools allow broadcasters and new media companies to create content for multiple platform efficiently and cost effectively. The suite of tools enables content capture, slow motion replay, quick turnaround editing, and collaborative production.
Bright future outlook
The company sells primarily to technically sophisticated customers on the basis of product performance and features. Evertz’s sales are expected to significantly rise in future years, which should result in a much higher stock price.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.