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EVO

Evolve Education Group NZSE:EVO Stock Report

Last Price

NZ$0.62

Market Cap

NZ$98.9m

7D

-3.1%

1Y

-16.2%

Updated

02 Oct, 2022

Data

Company Financials +
EVO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

EVO Stock Overview

Evolve Education Group Limited provides early childhood education (ECE) services in New Zealand and Australia.

Evolve Education Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Evolve Education Group
Historical stock prices
Current Share PriceNZ$0.62
52 Week HighNZ$0.96
52 Week LowNZ$0.60
Beta2.04
1 Month Change-6.06%
3 Month Change-17.33%
1 Year Change-16.22%
3 Year Change-29.55%
5 Year Change-89.94%
Change since IPO-92.82%

Recent News & Updates

Shareholder Returns

EVONZ Consumer ServicesNZ Market
7D-3.1%0.1%-3.4%
1Y-16.2%-20.3%-19.7%

Return vs Industry: EVO exceeded the NZ Consumer Services industry which returned -20.3% over the past year.

Return vs Market: EVO exceeded the NZ Market which returned -19.7% over the past year.

Price Volatility

Is EVO's price volatile compared to industry and market?
EVO volatility
EVO Average Weekly Movement8.7%
Consumer Services Industry Average Movement7.3%
Market Average Movement3.9%
10% most volatile stocks in NZ Market7.8%
10% least volatile stocks in NZ Market2.9%

Stable Share Price: EVO is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EVO's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
20141,942Chris Scotthttps://www.evolveeducation.co.nz

Evolve Education Group Limited provides early childhood education (ECE) services in New Zealand and Australia. The company operates and manages ECE centers. It operates 109 ECE centers in New Zealand and 23 ECE centers in Australia under the Lollipops, Active Explorers, Learning Adventures, Little Earth Montessori, Little Lights, Little Wonders, and Pascals brand names.

Evolve Education Group Fundamentals Summary

How do Evolve Education Group's earnings and revenue compare to its market cap?
EVO fundamental statistics
Market CapNZ$98.92m
Earnings (TTM)-NZ$976.00k
Revenue (TTM)NZ$163.92m

0.6x

P/S Ratio

-101.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EVO income statement (TTM)
RevenueNZ$163.92m
Cost of RevenueNZ$19.31m
Gross ProfitNZ$144.61m
Other ExpensesNZ$145.59m
Earnings-NZ$976.00k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.0061
Gross Margin88.22%
Net Profit Margin-0.60%
Debt/Equity Ratio17.0%

How did EVO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EVO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EVO?

Other financial metrics that can be useful for relative valuation.

EVO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA17.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EVO's PS Ratio compare to its peers?

EVO PS Ratio vs Peers
The above table shows the PS ratio for EVO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
SVR Savor
0.9xn/aNZ$26.7m
GNS Genius Group
4.3x36.8%US$54.6m
MCK Millennium & Copthorne Hotels New Zealand
2.1xn/aNZ$327.0m
STG Sunlands Technology Group
0.2xn/aUS$58.7m
EVO Evolve Education Group
0.6x-24.7%NZ$98.9m

Price-To-Sales vs Peers: EVO is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does EVO's PE Ratio compare vs other companies in the Oceanian Consumer Services Industry?

Price-To-Sales vs Industry: EVO is good value based on its Price-To-Sales Ratio (0.6x) compared to the Global Consumer Services industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is EVO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EVO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: EVO is expensive based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of EVO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EVO (NZ$0.62) is trading above our estimate of fair value (NZ$0.42)

Significantly Below Fair Value: EVO is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Evolve Education Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


72.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

Earnings vs Market: EVO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EVO is expected to become profitable in the next 3 years.

Revenue vs Market: EVO's revenue is expected to decline over the next 3 years (-24.7% per year).

High Growth Revenue: EVO's revenue is forecast to decline over the next 3 years (-24.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVO's Return on Equity is forecast to be low in 3 years time (8.5%).


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Past Performance

How has Evolve Education Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EVO is currently unprofitable.

Growing Profit Margin: EVO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EVO is unprofitable, but has reduced losses over the past 5 years at a rate of 1.2% per year.

Accelerating Growth: Unable to compare EVO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EVO is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-59%).


Return on Equity

High ROE: EVO has a negative Return on Equity (-0.74%), as it is currently unprofitable.


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Financial Health

How is Evolve Education Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: EVO's short term assets (NZ$26.6M) exceed its short term liabilities (NZ$23.2M).

Long Term Liabilities: EVO's short term assets (NZ$26.6M) do not cover its long term liabilities (NZ$242.6M).


Debt to Equity History and Analysis

Debt Level: EVO's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: EVO's debt to equity ratio has reduced from 31.1% to 17% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable EVO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EVO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18% per year.


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Dividend

What is Evolve Education Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.84%

Forecast Dividend Yield

Dividend Yield vs Market

Evolve Education Group Dividend Yield vs Market
How does Evolve Education Group dividend yield compare to the market?
SegmentDividend Yield
Company (Evolve Education Group)0%
Market Bottom 25% (NZ)2.9%
Market Top 25% (NZ)6.3%
Industry Average (Consumer Services)1.5%
Analyst forecast in 3 Years (Evolve Education Group)4.8%

Notable Dividend: Unable to evaluate EVO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EVO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EVO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EVO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: EVO is not paying a notable dividend for the NZ market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EVO has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Chris Scott (74 yo)

3.92yrs

Tenure

NZ$80,000

Compensation

Mr. Christopher John Scott, also known as Chris, B.Econ (Hons), has been Managing Director of Evolve Education Group Limited since August 16, 2019. Mr. Scott served as an Executive Director of G8 Education...


Leadership Team

Experienced Management: EVO's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: EVO's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NZSE:EVO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 May 22SellNZ$664,426MAM Pty LimitedCompany754,300NZ$0.93
06 May 22SellNZ$1,790,827Wilson Asset Management (International) Pty LimitedCompany1,935,378NZ$0.93

Ownership Breakdown

What is the ownership structure of EVO?
Owner TypeNumber of SharesOwnership Percentage
Private Companies15,991,25410.0%
Institutions19,462,79012.2%
Individual Insiders24,450,27715.3%
General Public99,645,16362.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 17 shareholders own 37.55% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.05%
Christopher Scott
19,227,514NZ$11.9m0%no data
4.87%
Upton124 Pty Ltd
7,772,563NZ$4.8m0%no data
4.49%
Wilson Asset Management (International) Pty Limited
7,160,211NZ$4.4m0.6%0.19%
4.12%
MAM Pty Limited
6,577,446NZ$4.1m-3.54%0.23%
2.12%
New Zealand Central Securities Depository Limited, Asset Management Arm
3,375,068NZ$2.1m0%1.05%
1.98%
A & J Investments Pty Ltd
3,154,534NZ$2.0m0%no data
1.47%
NGE Capital Limited
2,350,000NZ$1.5m0%21.41%
1.35%
Adrian Fonseca
2,156,250NZ$1.3m0%no data
1.29%
Portman Trading Pty Limited
2,058,500NZ$1.3m0%no data
1.19%
Broadgate Investments Pty Ltd
1,899,323NZ$1.2m0%no data
0.83%
Kimberley Yin
1,330,000NZ$824.6k0%no data
0.69%
Glenelg Farm Pty Ltd
1,106,334NZ$685.9k0%no data
0.43%
Judy Forrest
688,497NZ$426.9k0%no data
0.43%
Duncan Forrest
688,497NZ$426.9k0%no data
0.22%
Christopher Sacre
355,769NZ$220.6k0%no data
0.0024%
Kim Campbell
3,750NZ$2.3k0%no data
0.00004%
Dimensional Fund Advisors LP
65NZ$40.30%no data

Company Information

Evolve Education Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Evolve Education Group Limited
  • Ticker: EVO
  • Exchange: NZSE
  • Founded: 2014
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: NZ$98.921m
  • Shares outstanding: 159.55m
  • Website: https://www.evolveeducation.co.nz

Number of Employees


Location

  • Evolve Education Group Limited
  • 16 Kingston Street
  • Level 15
  • Auckland
  • 1010
  • New Zealand


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVONZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2014
EVOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2014
EVOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2014
9EVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2014
9EVHMSE (Hamburg Stock Exchange)YesOrdinary SharesDEEURDec 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.