OM:EVO

Stock Analysis Report

Evolution Gaming Group

Executive Summary

Evolution Gaming Group AB (publ) develops, produces, markets, and licenses live casino solutions to gaming operators primarily in Europe and the United States.

Rewards

Earnings are forecast to grow 20% per year

Earnings grew by 79.4% over the past year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Outstanding track record with high growth potential.


Similar Companies

Share Price & News

How has Evolution Gaming Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EVO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.7%

EVO

6.6%

SE Hospitality

1.4%

SE Market


1 Year Return

203.3%

EVO

34.8%

SE Hospitality

23.3%

SE Market

Return vs Industry: EVO exceeded the Swedish Hospitality industry which returned 34.8% over the past year.

Return vs Market: EVO exceeded the Swedish Market which returned 23.3% over the past year.


Shareholder returns

EVOIndustryMarket
7 Day7.7%6.6%1.4%
30 Day35.0%15.4%3.9%
90 Day66.7%24.7%12.2%
1 Year207.3%203.3%38.9%34.8%28.3%23.3%
3 Year544.2%527.4%67.2%55.8%40.0%18.9%
5 Yearn/a7.1%-2.4%48.6%17.1%

Price Volatility Vs. Market

How volatile is Evolution Gaming Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evolution Gaming Group undervalued compared to its fair value and its price relative to the market?

47.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EVO (SEK416) is trading above our estimate of fair value (SEK355.2)

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


Price To Earnings Ratio

PE vs Industry: EVO is poor value based on its PE Ratio (47.5x) compared to the Hospitality industry average (17.1x).

PE vs Market: EVO is poor value based on its PE Ratio (47.5x) compared to the Swedish market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: EVO is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: EVO is overvalued based on its PB Ratio (25.4x) compared to the SE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Evolution Gaming Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVO's forecast earnings growth (20% per year) is above the savings rate (-0.4%).

Earnings vs Market: EVO's earnings (20% per year) are forecast to grow faster than the Swedish market (8.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EVO's revenue (19.1% per year) is forecast to grow faster than the Swedish market (4.7% per year).

High Growth Revenue: EVO's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVO's Return on Equity is forecast to be very high in 3 years time (45.4%).


Next Steps

Past Performance

How has Evolution Gaming Group performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVO has high quality earnings.

Growing Profit Margin: EVO's current net profit margins (40.9%) are higher than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: EVO's earnings have grown significantly by 44.2% per year over the past 5 years.

Accelerating Growth: EVO's earnings growth over the past year (79.4%) exceeds its 5-year average (44.2% per year).

Earnings vs Industry: EVO earnings growth over the past year (79.4%) exceeded the Hospitality industry -1.9%.


Return on Equity

High ROE: EVO's Return on Equity (53.3%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evolution Gaming Group's financial position?


Financial Position Analysis

Short Term Liabilities: EVO's short term assets (€329.2M) exceed its short term liabilities (€137.7M).

Long Term Liabilities: EVO's short term assets (€329.2M) exceed its long term liabilities (€15.6M).


Debt to Equity History and Analysis

Debt Level: EVO's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EVO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EVO's debt is well covered by operating cash flow (3128.4%).

Interest Coverage: EVO's interest payments on its debt are well covered by EBIT (789.9x coverage).


Balance Sheet

Inventory Level: EVO has a low level of unsold assets or inventory.

Debt Coverage by Assets: EVO's debt is covered by short term assets (assets are 58.6x debt).


Next Steps

Dividend

What is Evolution Gaming Group's current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Evolution Gaming Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.1%marketbottom25%1.6%markettop25%4.1%industryaverage2.1%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: EVO's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.56%).

High Dividend: EVO's dividend (1.07%) is low compared to the top 25% of dividend payers in the Swedish market (4.14%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EVO has been paying a dividend for less than 10 years.

Growing Dividend: EVO's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.7%), EVO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVO's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Martin Carlesund (49yo)

3.3yrs

Tenure

€816,000

Compensation

Mr. Martin Carlesund has been the Chief Executive Officer of Highlight Media Holdings Ltd. since 2009. Mr. Carlesund has been the Chief Executive Officer of Evolution Gaming Group AB since November 1, 2016 ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD880.92K) is below average for companies of similar size in the Swedish market ($USD1.77M).

Compensation vs Earnings: Martin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jens Von Bahr
Co-Founder3.3yrs€414.00kno data
Martin Carlesund
Chief Executive Officer3.3yrs€816.00k0.096% 73.2m
Fredrik Österberg
Co-Founder & Director5.1yrs€353.00kno data
Richard Hadida
Co-Founder and Creative Director of Group0yrsno datano data
Jacob Kaplan
Chief Financial Officer3.2yrsno data0.094% 71.1m
Svante Liljevall
Chief Operating Officer12.1yrsno datano data
David Craelius
Chief Technology Officer4.1yrsno data0.055% 41.9m
Amy Riches
Head of Marketing0yrsno datano data
Louise Wivén-Nilsson
Chief Human Resources Officer0yrsno datano data
Todd Haushalter
Chief Product Officer & Games Operations4.4yrsno datano data

4.1yrs

Average Tenure

47yo

Average Age

Experienced Management: EVO's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jens Von Bahr
Co-Founder3.3yrs€414.00kno data
Fredrik Österberg
Co-Founder & Director5.1yrs€353.00kno data
Joel Citron
Independent Director5.1yrs€10.00k1.03% 785.7m
Cecilia Lager
Independent Director3.1yrs€30.00kno data
Jonas Engwall
Independent Director5.1yrs€10.00k0.17% 129.6m
Ian Livingstone
Independent Director5.1yrs€10.00k0.28% 209.3m

5.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: EVO's board of directors are considered experienced (5.1 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

Ownership Breakdown

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


Top Shareholders

Company Information

Evolution Gaming Group AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evolution Gaming Group AB (publ)
  • Ticker: EVO
  • Exchange: OM
  • Founded: 2006
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr76.009b
  • Shares outstanding: 181.62m
  • Website: https://www.evolutiongaming.com

Number of Employees


Location

  • Evolution Gaming Group AB (publ)
  • Hamngatan 11
  • Stockholm
  • Stockholm County
  • 111 47
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVOOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMar 2015
E3G1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2015
0RQ6LSE (London Stock Exchange)YesCommon SharesGBSEKMar 2015
EVGG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2015
EVVT.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2016

Biography

Evolution Gaming Group AB (publ) develops, produces, markets, and licenses live casino solutions to gaming operators primarily in Europe and the United States. The company runs the game from a casino table, which is streamed in real time and end users make betting decisions on their devices, such as desktops, smartphones, tablets, etc. It also runs on-premise studios at land-based casinos in Belgium, Romania, the United Kingdom, and Spain. The company’s portfolio of games primarily includes Live Roulette, Live Lighting Roulette, Live Dream Catcher, Monopoly Live, Live Blackjack, Live Infinite Balckjack, Live Baccarat, Live Dragon Tiger, Live Super Sic Bo, Live Football Studio, Live Casino Hold’em, Live Three Card Poker, Live Caribbean Stud Poker, Live Ultimate Texas Hold’em, and Live Texas Hold’em Bonus Poker. It operates approximately 550 tables. The company was founded in 2006 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:58
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.