OM:EVO

Stock Analysis Report

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Market Cap

kr310.3b

Last Updated

2021/06/21 20:16 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EVO is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EVO's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-8.1%

EVO

-7.1%

SE Hospitality

-1.7%

SE Market


1 Year Return

144.5%

EVO

112.4%

SE Hospitality

40.5%

SE Market

Return vs Industry: EVO exceeded the Swedish Hospitality industry which returned 112.4% over the past year.

Return vs Market: EVO exceeded the Swedish Market which returned 40.6% over the past year.


Shareholder returns

EVOIndustryMarket
7 Day-8.1%-7.1%-1.7%
30 Day2.8%1.5%1.2%
90 Day16.8%12.9%5.3%
1 Year145.7%144.5%114.0%112.4%45.4%40.5%
3 Year1,308.8%1,272.4%265.3%232.3%72.9%55.9%
5 Year3,161.7%2,990.1%402.6%323.3%109.3%68.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

75.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EVO (SEK1448.6) is trading above our estimate of fair value (SEK1124.88)

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 (74.8x) compared to the Swedish Hospitality industry average (18.5x).

PE vs Market: EVO is poor value based on its PE Ratio (74.8x) compared to the Swedish market (23.5x).


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 (10.6x) compared to the SE Hospitality industry average (4.2x).


Future Growth

How is Evolution forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVO's forecast earnings growth (30.6% per year) is above the savings rate (0.3%).

Earnings vs Market: EVO's earnings (30.6% per year) are forecast to grow faster than the Swedish market (3.6% per year).

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

Revenue vs Market: EVO's revenue (23.7% per year) is forecast to grow faster than the Swedish market (6.9% per year).

High Growth Revenue: EVO's revenue (23.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVO's Return on Equity is forecast to be high in 3 years time (24%)


Past Performance

How has Evolution performed over the past 5 years?

48.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVO has high quality earnings.

Growing Profit Margin: EVO's current net profit margins (53.2%) are higher than last year (43.7%).


Past Earnings Growth Analysis

Earnings Trend: EVO's earnings have grown significantly by 48.5% per year over the past 5 years.

Accelerating Growth: EVO's earnings growth over the past year (106.7%) exceeds its 5-year average (48.5% per year).

Earnings vs Industry: EVO earnings growth over the past year (106.7%) exceeded the Hospitality industry 62.6%.


Return on Equity

High ROE: EVO's Return on Equity (12.8%) is considered low.


Financial Health

How is Evolution's financial position?


Financial Position Analysis

Short Term Liabilities: EVO's short term assets (€647.5M) exceed its short term liabilities (€360.9M).

Long Term Liabilities: EVO's short term assets (€647.5M) exceed its long term liabilities (€79.3M).


Debt to Equity History and Analysis

Debt Level: EVO is debt free.

Reducing Debt: EVO has no debt compared to 5 years ago when its debt to equity ratio was 17.9%.

Debt Coverage: EVO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EVO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Evolution current dividend yield, its reliability and sustainability?

0.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EVO's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.11%).

High Dividend: EVO's dividend (0.48%) is low compared to the top 25% of dividend payers in the Swedish market (3.4%).


Stability and Growth of Payments

Stable Dividend: EVO is not paying a notable dividend for the Swedish market, therefore no need to check if payments are stable.

Growing Dividend: EVO is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EVO is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EVO's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Martin Carlesund (50 yo)

4.58yrs

Tenure

€1,819,000

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 ($USD2.16M) is about average for companies of similar size in the Swedish market ($USD2.39M).

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


Leadership Team

Experienced Management: EVO's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: EVO's board of directors are considered experienced (6.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Evolution AB (publ)
  • Ticker: EVO
  • Exchange: OM
  • Founded: 2006
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr310.337b
  • Shares outstanding: 212.33m
  • Website: https://www.evolutiongaming.com

Number of Employees


Location

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

Listings


Biography

Evolution 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 st...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 20:16
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.