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EVO

Evolution OM:EVO Stock Report

Last Price

kr929.00

Market Cap

kr208.6b

7D

-5.0%

1Y

-38.2%

Updated

25 May, 2022

Data

Company Financials +
EVO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance6/6
Financial Health6/6
Dividends3/6

EVO Stock Overview

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

Evolution Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Evolution
Historical stock prices
Current Share Pricekr929.00
52 Week Highkr1,607.00
52 Week Lowkr858.00
Beta1.35
1 Month Change0.35%
3 Month Change-7.19%
1 Year Change-38.20%
3 Year Change411.56%
5 Year Change1,035.70%
Change since IPO5,075.49%

Recent News & Updates

Mar 24
Does Evolution (STO:EVO) Deserve A Spot On Your Watchlist?

Does Evolution (STO:EVO) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Mar 06
Is It Time To Consider Buying Evolution AB (publ) (STO:EVO)?

Is It Time To Consider Buying Evolution AB (publ) (STO:EVO)?

Let's talk about the popular Evolution AB (publ) ( STO:EVO ). The company's shares received a lot of attention from a...

Shareholder Returns

EVOSE HospitalitySE Market
7D-5.0%-0.04%-1.0%
1Y-38.2%-30.2%-13.1%

Return vs Industry: EVO underperformed the Swedish Hospitality industry which returned -30.2% over the past year.

Return vs Market: EVO underperformed the Swedish Market which returned -13.1% over the past year.

Price Volatility

Is EVO's price volatile compared to industry and market?
EVO volatility
EVO Average Weekly Movement9.0%
Hospitality Industry Average Movement8.5%
Market Average Movement7.6%
10% most volatile stocks in SE Market12.9%
10% least volatile stocks in SE Market4.9%

Stable Share Price: EVO is not significantly more volatile than the rest of Swedish 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.

About the Company

FoundedEmployeesCEOWebsite
20069,805Martin Carlesundhttps://www.evolution.com

Evolution AB (publ) develops, produces, markets, and licenses live casino and slots solutions to gaming operators primarily in Europe and the United States. The company runs the game from a casino gaming table, which is streamed in real time and end users make betting decisions on their devices, such as computers, smartphones, tablets, etc. Its portfolio of online live table games primarily includes Live Roulette, Blackjack, Baccarat, Super Sic Bo, Dragon Tiger, Craps, Live Casino Hold’em, Three Card Poker, and Ultimate Texas Hold’em; and operates approximately 1000 tables. The company was formerly known as Evolution Gaming Group AB (publ).

Evolution Fundamentals Summary

How do Evolution's earnings and revenue compare to its market cap?
EVO fundamental statistics
Market Cap€19.78b
Earnings (TTM)€671.09m
Revenue (TTM)€1.16b

28.0x

P/E Ratio

16.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EVO income statement (TTM)
Revenue€1.16b
Cost of Revenue€0
Gross Profit€1.16b
Other Expenses€488.62m
Earnings€671.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)3.15
Gross Margin100.00%
Net Profit Margin57.87%
Debt/Equity Ratio0%

How did EVO perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EVO (SEK929) is trading below our estimate of fair value (SEK1861.23)

Significantly Below Fair Value: EVO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EVO is poor value based on its Price-To-Earnings Ratio (28x) compared to the Swedish Hospitality industry average (20.5x).

PE vs Market: EVO is poor value based on its Price-To-Earnings Ratio (28x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: EVO is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: EVO is overvalued based on its Price-To-Book Ratio (5.7x) compared to the SE Hospitality industry average (2.5x).


Future Growth

How is Evolution forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVO's forecast earnings growth (19.2% per year) is above the savings rate (0.3%).

Earnings vs Market: EVO's earnings (19.2% per year) are forecast to grow faster than the Swedish market (9.5% per year).

High Growth Earnings: EVO's earnings are forecast to grow, but not significantly.

Revenue vs Market: EVO's revenue (19% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: EVO's revenue (19% 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 high in 3 years time (26.5%)


Past Performance

How has Evolution performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EVO has high quality earnings.

Growing Profit Margin: EVO's current net profit margins (57.9%) are higher than last year (53.2%).


Past Earnings Growth Analysis

Earnings Trend: EVO's earnings have grown significantly by 53.1% per year over the past 5 years.

Accelerating Growth: EVO's earnings growth over the past year (85.1%) exceeds its 5-year average (53.1% per year).

Earnings vs Industry: EVO earnings growth over the past year (85.1%) exceeded the Hospitality industry 26.2%.


Return on Equity

High ROE: EVO's Return on Equity (20.4%) is considered high.


Financial Health

How is Evolution's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EVO's short term assets (€927.8M) exceed its short term liabilities (€379.9M).

Long Term Liabilities: EVO's short term assets (€927.8M) exceed its long term liabilities (€337.0M).


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 10.8%.

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?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.61%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EVO's dividend (1.61%) is higher than the bottom 25% of dividend payers in the Swedish market (1.44%).

High Dividend: EVO's dividend (1.61%) is low compared to the top 25% of dividend payers in the Swedish market (4.89%).


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 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.3%), EVO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.7%), EVO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure


CEO

Martin Carlesund (51 yo)

5.5yrs

Tenure

€10,139,000

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 ($USD10.83M) is above average for companies of similar size in the Swedish market ($USD2.65M).

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 (5.9 years average tenure).


Board Members

Experienced Board: EVO's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EVO 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 AB (publ)'s 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
  • Implied Market Cap: kr208.557b
  • Shares outstanding: 213.21m
  • Website: https://www.evolution.com

Number of Employees


Location

  • Evolution AB (publ)
  • Vasagatan 16
  • Stockholm
  • Stockholm County
  • 111 20
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
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.