NasdaqGM:EOLS

Stock Analysis Report

Executive Summary

Evolus, Inc., a performance beauty company, provides medical aesthetic products for physicians and their patients in the United States.

Rewards

Trading at 82.7% below its fair value

Earnings are forecast to grow 67.66% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.7%

EOLS

1.5%

US Pharmaceuticals

0.03%

US Market


1 Year Return

-9.1%

EOLS

-0.1%

US Pharmaceuticals

18.6%

US Market

Return vs Industry: EOLS underperformed the US Pharmaceuticals industry which returned -0.1% over the past year.

Return vs Market: EOLS underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

EOLSIndustryMarket
7 Day-10.7%1.5%0.03%
30 Day-12.2%-1.0%1.7%
90 Day-18.5%7.7%5.7%
1 Year-9.1%-9.1%2.5%-0.1%21.1%18.6%
3 Yearn/a31.3%21.9%45.6%36.2%
5 Yearn/a25.8%12.5%71.1%52.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EOLS ($12.5) is trading below our estimate of fair value ($72.26)

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


Price To Earnings Ratio

PE vs Industry: EOLS is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: EOLS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EOLS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EOLS is overvalued based on its PB Ratio (20.1x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

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

67.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EOLS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: EOLS's is expected to become profitable in the next 3 years.

Revenue vs Market: EOLS's revenue (45.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: EOLS's revenue (45.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EOLS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Evolus performed over the past 5 years?

-49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EOLS is currently unprofitable.

Growing Profit Margin: EOLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EOLS is unprofitable, and losses have increased over the past 5 years at a rate of -49.1% per year.

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

Earnings vs Industry: EOLS is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: EOLS has a negative Return on Equity (-516.15%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evolus's financial position?


Financial Position Analysis

Short Term Liabilities: EOLS's short term assets ($95.2M) exceed its short term liabilities ($26.0M).

Long Term Liabilities: EOLS's short term assets ($95.2M) do not cover its long term liabilities ($139.6M).


Debt to Equity History and Analysis

Debt Level: EOLS's debt to equity ratio (429.4%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: EOLS's debt is covered by short term assets (assets are 1.3x debt).


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: EOLS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EOLS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Evolus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Evolus's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

David Moatazedi (41yo)

1.6yrs

Tenure

US$5,794,178

Compensation

Mr. David Moatazedi has been the President, Chief Executive Officer and Director of Evolus, Inc. since joining it on May 6, 2018. Mr. Moatazedi served as Senior Vice President of Medical Aesthetics at Alle ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.79M) is above average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: EOLS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: EOLS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$27,30015 Jun 19
David Gill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$13.65
BuyUS$24,999,99404 Jun 19
Vikram Malik
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,298,701
Max PriceUS$19.25
SellUS$24,999,99404 Jun 19
ALPHAEON Corporation
EntityCompany
Shares1,298,701
Max PriceUS$19.25
BuyUS$30,86331 May 19
Kristine Romine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,090
Max PriceUS$14.77
SellUS$35,35231 May 19
Lauren Silvernail
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP of Corporate Development
Shares2,612
Max PriceUS$13.53
BuyUS$780,81922 May 19
Kristine Romine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,562
Max PriceUS$19.25
BuyUS$12,099,31822 May 19
Simone Blank
EntityIndividual
Role
Member of the Board of Directors
Director
Shares628,536
Max PriceUS$19.25
SellUS$102,177,84522 May 19
ALPHAEON Corporation
EntityCompany
Shares5,307,940
Max PriceUS$19.25
BuyUS$201,20418 Dec 18
Kristine Romine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,000
Max PriceUS$12.75
BuyUS$38,30018 Dec 18
David Gill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$12.77
BuyUS$101,68918 Dec 18
Vikram Malik
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares7,800
Max PriceUS$13.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.3%.


Management Team

  • Lauren Silvernail (60yo)

    CFO & Executive VP of Corporate Development

    • Tenure: 1.6yrs
    • Compensation: US$3.83m
  • David Moatazedi (41yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$5.79m
  • Rui Avelar (57yo)

    Chief Medical Officer and Head of Research & Development

    • Tenure: 5.9yrs
    • Compensation: US$365.00k
  • Jeff Plumer

    Vice President of Legal

    • Tenure: 0yrs
  • Mike Jafar (38yo)

    Chief Marketing Officer

    • Tenure: 1.5yrs
    • Compensation: US$3.93m
  • Ashwin Agarwal

    Vice President of Finance

    • Tenure: 1.3yrs
  • Kurt Knab

    President of Sales

    • Tenure: 1.2yrs
  • Alex Sabad

    Vice President of Operations

    • Tenure: 1.2yrs
  • Amy Fox

    Vice President of Human Resources

    • Tenure: 1.2yrs
  • Crystal Muilenburg

    Vice President of Corporate Communications & Public Relations

    • Tenure: 0.8yrs

Board Members

  • Peter Farrell (77yo)

    Independent Director

    • Tenure: 0.4yrs
  • David Gill (64yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$148.41k
  • Simone Blank (55yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$154.49k
  • Bosun Hau

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$154.49k
  • Robert Hayman (60yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$150.07k
  • Vik Malik (56yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$158.90k
  • Karah Parschauer (41yo)

    Independent Director

    • Tenure: 0.4yrs
  • David Moatazedi (41yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$5.79m
  • Kristine Romine (54yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$150.07k

Company Information

Evolus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evolus, Inc.
  • Ticker: EOLS
  • Exchange: NasdaqGM
  • Founded: 2012
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$460.593m
  • Shares outstanding: 33.42m
  • Website: https://www.evolus.com

Number of Employees


Location

  • Evolus, Inc.
  • 520 Newport Center Drive
  • Suite 1200
  • Newport Beach
  • California
  • 92660
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOLSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 2018
EVLDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2018
0K16LSE (London Stock Exchange)YesCommon StockGBUSDFeb 2018

Biography

Evolus, Inc., a performance beauty company, provides medical aesthetic products for physicians and their patients in the United States. It offers Jeuveau, a proprietary 900 kilodalton purified botulinum to ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 01:05
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.