Education
About Us
Working with TipRanks
Follow Us
Evotec AG (EVO)
NASDAQ:EVO
Top Page
Evotec AG
(NASDAQ:EVO)
50Neutral
Positive Factors
Cost Management
The company continues cutting expenses, which will also be positive for the 4Q results.
Earnings
Management is confident in the Q4 performance based on their current order book outlook and their fixed cost increase in revenue, which is expected to lead to a profit uplift.
Negative Factors
Margin Pressure
Margins improved q/q to ~10% for Q3 but fell ~9% y/y due to clinging recovery costs from last year's cyberattack and higher labor/supplier costs tied to increased JEB business.
Revenue Performance
Underwhelming Q3 revs of €184.9M driven by shared R&D still seeing macro headwinds.
Evotec AG (EVO) vs. S&P 500 (SPY)
Market Cap
$1.15B
Dividend YieldN/A
Average Volume (3M)95.37K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees5,007
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.52
Shares Outstanding355,527,040
10 Day Avg. Volume145,322
30 Day Avg. Volume95,371
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.46
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside139.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Evotec AG Business Overview & Revenue Model
Company DescriptionEvotec AG is a Germany-based biotechnology company that provides drug discovery and development solutions. Operating across various sectors including pharmaceuticals and life sciences, Evotec specializes in offering integrated services and technologies to accelerate the discovery and development of new drugs. The company collaborates with pharmaceutical, biotechnology, and academic organizations to advance innovative therapeutics across diverse therapeutic areas.
How the Company Makes MoneyEvotec AG generates revenue primarily through its drug discovery alliances and service agreements with pharmaceutical and biotechnology companies. The company employs a collaborative business model that includes milestones and royalty payments linked to the successful development and commercialization of partnered products. Additionally, Evotec earns revenue from its proprietary drug discovery projects and research funding from governmental and non-governmental organizations. Strategic partnerships and long-term collaborations with industry leaders also significantly contribute to its revenue streams.
Evotec AG Financial Statement Overview
Summary
Evotec AG's financial performance is mixed. The company lacks debt and has a strong equity base, providing stability. However, declining revenue, profitability issues, and cash flow challenges significantly impact the financial outlook.Income Statement
Evotec AG has experienced volatility in its financial performance. The company showed a decline in revenue from the previous year, with a current TTM revenue of $777.05 million compared to $781.43 million in 2023, indicating a small negative revenue growth rate. The gross profit margin has also decreased from 22.40% to 13.70%, suggesting pressure on cost management. Additionally, the company is currently operating at a net loss, with a net profit margin of -22.06% in TTM, compared to -10.74% in 2023. EBIT and EBITDA margins have also declined, reflecting operational challenges.45
Neutral
Balance Sheet
Evotec AG maintains a strong equity position with a stockholders' equity of $968.47 million against total assets of $1.99 billion, resulting in a solid equity ratio of 48.64% for TTM. The company's debt-to-equity ratio is favorable at 0, indicating no current debt burden, which provides financial stability. However, the return on equity is negative due to losses, highlighting profitability challenges.60
Neutral
Cash Flow
The company's cash flow situation presents a mixed picture. Free cash flow has worsened, with a significant negative figure of -$209.45 million in TTM compared to -$179.56 million in 2023, indicating challenges in generating cash flows from operations and capital expenditures. Operating cash flow to net income ratio is negative, reflecting cash flow difficulties despite the absence of debt.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 777.05M | 781.43M | 751.45M | 618.03M | 500.92M | 446.44M | Gross Profit |
| 106.45M | 175.05M | 174.06M | 151.54M | 125.74M | 132.89M | EBIT |
| -183.14M | -47.51M | 12.49M | 27.32M | 48.52M | 62.59M | EBITDA |
| -175.82M | 24.13M | -86.08M | 298.41M | 75.50M | 86.77M | Net Income Common Stockholders |
| -171.37M | -83.91M | -175.66M | 215.51M | 6.28M | 38.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.99M | 604.11M | 729.98M | 858.50M | 492.22M | 321.66M | Total Assets |
| 144.53M | 2.25B | 2.26B | 2.24B | 1.46B | 1.18B | Total Debt |
| 13.00M | 626.20M | 506.67M | 512.92M | 491.96M | 463.10M | Net Debt |
| -11.84M | 115.29M | 91.52M | -186.41M | 69.80M | 186.06M | Total Liabilities |
| 31.32M | 1.13B | 1.07B | 857.48M | 740.05M | 703.88M | Stockholders Equity |
| 112.56M | 1.12B | 1.19B | 1.38B | 722.85M | 477.03M |
| Cash Flow | Free Cash Flow | ||||
| -209.45M | -179.56M | 21.75M | 3.29M | -54.35M | 10.31M | Operating Cash Flow |
| -38.37M | 36.44M | 203.11M | 122.24M | 44.72M | 42.22M | Investing Cash Flow |
| -125.87M | -13.29M | -415.82M | -243.85M | -155.09M | -86.63M | Financing Cash Flow |
| -101.04M | 71.96M | -52.41M | 398.43M | 246.41M | 211.26M |
Evotec AG Technical Analysis
Negative
3.34
Price Trends
4.05
Negative
4.32
Negative
4.11
Negative
Market Momentum
-0.21
Negative
32.38
Neutral
15.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVO, the sentiment is Negative. The current price of 3.34 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 4.05, and below the 200-day MA of 4.11, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 32.38 is Neutral, neither overbought nor oversold. The STOCH value of 15.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVO.
Evotec AG Risk Analysis
Evotec AG disclosed 10 risk factors in its most recent earnings report. Evotec AG reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evotec AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.68B | 16.63 | 15.95% | 0.14% | 8.27% | 10.35% | |
75 Outperform | $164.90B | 40.60 | 67.55% | 2.97% | 18.64% | -39.39% | |
65 Neutral | $20.25B | 12.37 | 10.36% | ― | -1.60% | 39.71% | |
64 Neutral | $126.52B | ― | -3.15% | ― | 11.64% | -114.72% | |
50 Neutral | $1.15B | ― | -16.21% | ― | ― | ― | |
49 Neutral | $12.67B | ― | -30.11% | ― | -2.93% | -4.69% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% |
* Healthcare Sector Average
Performance Comparison
EVO
Evotec AG
3.34
-4.36
-56.62%
AMGN
Amgen
311.55
36.88
13.43%
BIIB
Biogen
136.84
-77.99
-36.30%
ILMN
Illumina
79.34
-49.64
-38.49%
REGN
Regeneron
634.23
-333.84
-34.49%
VRTX
Vertex Pharmaceuticals
484.82
64.34
15.30%
Evotec AG Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: -27.07% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company undergoing significant transformation to address challenging market conditions and operational inefficiencies. While there are strong partnerships and growth in specific segments like Just-Evotec Biologics, declining revenues in shared R&D and market uncertainties pose challenges. The strategic reset aims to position Evotec for future growth, but immediate impacts are still unfolding.Highlights
Expansion of Strategic Partnerships
Evotec has expanded its collaborations with major partners, including Sandoz, Novo Nordisk, and BMS, enhancing its order book and visibility for future revenue.
Just-Evotec Biologics Revenue Growth
The Just-Evotec Biologics segment experienced a 74% increase in revenue compared to the previous year, driven by cooperation with Sandoz and other partners.
Improved Cash Management
Evotec has made significant progress in cash management, resulting in a positive free cash flow of €16.7 million for Q3, reversing a negative trend from earlier quarters.
Cost Optimization on Track
The priority reset program is on track to deliver €40 million in annual savings, with over 60% of targeted impacts already implemented.
Lowlights
Challenging Market Conditions
Evotec continues to face a soft market environment, particularly affecting the discovery and transactional segments, with ongoing challenges in the biotech sector.
Decline in Shared R&D Revenue
Shared R&D revenue fell to €447 million from €506.1 million year-over-year, primarily due to a decline in transactional business.
Operational and Strategic Adjustments
Evotec is undergoing a significant operational and strategic review, indicating past inefficiencies. The company is implementing headcount reductions and site closures to realign business operations.
Uncertainty in Future Market Recovery
There remains uncertainty regarding the recovery of the biotech and pharmaceutical markets, which impacts Evotec's short-term outlook for 2025.
Company Guidance
In the Evotec SE Capital Market Briefing Conference Call for the third fiscal period of 2024, the company provided guidance with several key metrics. Group revenues for the full year 2024 are expected to range between €790 million and €820 million. The company aims to reduce R&D expenditure to €50 million to €60 million for the year, focusing on impactful platforms. Evotec is targeting an adjusted EBITDA of €15 million to €35 million, highlighting a path towards profitability despite challenging market conditions. The Priority Reset initiative is on track to deliver €40 million in annual savings by 2025, with cost optimization measures already implemented. The company also reported a positive free cash flow of €16.7 million in Q3, reflecting improved cash management strategies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.