Evolution Gaming Group AB (EVO) AI Stock Analysis

• Market Cap: kr173.62B
• Dividend Yield: 3.79%
• Average Volume (3M): 782.22K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.91
• Revenue Growth: 14.26%
• EPS Growth: 18.13%
• Country: SE
• Employees: 19,794
• Sector: Technology
• Sector Strength: 46
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 68.01
• Shares Outstanding: 211,833,200
• 10 Day Avg. Volume: 746,137
• 30 Day Avg. Volume: 782,222
• PEG Ratio: 0.67
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr1,202.44
• Price Target Upside: 46.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Evolution Gaming Group AB demonstrates strong financial health with impressive revenue and profit growth, robust cash flow, and an attractive dividend yield. However, the current bearish trend in technical indicators suggests caution. The stock appears undervalued based on its P/E ratio, presenting a potential opportunity for value investors.

Positive Factors

Financial Performance

Revenues increased by 15% and EBITDA rose by 12%, showing strong financial performance.

Share Buyback

The new €500m buyback and record quarter in North America should be viewed positively.

Valuation

At 10x EV/EBITDA for FY25E, the valuation is considered attractive.

Negative Factors

Guidance Downgrade

New guidance for FY25E EBITDA margins implies a (4)% cut to consensus EBITDA expectations.

Margin Reduction

Evolution has reduced EBITDA margin guidance for the full year, indicating 68.5% versus the guided 69-71% range.

Regulatory Challenges

Evolution has confirmed that the UK regulator, the Gambling Commission (UKGC), has announced a review of EVO’s UK operating licence.

Evolution Gaming Group AB Business Overview & Revenue Model

Company Description

Evolution Gaming Group AB (EVO) is a leading provider of live casino solutions, specializing in designing, developing, and licensing live dealer gaming systems for online and land-based casino operators. The company is renowned for its high-quality live streaming services and innovative gaming solutions, which include traditional table games like blackjack, roulette, and baccarat, as well as unique game show-style offerings. Evolution Gaming operates in the iGaming sector and partners with numerous online gaming operators worldwide to deliver immersive gaming experiences.

How the Company Makes Money

Evolution Gaming Group AB generates revenue primarily through licensing its live casino platform and games to online casino operators. The company charges its clients a fixed fee and a percentage of the net revenue generated from their games. This revenue-sharing model incentivizes both Evolution and its clients to maximize player engagement and satisfaction. Additionally, Evolution Gaming invests in developing a wide range of innovative and exclusive gaming content, which helps them attract new clients and retain existing ones. Key partnerships with major online casino brands and a strong presence in regulated markets also contribute significantly to the company's financial performance.

Evolution Gaming Group AB Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.06B	1.80B	1.46B	1.07B	561.13M
	Gross Profit
2.06B	1.80B	1.46B	1.09B	572.25M
	EBIT
1.42B	1.14B	908.06M	654.00M	299.70M
	EBITDA
1.41B	1.20B	1.01B	730.94M	332.26M
	Net Income Common Stockholders
1.24B	1.07B	843.36M	605.43M	284.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
801.47M	985.76M	532.55M	421.43M	221.68M
	Total Assets
5.35B	4.97B	4.37B	3.90B	3.17B
	Total Debt
93.66M	79.46M	79.55M	67.81M	49.97M
	Net Debt
-707.81M	-906.30M	-453.00M	-353.62M	-171.71M
	Total Liabilities
1.37B	967.27M	909.09M	712.12M	442.94M
	Stockholders Equity
3.97B	4.01B	3.46B	3.19B	2.73B
Cash Flow		Free Cash Flow
1.16B	1.07B	780.53M	537.30M	279.17M
	Operating Cash Flow
1.30B	1.17B	877.47M	598.89M	316.05M
	Investing Cash Flow
-247.97M	-139.36M	-371.60M	-154.95M	6.82M
	Financing Cash Flow
-1.24B	-574.50M	-394.20M	-248.52M	-279.91M

Evolution Gaming Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 819.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EVO, the sentiment is Neutral. The current price of 819.6 is above the 20-day moving average (MA) of 773.79, above the 50-day MA of 797.95, and below the 200-day MA of 926.64, indicating a neutral trend. The MACD of 4.86 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 96.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:EVO.

Evolution Gaming Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BETS.B	76 Outperform	kr21.60B	10.38	22.40%	―	16.29%	17.51%
EVO	75 Outperform	kr173.62B	12.07		3.79%	14.26%	18.13%
KAMBI	71 Outperform	$3.30B	19.18	9.13%	―	-4.66%	-32.21%
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
CTM	40 Underperform	$159.56M	―	-42.79%	―	-39.52%	-33.31%