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Evolve Education Group Ltd
(Sydney:EVO)
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Rating:58Neutral
Price Target:
AU$0.44
▼(-32.77% Downside)
Action:Reiterated
Date:02/27/26
The score is driven by improving financial performance and strong cash generation, with attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (price below key moving averages and negative momentum) and a still-meaningful debt load that adds risk if earnings soften.
Positive Factors
Improved profitability and margins
Sustained 2025 operating and net margins near 22% and 10% indicate stronger underlying unit economics and cost control. Higher margins improve resilience to revenue shocks, fund reinvestment or distributions, and support longer‑term sustainability across the centre network.
Negative Factors
Elevated remaining leverage
Debt still exceeds equity, leaving a meaningful leverage burden. Elevated leverage concentrates downside risk if revenues fall, increases interest expense exposure and could constrain capital allocation, limiting ability to expand or respond to policy shifts without raising capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability and margins
Sustained 2025 operating and net margins near 22% and 10% indicate stronger underlying unit economics and cost control. Higher margins improve resilience to revenue shocks, fund reinvestment or distributions, and support longer‑term sustainability across the centre network.
Read all positive factors
Evolve Education Group Ltd (EVO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$85.54M
Dividend Yield9.92%
Average Volume (3M)666.84K
Price to Earnings (P/E)7.3
Beta (1Y)0.28
Revenue Growth26.36%
EPS Growth11.51%
CountryAU
Employees1,100
SectorConsumer Defensive
Sector Strength42
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding203,661,290
10 Day Avg. Volume396,634
30 Day Avg. Volume666,841
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.25
Price to Sales (P/S)1.22
P/FCF Ratio5.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$100.50M
Evolve Education Group Ltd Business Overview & Revenue Model
Company Description
Embark Early Education Limited provides early childhood education (ECE) and care services in Australia. It owns and operates ECE centers. Embark Early Education Limited was incorporated in 2014 and is based in Helensvale, Australia....
How the Company Makes Money
Evolve Education Group makes money primarily by operating early childhood education centres and earning revenue tied to children’s enrolments and attendance. Its key revenue streams are (1) government-funded childcare subsidies and funding tied to...
Evolve Education Group Ltd Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 109.31M | 25.37M | 19.08M | 19.81M | 51.75M |
| Gross Profit | 27.46M | 18.00M | 13.80M | 12.72M | 33.87M |
| EBITDA | 29.53M | 21.01M | 14.28M | 14.64M | 19.26M |
| Net Income | 11.20M | 9.98M | 8.28M | -44.00M | 741.00K |
Balance Sheet | |||||
| Total Assets | 243.90M | 246.74M | 160.75M | 167.56M | 425.02M |
| Cash, Cash Equivalents and Short-Term Investments | 20.66M | 14.74M | 26.84M | 17.30M | 47.58M |
| Total Debt | 123.80M | 127.33M | 73.22M | 76.80M | 258.54M |
| Total Liabilities | 137.29M | 141.18M | 82.44M | 85.84M | 293.13M |
| Stockholders Equity | 106.61M | 105.56M | 78.31M | 81.73M | 131.88M |
Cash Flow | |||||
| Free Cash Flow | 25.79M | 17.68M | 16.03M | 15.45M | 33.52M |
| Operating Cash Flow | 26.75M | 18.69M | 16.46M | 19.16M | 36.59M |
| Investing Cash Flow | -10.73M | -37.98M | 5.18M | 16.62M | -39.62M |
| Financing Cash Flow | -8.37M | 4.39M | -11.75M | -64.07M | -6.07M |
Evolve Education Group Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$119.34M | 9.46 | 71.63% | 1.17% | 95.33% | 525.79% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | AU$87.37M | 13.46 | 5.78% | 12.92% | 3.81% | -55.52% | |
58 Neutral | AU$85.54M | 7.32 | 17.97% | 9.92% | 26.36% | 11.51% | |
50 Neutral | AU$115.73M | -0.37 | -43.21% | 7.86% | -6.74% | -579.00% | |
48 Neutral | AU$25.72M | -7.11 | -22.15% | 1.67% | -3.90% | -307.37% | |
43 Neutral | AU$7.66M | -7.41 | -6.74% | ― | -2.94% | 66.11% |
* Consumer Defensive Sector Average
AU:EVO
Evolve Education Group Ltd
0.42
-0.17
-29.05%
AU:EDU
EDU Holdings Limited
0.95
0.61
176.97%
AU:AKG
Academies Australasia Group Limited
0.06
-0.04
-40.00%
AU:GEM
G8 Education Limited
0.15
-0.73
-82.90%
AU:KME
Kip McGrath Education Centres Limited
0.49
-0.07
-11.71%
AU:NDO
Nido Education Limited
0.39
-0.24
-38.10%
Evolve Education Group Ltd Corporate Events
Embark Early Education Wins Strong Shareholder Backing at AGM
May 11, 2026
Shareholders of Embark Early Education Limited approved all resolutions put to its annual general meeting, including the adoption of the remuneration report and the re-election of director Renita Garard. The strong support across agenda items sign...
Embark Early Education Opens Twelfth AGM with Governance-Focused Agenda
May 10, 2026
Embark Early Education opened its twelfth annual general meeting with chair Hamish Stevens confirming a quorum and introducing the company’s board, senior management, and external auditor, underscoring a stable governance structure. The meet...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.