Evolve Education Group Ltd (AU:EVO)
ASX:EVO
Top Page
Evolve Education Group Ltd
(Sydney:EVO)
Select Model
Select Model
Rating:58Neutral
Price Target:
AU$0.43
▼(-34.46% Downside)
Action:ReiteratedDate: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
Cash generation quality
High free cash flow that closely tracks net income and strong 2025 FCF growth (~26%) indicate durable internal funding for operations, capex and distributions. Persistent cash generation reduces reliance on external financing and supports reinvestment and debt servicing over the medium term.
Negative Factors
Elevated leverage
Net debt materially above equity constrains strategic flexibility and increases interest and refinancing risk if enrolment or funding weakens. Elevated leverage reduces runway for acquisitions or capex and magnifies earnings volatility during downturns, requiring steady cash flow to manage obligations.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation quality
High free cash flow that closely tracks net income and strong 2025 FCF growth (~26%) indicate durable internal funding for operations, capex and distributions. Persistent cash generation reduces reliance on external financing and supports reinvestment and debt servicing over the medium term.
Read all positive factors
Evolve Education Group Ltd (EVO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$83.50M
Dividend Yield9.92%
Average Volume (3M)666.84K
Price to Earnings (P/E)11.9
Beta (1Y)0.47
Revenue GrowthN/A
EPS GrowthN/A
CountryAU
Employees1,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.03
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)0.08
Revenue Forecast (FY)AU$127.00M
Evolve Education Group Ltd Business Overview & Revenue Model
Company Description
Embark Education Limited provides early childhood education (ECE) services in New Zealand and Australia. The company operates and manages ECE centers. It operates 109 ECE centers in New Zealand and 23 ECE centers in Australia under the Lollipops, ...
How the Company Makes Money
Evolve Education Group primarily makes money by operating early childhood education (ECE) centres and charging fees for childcare and preschool enrolments. A key revenue stream is government funding/subsidies associated with ECE attendance (paid b...
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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | AU$83.50M | 11.91 | 17.97% | 9.92% | ― | ― | |
56 Neutral | AU$90.81M | 20.92 | 12.24% | 12.92% | 26.16% | ― | |
53 Neutral | AU$84.60M | 119.49 | 0.87% | ― | -1.08% | ― | |
48 Neutral | AU$30.07M | 4.70 | -22.15% | 1.67% | -2.81% | -503.02% | |
45 Neutral | AU$13.92M | -4.84 | -6.74% | ― | 1.42% | 86.97% | |
41 Neutral | AU$12.32M | -2.37 | -111.42% | ― | -14.55% | 70.98% |
* Consumer Defensive Sector Average
AU:EVO
Evolve Education Group Ltd
0.41
-0.25
-38.25%
AU:AKG
Academies Australasia Group Limited
0.11
<0.01
5.00%
AU:CLU
Cluey Ltd
0.03
-0.06
-65.52%
AU:3PL
3P Learning Ltd.
0.31
-0.45
-59.21%
AU:KME
Kip McGrath Education Centres Limited
0.55
0.16
40.10%
AU:NDO
Nido Education Limited
0.40
-0.39
-49.30%
Evolve Education Group Ltd Corporate Events
Embark Early Education Sets Date and Details for 2026 AGM
Apr 10, 2026
Embark Early Education has scheduled its 2026 annual general meeting of shareholders for 11:00 a.m. AEST on Monday, 11 May 2026, at the InterContinental Hotel in Sanctuary Cove, Queensland. The notice of meeting, explanatory statement and proxy fo...
Embark Finalises Takeover of Mayfield Childcare
Mar 12, 2026
Embark Early Education Limited has completed its off-market takeover offer for Mayfield Childcare Limited, finalising consideration for shareholders who accepted the bid. The deal strengthens Embark’s position in the Australian childcare sec...
Embark Early Education Issues New Shares as Mayfield Takeover Completes
Mar 11, 2026
Embark Early Education Limited, a subsidiary of Evolve Education Group, has issued 179,378 ordinary shares in Mayfield Childcare Limited as scrip consideration under an off‑market takeover bid that closed on 5 March 2026. Following this issu...
Embark Issues New Shares to Finalise Mayfield Childcare Takeover Scrip
Mar 10, 2026
Embark Early Education has completed the share-based component of its off-market takeover offer for Mayfield Childcare Limited, issuing 179,378 fully paid ordinary shares to Mayfield shareholders who elected to receive scrip consideration. The new...
Embark Early Education Seeks ASX Quotation for Additional Shares
Mar 10, 2026
Embark Early Education Limited has applied for quotation of 179,378 new fully paid ordinary shares on the ASX, expanding its listed security base under the EVO ticker. The additional shares, issued as part of previously announced transactions, wil...
Embark Probes Possible Missing Acceptance in Mayfield Takeover Bid
Mar 9, 2026
Embark Early Education has disclosed a potential issue in the reconciliation of shareholder acceptances for its recently closed off-market takeover bid for Mayfield Childcare Limited. The company believes a substantial shareholder’s acceptan...
Embark Early Education Moves Mayfield Takeover Bid to Unconditional Status
Feb 26, 2026
Embark Early Education has confirmed the status of conditions attached to its off‑market takeover bid for all ordinary shares in Mayfield Childcare. The company has waived several key defeating conditions, including the minimum acceptance, A...
Embark Makes Takeover Offer for Mayfield Childcare Unconditional
Feb 26, 2026
Embark Early Education Limited has moved to advance its off-market takeover bid for Mayfield Childcare Limited by declaring its offer free from all remaining defeating conditions. The company has waived key conditions, including minimum acceptance...
Embark Eases Mayfield Takeover Bid by Dropping Key Condition
Feb 25, 2026
Embark Early Education has moved to simplify its off-market takeover bid for Mayfield Childcare Limited by declaring its offer free from the remaining defeating condition tied to prescribed occurrences at Mayfield. The decision removes a key uncer...
Embark Early Education Declares AUD 0.015 Dividend for 2025 Period
Feb 24, 2026
Embark Early Education Limited has declared a dividend of AUD 0.015 per ordinary fully paid share for the 12-month period ending 31 December 2025. The distribution will be paid on 23 March 2026, with an ex-dividend date of 3 March and a record dat...
Embark Early Education lodges updated ASX corporate governance statement
Feb 24, 2026
Embark Early Education Limited has released its updated corporate governance statement for the financial year ended 31 December 2025, confirming compliance with ASX Listing Rules on governance disclosure. The statement, current as of 24 February 2...
Embark Early Education Lifts Revenue and Profit, Maintains Fully Franked Dividends
Feb 24, 2026
Embark Early Education reported a 28.5% rise in revenue to $104.9 million for the year ended 31 December 2025, with profit attributable to owners climbing 18.5% to $10.7 million. The company also improved its net tangible assets per share from a n...
Embark Eases Conditions on Mayfield Childcare Takeover as Stake Climbs Above 20%
Feb 5, 2026
Embark Early Education has moved a step closer to acquiring Mayfield Childcare, declaring its off-market takeover offer unconditional with respect to the minimum acceptance and ASX Listing Rule requirements conditions. The bid for all fully paid o...
Mayfield Board Urges Shareholders to Reject Embark Early Education Takeover Bid
Jan 20, 2026
Mayfield Childcare Limited has issued a formal Target’s Statement in response to an unsolicited, conditional off‑market takeover offer from Embark Early Education Limited to acquire all ordinary shares in Mayfield. The Mayfield board h...
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.