Evolve Education Group Ltd (AU:EVO)
ASX:EVO
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Evolve Education Group Ltd
(Sydney:EVO)
Select Model
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Rating:58Neutral
Price Target:
AU$0.43
▼(-34.46% 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
Improving profitability
Recent materially stronger operating and net margins indicate the business has re-established operational leverage and pricing or cost discipline. Sustained mid-teens revenue growth with 2025 margin expansion supports durable earnings power and capacity to fund reinvestment or distributions over the medium term.
Negative Factors
Elevated leverage
Debt running above equity increases interest and refinancing exposure and limits balance sheet flexibility. If enrollment or funding weakens, fixed finance costs could compress margins and constrain growth or capital allocation for the business across multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Recent materially stronger operating and net margins indicate the business has re-established operational leverage and pricing or cost discipline. Sustained mid-teens revenue growth with 2025 margin expansion supports durable earnings power and capacity to fund reinvestment or distributions over the medium term.
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)4.8
Beta (1Y)0.37
Revenue Growth26.36%
EPS Growth11.51%
CountryAU
Employees1,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training 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)0.08
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$85.54M | 4.84 | 17.97% | 9.92% | 26.36% | 11.51% | |
56 Neutral | AU$70.35M | 10.14 | 5.78% | 12.92% | 3.81% | -55.52% | |
48 Neutral | AU$70.96M | 57.69 | 0.87% | ― | -0.72% | ― | |
48 Neutral | AU$29.28M | -7.48 | -22.15% | 1.67% | -3.90% | -307.37% | |
45 Neutral | AU$13.92M | -13.04 | -6.74% | ― | -2.94% | 66.11% | |
38 Underperform | AU$2.05M | -0.31 | -111.42% | ― | -3.52% | 55.08% |
* Consumer Defensive Sector Average
AU:EVO
Evolve Education Group Ltd
0.41
-0.22
-34.71%
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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...
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...
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.