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Evolve Education Group Ltd
(Sydney:EVO)
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Rating:68Neutral
Price Target:
AU$0.46
▲(10.24% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by attractive valuation (low P/E and high dividend yield) and improving financial performance supported by generally solid free cash flow. These positives are tempered by historical earnings/revenue volatility, meaningful leverage on the balance sheet, and only neutral technical momentum with price still below the 200-day moving average.
Positive Factors
Strong free cash flow generation
Consistent positive operating and free cash flow, with FCF tracking ~0.95–0.97 of net income and 26% FCF growth in 2025, provides durable internal funding. This supports dividend capacity, debt servicing and reinvestment in centres, increasing resilience through enrollment cycles.
Negative Factors
Elevated leverage
Debt-to-equity around 1.16–1.21 leaves the balance sheet meaningfully leveraged despite improvement. Elevated leverage increases interest and refinancing risk, limits capital allocation flexibility and heightens vulnerability to enrollment or funding hiccups over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent positive operating and free cash flow, with FCF tracking ~0.95–0.97 of net income and 26% FCF growth in 2025, provides durable internal funding. This supports dividend capacity, debt servicing and reinvestment in centres, increasing resilience through enrollment cycles.
Read all positive factors
Evolve Education Group Ltd (EVO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$84.52M
Dividend Yield14.46%
Average Volume (3M)666.84K
Price to Earnings (P/E)8.1
Beta (1Y)0.27
Revenue Growth26.36%
EPS Growth11.51%
CountryAU
Employees1,100
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)0.06
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 Technical Analysis
Positive
0.42
Price Trends
0.41
Positive
0.41
Positive
0.49
Negative
Market Momentum
<0.01
Positive
51.66
Neutral
56.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EVO, the sentiment is Positive. The current price of 0.42 is below the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.41, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EVO.
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$135.04M | 10.80 | 71.63% | 3.88% | 95.33% | 525.79% | |
68 Neutral | AU$84.52M | 8.09 | 12.32% | 14.29% | 26.36% | 11.51% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | AU$86.23M | 13.29 | 5.78% | 12.92% | 3.81% | -55.52% | |
57 Neutral | AU$36.74M | -10.16 | -22.15% | 3.07% | -3.90% | -307.37% | |
50 Neutral | AU$115.73M | -0.37 | -43.21% | 40.74% | -6.74% | -579.00% | |
44 Neutral | AU$9.44M | -9.14 | -6.74% | ― | -2.94% | 66.11% |
* Consumer Defensive Sector Average
AU:EVO
Evolve Education Group Ltd
0.43
-0.18
-29.87%
AU:EDU
EDU Holdings Limited
1.19
0.77
181.32%
AU:AKG
Academies Australasia Group Limited
0.07
-0.04
-32.73%
AU:GEM
G8 Education Limited
0.16
-0.77
-82.70%
AU:KME
Kip McGrath Education Centres Limited
0.71
0.15
25.66%
AU:NDO
Nido Education Limited
0.37
-0.24
-39.47%
Evolve Education Group Ltd Corporate Events
Embark Early Education Plans 10 Million-Share Placement on ASX
Aug 3, 2026
Embark Early Education Limited, traded on the ASX as EVO, is an early childhood education provider focused on delivering early learning and childcare services to families in Australia. The group participates in the competitive education and care i...
Embark Early Education Raises A$4m to Fund Future Acquisitions
Aug 3, 2026
Embark Early Education has secured a binding commitment from a single U.S.-based institutional investor for a A$4.0 million placement, issuing 10 million new fully paid ordinary shares at A$0.40 each. The new shares, to be issued under the company...
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.