Evotec (EVT) AI Stock Analysis

• Market Cap: €1.03B
• Dividend Yield: N/A
• Average Volume (3M): 929.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -2.67%
• EPS Growth: 7.40%
• Country: DE
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.24
• Shares Outstanding: 177,778,660
• 10 Day Avg. Volume: 547,466
• 30 Day Avg. Volume: 929,387
• PEG Ratio: -0.05
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -12.75
• 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: €8.00
• Price Target Upside: 19.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.48
• Revenue Forecast (FY): €784.44M

• Rating: 41 Neutral
• Price Target: €5.50 ▼(-17.79% Downside)

Evotec's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, persistent losses, and negative cash flow trends. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages. Valuation challenges, including a negative P/E ratio and lack of dividend yield, also weigh on the score.

Positive Factors

Diversified Revenue Model

A diversified revenue model with multiple streams from contracts, partnerships, and research agreements provides stability and reduces reliance on any single source, enhancing long-term financial resilience.

Strategic Partnerships

Partnerships with major pharmaceutical companies like Bayer and Celgene strengthen Evotec's market position and provide access to resources and expertise, supporting sustained growth and innovation.

Innovative Technology Focus

A focus on innovative technologies in drug development positions Evotec as a leader in the life sciences market, driving long-term competitive advantage and growth potential.

Negative Factors

Declining Revenue Growth

Declining revenue growth and negative profit margins indicate challenges in maintaining market share and profitability, potentially impacting long-term financial health.

Negative Cash Flow Trends

Negative cash flow trends suggest inefficiencies in operations and potential liquidity issues, which could hinder the company's ability to invest in growth and innovation.

Persistent Losses

Ongoing losses, despite manageable leverage, reflect challenges in achieving profitability, which could strain resources and limit future strategic initiatives.

Evotec Business Overview & Revenue Model

Company Description

Evotec SE is a global leader in drug discovery and development, providing integrated solutions to pharmaceutical and biotechnology companies. Headquartered in Hamburg, Germany, Evotec operates in the biotechnology sector, focusing on areas such as central nervous system disorders, metabolic diseases, and oncology. The company offers a wide range of services, including drug discovery, preclinical development, and clinical trial support, leveraging its proprietary technologies and platforms to advance drug candidates from concept to market.

How the Company Makes Money

Evotec generates revenue primarily through strategic partnerships and collaborations with pharmaceutical and biotech companies, where it provides drug discovery and development services. The company earns money from milestone payments, licensing fees, and royalties associated with the commercialization of drugs developed through its collaborations. Additionally, Evotec has established long-term partnerships with major pharmaceutical firms, enhancing its revenue stability and growth potential. The company also invests in its internal drug development programs, where it can retain a significant share of future revenues from successful product candidates.

Evotec Financial Statement Overview

Summary

Evotec faces significant financial challenges, with declining revenues, persistent losses, and negative cash flow trends. The income statement shows declining revenue growth and negative profit margins. The balance sheet indicates manageable leverage but ongoing losses. Cash flow issues are highlighted by a substantial decline in free cash flow growth and negative free cash flow.

Income Statement

Evotec's income statement shows a challenging financial position with declining revenue growth and negative profit margins. The TTM data indicates a revenue decline of 2.7%, and the company has consistently reported negative net profit margins, with the latest at -20.01%. The gross profit margin has also decreased over time, reflecting pressure on profitability. These factors contribute to a low score, highlighting the need for strategic improvements.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.55 in the TTM, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio remains stable, suggesting a solid asset base. While the company maintains a reasonable debt level, the lack of profitability impacts the overall score.

Cash Flow

Evotec's cash flow statement highlights significant challenges, with a substantial decline in free cash flow growth and a negative free cash flow in the TTM. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. These factors result in a low score, emphasizing the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	756.33M	796.97M	781.43M	751.45M	618.03M	500.92M
Gross Profit	81.86M	114.88M	175.05M	174.06M	151.54M	125.74M
EBITDA	-93.96M	-80.66M	7.82M	-86.08M	298.41M	90.36M
Net Income	-158.98M	-196.08M	-83.91M	-175.66M	215.51M	6.28M
Balance Sheet
Total Assets	1.77B	1.91B	2.25B	2.26B	2.24B	1.46B
Cash, Cash Equivalents and Short-Term Investments	237.27M	396.80M	604.11M	729.98M	858.50M	492.22M
Total Debt	484.62M	463.10M	626.20M	506.67M	512.92M	491.96M
Total Liabilities	972.56M	959.98M	1.13B	1.07B	857.48M	737.88M
Stockholders Equity	800.14M	952.52M	1.12B	1.19B	1.38B	724.46M
Cash Flow
Free Cash Flow	-89.58M	-114.02M	-179.56M	21.75M	3.29M	-54.35M
Operating Cash Flow	1.41M	18.22M	36.44M	203.11M	122.24M	44.72M
Investing Cash Flow	-33.87M	-71.19M	-13.29M	-415.82M	-243.85M	-155.09M
Financing Cash Flow	-20.73M	-161.42M	71.96M	-52.41M	398.43M	246.41M

Evotec Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.69
• 50DMA: Negative
• 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 DE:EVT, the sentiment is Neutral. The current price of 6.69 is above the 20-day moving average (MA) of 5.57, above the 50-day MA of 6.23, and above the 200-day MA of 6.64, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 89.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:EVT.

Evotec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EUZ	63 Neutral	€1.03B	28.01	16.93%	1.03%	9.64%	35.18%
FYB	63 Neutral	€373.78M	-2.20	-34.48%	―	-14.84%	-338.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BIO	51 Neutral	€1.35B	-61.38	―	0.11%	-18.82%	-113.85%
RDC	44 Neutral	€1.33B	-37.14	-6.98%	―	26.68%	-41.83%
EVT	41 Neutral	€1.03B	―	-17.98%	―	-2.67%	7.40%
HPHA	39 Underperform	€137.55M	―	-112.95%	―	-64.15%	-39.31%