Evotec (EVT) AI Stock Analysis

• Market Cap: €1.12B
• Dividend Yield: N/A
• Average Volume (3M): 812.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• 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: 177,778,900
• 10 Day Avg. Volume: 1,027,144
• 30 Day Avg. Volume: 812,370
• 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): €781.21M

• Rating: 46 Neutral
• Price Target: €6.00 ▼(-10.31% Downside)

The score is held down primarily by poor financial performance (declining revenue, significant losses, and negative free cash flow). Technicals provide some support with a strong uptrend and positive MACD, but overbought signals raise near-term risk. Valuation is pressured by negative earnings and the lack of a dividend yield.

Positive Factors

Partnership-driven revenue model

Evotec's business model centers on long-term partnerships and milestone/licensing economics with pharma and biotech. This creates durable, contract-linked revenue streams and option value from partnered pipelines, supporting revenue stability and upside as collaborations mature.

Integrated drug discovery platform

Owning end-to-end discovery and preclinical-to-clinical capabilities plus proprietary platforms builds competitive differentiation and client stickiness. It enables cross-selling, higher-barrier service offerings, and potential recurring program revenues from multi-stage engagements.

Manageable balance sheet leverage

A moderate debt-to-equity ratio provides financial flexibility to fund operations, partnerships, or R&D without excessive leverage. If operating performance stabilizes, the balance sheet can support strategic investments or absorb shocks better than highly leveraged peers.

Negative Factors

Declining revenue trend

A multi-period revenue decline suggests challenges winning or scaling collaborations and erodes operating leverage. Persistent top-line contraction limits ability to invest in pipelines, undermines margin recovery prospects, and pressures long-term growth trajectory.

Persistent unprofitability

Sustained negative net margins and negative ROE indicate the company is not generating returns on capital. This impairs reinvestment capacity, increases reliance on external funding to support R&D and collaborations, and raises long-term value-creation risk.

Weak cash generation and negative FCF

Negative free cash flow and poor cash conversion reduce financial resilience and constrain self-funding of programs. Over time this can force dilutive financing or curtailed investments, increasing execution risk for long-duration drug development 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: Positive
• Last Price: 6.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EVT, the sentiment is Positive. The current price of 6.69 is above the 20-day moving average (MA) of 5.48, above the 50-day MA of 5.61, and above the 200-day MA of 6.42, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 73.83 is Negative, neither overbought nor oversold. The STOCH value of 91.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:EVT.

Evotec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EUZ	64 Neutral	€1.02B	25.68	16.93%	1.11%	9.64%	35.18%
FYB	63 Neutral	€455.96M	-2.68	-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	-62.35	―	―	-18.82%	-113.85%
EVT	46 Neutral	€1.12B	-7.02	-17.98%	―	-2.67%	7.40%
RDC	46 Neutral	€1.35B	-37.65	-6.98%	―	26.68%	-41.83%
HPHA	42 Neutral	€149.71M	-5.70	-112.95%	―	-64.15%	-39.31%