Evotec (EVT) AI Stock Analysis

• Market Cap: €1.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -1.41%
• EPS Growth: 9.05%
• Country: DE
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.24
• Shares Outstanding: 177,766,540
• 10 Day Avg. Volume: 924,728
• 30 Day Avg. Volume: 1,446,009
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €9.20
• Price Target Upside: 53.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: €6.00 ▲(0.00% Upside)

Evotec's overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Business Recovery

Potential upside exists upon business recovery and as focus assets shift to later stages of development.

Debt Management

Despite the net debt leverage ratio reaching 4.3x, management remains confident about meeting upcoming covenants.

Negative Factors

Financial Performance

The net debt leverage ratio reached 4.3x, partly due to worsening EBITDA, indicating additional net debt reduction is needed.

Market Uncertainty

There is uncertainty over the timing of clarity on Evotec's 2025+ trajectory, with a risk that no guidance will be provided soon.

Evotec Business Overview & Revenue Model

Company Description

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as diabetes and complications of diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women's health. It has collaboration agreements with Bayer AG; Lilly; Chinook Therapeutics; Novo Nordisk A/S; Galapagos; Pfizer Inc.; CONBA Pharmaceutical Co., Ltd.; Bristol Myers Squibb Company; Zhejiang JingXin Pharmaceutical Co., Ltd; Kazia Therapeutics; Apeiron Biologics; and Takeda Pharmaceuticals. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

How the Company Makes Money

Evotec generates revenue through a diversified model that includes service-based contracts, strategic partnerships, and collaborative research agreements. The company's key revenue streams come from providing drug discovery and development services to its clients, which include large pharmaceutical companies, small biotech firms, and academic institutions. Additionally, Evotec earns income through milestone payments and royalties from successful drug candidates that emerge from its collaborations. The company has established significant partnerships with major pharmaceutical companies, such as Bayer and Celgene, which contribute to its earnings through joint research initiatives and shared financial investments in product development. Furthermore, Evotec's focus on innovative technologies and its ability to provide comprehensive solutions in drug development enhance its appeal and financial performance in the competitive life sciences market.

Evotec Financial Statement Overview

Summary

Evotec faces significant financial challenges with declining revenues, negative profit margins, and cash flow inefficiencies. The balance sheet shows moderate debt but persistent losses and cash flow issues highlight a concerning financial health.

Income Statement

Evotec's income statement reveals significant challenges, with negative net profit margins and declining revenue growth in the TTM period. The gross profit margin has decreased over time, indicating pressure on profitability. The company has struggled to maintain positive EBIT and EBITDA margins, reflecting operational inefficiencies or high costs. Overall, the income statement shows a concerning trend of declining financial performance.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is stable, suggesting a reasonable level of equity financing. Overall, the balance sheet reflects a stable but underperforming financial position.

Cash Flow

Evotec's cash flow statement indicates challenges in generating free cash flow, with negative growth in the TTM period. The operating cash flow to net income ratio is low, suggesting difficulties in converting earnings into cash. The free cash flow to net income ratio is negative, highlighting cash flow challenges. Overall, the cash flow statement points to liquidity issues and inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	777.33M	796.97M	781.43M	751.45M	618.03M	500.92M
Gross Profit	100.20M	114.88M	175.05M	174.06M	151.54M	125.74M
EBITDA	-83.70M	-80.66M	7.82M	-86.08M	298.41M	75.50M
Net Income	-155.53M	-196.08M	-83.91M	-175.66M	215.51M	6.28M
Balance Sheet
Total Assets	1.81B	1.91B	2.25B	2.26B	2.24B	1.46B
Cash, Cash Equivalents and Short-Term Investments	356.40M	396.80M	604.11M	729.98M	858.50M	492.22M
Total Debt	462.07M	443.54M	626.20M	506.67M	512.92M	491.96M
Total Liabilities	962.47M	959.98M	1.13B	1.07B	857.48M	737.88M
Stockholders Equity	845.79M	952.52M	1.12B	1.19B	1.38B	724.46M
Cash Flow
Free Cash Flow	12.45M	-114.02M	-179.56M	21.75M	3.29M	-54.35M
Operating Cash Flow	111.57M	18.22M	36.44M	203.11M	122.24M	44.72M
Investing Cash Flow	-52.55M	-71.19M	-13.29M	-415.82M	-243.85M	-155.09M
Financing Cash Flow	-15.78M	-161.42M	71.96M	-52.41M	398.43M	246.41M

Evotec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EVT, the sentiment is Negative. The current price of 6 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 6.79, and below the 200-day MA of 7.45, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 31.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:EVT.

Evotec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
EVT	44 Neutral	€1.07B	―	-16.75%	―	-1.41%	9.05%
0N6Z	―	€1.38B	61.76	-4.72%	―	―	―
0NZY	―	€1.09B	29.54	17.61%	3.18%	―	―
0RJT	―	€1.68B	―	-7.50%	―	―	―
0QW5	―	€171.61M	―	-78.11%	―	―	―
FYB	57 Neutral	€426.68M	5.89	-34.48%	―	-14.84%	-338.52%