Evotec (EVT) AI Stock Analysis

• Market Cap: €1.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 1.50%
• EPS Growth: -127.76%
• Country: DE
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 177,766,540
• 10 Day Avg. Volume: 1,523,165
• 30 Day Avg. Volume: 1,378,419
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 37.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: €7.00 ▲(4.48% Upside)

Evotec's overall stock score is primarily impacted by its financial performance challenges, with profitability and cash flow being key concerns. Technical analysis offers some support, but valuation metrics are unfavorable due to negative earnings. The absence of earnings call insights 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 is a global drug discovery alliance and development partnership company, headquartered in Hamburg, Germany. The company operates in the life sciences sector, providing integrated drug discovery solutions to pharmaceutical and biotechnology companies, academic institutions, and research organizations. Its core services span the entire drug discovery and development continuum, including target identification and validation, hit identification, lead optimization, and pre-clinical development. Evotec leverages its proprietary platforms, scientific expertise, and strategic partnerships to accelerate drug discovery processes and bring innovative therapies to market.

How the Company Makes Money

Evotec generates revenue through several key streams, primarily from collaborative research and development agreements, milestone payments, and royalties. The company partners with pharmaceutical and biotechnology firms, offering its comprehensive drug discovery services on a fee-for-service basis or through collaborative agreements where both parties share in the success of the project. These partnerships often include upfront payments, research funding, and potential milestone payments as projects reach specific development stages. Additionally, Evotec earns royalties on drugs that successfully reach the market, providing a long-term revenue stream. Strategic alliances and joint ventures with industry leaders further enhance Evotec's revenue potential by expanding its service offerings and market reach.

Evotec Financial Statement Overview

Summary

Evotec's financial performance is mixed, with strong revenue growth overshadowed by declining profitability and negative free cash flow. The balance sheet is stable but shows signs of strain due to declining equity. Improvement in profitability and cash flow conversion is crucial.

Income Statement

Evotec has experienced consistent revenue growth from 2019 to 2024, but profitability metrics such as net profit margin and EBIT margin have declined significantly, with the company reporting a net loss in recent years. The company had a positive net income in 2021, indicating potential for future recovery, but recent losses weigh heavily on performance.

Balance Sheet

The company's debt-to-equity ratio has remained relatively stable, suggesting manageable leverage levels. However, the equity ratio has decreased over time, and the company has shown a decline in stockholders' equity, indicating potential risks in financial stability. The return on equity has been negative due to net losses in recent years.

Cash Flow

Operating cash flow has been positive, although it has declined significantly compared to prior years. Free cash flow is negative, reflecting high capital expenditures that exceed operating cash generation. The cash flow to net income ratios are not favorable, highlighting challenges in converting earnings to cash.

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

Evotec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.70
• 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 6.7 is below the 20-day moving average (MA) of 7.02, below the 50-day MA of 7.05, and below the 200-day MA of 7.55, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.32 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	$7.39B	0.42	-62.86%	2.37%	15.61%	-1.93%
EVT	45 Neutral	€1.19B	―	-20.51%	―	1.50%	-127.76%
0N6Z	―	€1.42B	61.76	-4.72%	―	―	―
0NZY	―	€3.98B	37.94	17.48%	2.63%	―	―
0RJT	―	€2.13B	―	-7.50%	―	―	―
0QW5	―	€200.13M	―	-78.11%	―	―	―
FYB	57 Neutral	€448.77M	5.89	-26.06%	―	-10.32%	-250.76%