Evotec (EVT) AI Stock Analysis

• Market Cap: €1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 1.50%
• EPS Growth: -127.76%
• Country: DE
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 177,763,520
• 10 Day Avg. Volume: 2,287,539
• 30 Day Avg. Volume: 1,622,395
• PEG Ratio: 1.14
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.91
• 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: €10.33
• Price Target Upside: 44.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: €7.00 ▼(-1.96%Downside)

Evotec's overall stock score reflects financial challenges, particularly in profitability and cash flow, despite revenue growth. Technical indicators suggest no strong price momentum, and valuation metrics highlight significant risk due to recent losses. The score is primarily driven by financial performance concerns, with technical analysis and valuation also contributing significantly.

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 multi-faceted business model centered around strategic collaborations and service agreements. The company's primary revenue streams include research fees, milestone payments, and royalties from its partnerships with leading pharmaceutical and biotechnology companies. Evotec engages in drug discovery alliances where they provide research services to partners, receiving payments based on the achievement of specific research and development milestones. Additionally, Evotec licenses its proprietary drug candidates to other companies, earning upfront payments and potential royalties on future sales. The company also benefits from long-term partnerships with academic institutions and government agencies, which contribute to its revenue through collaborative research projects and grants.

Evotec Financial Statement Overview

Summary

Evotec's financial performance is mixed. Strong revenue growth is overshadowed by declining profitability and cash flow issues, as well as a strain on financial stability due to reduced equity. The company needs to address these challenges to strengthen its financial position.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
788.22M	796.97M	781.43M	751.45M	618.03M	500.92M
	Gross Profit
107.35M	114.88M	175.05M	174.06M	151.54M	125.74M
	EBIT
-144.32M	-142.52M	-47.51M	12.49M	27.32M	48.52M
	EBITDA
-149.44M	-80.66M	7.82M	-86.08M	298.41M	75.50M
	Net Income Common Stockholders
-206.98M	-196.08M	-83.91M	-175.66M	215.51M	6.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
378.71M	396.80M	604.11M	729.98M	858.50M	492.22M
	Total Assets
1.94B	1.91B	2.25B	2.26B	2.24B	1.46B
	Total Debt
0.00	443.54M	626.20M	506.67M	512.92M	491.96M
	Net Debt
-285.38M	137.15M	115.29M	91.52M	-186.41M	69.80M
	Total Liabilities
1.03B	959.98M	1.13B	1.07B	857.48M	740.05M
	Stockholders Equity
912.14M	952.52M	1.12B	1.19B	1.38B	722.85M
Cash Flow		Free Cash Flow
-80.31M	-114.02M	-179.56M	21.75M	3.29M	-54.35M
	Operating Cash Flow
34.59M	18.22M	36.44M	203.11M	122.24M	44.72M
	Investing Cash Flow
-61.89M	-71.19M	-13.29M	-415.82M	-243.85M	-155.09M
	Financing Cash Flow
-120.12M	-161.42M	71.96M	-52.41M	398.43M	246.41M

Evotec Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.14 is below the 20-day moving average (MA) of 7.23, above the 50-day MA of 6.74, and below the 200-day MA of 7.32, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 19.84 is Positive, 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
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
EVT	48 Neutral	€1.25B	―	-20.51%	―	1.50%	-127.76%
0N6Z		€1.44B	61.76	-4.72%	0.10%	―	―
0NZY		€1.32B	38.35	17.48%	0.08%	―	―
0RJT		€2.06B	―	-9.80%	―	―	―
0QW5		€172.42M	―	-59.35%	―	―	―
FYB	63 Neutral	€439.84M	5.89	-26.06%	―	-10.32%	-250.76%