Evolent Health (EVH) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 10.24%
• EPS Growth: 2.63%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 117,399,810
• 10 Day Avg. Volume: 2,815,922
• 30 Day Avg. Volume: 3,146,154
• PEG Ratio: 0.19
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -137.21
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 5.83
• Enterprise Value/Ebitda: 7.59
• 1Y Price Target: $15.00
• Price Target Upside: 59.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $10.00 ▲(6.27%Upside)

Evolent Health's stock score is primarily driven by financial challenges and valuation concerns. Positive aspects include revenue growth, strategic initiatives, and financial flexibility from recent corporate actions. However, high leverage and profitability issues weigh heavily on the overall assessment.

Positive Factors

Financial Performance

Evolent Health reported solid first-quarter results, with revenue coming in nicely above consensus.

Growth and Development

Evolent announced five new revenue agreements, indicating that underlying growth momentum is on track.

Profitability

The adjusted EPS for 2025 is modeled to be higher than the Street target, indicating confidence in better-than-expected earnings performance.

Negative Factors

Medicaid Impact

Medicaid work requirement impact could reduce membership by less than 5% and affect adjusted EBITDA by $8-10M.

P&L Impact

The moving pieces between the Performance Suite and Technology & Services Suite are impacting P&L.

Revenue Decline

Performance Suite revenue is estimated to decrease by 32% year-over-year in 2025.

Evolent Health Business Overview & Revenue Model

Company Description

Evolent Health, Inc., a healthcare company, through its subsidiary, Evolent Health LLC, provides clinical and administrative solutions to payers and providers in the United States. It operates in two segments, Evolent Health Services and Clinical Solutions. The Evolent Health Services segment provides an integrated administrative and clinical platform for health plan administration and population health management. It offers financial and administrative management services, such as health plan services, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients, population health performance that delivers patient-centric cost-effective care. The Clinical Solutions segment offers specialty care management services support a range of specialty care delivery stakeholders during their transition from fee-for-service to value-based care, independent of their stage of maturation and specific market dynamics in oncology and cardiology; and holistic total cost of care improvement. The company was founded in 2011 and is headquartered in Arlington, Virginia.

How the Company Makes Money

Evolent Health makes money through a variety of revenue streams centered around its healthcare services and solutions. The company generates revenue by partnering with healthcare providers and payers to implement value-based care models, which often involve long-term contracts and shared savings arrangements. Evolent offers services such as population health management, risk adjustment, and specialty care management, which are typically sold on a subscription basis or through performance-based agreements. Additionally, Evolent may earn fees from consulting services and the implementation of its technology platforms aimed at improving clinical outcomes and reducing costs. Key partnerships with healthcare organizations and insurers play a significant role in its earnings, as they expand Evolent's reach and capability to deliver comprehensive value-based care solutions.

Evolent Health Financial Statement Overview

Summary

Evolent Health shows revenue growth but struggles with profitability and cash management. High leverage and negative net income pose financial risks. Improvements in EBITDA and operating cash flow are positive but overshadowed by persistent losses and free cash flow challenges.

Income Statement

Evolent Health's TTM (Trailing-Twelve-Months) revenue shows moderate growth with a notable increase from $1.96 billion to $2.39 billion. However, gross profit margin has decreased, indicating rising costs. The company continues to operate at a net loss, with negative EBIT and net profit margins, which are risks to profitability. EBITDA has turned positive but remains low relative to total revenue.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating leverage risk, but equity levels are stable. Return on Equity (ROE) is negative due to the net loss, impacting investor returns. The equity ratio is reasonable, showing a balanced asset structure despite increased liabilities.

Cash Flow

Operating cash flow remains positive, but free cash flow is negative, reflecting high capital expenditures and potential cash management issues. The free cash flow to net income ratio is unfavorable, showing inefficiencies in converting revenue into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40B	2.55B	1.96B	1.35B	907.96M	1.02B
Gross Profit	335.55M	367.35M	460.47M	316.58M	250.41M	321.06M
EBITDA	36.98M	84.85M	-24.79M	43.75M	55.66M	-241.38M
Net Income	-108.96M	-61.62M	-113.04M	-18.70M	-30.28M	-334.25M
Balance Sheet
Total Assets	2.65B	2.54B	2.68B	1.82B	1.42B	1.37B
Cash, Cash Equivalents and Short-Term Investments	246.55M	163.50M	192.82M	188.20M	266.28M	340.49M
Total Debt	870.10M	713.67M	644.80M	476.12M	280.47M	359.78M
Total Liabilities	1.72B	1.54B	1.61B	957.88M	725.83M	750.59M
Stockholders Equity	935.52M	1.00B	1.07B	859.42M	693.63M	619.60M
Cash Flow
Free Cash Flow	-9.72M	-6.13M	113.84M	-49.91M	13.76M	-45.70M
Operating Cash Flow	18.42M	18.77M	142.58M	-11.55M	38.75M	-16.23M
Investing Cash Flow	-66.29M	-62.93M	-415.54M	-259.12M	-15.79M	261.07M
Financing Cash Flow	92.41M	-565.00K	281.34M	131.54M	-29.55M	-11.86M

Evolent Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.41
• 50DMA: Negative
• 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 EVH, the sentiment is Negative. The current price of 9.41 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 9.55, and below the 200-day MA of 11.79, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 17.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVH.

Evolent Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMCL	70 Outperform	$1.36B	65.17	1.73%	―	3.00%	―
PHR	68 Neutral	$1.61B	―	-15.97%	―	16.29%	66.01%
CERT	68 Neutral	$1.80B	―	-0.25%	―	9.37%	95.72%
EVH	58 Neutral	$1.13B	―	-10.99%	―	10.24%	2.63%
ACCD	58 Neutral	$575.59M	―	-48.23%	―	14.99%	-35.83%
Sector *	52 Neutral	$7.58B	0.48	-62.71%	2.36%	15.33%	0.41%
TDOC	51 Neutral	$1.44B	―	-14.18%	―	-2.57%	79.86%

Evolent Health Corporate Events

Evolent Health Amends Credit Agreement for Flexibility

On June 19, 2025, Evolent Health, Inc. announced an amendment to its Credit Agreement to provide additional financial flexibility and secured a Commitment Letter with Ares Management Credit funds for non-dilutive debt capital to retire its 2025 Convertible Notes. The company reaffirmed its Adjusted EBITDA guidance for 2025, citing lower-than-expected oncology costs and an accelerated forecast for new revenue bookings in 2026, which will be supported by the additional capital.

The most recent analyst rating on (EVH) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health Restructures Board Committees in June 2025

On June 5, 2025, Evolent Health‘s Board of Directors restructured its committees, appointing Brendan Springstubb to both the Audit and Compensation Committees, as part of a cooperation agreement with Engaged Capital. During the 2025 Annual Meeting, stockholders elected ten directors, ratified Deloitte & Touche LLP as the accounting firm, approved executive compensation for 2024, and amended the 2015 Omnibus Incentive Compensation Plan.

The most recent analyst rating on (EVH) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health Reaffirms 2025 Revenue and EBITDA Guidance

On June 3, 2025, Evolent Health‘s management will present at the William Blair 45th Annual Growth Stock Conference, reaffirming its 2025 revenue guidance of $2.06 billion to $2.11 billion and Adjusted EBITDA guidance of $135.0 million to $165.0 million. The company also expects to reaffirm its second quarter 2025 revenue guidance of $440.0 million to $470.0 million and Adjusted EBITDA guidance of $33.0 million to $40.0 million, consistent with previous guidance. Evolent Health highlights the challenges in reconciling non-GAAP Adjusted EBITDA to net income due to various adjustments related to non-core operations and other factors.

The most recent analyst rating on (EVH) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.