Evolent Health (EVH) AI Stock Analysis

• Market Cap: $438.59M
• Dividend Yield: N/A
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -16.65%
• EPS Growth: -71.92%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.05
• Shares Outstanding: 111,600,850
• 10 Day Avg. Volume: 2,797,306
• 30 Day Avg. Volume: 4,637,878
• PEG Ratio: 0.57
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -210.54
• Enterprise Value/Market Cap: 4.35
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 160.45
• 1Y Price Target: $10.14
• Price Target Upside: 161.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $1.88B

• Rating: 48 Neutral
• Price Target: $4.00 ▲(3.09% Upside)

Evolent Health's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability issues. While technical indicators suggest bearish momentum, recent earnings call highlights and corporate events provide some optimism for future growth. However, the negative valuation metrics remain a significant concern.

Positive Factors

Strategic Partnerships

The partnership with American Oncology Network enhances Evolent's service offerings in oncology, a growing healthcare segment, supporting long-term growth.

New Revenue Contracts

These contracts significantly boost future revenue potential and demonstrate Evolent's ability to secure large-scale agreements, strengthening its market position.

Leadership Changes

Leadership changes are aimed at supporting growth, particularly in oncology, aligning with strategic goals and potentially improving operational efficiency.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining growth, which could impact the company's ability to invest in new initiatives and sustain competitive advantages.

Profitability Issues

Persistent profitability issues can limit financial flexibility and hinder long-term investments necessary for innovation and market expansion.

Cash Flow Challenges

Negative cash flows suggest difficulties in sustaining operations without external financing, potentially affecting long-term financial health and strategic initiatives.

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 generates revenue through several key streams, primarily by offering technology and services that support value-based care initiatives. The company operates under a subscription-based model where clients, typically health systems and payers, pay fees for access to Evolent's software platforms and consulting services. Additionally, Evolent earns revenue from performance-based contracts, where they share in the savings generated from improved patient care and reduced healthcare costs. Strategic partnerships with healthcare organizations and payers also contribute to its earnings, allowing Evolent to expand its reach and enhance its service offerings. The company's focus on population health management and analytics positions it well within the evolving landscape of healthcare, where value-based care models are increasingly prioritized.

Evolent Health Financial Statement Overview

Summary

Evolent Health faces significant financial challenges, with declining revenues and persistent profitability issues. The balance sheet shows manageable leverage, but negative cash flows and profitability metrics indicate a need for strategic realignment to enhance financial performance and stability.

Income Statement

Evolent Health's income statement shows a declining revenue trend with a negative revenue growth rate of -6.46% in the TTM period. The company has negative net profit and EBIT margins, indicating ongoing profitability challenges. The gross profit margin has also decreased over time, reflecting pressure on cost management. Overall, the income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet reveals a relatively stable debt-to-equity ratio, which has improved in the TTM period. However, the return on equity remains negative, indicating inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the overall leverage appears manageable. The balance sheet suggests moderate financial stability but highlights the need for improved profitability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, although there is a positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow. Overall, cash flow management needs improvement to support financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.05B	2.55B	1.96B	1.35B	907.96M	924.64M
Gross Profit	378.34M	367.35M	460.47M	316.58M	250.41M	228.06M
EBITDA	11.88M	84.85M	-24.79M	43.75M	55.66M	-240.74M
Net Income	-128.18M	-61.62M	-113.04M	-19.16M	-37.60M	-334.25M
Balance Sheet
Total Assets	2.45B	2.54B	2.68B	1.82B	1.42B	1.47B
Cash, Cash Equivalents and Short-Term Investments	116.65M	163.50M	192.82M	188.20M	266.28M	333.38M
Total Debt	1.08B	713.67M	644.80M	476.12M	280.47M	359.78M
Total Liabilities	1.61B	1.54B	1.61B	957.88M	725.83M	854.84M
Stockholders Equity	842.23M	1.00B	1.07B	859.42M	693.63M	619.60M
Cash Flow
Free Cash Flow	-68.67M	-6.13M	113.84M	-49.91M	13.76M	-45.70M
Operating Cash Flow	-36.19M	18.77M	142.58M	-11.55M	38.75M	-16.23M
Investing Cash Flow	-102.32M	-62.93M	-415.54M	-259.12M	-15.79M	261.07M
Financing Cash Flow	154.05M	-565.00K	281.34M	131.54M	-29.55M	-11.86M

Evolent Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.88 is below the 20-day moving average (MA) of 4.03, below the 50-day MA of 5.98, and below the 200-day MA of 8.57, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 30.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.20 is Neutral, 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
HSTM	66 Neutral	$713.52M	35.25	5.87%	0.52%	3.68%	5.62%
PHR	60 Neutral	$1.21B	―	-8.76%	―	14.33%	93.62%
OMDA	56 Neutral	$906.26M	―	―	―	50.51%	50.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVH	48 Neutral	$438.59M	―	-13.63%	―	-16.65%	-71.92%
TDOC	47 Neutral	$1.34B	―	-15.42%	―	-2.37%	77.85%
DH	42 Neutral	$396.10M	-1.05	-47.69%	―	-5.30%	46.01%

Evolent Health Corporate Events

Evolent Health Completes Stock Purchase Agreement

On December 5, 2025, Evolent Health LLC completed the transactions outlined in a Stock Purchase Agreement with Privia Management Company, LLC, initially announced on September 23, 2025. This transaction may have implications for Evolent Health’s strategic positioning and operational capabilities within the healthcare sector.

Evolent Health Appoints Jill Smith to Board

Evolent Health, Inc. announced the retirement of Ms. Cheryl Scott from its Board of Directors on December 1, 2025, and the appointment of Ms. Jill Smith as her successor. Ms. Smith, an experienced business leader with a strong background in technology and executive roles, will serve until the company’s 2026 Annual Meeting. The company also reaffirmed its fourth quarter 2025 revenue and Adjusted EBITDA guidance, maintaining its previous estimates despite the challenges in reconciling non-GAAP measures to net income due to various adjustments.

Evolent Health Announces Leadership Changes Amid Growth

On November 6, 2025, Evolent Health announced significant leadership changes, including the appointment of Mario Ramos as Chief Financial Officer effective January 1, 2026, and John Johnson transitioning to Chief Strategy Officer. These changes are aimed at supporting the company’s growth trajectory, particularly in oncology. Evolent also reported strong financial results for Q3 2025, with revenue exceeding expectations and new contracts expected to generate over $750 million in annualized revenue in 2026. The company is expanding its leadership team to manage accelerating growth and enhance its market position.

Evolent Health Divests Primary Care Business to Privia

On September 23, 2025, Evolent Health announced the strategic divestiture of its value-based primary care business, Evolent Care Partners, to Privia Health Group for up to $113 million. This move allows Evolent to focus on its core specialty business, reduce leverage, and improve cash flow by more than $7 million annually. The transaction is expected to close in the fourth quarter of 2025, and the proceeds will be used to repay senior term debt. Evolent also reaffirmed its revenue and adjusted EBITDA guidance for the third quarter and full year 2025, excluding the impact of this transaction.