Evolent Health (EVH) AI Stock Analysis

• Market Cap: $917.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -6.71%
• EPS Growth: -71.40%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.10
• Shares Outstanding: 117,508,720
• 10 Day Avg. Volume: 2,036,108
• 30 Day Avg. Volume: 2,872,759
• 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: 2.41
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 6.58
• Enterprise Value/Ebitda: 209.48
• 1Y Price Target: $17.14
• Price Target Upside: 124.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 45 Neutral
• Price Target: $7.50 ▼(-1.83% Downside)

Evolent Health's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant challenges with declining revenues and persistent losses, impacting its profitability and valuation metrics. The technical indicators suggest a bearish trend, further weighing on the score. Despite positive developments in the earnings call, these are not enough to offset the financial and technical weaknesses.

Positive Factors

New Partnerships

The new partnerships are expected to significantly boost revenue, enhancing Evolent's market position and long-term growth prospects.

AI and Automation

AI advancements will drive operational efficiency and cost reductions, strengthening Evolent's competitive edge and scalability.

Partnership with Aetna

The Aetna partnership expands Evolent's reach in the Medicare market, providing a stable revenue stream and potential for geographic expansion.

Negative Factors

Declining Revenue

Continued revenue decline poses a risk to Evolent's financial stability and ability to invest in growth initiatives.

Negative Operating Cash Flow

Negative operating cash flow indicates ongoing operational challenges, potentially limiting Evolent's financial flexibility and investment capacity.

Revenue Guidance Miss

Missing revenue guidance highlights execution risks and may affect investor confidence, impacting future growth and market perception.

Evolent Health Business Overview & Revenue Model

Company Description

Evolent Health (EVH) is a leading healthcare technology company that specializes in providing integrated solutions to health systems and payers. The company operates in the healthcare sector, focusing on value-based care models aimed at improving patient outcomes and reducing costs. Evolent Health offers a suite of services including care management, analytics, technology infrastructure, and population health management, enabling healthcare organizations to transition to value-based care while enhancing operational efficiencies.

How the Company Makes Money

Evolent Health generates revenue primarily through a combination of technology and service fees from its health system and payer partners. The company's revenue model is based on performance-based contracts, which align its earnings with the success of its clients in achieving cost savings and improved patient care outcomes. Key revenue streams include fixed fees for technology usage, shared savings from value-based care arrangements, and consulting services. Significant partnerships with large health systems and payers enhance its market presence and contribute to revenue growth, while a focus on expanding its client base and service offerings further drives earnings.

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	2.20B	2.55B	1.96B	1.35B	907.96M	924.64M
Gross Profit	336.12M	367.35M	460.47M	316.58M	250.41M	228.06M
EBITDA	10.56M	84.85M	-24.79M	43.75M	55.66M	-241.38M
Net Income	-161.65M	-61.62M	-113.04M	-19.16M	-30.80M	-334.25M
Balance Sheet
Total Assets	2.46B	2.54B	2.68B	1.82B	1.42B	1.37B
Cash, Cash Equivalents and Short-Term Investments	151.00M	163.50M	192.82M	188.20M	266.28M	319.00M
Total Debt	204.74M	713.67M	644.80M	476.12M	280.47M	359.78M
Total Liabilities	1.34B	1.54B	1.61B	957.88M	725.83M	750.59M
Stockholders Equity	896.00M	1.00B	1.07B	859.42M	693.63M	619.60M
Cash Flow
Free Cash Flow	-63.13M	-6.13M	113.84M	-49.91M	13.76M	-45.70M
Operating Cash Flow	-33.33M	18.77M	142.58M	-11.55M	38.75M	-16.23M
Investing Cash Flow	-113.28M	-62.93M	-415.54M	-259.12M	-15.79M	261.07M
Financing Cash Flow	186.86M	-565.00K	281.34M	131.54M	-29.55M	-11.86M

Evolent Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.64
• 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 7.64 is below the 20-day moving average (MA) of 7.93, below the 50-day MA of 8.67, and below the 200-day MA of 9.43, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 26.14 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	―	$779.86M	39.55	5.81%	0.47%	3.50%	13.99%
PHR	―	$1.41B	―	-8.76%	―	15.31%	77.02%
OMDA	―	$1.49B	―	―	―	47.99%	44.25%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TDOC	―	$1.67B	―	―	―	-2.37%	77.84%
EVH	―	$917.74M	-4.76	-13.38%	―	-6.71%	-71.40%
DH	―	$408.92M	―	-64.27%	―	-5.24%	23.59%

Evolent Health Corporate Events

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.

The most recent analyst rating on (EVH) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health Closes $166.75M Convertible Notes Sale

On August 18, 2025, Evolent Health, Inc. entered into a purchase agreement with Oppenheimer & Co. Inc. for the issuance and sale of $145.0 million in convertible senior notes due 2031. The private placement closed on August 21, 2025, with a total of $166.75 million in notes issued, generating net proceeds of approximately $161.2 million. The proceeds were used to repurchase $167.4 million of its 1.50% convertible senior notes due 2025 and $40.0 million of its Class A common stock. The notes, issued under an indenture with U.S. Bank Trust Company, are convertible into shares of the company’s stock and have specific terms for conversion and redemption.

The most recent analyst rating on (EVH) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health Upsizes Convertible Notes Offering

On August 19, 2025, Evolent Health announced the pricing and upsize of its offering of $145 million in 4.50% convertible senior notes due 2031, with an option for purchasers to buy an additional $21.75 million. The proceeds will be used to repurchase $167.4 million of its 1.50% convertible senior notes due 2025 and $40 million worth of Class A common stock. This financial maneuver aims to reduce interest expenses and manage debt maturities, with implications for shareholder value and market activity.

The most recent analyst rating on (EVH) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

Evolent Health’s Earnings Call: Balancing Growth and Challenges

The recent earnings call for Evolent Health Inc. presented a balanced sentiment, reflecting both optimism and caution. On the positive side, the company reported strong EBITDA performance, announced new partnerships, and highlighted a robust pipeline. However, challenges such as revised revenue guidance, high oncology trends, and cash flow issues tempered the overall enthusiasm. This dual sentiment underscores the company’s potential for growth while acknowledging current hurdles.

Evolent Health Reports Q2 2025 Earnings and Growth Outlook

Evolent Health, Inc. is a company focused on improving health outcomes for individuals with complex conditions by providing solutions that simplify and reduce the cost of healthcare, primarily operating in the healthcare sector.