Evolent Health (EVH) AI Stock Analysis

• Market Cap: $1.38B
• Dividend Yield: N/A
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 10.24%
• EPS Growth: 2.63%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 117,399,810
• 10 Day Avg. Volume: 4,563,000
• 30 Day Avg. Volume: 2,699,941
• PEG Ratio: 3.28
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -52.71
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 8.70
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $15.14
• Price Target Upside: 28.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: $12.50 ▲(6.02%Upside)

Evolent Health's overall score reflects strong technical momentum and positive corporate events, offset by financial performance challenges and valuation concerns. The earnings call provided a positive outlook, but ongoing profitability issues and high leverage remain significant risks.

Positive Factors

Financial Performance

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

Financial Projections

The company has reaffirmed its annual and 2Q guidance, showing confidence in its financial projections and management.

Revenue Growth

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

Negative Factors

Performance Suite

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

Profitability Impact

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

Evolent Health Business Overview & Revenue Model

Company Description

Evolent Health (EVH) is a healthcare services company that partners with healthcare providers and payers to drive value-based care transformation. Evolent focuses on helping its clients improve clinical and financial outcomes through its innovative solutions, including population health management, risk adjustment, and value-based specialty care. The company operates primarily in the United States, serving a wide range of healthcare organizations by providing technology-enabled services and integrated solutions to enhance patient care and optimize operational efficiency.

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. While EBITDA and operating cash flow improvements are positive, they are 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: Positive
• Last Price: 11.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVH, the sentiment is Positive. The current price of 11.79 is above the 20-day moving average (MA) of 9.70, above the 50-day MA of 9.23, and below the 200-day MA of 13.31, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 77.22 is Negative, neither overbought nor oversold. The STOCH value of 97.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVH.

Evolent Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHR	71 Outperform	$1.73B	―	-15.97%	―	16.29%	66.01%
CERT	71 Outperform	$1.84B	―	-0.25%	―	9.37%	95.72%
OMCL	67 Neutral	$1.40B	65.67	1.73%	―	3.00%	―
EVH	64 Neutral	$1.38B	―	-10.99%	―	10.24%	2.63%
TDOC	54 Neutral	$1.45B	―	-54.49%	―	-2.54%	-322.03%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

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.

Evolent Health Nominates Shawn Guertin to Board

On April 16, 2025, Diane Holder announced she would not seek re-election to Evolent Health‘s Board of Directors at the upcoming annual meeting on June 5, 2025. Her decision was not due to any disagreement with the company. In response, the Board has nominated Shawn Guertin, a seasoned executive with extensive experience in the healthcare industry, to stand for election. Guertin’s nomination aligns with Evolent’s ongoing efforts to refresh its board with independent directors, aiming to enhance corporate governance and drive shareholder value.