Evolent Health (EVH) AI Stock Analysis

• Market Cap: $970.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 10.24%
• EPS Growth: 2.63%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 117,399,810
• 10 Day Avg. Volume: 1,808,074
• 30 Day Avg. Volume: 2,059,566
• 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: 3.01
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 8.70
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $15.00
• Price Target Upside: 81.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $9.00 ▲(8.83%Upside)

Evolent Health demonstrates robust revenue growth and strategic expansions, yet faces challenges in profitability and cash management. Technical indicators suggest bearish trends, and the negative P/E ratio reflects ongoing unprofitability. The positive earnings call provides some optimism but is countered by financial risks and valuation concerns.

Positive Factors

Contract Expansion

Evolent Health has signed a Technology and Services contract expansion with a large New England health plan, indicating strong sales momentum and demand.

Financial Projections

The full-year outlook and estimate for Evolent Health remain effectively unchanged, indicating stability in the company's financial projections.

Profitability

The 2025 adjusted EBITDA estimate for Evolent Health has been slightly increased to align with the guidance midpoint, suggesting an optimistic view on profitability.

Revenue Growth

Specialty Technology & Services revenue is projected to grow by 23% year-over-year in 2025.

Negative Factors

Cost Outlook

The business fell short of the target thresholds on both adjusted EBITDA metrics, reflecting a change in outlook on costs in the back half of the year.

Revenue Decrease

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. 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
	EBIT
-27.03M	-40.48M	-71.21M	-59.84M	30.25M	-37.88M
	EBITDA
36.98M	84.85M	-24.79M	43.75M	55.66M	-241.38M
	Net Income Common Stockholders
-108.96M	-61.62M	-113.04M	-18.70M	-30.28M	-334.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
246.55M	163.50M	192.82M	188.20M	266.28M	340.49M
	Total Assets
2.65B	2.54B	2.68B	1.82B	1.42B	1.37B
	Total Debt
870.10M	713.67M	644.80M	476.12M	280.47M	359.78M
	Net Debt
623.55M	609.47M	451.97M	287.92M	14.19M	19.29M
	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: 8.27
• 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 8.27 is above the 20-day moving average (MA) of 8.13, below the 50-day MA of 9.00, and below the 200-day MA of 14.64, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.65 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
CERT	71 Outperform	$1.81B	―	-0.25%	―	9.37%	95.72%
OMCL	67 Neutral	$1.37B	64.37	1.73%	―	3.00%	―
PHR	58 Neutral	$1.55B	―	-15.97%	―	16.29%	66.01%
ACCD	58 Neutral	$575.59M	―	-48.23%	―	14.99%	-35.83%
EVH	54 Neutral	$970.90M	―	-10.99%	―	10.24%	2.63%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
TDOC	48 Neutral	$1.26B	―	-54.49%	―	-2.54%	-322.03%

Evolent Health Corporate Events

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.