Evolent Health (EVH) AI Stock Analysis

• Market Cap: $466.49M
• Dividend Yield: N/A
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: 6,366,074
• 30 Day Avg. Volume: 3,621,426
• 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: 4.09
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 160.45
• 1Y Price Target: $11.85
• Price Target Upside: 206.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 0.07
• Revenue Forecast (FY): $1.88B

• Rating: 45 Neutral
• Price Target: $4.50 ▲(16.28% Upside)

Evolent Health's overall stock score reflects significant financial and technical challenges, with declining revenues and bearish technical indicators. Despite positive earnings call highlights and strategic growth opportunities, the stock's valuation and financial performance weigh heavily on its overall attractiveness.

Positive Factors

New Revenue Arrangements

These new contracts significantly boost Evolent Health's revenue base, enhancing its market position and providing a stable income stream, which supports long-term growth and operational stability.

Margin Expansion

Sustained margin growth indicates effective cost management and operational efficiency, which are crucial for long-term profitability and competitiveness in the healthcare sector.

Strategic Partnerships

These partnerships enhance Evolent's service offerings and market reach, positioning it as a leader in value-based care and potentially driving future revenue growth.

Negative Factors

Declining Revenue Trend

A declining revenue trend indicates challenges in maintaining market share or client retention, which can impact long-term financial health and growth prospects.

Cash Flow Challenges

Negative cash flows suggest difficulties in funding operations and investments, potentially limiting the company's ability to capitalize on growth opportunities and meet financial obligations.

Exchange Market Challenges

Membership reductions in key markets could lead to revenue declines, affecting Evolent's ability to achieve growth targets and maintain financial stability in the long term.

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 faces significant financial challenges, with declining revenues and persistent profitability issues. While the balance sheet shows manageable leverage, the 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: 3.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 3.87 is below the 20-day moving average (MA) of 6.21, below the 50-day MA of 7.55, and below the 200-day MA of 9.07, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 16.27 is Positive, neither overbought nor oversold. The STOCH value of 2.81 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
HSTM	67 Neutral	$725.98M	35.86	5.87%	0.51%	3.68%	5.62%
PHR	64 Neutral	$1.30B	―	-8.76%	―	15.31%	77.02%
OMDA	58 Neutral	$1.16B	―	―	―	50.51%	50.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TDOC	47 Neutral	$1.23B	―	-15.42%	―	-2.37%	77.85%
EVH	45 Neutral	$466.49M	―	-13.63%	―	-16.65%	-71.92%
DH	42 Neutral	$396.10M	-1.05	-47.69%	―	-5.30%	46.01%

Evolent Health Corporate Events

Evolent Health Inc. Reports Strong Q3 Earnings and Strategic Growth

Evolent Health Inc.’s recent earnings call painted a largely positive picture, underscoring the company’s financial success and strategic growth. The call highlighted new contracts and partnerships as key drivers of this success. However, challenges such as potential membership reductions in exchange markets and uncertainties in the 2026 financial outlook were also acknowledged.

Evolent Health Reports Strong Q3 2025 Results

Evolent Health Inc. is a healthcare company focused on improving health outcomes for individuals with complex conditions by providing solutions that simplify and make healthcare more affordable. The company operates in the healthcare sector, serving a national base of leading payers and providers.

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.

The most recent analyst rating on (EVH) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Evolent Health stock, see the EVH Stock Forecast page.

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.