Evotec AG (EVO)
NASDAQ:EVO
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Evotec AG
(NASDAQ:EVO)
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Rating:49Neutral
Price Target:
$2.50
▼(-23.31% Downside)
Action:Reiterated
Date:05/12/26
The score is held down primarily by weak financial performance (declining revenue, deeply negative margins, and negative free cash flow). The earnings call adds modest support from reiterated guidance and a defined cost-savings program, while technicals are neutral and valuation is constrained by ongoing losses and no stated dividend yield.
Positive Factors
Liquidity & Balance Sheet Strength
A strong liquidity buffer and net‑cash position provide durable financial flexibility to fund the Horizon transformation, absorb near‑term restructuring charges and support multi‑year R&D collaborations. Expected Tubulis proceeds further de‑risk capital needs and enable strategic investments without immediate external financing.
Negative Factors
Profitability & Margin Pressure
Sustained negative margins and falling trailing revenues indicate structural earnings weakness that undermines return on capital. Persistent operating losses constrain internal reinvestment, limit ability to scale profitable segments, and require meaningful margin improvement to achieve stated mid‑term financial targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity & Balance Sheet Strength
A strong liquidity buffer and net‑cash position provide durable financial flexibility to fund the Horizon transformation, absorb near‑term restructuring charges and support multi‑year R&D collaborations. Expected Tubulis proceeds further de‑risk capital needs and enable strategic investments without immediate external financing.
Read all positive factors
Evotec AG (EVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)186.07K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth2.13%
EPS Growth-1.13%
CountryUS
Employees4,766
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.55
Shares Outstanding355,815,400
10 Day Avg. Volume383,647
30 Day Avg. Volume186,074
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.14
Price to Sales (P/S)1.23
P/FCF Ratio-11.82
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit11.07
Enterprise Value/Ebitda-23.69
Forecast
1Y Price Target
$5.50Price Target Upside68.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.39
Revenue Forecast (FY)$865.83M
Evotec AG Business Overview & Revenue Model
Company Description
Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as diabetes and complications of diabete...
How the Company Makes Money
Evotec makes money primarily by providing research and development (R&D) services and by entering into strategic drug discovery collaborations with pharmaceutical and biotechnology partners. Key revenue streams typically include: (1) Fee-for-servi...
Evotec AG Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: significant near-term financial weakness driven by the nonrecurrence of a large prior-year license payment, FX headwinds, negative adjusted EBITDA and substantial restructuring charges contrasted with clear strategic actions and early signs of commercial stabilization. Management initiated the Horizon transformation, added experienced leadership, pointed to improving commercial leading indicators (higher proposal activity, faster turnaround, fewer change orders and net sales orders +15% YoY), and maintained full-year guidance while highlighting expected structural savings (~EUR 75m run-rate by end-2027, with ~20–30% in 2026) and an anticipated USD 100m cash inflow in Q2. Given material near-term negatives balanced against concrete transformation moves, underlying Just momentum (ex-Sandoz) and improving D&PD indicators, the overall tone is cautious but constructive.Positive Updates
Revenue and Guidance Maintained
Q1 group revenues of EUR 156.6m; company confirmed full-year 2026 revenue guidance of EUR 700m–EUR 789m (EUR 730m–EUR 810m at constant FX) and adjusted EBITDA guidance of EUR 0m–EUR 40m (EUR 10m–EUR 15m at constant FX), with performance expected to be weighted to the second half.
Negative Updates
Sharp Year‑over‑Year Revenue Decline (Reported)
Reported Q1 group revenues declined 21.7% year-over-year (EUR 43.4m) to EUR 156.6m; on a constant currency basis revenues decreased 16.6% to EUR 166.9m, driven by FX headwinds, one-off prior-year license revenue and softness in early drug discovery demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Guidance Maintained
Q1 group revenues of EUR 156.6m; company confirmed full-year 2026 revenue guidance of EUR 700m–EUR 789m (EUR 730m–EUR 810m at constant FX) and adjusted EBITDA guidance of EUR 0m–EUR 40m (EUR 10m–EUR 15m at constant FX), with performance expected to be weighted to the second half.
Read all positive updates
Company Guidance
Evotec reiterated full-year 2026 guidance of EUR 700–789m in revenues (EUR 730–810m at constant FX) and adjusted EBITDA of EUR 0–40m (EUR 10–15m at constant FX), expecting improvement in both revenue and profitability weighted to the second half; Horizon targets structural run‑rate savings of ~EUR 75m by end‑2027 with ~20–30% (≈EUR 15–22.5m) to materialize in 2026. In Q1 the company reported revenues of EUR 156.6m (‑21.7% YoY; ‑16.6% CC to EUR 166.9m) and adjusted group EBITDA of ‑EUR 21.9m (‑EUR 18.9m CC), recorded EUR 75m of reorganization provisions, and held EUR 444.8m of liquidity (excluding expected ~USD 100m Tubulis proceeds in Q2). By segment, D&PD revenues were EUR 119.9m (‑14.7% reported; ‑10% CC to EUR 126.6m) with adjusted EBITDA of ‑EUR 9.8m (‑EUR 5.5m CC), and Just‑Evotec revenues were EUR 36.8m (‑38%; CC EUR 40.4m) with adjusted EBITDA of ‑EUR 12.1m (‑EUR 13.4m CC); FX was a EUR 10.2m headwind and the non‑recurrence of a $25m (~EUR 23.1m) Sandoz license were key drivers—excluding FX and Sandoz, group revenues fell 6% while Just‑Evotec underlying revenues rose 11% (non‑DoW/non‑Sandoz growth ~50%). Commercially, net sales orders were ~15% higher YoY, proposal activity hit a 12‑month high and proposal turnaround times improved below the 2025 average.Evotec AG Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 757.26M | 796.97M | 781.43M | 751.45M | 618.03M |
| Gross Profit | 62.66M | 114.88M | 175.05M | 174.06M | 151.54M |
| EBITDA | -39.76M | -80.66M | 24.13M | -57.61M | 316.63M |
| Net Income | -99.43M | -196.08M | -83.91M | -175.66M | 215.51M |
Balance Sheet | |||||
| Total Assets | 1.78B | 1.91B | 2.25B | 2.26B | 2.24B |
| Cash, Cash Equivalents and Short-Term Investments | 476.19M | 396.80M | 604.11M | 707.31M | 858.50M |
| Total Debt | 447.50M | 443.54M | 815.35M | 506.67M | 512.92M |
| Total Liabilities | 964.64M | 959.98M | 1.13B | 1.07B | 857.48M |
| Stockholders Equity | 813.36M | 952.52M | 1.12B | 1.19B | 1.38B |
Cash Flow | |||||
| Free Cash Flow | -78.74M | -114.02M | -179.56M | 24.46M | 3.29M |
| Operating Cash Flow | -9.06M | 18.22M | 36.44M | 205.81M | 122.24M |
| Investing Cash Flow | 159.86M | -71.19M | -13.29M | -412.80M | -243.85M |
| Financing Cash Flow | -30.93M | -161.42M | 71.96M | -58.15M | 398.43M |
Evotec AG Technical Analysis
Positive
3.26
Price Trends
2.86
Positive
3.11
Negative
3.29
Negative
Market Momentum
>-0.01
Negative
56.15
Neutral
77.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVO, the sentiment is Positive. The current price of 3.26 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 2.86, and below the 200-day MA of 3.29, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVO.
Evotec AG Risk Analysis
Evotec AG disclosed 10 risk factors in its most recent earnings report. Evotec AG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Evotec AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.79B | 18.31 | 17.32% | ― | 37.03% | ― | |
69 Neutral | $913.36M | 182.85 | 0.73% | ― | 4.57% | ― | |
69 Neutral | $1.09B | 14.39 | 26.74% | ― | 19.88% | 73.61% | |
64 Neutral | $831.15M | 10.78 | 10.23% | ― | -1.39% | -41.70% | |
63 Neutral | $2.68B | -91.75 | -2.73% | ― | 16.29% | -145.12% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.09B | -4.84 | -24.55% | ― | 2.13% | -1.13% |
* Healthcare Sector Average
EVO
Evotec AG
3.07
-0.91
-22.86%
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46.18
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ANIP
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78.51
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AMPH
Amphastar Pharmaceuticals
18.85
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COLL
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33.61
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14.67%
Evotec AG Corporate Events
Evotec SE Posts Weak Q1 2026 but Doubles Down on ‘Horizon’ Transformation and Mid-Term Growth Targets
May 6, 2026
Evotec SE reported first-quarter 2026 results on May 6, showing a 22% year-on-year revenue decline to €156.6 million and an adjusted Group EBITDA loss of €21.9 million, reflecting continued softness in drug discovery and development an...
Evotec Strengthens Supervisory Board and Strikes Governance Pact With MAK Capital
Apr 30, 2026
Evotec SE, a Germany-based life science and drug discovery specialist, has built proprietary platforms such as Molecular Patient Databases, PanOmics and iPSC-based disease modelling, alongside its Just – Evotec Biologics unit for biologics d...
Evotec Announces CFO Transition as Hitchin Departs and Hinshelwood Steps In
Apr 24, 2026
Evotec SE announced on April 24, 2026, that Chief Financial Officer Paul Hitchin will step down for personal reasons on April 30, 2026, after overseeing a period of financial and strategic evolution since March 1, 2025. He will be succeeded by sea...
Evotec Posts Strong 2025 Results and Accelerates Horizon Transformation With Major Biologics Deals
Apr 8, 2026
Evotec SE reported that its fourth-quarter and full-year 2025 revenues reached €253.3 million and €788.4 million, respectively, with adjusted EBITDA of €58.0 million and €41.1 million, landing at the high end of guidance an...
Evotec Names New Supervisory Board Chair and Expects $100 Million Windfall From Tubulis Deal
Apr 7, 2026
On April 7, 2026, Evotec SE announced that its Supervisory Board has proposed industry veteran Dieter Weinand as Chairman of the Supervisory Board, with his election to be voted on at the Annual General Meeting scheduled for June 11, 2026. He is s...
Evotec Launches ‘Horizon’ Transformation to Streamline Operations and Target €1 Billion Revenue by 2030
Mar 10, 2026
On 10 March 2026, Evotec SE unveiled “Horizon,” the next phase of its strategic transformation, introducing a new operating model built around operations, science and commercial execution to drive above-market growth and agility. The p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.