Evotec AG (EVO) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: N/A
• Average Volume (3M): 68.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -1.19%
• EPS Growth: 5.06%
• Country: US
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 355,554,170
• 10 Day Avg. Volume: 110,375
• 30 Day Avg. Volume: 68,514
• PEG Ratio: -0.05
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.78
• P/FCF Ratio: -12.45
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 19.31
• Enterprise Value/Ebitda: -17.86
• 1Y Price Target: $6.00
• Price Target Upside: 100.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.27
• Revenue Forecast (FY): $901.77M

• Rating: 44 Neutral
• Price Target: $3.00 ▲(0.33% Upside)

Evotec AG's overall stock score is primarily impacted by its financial performance, which is currently weak due to declining revenue and profitability, as well as significant cash flow challenges. Technical analysis indicates bearish momentum, further weighing down the score. While the earnings call provides some optimism with strategic partnerships and cost reduction initiatives, these are not enough to offset the broader financial and technical weaknesses.

Positive Factors

Strategic Partnerships

The Sandoz deal enhances Evotec's revenue potential and strengthens its market position in biologics, supporting long-term growth.

Biologics Segment Growth

Growth in the Biologics segment indicates robust demand and successful execution, contributing to Evotec's diversification and resilience.

Cost Reduction Initiatives

Effective cost reduction enhances operational efficiency and profitability, improving financial health and competitive positioning.

Negative Factors

Revenue Decline

Declining revenues reflect challenges in core markets, potentially impacting Evotec's ability to fund R&D and strategic initiatives.

Negative EBITDA

Negative EBITDA indicates operational inefficiencies and financial strain, which could hinder investment in growth opportunities.

VC Funding Environment

Unfavorable VC funding impacts early-stage projects, limiting innovation and growth potential in Evotec's discovery services.

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 diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women's health. It has collaboration agreements with Bayer AG; Lilly; Chinook Therapeutics; Novo Nordisk A/S; Galapagos; Pfizer Inc.; CONBA Pharmaceutical Co., Ltd.; Bristol Myers Squibb Company; Zhejiang JingXin Pharmaceutical Co., Ltd; Kazia Therapeutics; Apeiron Biologics; and Takeda Pharmaceuticals. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

How the Company Makes Money

Evotec generates revenue primarily through its collaborative agreements with pharmaceutical and biotechnology companies, providing contract research services that include drug discovery and development support. Key revenue streams include milestone payments, research fees, and royalties from partnered products. The company has established significant partnerships with major players in the industry, enabling it to leverage its expertise and technology in drug development. Additionally, Evotec benefits from co-development agreements and equity stakes in partnered projects, which can contribute to its earnings as products progress through development and reach the market.

Evotec AG Financial Statement Overview

Summary

Evotec AG is facing financial challenges across all verticals. The income statement shows declining revenue and profitability, while the balance sheet indicates moderate leverage but negative returns. The cash flow statement reveals significant cash flow issues, with negative free cash flow growth. The company needs to address its operational inefficiencies and improve profitability to enhance its financial health.

Income Statement

Evotec AG's income statement reveals challenges with profitability and growth. The TTM data shows a negative net profit margin of -20.01% and a declining revenue growth rate of -2.70%. The gross profit margin has decreased to 12.89% from 14.41% in the previous year. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Overall, the company is struggling with profitability and revenue growth.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.55 in the TTM period, slightly higher than the previous year. The return on equity is negative at -16.91%, reflecting ongoing losses. However, the equity ratio remains stable, indicating a reasonable proportion of equity financing. The company needs to improve profitability to enhance its financial stability.

Cash Flow

Evotec AG's cash flow statement highlights significant challenges. The free cash flow growth rate is highly negative at -819.39% in the TTM period, and the operating cash flow to net income ratio is low at 0.29. The free cash flow to net income ratio is positive but minimal at 0.11. The company faces difficulties in generating sufficient cash flow to cover its net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	756.33M	796.97M	781.43M	751.45M	618.03M	500.92M
Gross Profit	81.86M	114.88M	175.05M	174.06M	151.54M	125.74M
EBITDA	-88.51M	-80.66M	24.13M	-57.61M	316.63M	90.36M
Net Income	-158.98M	-196.08M	-83.91M	-175.66M	215.51M	6.28M
Balance Sheet
Total Assets	1.77B	1.91B	2.25B	2.26B	2.24B	1.84B
Cash, Cash Equivalents and Short-Term Investments	237.27M	396.80M	604.11M	707.31M	858.50M	589.67M
Total Debt	484.62M	443.54M	815.35M	506.67M	512.92M	601.94M
Total Liabilities	972.56M	959.98M	1.13B	1.07B	857.48M	951.26M
Stockholders Equity	800.14M	952.52M	1.12B	1.19B	1.38B	886.41M
Cash Flow
Free Cash Flow	-89.58M	-114.02M	-179.56M	24.46M	3.29M	-54.35M
Operating Cash Flow	1.41M	18.22M	36.44M	205.81M	122.24M	44.72M
Investing Cash Flow	-33.87M	-71.19M	-13.29M	-412.80M	-243.85M	-155.09M
Financing Cash Flow	-20.73M	-161.42M	71.96M	-58.15M	398.43M	246.41M

Evotec AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.99
• 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 EVO, the sentiment is Negative. The current price of 2.99 is below the 20-day moving average (MA) of 3.53, below the 50-day MA of 3.68, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 29.55 is Positive, neither overbought nor oversold. The STOCH value of 9.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVO.

Evotec AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	76 Outperform	$1.17B	11.25	14.84%	―	-0.03%	-27.66%
COLL	70 Neutral	$1.41B	27.68	22.96%	―	26.34%	-32.79%
PCRX	69 Neutral	$981.78M	―	2.90%	―	3.14%	―
ANIP	64 Neutral	$1.80B	49.26	7.83%	―	48.87%	―
SUPN	55 Neutral	$2.59B	―	-1.86%	―	4.54%	-130.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVO	44 Neutral	$1.06B	―	-17.46%	―	-1.19%	5.06%

Evotec AG Corporate Events

Evotec SE Launches Share Repurchase Program to Enhance Shareholder Value

On November 6, 2025, Evotec SE announced the implementation of a share repurchase program, intending to buy back up to 290,000 shares at a total cost of up to EUR 3,000,000. The program, set to run from November 7 to December 17, 2025, aims to convert repurchased shares into American Depositary Shares (ADS) for an employee share program. This strategic move is expected to enhance shareholder value and support employee retention, potentially strengthening Evotec’s market position.

Evotec SE Finalizes Landmark Agreement with Sandoz for Biologics Site Sale

On November 4, 2025, Evotec SE announced a significant agreement with Sandoz AG involving the sale of its Just – Evotec Biologics manufacturing site in Toulouse for approximately US$ 350 million in cash. The deal, which includes an indefinite technology license to Evotec’s continuous manufacturing platform, could potentially result in payments exceeding US$ 650 million plus royalties on a portfolio of up to ten biosimilar molecules. This transaction is expected to enhance Evotec’s revenue mix, profit margins, and capital efficiency, aligning with its strategy to transition to an asset-lighter business model. The agreement is seen as a transformative milestone for Evotec, enabling the company to expand its role as a scalable technology provider in the biologics manufacturing market.

Evotec SE Reports Strategic Progress Amid Revenue Shift

On November 5, 2025, Evotec SE announced its financial results for the first nine months of 2025, highlighting a strategic shift in its revenue mix aimed at long-term growth. The company reported a decrease in group revenues by 7.1% to €535.1 million, primarily due to a 12.3% decline in the Discovery & Preclinical Development segment. However, Just – Evotec Biologics outperformed expectations with an 11.3% increase in revenues. Significant agreements were signed with Sandoz and Bristol Myers Squibb, potentially bringing substantial future revenues and royalties. Despite current challenges, Evotec confirmed its 2025 guidance and 2028 outlook, emphasizing strategic collaborations and cost reduction initiatives.

Evotec AG Reports H1 2025 Results and Strategic Developments

On August 13, 2025, Evotec AG announced its financial results for the first half of 2025, highlighting a strategic shift towards sustainable profitable growth. The company reported a 5% decrease in group revenues to €371.2 million compared to the same period in 2024, primarily due to a soft demand in the Discovery & Preclinical Development segment. However, the Just – Evotec Biologics segment exceeded expectations with a 16% increase in revenues. Significant progress was made in collaborations with Bristol Myers Squibb, resulting in substantial payments, and a grant was awarded by The Gates Foundation for tuberculosis treatment development. Additionally, Evotec announced a potential sale of its Just – Evotec Biologics EU segment to Sandoz AG, expected to close in the fourth quarter, which could impact its operational focus and market positioning.