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Evolution Gaming Group AB (EVVTY)
OTHER OTC:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
76Outperform
Evolution Gaming Group AB (EVVTY) vs. S&P 500 (SPY)
Market Cap
$16.36B
Dividend Yield2.51%
Average Volume (3M)10.50K
Price to Earnings (P/E)12.1
Beta (1Y)1.03
Revenue Growth19.78%
EPS Growth18.56%
CountryUS
Employees15,381
SectorConsumer Cyclical
Sector Strength49
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)6.43
Shares Outstanding211,833,200
10 Day Avg. Volume0
30 Day Avg. Volume10,501
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)N/A
Price to Sales (P/S)18.47
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Evolution Gaming Group AB Business Overview & Revenue Model
Company DescriptionEvolution AB (publ) develops, produces, markets, and licenses live casino and slots solutions to gaming operators primarily in Europe and the United States. The company runs the game from a casino gaming table, which is streamed in real time and end users make betting decisions on their devices, such as computers, smartphones, tablets, etc. Its portfolio of online live table games primarily includes Live Roulette, Blackjack, Baccarat, Super Sic Bo, Dragon Tiger, Craps, Live Casino Hold'em, Three Card Poker, and Ultimate Texas Hold'em; and operates approximately 1000 tables. The company was formerly known as Evolution Gaming Group AB (publ). Evolution AB (publ) was founded in 2006 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyEvolution Gaming Group AB generates revenue primarily through licensing agreements with online casino operators. The company charges these operators a fee for the use of its live casino software and services, which include access to its live dealer games and streaming technology. Revenue streams are further enhanced by charging fees based on the volume of bets placed by players using their platform. Additionally, Evolution Gaming forms strategic partnerships with major online gambling brands to expand its reach and leverage cross-promotional opportunities. The company's revenue is significantly bolstered by its ability to continually innovate and introduce new games and features, attracting a larger player base for its clients.
Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB demonstrates strong financial performance with excellent profitability, effective cost management, and robust cash flow generation. The company's low leverage and high equity ratio provide financial stability, while impressive growth rates reflect its competitive position in the industry.Income Statement
Evolution Gaming Group AB has shown a robust financial performance with strong margin metrics across the board. The Gross Profit Margin remains at an exceptional level as Total Revenue equals Gross Profit, indicating effective cost management. The Net Profit Margin is also high at 60.3%, reflecting efficient expense control. Revenue Growth Rate is impressive at 14.7% for 2024, showcasing consistent expansion. Both EBIT and EBITDA margins are solid at 68.8% and 68.4%, respectively, demonstrating strong operational efficiency.92
Very Positive
Balance Sheet
The company's balance sheet is healthy, with a low Debt-to-Equity Ratio of 0.023, indicating minimal leverage and financial stability. The Return on Equity is impressive at 31.3%, highlighting effective use of equity capital to generate profits. The Equity Ratio stands at 74.3%, underscoring a strong equity base relative to total assets, which enhances financial resilience.88
Very Positive
Cash Flow
Cash flow metrics are strong, with a Free Cash Flow Growth Rate of 8.4% from 2023 to 2024, indicating robust cash generation. The Operating Cash Flow to Net Income Ratio is 1.05, showing that operating cash flows are in line with net income, which is a positive indicator of cash earnings quality. The Free Cash Flow to Net Income Ratio is also healthy at 0.94, supporting the company's ability to generate free cash flow relative to its net income.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.06B | 1.80B | 1.46B | 1.07B | 561.13M | Gross Profit |
| 2.06B | 1.80B | 936.13M | 1.09B | 308.37M | EBIT |
| 1.42B | 1.14B | 908.06M | 654.00M | 299.70M | EBITDA |
| 1.41B | 1.28B | 1.01B | 730.94M | 332.26M | Net Income Common Stockholders |
| 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 801.47M | 985.76M | 532.55M | 421.43M | 221.68M | Total Assets |
| 5.35B | 4.97B | 4.37B | 3.90B | 3.17B | Total Debt |
| 93.66M | 79.46M | 79.55M | 67.81M | 49.97M | Net Debt |
| -707.81M | -906.30M | -453.00M | -353.62M | -171.71M | Total Liabilities |
| 1.37B | 967.27M | 909.09M | 712.12M | 442.94M | Stockholders Equity |
| 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
| Cash Flow | Free Cash Flow | |||
| 1.16B | 1.07B | 780.53M | 537.30M | 279.17M | Operating Cash Flow |
| 1.30B | 1.17B | 877.47M | 598.89M | 316.05M | Investing Cash Flow |
| -247.97M | -139.36M | -371.60M | -154.95M | 6.82M | Financing Cash Flow |
| -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Negative
75.16
Price Trends
77.51
Negative
81.41
Negative
90.36
Negative
Market Momentum
0.12
Positive
45.61
Neutral
33.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Negative. The current price of 75.16 is below the 20-day moving average (MA) of 78.65, below the 50-day MA of 77.51, and below the 200-day MA of 90.36, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVVTY.
Evolution Gaming Group AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $16.36B | 12.08 | 31.51% | 2.51% | 19.78% | 18.56% | |
67 Neutral | $9.15B | 19.71 | -51.73% | 1.17% | 9.13% | -30.00% | |
66 Neutral | $2.51B | 549.50 | 3.61% | ― | 33.70% | ― | |
65 Neutral | $3.38B | 706.19 | 0.83% | 3.65% | 12.40% | -90.10% | |
60 Neutral | $34.39B | ― | -54.81% | ― | 30.07% | 39.93% | |
59 Neutral | $12.29B | 11.58 | 0.14% | 3.71% | 1.32% | -21.01% | |
39 Underperform | $81.52M | ― | 229.13% | ― | 4.31% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
EVVTY
Evolution Gaming Group AB
75.16
-45.94
-37.94%
WYNN
Wynn Resorts
82.33
-23.03
-21.86%
DKNG
DraftKings
35.29
-9.65
-21.47%
GAN
GAN
1.78
0.47
35.88%
RSI
Rush Street Interactive
10.83
4.03
59.26%
SGHC
Super Group (SGHC)
6.62
3.49
111.50%
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -6.09% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook. While Evolution made progress with new studio launches and expansion in North America, challenges such as reduced capacity in Georgia and increased cyberattacks in Asia negatively impacted performance.Highlights
New Studio Launches and Game Releases
Evolution successfully launched new studios in Colombia and the Czech Republic, and introduced several new games, including Lightning Storm and Crazy Coin Flip, which received positive player feedback.
North American Expansion
Evolution expanded its Live Casino product portfolio in North America, adding new games and signing a partnership with Atlantic Lottery to cover all of Canada, resulting in an 18% growth in the region.
RNG Revenue Growth
RNG revenues grew by 8.5% year-on-year, with significant contributions from improvements in game releases and the integration of the One Stop Shop (OSS) platform.
Lowlights
Operational Challenges in Georgia
Due to strikes and illegal actions by the union, Evolution's operations in Georgia were disrupted, resulting in a reduced operational capacity of 60%.
Increased Cyberattacks in Asia
There was a significant increase in cyberattacks against Evolution's Asian video distribution, negatively impacting revenue.
Adjusted EBITDA Margin Below Expectations
The adjusted EBITDA margin was 68.5%, slightly lower than expected, influenced by disruptions in Georgia and cyberattacks.
Company Guidance
During the Q3 2024 earnings call, Evolution provided several key metrics and insights regarding their financial and operational performance. The company reported a total operating revenue of €579 million, including net operating revenue of €519 million, reflecting a year-on-year growth of approximately 15%. Adjusted EBITDA margin was recorded at 68.5% for the quarter. The Live Casino segment contributed €447 million in revenue, marking a 15.8% increase, while RNG revenue grew by 8.5% to reach €72.5 million. Despite facing challenges such as operational disruptions in Georgia and increased cyberattacks in Asia, Evolution continued to expand its footprint by launching new studios in Colombia and the Czech Republic. The company remains focused on its growth strategy, with upcoming projects in Brazil and the Philippines, and plans to continue enhancing its game portfolio. Additionally, Evolution highlighted the impact of cyberattacks on Asian operations and addressed the effects of reduced capacity in Georgia, operating at 60% capacity due to strikes. Looking forward, the company aims to maintain margins around current levels for the remainder of the year, with a full-year EBITDA margin slightly below the initial 69% to 71% range set at the start of 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.