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Evolution Gaming (EVVTY)
:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
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Rating:73Outperform
Price Target:
$75.00
▲(11.39% Upside)
Evolution Gaming Group AB's strong financial performance and attractive valuation are key strengths, despite technical indicators showing a bearish trend. The mixed results from the earnings call, with challenges in Asia but growth in Europe and Latin America, contribute to a balanced outlook.
Positive Factors
Strong Cash Flow
Strong cash flow generation indicates robust operational efficiency, ensuring the company can sustain growth initiatives and manage financial obligations effectively.
Growth in Europe and Latin America
Positive growth in key markets like Europe and Latin America highlights the company's ability to expand its footprint and capture market share, supporting long-term revenue potential.
RNG Segment Growth
The growth in the RNG segment demonstrates successful diversification and innovation in product offerings, enhancing competitive advantage and market resilience.
Negative Factors
Revenue Decline in Asia
The decline in Asia due to regulatory and security challenges poses risks to revenue stability and highlights potential vulnerabilities in market strategy.
Overall Revenue Decline
A decline in overall revenue reflects challenges in maintaining growth momentum, which could impact future profitability and market positioning.
Challenges in North America
Regulatory challenges and unmet expectations in North America could hinder expansion efforts and limit potential market opportunities.
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.97B
Dividend Yield4.53%
Average Volume (3M)1.27K
Price to Earnings (P/E)11.2
Beta (1Y)0.47
Revenue Growth6.06%
EPS Growth3.19%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.45
Shares Outstanding204,462,160
10 Day Avg. Volume3,821
30 Day Avg. Volume1,273
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)3.92
Price to Sales (P/S)7.54
P/FCF Ratio13.36
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue7.66
Enterprise Value/Gross Profit7.66
Enterprise Value/Ebitda11.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.88
Revenue Forecast (FY)$2.42B
Evolution Gaming Group AB Business Overview & Revenue Model
Company DescriptionEvolution Gaming Group AB (EVVTY) is a leading provider of live casino solutions for the online gaming industry. The company specializes in developing and operating live dealer games, which allow players to interact with real dealers in real-time via streaming technology. Evolution Gaming serves various sectors within the gaming industry, including online casinos, sports betting, and lottery operators. Its core products include a wide range of live dealer games such as blackjack, roulette, baccarat, and game show-style offerings, all designed to enhance the online gaming experience for players worldwide.
How the Company Makes MoneyEvolution Gaming makes money primarily through its B2B (business-to-business) model by providing live casino solutions to online gambling operators. The company charges its clients a fee based on a revenue share model, where it takes a percentage of the casino's gaming revenue generated from the live dealer games. Additionally, Evolution earns revenue through licensing agreements, where it provides its technology and gaming content for a fixed fee. Significant partnerships with major online gambling operators and platforms enhance its market reach and contribute to its earnings. The company's continued innovation in game development and expansion into new markets also play a crucial role in driving revenue growth.
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented mixed results with significant challenges in Asia impacting overall revenue decline. However, there were positive developments in Europe and Latin America, as well as strong financial metrics. The sentiment is balanced with areas of concern and areas of growth.Q3-2025 Updates
Positive Updates
Positive Performance in Europe
Europe returned to growth quarter-on-quarter with revenue amounting to EUR 182.2 million. Recognized for ring fencing by a major European regulator as one of the best B2B suppliers.
Growth in Latin America
Latin America showed year-on-year growth of 6.4% and quarter-on-quarter growth of 5.9%, with positive developments in Brazil.
RNG Outperforms Live
RNG revenue increased by 4.2% to EUR 75.5 million, marking the first time RNG outperformed Live in terms of growth.
Successful Launch of New Brand
Launched a new brand, Sneaky Slots, which is expected to strengthen the portfolio.
Strong Cash Flow and Financial Position
Operating cash flow after investments was EUR 342.1 million with a cash conversion of 83%. Total cash balance of EUR 656.4 million and equity position of EUR 3.8 billion.
Negative Updates
Decline in Asia
Revenue in Asia declined by 9.6% quarter-on-quarter due to cybercrime activity and regulatory uncertainties in markets like India and the Philippines.
Overall Revenue Decline
Net revenue decreased by 2.4% year-on-year to EUR 507.1 million. Live revenue declined by 3.4% to EUR 431.7 million.
Challenges in North America
Despite modest growth, North America is still behind market expectations. Sweepstakes product was pulled from California due to regulatory concerns.
Negative Growth Trend
Growth has tapered off and become negative, with a quarter-on-quarter revenue decline of 3.3%.
Company Guidance
During the third quarter of 2025, Evolution reported net revenue of EUR 507.1 million, marking a year-on-year decline of 2.4%. The company's EBITDA stood at EUR 336.9 million, with an EBITDA margin of 66.4%, aligning with their full-year margin target of 66%-68%. The decline was primarily attributed to weak performance in Asia, with a 9.6% quarter-on-quarter revenue drop, exacerbated by cybercrime and regulatory volatility in markets like India and the Philippines. Conversely, Europe showed positive growth, contributing EUR 182.2 million in revenue, while North America and Latin America also demonstrated decent performance. The company's RNG segment increased by 4.2% to EUR 75.5 million, surpassing Live revenue growth, which declined by 3.4% to EUR 431.7 million. Evolution also launched the Sneaky Slots brand and new games like Ice Fishing, which were well-received. The company's headcount grew 4.2% year-on-year but decreased by 2.7% quarter-on-quarter, reflecting a temporary slowdown in hiring. Evolution remains focused on cost efficiency and is optimistic about future growth, despite the current challenges in Asia.Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB demonstrates strong financial health with high profitability, low leverage, and excellent cash flow generation. Despite a recent dip in revenue growth, the company's financial metrics suggest resilience and a strong competitive position in the gambling industry.Income Statement
The income statement shows strong profitability with a high net profit margin of 52% for TTM, although revenue growth has slightly declined recently. Historical data indicates consistent revenue growth and robust margins, suggesting effective cost management and strong market position.85
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.023, indicating low leverage and financial stability. Return on equity is strong at 28.84% for TTM, reflecting efficient use of equity capital. The equity ratio is healthy, supporting long-term sustainability.78
Positive
Cash Flow
Cash flow analysis reveals strong free cash flow growth and a high operating cash flow to net income ratio, indicating excellent cash generation capabilities. The free cash flow to net income ratio is also robust, underscoring the company's ability to convert earnings into cash.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 2.06B | 1.80B | 1.46B | 1.07B | 561.13M |
| Gross Profit | 2.09B | 2.11B | 1.80B | 936.13M | 1.09B | 308.37M |
| EBITDA | 1.39B | 1.59B | 1.28B | 1.01B | 730.94M | 332.26M |
| Net Income | 1.13B | 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
Balance Sheet | ||||||
| Total Assets | 5.17B | 5.35B | 4.97B | 4.37B | 3.90B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 656.38M | 787.07M | 985.76M | 532.55M | 421.43M | 221.68M |
| Total Debt | 87.35M | 93.66M | 79.46M | 79.55M | 67.81M | 49.97M |
| Total Liabilities | 1.35B | 1.37B | 967.27M | 909.09M | 712.12M | 442.94M |
| Stockholders Equity | 3.82B | 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.17B | 1.16B | 1.07B | 780.53M | 537.30M | 279.17M |
| Operating Cash Flow | 1.29B | 1.30B | 1.17B | 877.47M | 598.89M | 316.05M |
| Investing Cash Flow | -146.36M | -247.97M | -139.36M | -371.60M | -154.95M | 6.82M |
| Financing Cash Flow | -1.15B | -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Neutral
67.33
Price Trends
73.84
Negative
80.53
Negative
77.04
Negative
Market Momentum
-1.76
Negative
46.92
Neutral
85.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Neutral. The current price of 67.33 is above the 20-day moving average (MA) of 66.85, below the 50-day MA of 73.84, and below the 200-day MA of 77.04, indicating a neutral trend. The MACD of -1.76 indicates Negative momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EVVTY.
Evolution Gaming Group AB Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ― | ― | 50.47% | ― | 1.87% | 42.43% | |
73 Outperform | $13.97B | 11.23 | 28.68% | 4.53% | 6.06% | 3.19% | |
65 Neutral | $209.49M | 3.91 | ― | ― | 4.03% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $201.87M | 94.97 | 1.46% | ― | 24.21% | -92.49% | |
58 Neutral | $259.70M | 415.33 | 23.16% | ― | 1.79% | ― | |
45 Neutral | $1.97B | ― | -35.97% | ― | 8.24% | -77.54% |
* Consumer Cyclical Sector Average
EVVTY
Evolution Gaming Group AB
69.32
-13.46
-16.26%
PENN
PENN Entertainment
14.84
-6.67
-31.01%
LNW
Light & Wonder
90.20
-8.65
-8.75%
INSE
Inspired Entertainment
8.36
-1.12
-11.81%
CDRO
Codere Online
7.18
-0.84
-10.47%
GAMB
Gambling.com
5.58
-8.06
-59.09%
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.