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Evolution Gaming (EVVTY)
:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
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Select Model
Rating:79Outperform
Price Target:
$98.00
▲(14.27% Upside)
Evolution Gaming Group AB's strong financial performance and strategic expansions drive a positive outlook, despite technical indicators suggesting short-term weakness. The company's valuation is reasonable, and the earnings call highlights both growth opportunities and regional challenges.
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.73B
Dividend Yield3.71%
Average Volume (3M)12.03K
Price to Earnings (P/E)13.7
Beta (1Y)0.58
Revenue Growth8.97%
EPS Growth14.16%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.41
Shares Outstanding204,462,160
10 Day Avg. Volume0
30 Day Avg. Volume12,033
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 Cap0.88
Enterprise Value/Revenue7.43
Enterprise Value/Gross Profit7.43
Enterprise Value/Ebitda11.09
Forecast
1Y Price Target
$98.00Price Target Upside14.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Evolution Gaming Group AB Business Overview & Revenue Model
Company DescriptionEvolution Gaming Group AB (EVVTY) is a leading provider of live casino solutions for online gaming operators. Founded in 2006 and headquartered in Sweden, the company specializes in providing high-quality live dealer games, including traditional casino offerings such as blackjack, roulette, and baccarat, as well as innovative game show-style formats. Evolution Gaming operates in the online gambling sector, catering to a global clientele of licensed operators, and is known for its cutting-edge technology and immersive gaming experiences.
How the Company Makes MoneyEvolution Gaming generates revenue primarily through a business-to-business (B2B) model, charging online gaming operators for access to its live casino games and services. The company typically operates on a revenue-sharing model, where it takes a percentage of the wagers placed by players using its games. Additionally, Evolution may charge operators a fixed fee for its services, which can include licensing, game integration, and ongoing support. Significant partnerships with major online casinos and gaming platforms enhance its reach and revenue potential. The company's focus on innovative technology, such as streaming high-quality video feeds and interactive features, also contributes to attracting and retaining operators, further solidifying its earnings.
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balance of positive developments such as stable EBITDA margins, strong North American growth, and strategic expansions against challenges like European revenue decline, cybercrime issues in Asia, and slow RNG growth.Q2-2025 Updates
Positive Updates
Stable EBITDA Margin
EBITDA amounted to EUR 345.3 million with a margin of 65.9%, aligning with the full-year guidance of 66% to 68%.
North America Growth
North America showed strong growth, with a 23% year-on-year increase in revenue, totaling EUR 73.9 million.
New Licensing and Partnership Agreements
Signed a licensing agreement with Hasbro and a new partnership agreement with Bally's Corporation in Rhode Island, marking significant milestones for U.S. expansion.
New Studio Launches
Launched new studios in the Philippines and Brazil, expanding the company's footprint in Asia and Latin America.
Continued Innovation in Gaming
Released new games including Super Color Game, First Person Bac Bo, and Lightning Bac Bo, with 110 games planned for 2025.
Negative Updates
Challenges in Europe
European revenue declined due to proactive ring-fencing measures, resulting in a negative growth of 5%.
Cybercrime Challenges in Asia
Continued cybercrime activities in Asia impacted operations, though there are signs of growth with a 4% quarter-on-quarter increase.
Slow RNG Revenue Growth
RNG revenue grew only by 0.3% year-on-year, affected by a significant payout.
Currency Headwinds
Currency fluctuations negatively impacted growth, with an adjusted growth of 8.8% without these effects.
Company Guidance
During the Q2 2025 earnings call, Evolution provided guidance indicating a cautiously optimistic outlook for the remainder of the year, despite facing challenges in Europe and Asia. The company's revenue for the quarter was EUR 524.3 million, reflecting a year-on-year growth of 3.1%, with an EBITDA of EUR 345.3 million and an EBITDA margin of 65.9%, aligning with the full-year guidance of 66% to 68%. Evolution highlighted the impact of regulatory measures in Europe and cybercrime in Asia, which have affected revenues. However, growth momentum in North America and new opportunities in Latin America, particularly Brazil, are expected to support a stronger second half. Additionally, Evolution's recent strategic moves, such as the Hasbro licensing agreement and new studio openings in the Philippines and Brazil, are aimed at enhancing its competitive position and driving future growth.Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB exhibits strong financial health with impressive revenue growth and profitability margins. The balance sheet is robust with low leverage and high equity, indicating financial stability. Despite a recent decline in free cash flow growth, overall cash generation remains strong.Income Statement
Evolution Gaming Group AB demonstrates impressive financial performance with strong revenue growth and high profitability margins. The TTM data shows a revenue growth rate of 54.5%, indicating robust expansion. Gross profit margin remains at 100%, and net profit margin is a healthy 57.6%. EBIT and EBITDA margins are also strong at 59.8% and 67.0%, respectively. These metrics highlight the company's efficient operations and strong market position.92
Very Positive
Balance Sheet
The company's balance sheet is solid, characterized by low leverage and strong equity. The debt-to-equity ratio is minimal at 0.024, indicating low financial risk. Return on equity is impressive at 30.9%, reflecting efficient use of equity to generate profits. The equity ratio stands at 75.3%, showcasing a strong capital structure. Overall, the balance sheet reflects financial stability and prudent management.85
Very Positive
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth at -7.3% TTM, which may warrant attention. However, the operating cash flow to net income ratio is strong at 1.31, indicating good cash generation relative to net income. The free cash flow to net income ratio is also robust at 89.4%, suggesting effective cash management. Despite the recent dip in free cash flow growth, the company maintains healthy cash flow metrics.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 2.06B | 1.80B | 1.46B | 1.07B | 561.13M |
| Gross Profit | 2.10B | 2.11B | 1.80B | 936.13M | 1.09B | 308.37M |
| EBITDA | 1.41B | 1.59B | 1.28B | 1.01B | 730.94M | 332.26M |
| Net Income | 1.21B | 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
Balance Sheet | ||||||
| Total Assets | 4.95B | 5.35B | 4.97B | 4.37B | 3.90B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 494.89M | 787.07M | 985.76M | 532.55M | 421.43M | 221.68M |
| Total Debt | 89.88M | 93.66M | 79.46M | 79.55M | 67.81M | 49.97M |
| Total Liabilities | 1.22B | 1.37B | 967.27M | 909.09M | 712.12M | 442.94M |
| Stockholders Equity | 3.73B | 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.16B | 1.07B | 780.53M | 537.30M | 279.17M |
| Operating Cash Flow | 1.27B | 1.30B | 1.17B | 877.47M | 598.89M | 316.05M |
| Investing Cash Flow | -248.39M | -247.97M | -139.36M | -371.60M | -154.95M | 6.82M |
| Financing Cash Flow | -1.20B | -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Neutral
85.76
Price Trends
87.97
Negative
80.16
Positive
77.77
Positive
Market Momentum
-0.12
Positive
42.89
Neutral
19.96
Positive
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 85.76 is below the 20-day moving average (MA) of 86.00, below the 50-day MA of 87.97, and above the 200-day MA of 77.77, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 19.96 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.73B | 13.73 | 31.56% | 3.71% | 8.97% | 14.16% | |
69 Neutral | 245.52M | 4.20 | -1963.64% | ― | -4.95% | ― | |
66 Neutral | 290.88M | 20.06 | 10.21% | ― | 27.57% | -40.98% | |
63 Neutral | 7.13B | 21.51 | 49.72% | ― | 3.93% | 19.20% | |
61 Neutral | 2.89B | -35.09 | -10.88% | ― | 7.34% | 93.83% | |
55 Neutral | 318.57M | 509.49 | 16.24% | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
EVVTY
Evolution Gaming Group AB
84.56
-10.03
-10.60%
PENN
PENN Entertainment
19.80
0.94
4.98%
LNW
Light & Wonder
84.96
-5.77
-6.36%
INSE
Inspired Entertainment
9.16
-0.11
-1.19%
CDRO
Codere Online
6.98
-1.01
-12.64%
GAMB
Gambling.com
8.17
-1.85
-18.46%
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.