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Evolution Gaming (EVVTY)
:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
Rating:78Outperform
Price Target:―
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.08B
Dividend Yield3.7%
Average Volume (3M)3.19K
Price to Earnings (P/E)12.4
Beta (1Y)0.68
Revenue Growth10.25%
EPS Growth14.58%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength59
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.41
Shares Outstanding204,462,160
10 Day Avg. Volume4,279
30 Day Avg. Volume3,195
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)5.63
Price to Sales (P/S)0.00
P/FCF Ratio24.97
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 gaming operators. These agreements typically involve a revenue-sharing model where Evolution receives a percentage of the operators' takings or a fixed fee per user. The company also earns money through service fees for its comprehensive suite of products and solutions, including bespoke studio environments and dedicated tables tailored to the needs of its clients. Additionally, Evolution benefits from strategic partnerships and acquisitions that expand its product offerings and market reach, further contributing to its earnings.
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -5.69%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
While the company has ambitious expansion plans and a strong product roadmap, the quarter was marked by slower revenue growth, challenges with ringfencing and cyber issues, and increased expenses. Positive developments in North America and recruitment growth are overshadowed by these challenges.Q1-2025 Updates
Positive Updates
Expansion Plans
Opened a new studio in Romania and plan to open studios in Brazil, Philippines, Michigan, and expand in Malta, Colombia, Argentina, New Jersey, and Philadelphia.
Strong Product Roadmap
Plan to release more than 110 games in 2025, with several new games launched in Q1 including War, Race Track, and Marble Race. Upcoming releases include Super Color game and Ice Fishing.
Recruitment Growth
Surpassed 22,000 employees with an 8.4% year-on-year growth, driven by recruitment in Brazil and Philippines.
Positive Reception at ICE Exhibition
Showcased headline games at the ICE Exhibition in Barcelona with great response from operators.
North America Growth
Continued strong performance with 15% year-on-year growth, with expansion in New Jersey with bet365.
Negative Updates
Revenue Growth Slowdown
Net revenue grew by only 3.9% year-on-year to EUR 520.9 million, with a constant currency growth of 6.1%.
EBITDA Margin Decline
EBITDA decreased by 1.1% and margin was at 65.6%, below the full year guidance of 66% to 68%.
Impact of Ringfencing
Ringfencing measures in Europe led to a flat revenue development and a 6% decline from Q4 in Europe.
Cyber Challenges in Asia
Continued cyber challenges in Asia, leading to flat revenue growth in the region for three consecutive quarters.
RNG Revenue Growth Decline
RNG revenues grew only by 3.1% year-on-year, a decline from previous quarters.
Increased Operating Expenses
Operating expenses increased by 15% year-on-year due to investments in new products and capacity.
Company Guidance
During the call, Evolution's CEO Martin Carlesund and CFO Joakim Andersson discussed the company's first-quarter financial results for 2025, highlighting a net revenue of EUR 520.9 million, representing a year-on-year growth of 3.9%. The EBITDA margin was reported at 65.6%, slightly below the full-year guidance of 66% to 68%. The company faced challenges due to regulatory ringfencing in Europe, notably impacting markets with low channelization, and ongoing cyber issues in Asia, both affecting revenue. Despite these challenges, the company remains optimistic about the second half of the year, driven by strong product launches and expansion plans, including new studios in Brazil and the Philippines. Additionally, Evolution surpassed 22,000 employees, reflecting an 8.4% year-on-year increase in headcount. The call also covered the geographic revenue breakdown, with North America showing a 15% growth and LatAm exhibiting a 9.7% year-on-year increase. The company continues to prioritize growth, as evidenced by ongoing investments into new products and capacity expansion.Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB exhibits strong financial health characterized by high profitability, consistent revenue growth, and a robust balance sheet with low leverage. The company's solid cash flow generation underscores its capacity to sustain operations and invest in future growth. These financial metrics position the company favorably in the Gambling, Resorts & Casinos industry.Income Statement
Evolution Gaming Group AB has demonstrated robust financial performance. The TTM (Trailing-Twelve-Months) gross profit margin is an impressive 90.44%, indicating strong cost management and pricing power. The net profit margin stands at 58.92%, reflecting high profitability. Revenue growth from 2022 to 2023 was 23.47%, and from 2023 to 2024 was 14.70%, showing a consistent upward trajectory. EBIT and EBITDA margins are strong at 67.75% and 67.42% respectively, highlighting operational efficiency.90
Very Positive
Balance Sheet
The balance sheet of Evolution Gaming Group AB is solid with a low debt-to-equity ratio of 0.02, indicating minimal leverage and low financial risk. The return on equity (ROE) for TTM is an impressive 29.38%, showcasing effective utilization of equity. The equity ratio is high at 73.47%, suggesting financial stability and a strong equity base.85
Very Positive
Cash Flow
The cash flow statement reveals a healthy position with positive free cash flow growth of 5.56% TTM compared to the previous year. The operating cash flow to net income ratio is 1.11, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 1.00, showing that the company generates ample free cash flow relative to its net income, which is a positive indicator of cash health.88
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 | 1.89B | 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 | 1.23B | 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
Balance Sheet | ||||||
| Total Assets | 5.69B | 5.35B | 4.97B | 4.37B | 3.90B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 958.09M | 787.07M | 985.76M | 532.55M | 421.43M | 221.68M |
| Total Debt | 92.92M | 93.66M | 79.46M | 79.55M | 67.81M | 49.97M |
| Total Liabilities | 1.51B | 1.37B | 967.27M | 909.09M | 712.12M | 442.94M |
| Stockholders Equity | 4.18B | 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 1.16B | 1.07B | 780.53M | 537.30M | 279.17M |
| Operating Cash Flow | 1.36B | 1.30B | 1.17B | 877.47M | 598.89M | 316.05M |
| Investing Cash Flow | -238.81M | -247.97M | -139.36M | -371.60M | -154.95M | 6.82M |
| Financing Cash Flow | -1.13B | -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Positive
78.57
Price Trends
71.68
Positive
72.98
Positive
78.83
Negative
Market Momentum
1.87
Negative
67.37
Neutral
95.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Positive. The current price of 78.57 is above the 20-day moving average (MA) of 71.72, above the 50-day MA of 71.68, and below the 200-day MA of 78.83, indicating a neutral trend. The MACD of 1.87 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 95.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.08B | 12.38 | 30.13% | 3.70% | 10.25% | 14.58% | |
77 Outperform | $8.09B | 25.64 | 46.19% | ― | 7.26% | 54.83% | |
71 Outperform | $49.24B | 96.31 | 5.48% | ― | ― | ― | |
69 Neutral | $3.18B | 10.94 | 1.33% | 5.08% | -33.50% | 35.81% | |
65 Neutral | $38.14B | ― | -46.78% | ― | 22.86% | 30.40% | |
65 Neutral | $385.21M | ― | ― | ― | ― | ||
61 Neutral | AU$2.78B | 25.79 | 5.01% | 5.27% | 2.63% | -29.95% |
* Consumer Cyclical Sector Average
Performance Comparison
EVVTY
Evolution Gaming Group AB
78.57
-21.31
-21.34%
IGT
International Game Technology
15.74
-3.38
-17.68%
LNW
Light & Wonder
95.82
-6.92
-6.74%
DKNG
DraftKings
42.89
5.59
14.99%
CDRO
Codere Online
8.44
0.31
3.81%
FLUT
Flutter Entertainment PLC
278.68
92.37
49.58%
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.