ScoreWhy is Evolution AB ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.46%
- Healthy long term growth as Net Sales has grown by an annual rate of 31.89% and Operating profit at 33.04%
- Company has very low debt and has enough cash to service the debt requirements
2
The company has declared Negative results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at SEK 13,532.67 MM
- ROCE(HY) Lowest at 25.01%
- NET SALES(Q) Lowest at SEK 5,486.43 MM
3
With ROE of 26.62%, it has a fair valuation with a 2.73 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.20%, its profits have fallen by -7.6%
4
Majority shareholders : FIIs
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.20% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Evolution AB should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Evolution AB for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Evolution AB
-100.0%
-1.35
29.92%
OMX Stockholm 30
30.13%
1.89
15.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
31.89%
EBIT Growth (5y)
33.04%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
0.51
Tax Ratio
13.62%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
30.70%
ROE (avg)
22.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
2.73
EV to EBIT
8.05
EV to EBITDA
7.14
EV to Capital Employed
3.16
EV to Sales
4.78
PEG Ratio
NA
Dividend Yield
0.49%
ROCE (Latest)
39.20%
ROE (Latest)
26.62%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -23.48 %
-12What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 13,532.67 MM
ROCE(HY)
Lowest at 25.01%
NET SALES(Q)
Lowest at SEK 5,486.43 MM
OPERATING PROFIT(Q)
Lowest at SEK 3,585.91 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.62 times
OPERATING PROFIT MARGIN(Q)
Lowest at 65.36 %
PRE-TAX PROFIT(Q)
Lowest at SEK 3,209.19 MM
NET PROFIT(Q)
Lowest at SEK 2,694.16 MM
Here's what is working for Evolution AB
Debt-Equity Ratio
Lowest at -23.48 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Evolution AB
Net Sales
Lowest at SEK 5,486.43 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term sales trend is very negative
Net Sales (SEK MM)
Operating Profit
Lowest at SEK 3,585.91 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (SEK MM)
Operating Cash Flow
Lowest at SEK 13,532.67 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
Operating Profit Margin
Lowest at 65.36 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SEK 3,209.19 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SEK MM)
Net Profit
Lowest at SEK 2,694.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
Debtors Turnover Ratio
Lowest at 1.62 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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