Evolution AB (EVO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sinch AB

Fortnox AB

Embracer Group AB

Evolution AB

Sectra AB

BYGGFAKTA GROUP Nordic HoldCo AB

Vitec Software Group AB

Stillfront Group AB

Paradox Interactive AB

Modern Times Group MTG AB

Truecaller AB

Why is Evolution AB ?

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

Flat results in Dec 25

INTEREST(9M) At SEK 130.16 MM has Grown at 1,026.67%
ROCE(HY) Lowest at 26.23%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

With ROE of 29.14%, it has a fair valuation with a 3.54 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 -27.82%, its profits have fallen by -3.4%

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.82% 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 Report

Verdict Report

How 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

-25.56%

-1.40

34.52%

OMX Stockholm 30

10.0%

0.40

18.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.89%

EBIT Growth (5y)

33.04%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.51

Tax Ratio

13.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

30.70%

ROE (avg)

22.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.54

EV to EBIT

10.03

EV to EBITDA

8.95

EV to Capital Employed

3.92

EV to Sales

6.00

PEG Ratio

Dividend Yield

0.40%

ROCE (Latest)

39.11%

ROE (Latest)

29.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.5% (YoY

NET SALES(Q)

Highest at SEK 6,195.66 MM

OPERATING PROFIT(Q)

Highest at SEK 4,305.21 MM

OPERATING PROFIT MARGIN(Q)

Highest at 69.49 %

PRE-TAX PROFIT(Q)

Highest at SEK 3,857.73 MM

-9What is not working for the Company

INTEREST(9M)

At SEK 130.16 MM has Grown at 1,026.67%

ROCE(HY)

Lowest at 26.23%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.76 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 1.76

Here's what is working for Evolution AB

Net Sales

Highest at SEK 6,195.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Operating Profit

Highest at SEK 4,305.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Operating Profit Margin

Highest at 69.49 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SEK 3,857.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Raw Material Cost

Fallen by -1.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at SEK 463.54 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for Evolution AB

Interest

At SEK 130.16 MM has Grown at 1,026.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debtors Turnover Ratio

Lowest at 1.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at SEK 1.76

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)