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
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at SEK 14,275.36 MM
- ROCE(HY) Lowest at 26.19%
3
With ROE of 23.49%, it has a fair valuation with a 2.80 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 -15.87%, its profits have fallen by -11.5%
4
Majority shareholders : FIIs
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -15.87% 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
-15.87%
-1.12
30.31%
OMX Stockholm 30
27.7%
1.79
15.50%
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)
0.52
Tax Ratio
15.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
35.60%
ROE (avg)
22.46%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.80
EV to EBIT
9.21
EV to EBITDA
8.10
EV to Capital Employed
3.41
EV to Sales
5.35
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
36.96%
ROE (Latest)
23.49%
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 Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.62% (YoY
CASH AND EQV(HY)
Highest at SEK 24,815.21 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -25.11 %
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 14,275.36 MM
ROCE(HY)
Lowest at 26.19%
Here's what is working for Evolution AB
Cash and Eqv
Highest at SEK 24,815.21 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -25.11 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 1.62% (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 470.42 MM
in the last five periodsMOJO 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
Operating Cash Flow
Lowest at SEK 14,275.36 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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