Evolution AB reflects attractive technical aspects that could allow investors to expect a trend reversal over the medium term.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 58% by 2026.
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company appears highly valued given the size of its balance sheet.
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Evolution AB specializes in the development, publishing and marketing of live casino games on the Internet for gaming operators. The group operates in the fields of roulette, blackjack, baccarat and poker games, while offering software solutions and online casino platforms live on computers, smartphones and tablets.
At the end of 2023, Evolution AB had 20 production studios located in the United States (5), Canada (2), Malta (2), Spain (2), Argentina, Colombia, Armenia, Belgium, Georgia, Bulgaria, Latvia, Lithuania and Romania.
Net sales are distributed geographically as follows: Sweden (0.1%), Malta (73.4%), Curaçao (18.8%), Australia (2.5%), North America (1%) and other (4.2%).
EVOLUTION AB 
