Fact based stock research
Evotec (XTRA:EVT)
DE0005664809
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Evotec stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), Evotec (Life Sciences Tools & Services, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Evotec are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives) but show below-average growth (Growth Rank of 1), and are riskily financed (Safety Rank of 37), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on Evotec's financial characteristics. As the company Evotec's key financial metrics exhibit good value (Obermatt Value Rank of 80) but low growth (Obermatt Growth Rank of 1) and risky financing practices (Obermatt Safety Rank of 37), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 80% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Germany |
| Industry | Life Sciences Tools & Services |
| Index | CDAX, Moonshot Tech, MDAX, TecDAX |
| Size class | Medium |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Evotec
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
6 |
|
15 |
|
80 |
|
| GROWTH | ||||||||
| GROWTH | 74 |
|
63 |
|
89 |
|
1 |
|
| SAFETY | ||||||||
| SAFETY | 65 |
|
12 |
|
36 |
|
37 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
49 |
|
16 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
12 |
|
20 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), Evotec (Life Sciences Tools & Services, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Evotec are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives) but show below-average growth (Growth Rank of 1), and are riskily financed (Safety Rank of 37), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on Evotec's financial characteristics. As the company Evotec's key financial metrics exhibit good value (Obermatt Value Rank of 80) but low growth (Obermatt Growth Rank of 1) and risky financing practices (Obermatt Safety Rank of 37), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 80% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
6 |
|
15 |
|
80 |
|
| GROWTH | ||||||||
| GROWTH | 74 |
|
63 |
|
89 |
|
1 |
|
| SAFETY | ||||||||
| SAFETY | 65 |
|
12 |
|
36 |
|
37 |
|
| COMBINED | ||||||||
| COMBINED | 61 |
|
8 |
|
42 |
|
30 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 80 (better than 80% compared with alternatives) for 2024, Evotec shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Evotec. Price-to-Sales (P/S) is 84, which means that the stock price compared with what market professionals expect for future sales is lower than for 84% of comparable companies, indicating a good value concerning Evotec's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 87% of alternatives (13% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 1, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 80, is a buy recommendation based on Evotec's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Evotec may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 54 |
|
14 |
|
40 |
|
84 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 89 |
|
1 |
|
6 |
|
1 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 24 |
|
45 |
|
41 |
|
87 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 46 |
|
6 |
|
15 |
|
80 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 1 (better than 1% compared with alternatives), Evotec shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Evotec. While Sales Growth ranks at 71, professionals currently expect the company to grow more than 71% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 8, which means that, currently, professionals expect the company to grow its profits less than 92% of its competitors, and Capital Growth has a low rank of 1. Historic stock returns were also below average with a current Stock Returns rank of 6 which means that the stock returns have recently been below 94% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 1, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 65 |
|
60 |
|
78 |
|
71 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 63 |
|
98 |
|
92 |
|
8 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
12 |
|
16 |
|
1 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 82 |
|
70 |
|
86 |
|
6 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 74 |
|
63 |
|
89 |
|
1 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 37 (better than 37% compared with alternatives), the company Evotec has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Evotec is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Evotec and the other two below average. Refinancing is at 80, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 80% of its competitors. But Leverage is high with a rank of 31, meaning the company has an above-average debt-to-equity ratio. It has more debt than 69% of its competitors. Liquidity is also on the riskier side with a rank of 15, meaning the company generates less profit to service its debt than 85% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 37 (worse than 63% compared with alternatives), Evotec has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Evotec are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Evotec and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 12 |
|
15 |
|
40 |
|
31 |
|
| REFINANCING | ||||||||
| REFINANCING | 68 |
|
40 |
|
67 |
|
80 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 73 |
|
23 |
|
23 |
|
15 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 65 |
|
12 |
|
36 |
|
37 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
34 |
|
78 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
21 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
58 |
|
14 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
55 |
|
29 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
49 |
|
16 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Evotec from November 14, 2024.
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