EVOLENT HEALTH INC - A (EVH) Stock Fundamental Analysis
NYSE:EVH - New York Stock Exchange, Inc. - US30050B1017 - Common Stock - Currency: USD
Taking everything into account, EVH scores 3 out of 10 in our fundamental rating. EVH was compared to 36 industry peers in the Health Care Technology industry. Both the profitability and financial health of EVH have multiple concerns. EVH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EVH was profitable.
EVH had a positive operating cash flow in the past year.
EVH had negative earnings in each of the past 5 years.
In multiple years EVH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.29%, EVH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
EVH's Return On Equity of -12.45% is fine compared to the rest of the industry. EVH outperforms 69.44% of its industry peers.
EVH has a better Return On Invested Capital (0.85%) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.29% | ||
| ROE | -12.45% | ||
| ROIC | 0.85% |
ROA(3y)-3.35%
ROA(5y)-7.41%
ROE(3y)-7.16%
ROE(5y)-16.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EVH's Operating Margin of 0.93% is fine compared to the rest of the industry. EVH outperforms 69.44% of its industry peers.
With a Gross Margin value of 15.25%, EVH is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
EVH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.93% | ||
| PM (TTM) | N/A | ||
| GM | 15.25% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.51%
GM growth 5Y-10.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EVH is destroying value.
The number of shares outstanding for EVH has been increased compared to 1 year ago.
The number of shares outstanding for EVH has been increased compared to 5 years ago.
Compared to 1 year ago, EVH has a worse debt to assets ratio.
2.2 Solvency
EVH has an Altman-Z score of 1.03. This is a bad value and indicates that EVH is not financially healthy and even has some risk of bankruptcy.
EVH has a Altman-Z score of 1.03. This is comparable to the rest of the industry: EVH outperforms 52.78% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that EVH is somewhat dependend on debt financing.
The Debt to Equity ratio of EVH (0.73) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.09
WACC9.43%
2.3 Liquidity
EVH has a Current Ratio of 0.98. This is a bad value and indicates that EVH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.98, EVH is doing worse than 75.00% of the companies in the same industry.
EVH has a Quick Ratio of 0.98. This is a bad value and indicates that EVH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, EVH is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
EVH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.38%.
Measured over the past years, EVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 220.75% on average per year.
EVH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.25%.
EVH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.04% yearly.
EPS 1Y (TTM)-62.38%
EPS 3Y220.75%
EPS 5YN/A
EPS Q2Q%-82.35%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y41.17%
Revenue growth 5Y30.04%
Sales Q2Q%-24.39%
3.2 Future
Based on estimates for the next years, EVH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.58% on average per year.
EVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y-46.27%
EPS Next 2Y-4.91%
EPS Next 3Y7.03%
EPS Next 5Y11.58%
Revenue Next Year-19.73%
Revenue Next 2Y-3.44%
Revenue Next 3Y2.08%
Revenue Next 5Y7.73%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.03, the valuation of EVH can be described as expensive.
EVH's Price/Earnings ratio is rather cheap when compared to the industry. EVH is cheaper than 86.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, EVH is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.75, the valuation of EVH can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EVH indicates a rather cheap valuation: EVH is cheaper than 86.11% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. EVH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 19.75 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than EVH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.91%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
EVH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.79
+0.06 (+0.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners109.33%
Inst Owner Change3.13%
Ins Owners1.23%
Ins Owner Change5.89%
Market Cap1.38B
Analysts83.33
Price Target18.06 (53.18%)
Short Float %13.14%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-185.37%
Min EPS beat(2)-332.96%
Max EPS beat(2)-37.77%
EPS beat(4)1
Avg EPS beat(4)-110.42%
Min EPS beat(4)-332.96%
Max EPS beat(4)17.44%
EPS beat(8)5
Avg EPS beat(8)0.86%
EPS beat(12)8
Avg EPS beat(12)38.86%
EPS beat(16)12
Avg EPS beat(16)463.28%
Revenue beat(2)1
Avg Revenue beat(2)1.17%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)4.03%
Revenue beat(4)2
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)4.03%
Revenue beat(8)5
Avg Revenue beat(8)1.03%
Revenue beat(12)7
Avg Revenue beat(12)0.95%
Revenue beat(16)10
Avg Revenue beat(16)1.14%
PT rev (1m)-0.86%
PT rev (3m)-0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.79%
EPS NY rev (1m)-16.71%
EPS NY rev (3m)-25.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 19.75 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | 75.14 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)0.38
EY3.22%
EPS(NY)0.6
Fwd EY5.06%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)0.16
OCFY1.33%
SpS20.43
BVpS9.61
TBVpS-5.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.29% | ||
| ROE | -12.45% | ||
| ROCE | 1.17% | ||
| ROIC | 0.85% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 51.32% | ||
| OM | 0.93% | ||
| PM (TTM) | N/A | ||
| GM | 15.25% | ||
| FCFM | N/A |
ROA(3y)-3.35%
ROA(5y)-7.41%
ROE(3y)-7.16%
ROE(5y)-16.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.51%
GM growth 5Y-10.71%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 24.92% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.03 |
F-Score5
WACC9.43%
ROIC/WACC0.09
Cap/Depr(3y)38.35%
Cap/Depr(5y)41.66%
Cap/Sales(3y)1.98%
Cap/Sales(5y)2.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.38%
EPS 3Y220.75%
EPS 5YN/A
EPS Q2Q%-82.35%
EPS Next Y-46.27%
EPS Next 2Y-4.91%
EPS Next 3Y7.03%
EPS Next 5Y11.58%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y41.17%
Revenue growth 5Y30.04%
Sales Q2Q%-24.39%
Revenue Next Year-19.73%
Revenue Next 2Y-3.44%
Revenue Next 3Y2.08%
Revenue Next 5Y7.73%
EBIT growth 1Y3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year301.67%
EBIT Next 3Y83.07%
EBIT Next 5Y54.61%
FCF growth 1Y4.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-51.42%
OCF growth 3Y-21.47%
OCF growth 5YN/A