Evolution Gaming Group AB (publ) (STO:EVO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of EVO, it is a financially-healthy company with a great history and a excellent future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Evolution Gaming Group here.
Flawless balance sheet with outstanding track record
EVO’s outstanding revenue growth of 52% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 56% return on equity over the next few years leading up to 2022. EVO delivered a bottom-line expansion of 54% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 60%. which is an notable feat for the company.
EVO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. EVO's has produced operating cash levels of 22.72x total debt over the past year, which implies that EVO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Evolution Gaming Group, there are three essential factors you should look at:
- Valuation: What is EVO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EVO is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does EVO return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from EVO as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EVO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.