Should You Be Holding Evotec SE (ETR:EVT)?
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Evotec SE (ETR:EVT), it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Evotec here.
Outstanding track record with adequate balance sheet
EVT delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 21% return to shareholders, which is an notable feat for the company. EVT 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 key determinant of the company’s health. EVT's has produced operating cash levels of 0.61x total debt over the past year, which implies that EVT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Evotec, I've put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for EVT’s future growth? Take a look at our free research report of analyst consensus for EVT’s outlook.
Valuation: What is EVT 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 EVT is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EVT? 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 editorial-team@simplywallst.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.
