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Evolve Education Group Ltd
(Sydney:EVO)
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Rating:60Neutral
Price Target:
AU$0.44
â–²(5.00% Upside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by mixed financial performance: strong operating margins and solid cash flow offset by a TTM net loss and elevated leverage. Technicals are mildly supportive (price above key short-to-mid moving averages and positive MACD), while valuation is helped by a very high dividend yield but constrained by negative earnings (negative P/E).
Positive Factors
Strong operating profitability
Healthy operating margins indicate that Evolve has meaningful earnings capacity at the centre-network level. If maintained, this profitability can support reinvestment, absorb operating costs, and provide a durable foundation for growth even while below-the-line results remain pressured.
Negative Factors
Current net loss
The shift from prior-year profitability to a TTM net loss indicates that operating strength is not currently flowing through to bottom-line earnings. Persistent losses could weaken equity, constrain reinvestment, and make financial performance more sensitive to changes in costs or funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating profitability
Healthy operating margins indicate that Evolve has meaningful earnings capacity at the centre-network level. If maintained, this profitability can support reinvestment, absorb operating costs, and provide a durable foundation for growth even while below-the-line results remain pressured.
Read all positive factors
Evolve Education Group Ltd (EVO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$81.46M
Dividend Yield15%
Average Volume (3M)352.36K
Price to Earnings (P/E)―
Beta (1Y)0.22
Revenue Growth5.99%
EPS Growth-145.93%
CountryAU
Employees1,100
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding203,661,290
10 Day Avg. Volume134,110
30 Day Avg. Volume352,358
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)1.25
Price to Sales (P/S)1.22
P/FCF Ratio5.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.63Price Target Upside50.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$100.30M
Evolve Education Group Ltd Business Overview & Revenue Model
Company Description
Embark Early Education Limited provides early childhood education (ECE) and care services in Australia. It owns and operates ECE centers. Embark Early Education Limited was incorporated in 2014 and is based in Helensvale, Australia....
How the Company Makes Money
Evolve Education Group makes money primarily by operating early childhood education centres and earning revenue tied to children’s enrolments and attendance. Its key revenue streams are (1) government-funded childcare subsidies and funding tied to...
Evolve Education Group Ltd Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
45
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.89M | 109.31M | 25.37M | 20.55M | 19.81M | 51.75M |
| Gross Profit | 82.25M | 27.46M | 18.00M | 13.80M | 12.72M | 33.87M |
| EBITDA | 44.29M | 29.53M | 24.56M | 14.56M | 4.29M | 7.23M |
| Net Income | -9.92M | 11.20M | 9.98M | 8.28M | -44.00M | 741.00K |
Balance Sheet | ||||||
| Total Assets | 224.69M | 243.90M | 246.74M | 160.75M | 167.56M | 425.02M |
| Cash, Cash Equivalents and Short-Term Investments | 6.29M | 20.66M | 14.74M | 26.84M | 17.30M | 47.58M |
| Total Debt | 124.28M | 143.42M | 127.33M | 73.22M | 76.80M | 258.54M |
| Total Liabilities | 136.85M | 137.29M | 141.18M | 82.44M | 85.84M | 293.13M |
| Stockholders Equity | 87.85M | 106.61M | 105.56M | 78.31M | 81.73M | 131.88M |
Cash Flow | ||||||
| Free Cash Flow | 37.75M | 25.79M | 17.68M | 16.03M | 15.45M | 33.52M |
| Operating Cash Flow | 39.38M | 26.75M | 18.69M | 16.46M | 19.16M | 36.59M |
| Investing Cash Flow | -31.10M | -10.73M | -37.98M | 5.18M | 16.62M | -39.62M |
| Financing Cash Flow | -17.51M | -8.37M | 4.39M | -11.75M | -64.07M | -6.07M |
Evolve Education Group Ltd Technical Analysis
Negative
0.42
Price Trends
0.41
Negative
0.40
Negative
0.44
Negative
Market Momentum
>-0.01
Positive
39.99
Neutral
-4.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EVO, the sentiment is Negative. The current price of 0.42 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.41, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.99 is Neutral, neither overbought nor oversold. The STOCH value of -4.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EVO.
Evolve Education Group Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$34.91M | 14.62 | 13.76% | 10.53% | -4.20% | ― | |
70 Outperform | AU$124.53M | 7.66 | 89.61% | 6.03% | 63.49% | 126.48% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | AU$81.46M | -11.47 | -9.41% | 15.00% | 5.99% | -145.93% | |
52 Neutral | AU$55.60M | 13.92 | 3.46% | 36.79% | 1.98% | -72.40% | |
47 Neutral | AU$11.36M | -8.32 | -9.50% | 6.02% | -7.02% | -11.46% | |
46 Neutral | AU$72.53M | -0.19 | -72.04% | 21.05% | -10.83% | -649.32% |
* Consumer Defensive Sector Average
AU:EVO
Evolve Education Group Ltd
0.40
-0.20
-33.55%
AU:EDU
EDU Holdings Limited
1.00
0.31
46.11%
AU:AKG
Academies Australasia Group Limited
0.09
-0.03
-25.83%
AU:GEM
G8 Education Limited
0.09
-0.73
-88.54%
AU:KME
Kip McGrath Education Centres Limited
0.67
0.13
25.00%
AU:NDO
Nido Education Limited
0.25
-0.37
-60.36%
Evolve Education Group Ltd Corporate Events
Embark Early Education Declares Interim Dividend for June 2026 Half-Year
Aug 27, 2026
Embark Early Education Limited has declared an ordinary dividend of AUD 0.015 per fully paid share for the six-month period ended 30 June 2026. The distribution, which signals ongoing capital returns to shareholders, will be paid on 21 September 2...
Embark renews NAB facilities, pays dividend as impairments weigh on interim result
Aug 27, 2026
Embark Early Education has renewed key banking facilities with NAB, including a $25 million acquisition facility that remains conservatively drawn and supported by strong covenant headroom, leaving the group in a net cash position. The board also ...
Embark Early Education Swings to Loss as Revenue Declines
Aug 27, 2026
Embark Early Education Limited has reported a decline in revenue from ordinary activities to $47.25 million for the half year to 30 June 2026, down 4.4% from $49.41 million a year earlier. The company swung to a net loss attributable to members of...
Embark Early Education Issues 10 Million New Shares to U.S. Institutional Investor
Aug 10, 2026
Embark Early Education Limited has issued 10,000,000 fully paid ordinary shares to a U.S.-based institutional investor, expanding its share capital under ASX code EVO. The company confirmed the issuance was done without a prospectus under relevant...
Embark Early Education Plans 10 Million-Share Placement on ASX
Aug 3, 2026
Embark Early Education Limited, traded on the ASX as EVO, is an early childhood education provider focused on delivering early learning and childcare services to families in Australia. The group participates in the competitive education and care i...
Embark Early Education Raises A$4m to Fund Future Acquisitions
Aug 3, 2026
Embark Early Education has secured a binding commitment from a single U.S.-based institutional investor for a A$4.0 million placement, issuing 10 million new fully paid ordinary shares at A$0.40 each. The new shares, to be issued under the company...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.