Evolent Health (EVH) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: 10.24%
• EPS Growth: 2.63%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 117,399,810
• 10 Day Avg. Volume: 2,706,295
• 30 Day Avg. Volume: 2,503,730
• PEG Ratio: -6.50
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -173.38
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 6.27
• 1Y Price Target: $16.00
• Price Target Upside: 81.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

Evolent Health demonstrates robust revenue growth and strategic expansions, yet faces challenges in profitability and cash management. Technical indicators suggest bearish trends, and the negative P/E ratio reflects ongoing unprofitability. The positive earnings call provides some optimism but is countered by financial risks and valuation concerns.

Positive Factors

Earnings Performance

The adjusted EPS for 2025 is modeled to be higher than the Street target, indicating confidence in better-than-expected earnings performance.

Profitability

The 2025 adjusted EBITDA estimate for Evolent Health has been slightly increased to align with the guidance midpoint, suggesting an optimistic view on profitability.

Negative Factors

Profitability Challenges

The business fell short of the target thresholds on both adjusted EBITDA metrics, reflecting a change in outlook on costs in the back half of the year.

Revenue Decrease

Performance Suite revenue is estimated to decrease by 32% year-over-year in 2025.

Evolent Health Business Overview & Revenue Model

Company Description

Evolent Health (EVH) is a healthcare company that provides technology-driven solutions to healthcare providers and payers. The company focuses on helping health systems and physician organizations transition to value-based care, where the emphasis is on optimizing health outcomes and reducing costs. Evolent Health's core offerings include clinical and administrative solutions, performance improvement services, and a proprietary platform designed to enhance clinical and financial performance.

How the Company Makes Money

Evolent Health makes money primarily through service fees and performance-based arrangements with healthcare providers and payers. The company generates revenue by offering a suite of services that include consulting, technology solutions, and managed care services. Evolent Health partners with health systems and physician organizations to improve operational efficiency and patient outcomes, often entering into multi-year agreements where fees are tied to achieving specific performance targets. Additionally, Evolent's value-based care platform allows partners to transition from fee-for-service models to value-based care models, and the company may receive a share of the cost savings achieved through these initiatives. Key revenue streams include technology platform subscriptions, implementation fees, and shared savings arrangements.

Evolent Health Financial Statement Overview

Summary

Evolent Health is experiencing significant revenue growth, with challenges in profitability due to negative EBIT and net income margins. Improvements in the debt-to-equity ratio and positive operating cash flow indicate a stronger financial position, but ongoing cash utilization issues and negative free cash flow highlight the need for better capital management.

Income Statement

Evolent Health has experienced consistent revenue growth, with a notable increase of 30% from 2022 to 2023 and 2023 to 2024. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins. Despite the growing revenue, the net profit margin remains negative, which poses a challenge for future profitability.

Balance Sheet

The debt-to-equity ratio has improved over time, falling from 0.40 in 2023 to 0.22 in 2024, indicating a stronger equity position. However, the company has negative net income, impacting the return on equity. The equity ratio is relatively stable, suggesting a balanced asset structure. Continued focus on reducing liabilities relative to equity is necessary.

Cash Flow

Operating cash flow turned positive in 2024, but free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio has improved, indicating better cash management despite persistent net losses. Free cash flow to net income remains challenging, reflecting ongoing cash utilization issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.55B	1.96B	1.35B	907.96M	1.02B
	Gross Profit
367.35M	460.47M	316.58M	250.41M	321.06M
	EBIT
-40.48M	-71.21M	-59.84M	30.25M	-37.88M
	EBITDA
84.85M	-24.79M	43.75M	55.66M	-241.38M
	Net Income Common Stockholders
-61.62M	-113.04M	-18.70M	-30.28M	-334.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.50M	192.82M	188.20M	266.28M	340.49M
	Total Assets
2.54B	2.68B	1.82B	1.42B	1.37B
	Total Debt
713.67M	644.80M	476.12M	280.47M	359.78M
	Net Debt
609.47M	451.97M	287.92M	14.19M	19.29M
	Total Liabilities
1.54B	1.61B	957.88M	725.83M	750.59M
	Stockholders Equity
1.00B	1.07B	859.42M	693.63M	619.60M
Cash Flow		Free Cash Flow
-6.13M	113.84M	-49.91M	13.76M	-45.70M
	Operating Cash Flow
18.77M	142.58M	-11.55M	38.75M	-16.23M
	Investing Cash Flow
-62.93M	-415.54M	-259.12M	-15.79M	261.07M
	Financing Cash Flow
-565.00K	281.34M	131.54M	-29.55M	-11.86M

Evolent Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVH, the sentiment is Negative. The current price of 8.83 is below the 20-day moving average (MA) of 9.51, below the 50-day MA of 9.58, and below the 200-day MA of 16.33, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 7.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVH.

Evolent Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CERT	74 Outperform	$1.93B	―	-0.25%	―	9.37%	95.72%
OMCL	61 Neutral	$1.31B	61.53	1.73%	―	3.00%	―
PHR	59 Neutral	$1.49B	―	-22.67%	―	17.83%	59.64%
EVH	54 Neutral	$1.04B	―	-10.99%	―	10.24%	2.63%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
TDOC	48 Neutral	$1.32B	―	-54.49%	―	-2.54%	-322.03%

Evolent Health Corporate Events

Evolent Health Nominates Shawn Guertin to Board

On April 16, 2025, Diane Holder announced she would not seek re-election to Evolent Health‘s Board of Directors at the upcoming annual meeting on June 5, 2025. Her decision was not due to any disagreement with the company. In response, the Board has nominated Shawn Guertin, a seasoned executive with extensive experience in the healthcare industry, to stand for election. Guertin’s nomination aligns with Evolent’s ongoing efforts to refresh its board with independent directors, aiming to enhance corporate governance and drive shareholder value.

Spark’s Take on EVH Stock

According to Spark, TipRanks’ AI Analyst, EVH is a Neutral.

Evolent Health shows significant revenue growth but faces challenges with profitability and cash flow, reflected in its financial performance score. Technical indicators suggest bearish momentum. Valuation metrics indicate the need for improved profitability. Despite strong contract renewals, the earnings call highlights cost pressures. Overall, the stock is positioned for potential growth, but with notable risks.

To see Spark’s full report on EVH stock, click here.