Evotec AG (EVO) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 45.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -1.03%
• EPS Growth: 8.13%
• Country: US
• Employees: 4,766
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 355,543,060
• 10 Day Avg. Volume: 53,140
• 30 Day Avg. Volume: 45,702
• PEG Ratio: -0.05
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.78
• P/FCF Ratio: -12.45
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 16.22
• Enterprise Value/Ebitda: -19.42
• 1Y Price Target: $5.83
• Price Target Upside: 45.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $3.50 ▼(-12.72% Downside)

Evotec AG's overall stock score is primarily impacted by its financial performance challenges, particularly in profitability and cash generation. Technical analysis shows mixed signals, while valuation metrics are unfavorable due to negative earnings. The earnings call provides some optimism with strategic initiatives, but overall caution is advised due to underlying financial weaknesses.

Positive Factors

Revenue Growth in Just - Evotec Biologics

The strong revenue growth in Just - Evotec Biologics indicates robust demand and a broadening customer base, which can drive long-term business expansion and strengthen Evotec's market position in biologics.

Strategic Cost Reductions

Significant cost reductions enhance financial flexibility and improve profit margins, supporting sustainable operations and strategic investments in growth areas.

Strategic Sale of Toulouse Site

The sale aligns with a shift towards a capital-efficient model, providing funds to invest in core growth areas, enhancing long-term profitability and operational focus.

Negative Factors

Revenue Decline in Discovery & Preclinical Development

Declining revenues in a key segment indicate challenges in maintaining growth and competitiveness, potentially impacting overall financial performance and market positioning.

Negative Group EBITDA

Negative EBITDA reflects operational inefficiencies and financial strain, which could hinder investment capacity and long-term growth prospects if not addressed.

Soft Market for Early-stage Biotech Funding

A soft funding environment for early-stage biotech projects can limit new opportunities and collaborations, affecting Evotec's ability to expand its pipeline and innovation capacity.

Evotec AG Business Overview & Revenue Model

Company Description

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as diabetes and complications of diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women's health. It has collaboration agreements with Bayer AG; Lilly; Chinook Therapeutics; Novo Nordisk A/S; Galapagos; Pfizer Inc.; CONBA Pharmaceutical Co., Ltd.; Bristol Myers Squibb Company; Zhejiang JingXin Pharmaceutical Co., Ltd; Kazia Therapeutics; Apeiron Biologics; and Takeda Pharmaceuticals. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

How the Company Makes Money

Evotec generates revenue primarily through a combination of fee-for-service contracts, collaborative research agreements, and milestone payments associated with drug development projects. The company collaborates with pharmaceutical and biotechnology firms, providing customized solutions for drug discovery and development, which are billed on a project basis. Additionally, Evotec earns significant revenue from milestone payments when its partners achieve specific development targets. The company also engages in strategic partnerships and collaborations, which can lead to royalty agreements and profit-sharing arrangements. This diversified revenue model allows Evotec to leverage its expertise and technologies while minimizing risks associated with drug development.

Evotec AG Financial Statement Overview

Summary

Evotec AG shows revenue growth but struggles with profitability and cash generation. The income statement indicates declining profitability margins, while the balance sheet remains stable with manageable leverage. Cash flow challenges, particularly negative free cash flow, pose risks to financial flexibility.

Income Statement

Evotec AG's income statement reveals challenges in profitability, as highlighted by negative EBIT and net income figures for the recent year, indicating potential operational inefficiencies. Revenue has grown steadily over the years, but gross profit margins have been declining, suggesting increased cost pressures. The negative net profit margin implies that the company is currently not profitable, which is concerning for long-term sustainability.

Balance Sheet

The balance sheet of Evotec AG indicates moderate financial health. The debt-to-equity ratio shows a stable capital structure, with liabilities well-managed in relation to equity. However, there's a declining trend in stockholders' equity and total assets, which might limit future growth opportunities. The equity ratio remains stable, reflecting a balanced financial position despite recent losses.

Cash Flow

Evotec AG's cash flow statement highlights significant challenges in generating positive free cash flow, which has been negative in recent years. The operating cash flow to net income ratio indicates difficulties in converting earnings into cash. The negative trend in free cash flow growth rate raises concerns about the company's ability to fund operations and investments from internal cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	777.33M	796.97M	781.43M	751.45M	618.03M	500.92M
Gross Profit	100.20M	114.88M	175.05M	174.06M	151.54M	125.74M
EBITDA	-83.70M	-80.66M	24.13M	-86.08M	298.41M	75.50M
Net Income	-155.53M	-196.08M	-83.91M	-175.66M	215.51M	6.28M
Balance Sheet
Total Assets	1.81B	1.91B	2.25B	2.26B	2.24B	1.46B
Cash, Cash Equivalents and Short-Term Investments	356.40M	396.80M	604.11M	729.98M	858.50M	492.22M
Total Debt	0.00	443.54M	626.20M	506.67M	512.92M	491.96M
Total Liabilities	962.47M	959.98M	1.13B	1.07B	857.48M	737.88M
Stockholders Equity	845.79M	952.52M	1.12B	1.19B	1.38B	724.46M
Cash Flow
Free Cash Flow	12.45M	-114.02M	-179.56M	21.75M	3.29M	-54.35M
Operating Cash Flow	111.57M	18.22M	36.44M	203.11M	122.24M	44.72M
Investing Cash Flow	-52.55M	-71.19M	-13.29M	-415.82M	-243.85M	-155.09M
Financing Cash Flow	-15.78M	-161.42M	71.96M	-52.41M	398.43M	246.41M

Evotec AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVO, the sentiment is Positive. The current price of 4.01 is above the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.70, and above the 200-day MA of 3.97, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 96.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVO.

Evotec AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	71 Outperform	$2.71B	42.26	6.38%	―	5.55%	1145.24%
AMPH	69 Neutral	$1.24B	10.01	18.32%	―	1.37%	-18.10%
COLL	68 Neutral	$1.09B	33.41	16.16%	―	22.61%	-63.00%
ANIP	66 Neutral	$1.95B	―	-2.82%	―	38.68%	-160.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PCRX	50 Neutral	$1.12B	―	-15.57%	―	2.25%	-301.59%
EVO	48 Neutral	$1.41B	―	-16.34%	―	-1.03%	8.13%

Evotec AG Corporate Events

Evotec AG Reports H1 2025 Results and Strategic Developments

On August 13, 2025, Evotec AG announced its financial results for the first half of 2025, highlighting a strategic shift towards sustainable profitable growth. The company reported a 5% decrease in group revenues to €371.2 million compared to the same period in 2024, primarily due to a soft demand in the Discovery & Preclinical Development segment. However, the Just – Evotec Biologics segment exceeded expectations with a 16% increase in revenues. Significant progress was made in collaborations with Bristol Myers Squibb, resulting in substantial payments, and a grant was awarded by The Gates Foundation for tuberculosis treatment development. Additionally, Evotec announced a potential sale of its Just – Evotec Biologics EU segment to Sandoz AG, expected to close in the fourth quarter, which could impact its operational focus and market positioning.

Evotec SE Announces Potential Sale of Toulouse Biologics Site to Sandoz

On July 30, 2025, Evotec SE announced a non-binding agreement with Sandoz AG for the potential sale of its Just – Evotec Biologics site in Toulouse, France, for approximately $300 million in cash. This strategic move is expected to enhance Evotec’s revenue mix, profit margins, and capital efficiency, while allowing the company to retain economic benefits through future revenues, milestones, and royalties. The transaction is pending completion of employee consultations, final agreements, and regulatory approvals.

Evotec SE Adjusts 2025 Revenue Guidance Amid Strategic Repositioning

On July 21, 2025, Evotec SE announced an adjustment to its revenue guidance for the fiscal year 2025, reducing the expected range to €760–800 million from the previous €840–880 million. Despite this, the company confirmed its profit guidance, with R&D expenditures and adjusted EBITDA expectations remaining unchanged. The revision is attributed to a change in revenue mix and significant cost savings, with technology licensing expected to play a more substantial role in the company’s strategic repositioning. The company is taking steps to address challenges in its Shared R&D base business, which continues to face a difficult market environment.