Evolution AB (publ)
Evolution AB (publ) Fundamental Analysis
Evolution AB (publ) (E3G1.SG) shows strong financial fundamentals with a PE ratio of 10.89, profit margin of 50.32%, and ROE of 26.73%. The company generates $2.1B in annual revenue with weak year-over-year growth of 0.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze E3G1.SG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentE3G1.SG demonstrates superior asset utilization.
Valuation Score
ExcellentE3G1.SG trades at attractive valuation levels.
Growth Score
WeakE3G1.SG faces weak or negative growth trends.
Financial Health Score
ExcellentE3G1.SG maintains a strong and stable balance sheet.
Profitability Score
ExcellentE3G1.SG achieves industry-leading margins.
Key Financial Metrics
Is E3G1.SG Expensive or Cheap?
P/E Ratio
E3G1.SG trades at 10.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, E3G1.SG's PEG of -1.01 indicates potential undervaluation.
Price to Book
The market values Evolution AB (publ) at 2.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.85 times EBITDA. This is generally considered low.
How Well Does E3G1.SG Make Money?
Net Profit Margin
For every $100 in sales, Evolution AB (publ) keeps $50.32 as profit after all expenses.
Operating Margin
Core operations generate 56.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.73 in profit for every $100 of shareholder equity.
ROA
Evolution AB (publ) generates $18.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Evolution AB (publ) generates strong operating cash flow of $1.21B, reflecting robust business health.
Free Cash Flow
Evolution AB (publ) generates strong free cash flow of $1.11B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.73 in free cash annually.
FCF Yield
E3G1.SG converts 10.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How E3G1.SG Stacks Against Its Sector Peers
| Metric | E3G1.SG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.89 | 37.39 | Better (Cheaper) |
| ROE | 26.73% | 986.00% | Weak |
| Net Margin | 50.32% | 5872992870.00% | Weak |
| Debt/Equity | 0.02 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 5.10 | Neutral |
| ROA | 18.18% | -293612.00% (disorted) | Strong |
E3G1.SG outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Evolution AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
234.03%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
245.12%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
267.31%
Industry Style: Growth, Innovation, High Beta
High Growth