Added to YB: 2026-04-24
Pitch date: 2026-04-22
EVO.ST [neutral]
Evolution AB (publ)
-0.16%
current return
Author Info
No bio for this author
Company Info
Evolution AB (publ) develops, produces, markets, and licenses live casino and slots solutions to gaming operators in Europe, Asia, North America, Latin America, and internationally.
Market Cap
SEK 11.2B
Pitch Price
SEK 622.00
Price Target
N/A
Dividend
N/A
EV/EBITDA
8.14
P/E
10.71
EV/Sales
5.05
Sector
Hotels, Restaurants and Leisure
Category
turnaround
From Perfect Compounder to a Company in Transition: The Case of Evolution
EVO.ST (overview): Former compounder w/ 65%+ EBITDA margins, 40% 10yr CAGR now faces 1st revenue decline. Q4 rev -3.7% YoY, Live -4.5%. 3 headwinds: 1) EU channelization at 50% post ring-fencing 2) Asia piracy (~38% rev) w/ no fix timeline 3) Local studio expansion compressing margins (OpEx +6.3% as rev fell). Moat intact: 870 clients, 2000 tables, competitor exits. 2026 Hasbro partnership (Monopoly games) could re-accelerate engagement. Generated €1.25B OCF, returned €1.1B (9.3% yield). Risks: UKGC license review pending, Playtech litigation, Asia uncertainty. Stock -60% from 2021 highs. CEO bought shares mid-crisis.
Read full article (8 min)