Shares in Evolution Gaming Group AB show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past twelve months, EPS forecast has been revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 1019 SEK
Weaknesses
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 513.86 and 387.41 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Evolution AB specializes in the development, publishing and marketing of live casino games on the Internet for gaming operators. The group operates in the fields of roulette, blackjack, baccarat and poker games, while offering software solutions and online casino platforms live on computers, smartphones and tablets.
At the end of 2022, Evolution AB had 11 production studios located in the United States (3), Belgium, Canada, Georgia, Latvia, Lithuania, Malta, Romania and Spain.
Net sales are distributed geographically as follows: Sweden (0.1%), Malta (67.5%), Australia (3.3%), Curaçao (21.8%), North America (0.6%) and others (6.7%).