Evolution AB (publ)

EVVTY

Gambling, Resorts & Casinos · Consumer Cyclical

Price

$71.84

+0.49 (+0.69%)

Market Cap

$13.94B

Exchange

Other OTC

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−8.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 221.8M (2021) → 202.8M (2025)

Evolution AB is a Swedish company that builds and runs live casino games for online gambling platforms. Its main products are live dealer games — like blackjack, roulette, and baccarat — where real human dealers run the games from a studio while players watch and bet through a screen. Evolution does not operate casinos itself; instead, it sells its games to online casino operators around the world, making it a behind-the-scenes supplier to the gambling industry.

Evolution makes money by taking a share of the gambling revenue its casino operator customers generate using its games, which explains the near-100% gross margin since it sells software and streamed content rather than physical goods. The company operates studios across Europe, North America, and Asia, and serves hundreds of licensed online casino brands globally. Its competitive moat comes from the high cost and complexity of replicating its studio infrastructure and game library, but its biggest risk is regulatory — stricter gambling laws in key markets could limit where its operator customers are allowed to run its games.

Winston Score History

Politician Trades

1 trades / 12mo

0 Congressional buys and 1 sell on EVVTY in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+1.6% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.3%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Evolution AB (publ)'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Operating Margin

57.0%

Excellent — 57.0% operating margin

ROCE

6.8%

Weak — 6.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+1.1%

Nearly flat sales (1.1% YoY)

EPS YoY

-11.1%

Earnings shrinking (-11.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

117%

Turns 117% of profit into real cash

FCF Margin

53.1%

Converts sales into free cash efficiently (53.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

104.93x

Comfortably covers interest (104.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

13.6x

Attractive valuation — P/E 13.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+2.2

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.

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