Last Updated: 10 Nov 2024
Executive Summary
Evolent Health Inc. (EVH) is a healthcare delivery and payment solutions provider with a market capitalization of $1.54 billion. Despite its recent quarterly revenue growth of 0.216%, the company has negative earnings per share (-$0.92) and a trailing PE ratio of "-". Analysts have a strong buy rating on EVH, with a target price of $41.52. However, the stock price has been volatile, trading between $13.31 and $35 in the past 52 weeks.
Company Overview
Evolent Health LLC, a subsidiary of Evolent Health Inc., provides healthcare delivery and payment solutions in the United States. The company's solutions include population health management, value-based care transformation, and provider enablement services. Evolent Health's clients include health plans, employers, and government entities.
Fundamental Analysis
Financials:
Revenue TTM: $2.46 billion
Gross Profit TTM: $316.58 million
Diluted EPS TTM: -$0.92
EBITDA: $121.63 million
Profit Margin: -2.93%
Return on Assets TTM: 0.72%
Return on Equity TTM: -5.78%
Valuation:
Price-to-Sales Ratio TTM: 0.624
Price-to-Book Ratio: 1.479
EV-to-Revenue: 0.842
EV-to-EBITDA: 33.61
Technical Analysis
52-Week High: $35
52-Week Low: $13.31
50-Day Moving Average: $27.2
200-Day Moving Average: $26.97
Beta: 1.587
Short Term Outlook
The technical analysis indicates that EVH is currently trading below its 50-day and 200-day moving averages. The stock has been in a downtrend since October 2022 and is currently testing support at $13.31. If the stock breaks below this level, it could fall further to $12 or $11.
Long Term Outlook
The long-term outlook for EVH is more positive. The company is a leader in the value-based care transformation market, which is expected to grow significantly in the coming years. Evolent Health has a strong track record of innovation and has developed a number of proprietary technologies that give it a competitive advantage.
Analyst Recommendations
Seven analysts rate EVH as a strong buy, nine rate it as a buy, and none rate it as a hold, sell, or strong sell. The average analyst target price is $41.52, which represents a potential upside of over 200% from the current price.
