Evotec SE American Depositary Shares (EVO)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $99 million in annual free cash flow (9.0% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Evotec SE American Depositary Shares is a micro-cap healthcare company valued at $1.1 billion. The business generates $745 million in annual revenue with a 2.0% net margin and $99 million in free cash flow. From a quality standpoint, Evotec shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is solid 4.4% FCF yield. Growth dynamics show revenue growing at 14.5% and profit growth of 135.8%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $99 million in annual free cash flow (9.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer