Evotec SE American Depositary Shares (EVO)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

On the figures I have, Evotec is not a high-quality business by Buffett-Graham tests. It operates in drug discovery and development, but I cannot verify a durable competitive moat from these numbers; the negative returns and cash burn argue against one. The latest reported quarter—fiscal Q2 2026—showed revenue of $143.5M and net income of -$46.6M, a -32.51% margin. The FairStock P/E is -2.37 and FairStock ROE is -26.07%, so economic returns are negative. Free cash flow is -$173.8M, a -15.8% FCF yield, which tells me the business is consuming cash rather than generating it. The balance sheet is not obviously broken with D/E at 0.71, but the FairStock Piotroski F-Score of 3/9 and Altman Z-Score of 0.11 are poor signals. At the 2026-10-26 close of $1.52, FairStock P/B is 0.71, so the price is below stated book value; that is the main valuation attraction. But negative earnings, FairStock ROCE of -5.39%, and no reliable filed multi-year growth record—the computed Lynch category is none because only 0 years of filed results are available and 3 are needed—mean book value may not be a reliable margin of safety. In Graham terms, this looks speculative unless cash burn reverses and returns turn positive.

In plain English: Evotec helps drugmakers discover and develop medicines, and it also works on its own treatments. The business looks weak right now: it is losing money and burning cash. At $1.52, the price looks low compared with its accounting value, but the weak numbers make it hard to call it a real bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer