EVO SS

Evolution AB

Consumer, TMT


Presented:05/23/2024
Price:SEK1,173.00
Cap:$29.25B
Current Price:SEK940.20
Cap:$23.77B

Presented

Date05/23/2024
PriceSEK1,173.00
Market Cap$29.25B
Ent Value$33.29B
P/E Ratio19.96x
Book ValueSEK215.22
Div Yield2.65%
Shares O/S206.48M
Ave Daily Vol424,872
Short IntN/A

Current

PriceSEK940.20
Market Cap$23.77B
Evolution AB engages in the development, production, marketing, and licensing business to business casino solutions to gaming operators. It provides live casino studios, land-based live casino, mobile live casino, and live casino for television. The company was founded by Richard Hadida, Jens von Bahr and Fredrik Osterberg in 2006 and is headquartered in Stockholm, Sweden.

Publicly traded companies mentioned herein: DraftKings Inc (DKNG), Evolution AB (EVO SS), Flutter Entertainment PLC (FLUT), Evoke plc (EVOK L)

Highlights

The presenter is long shares of Evolution AB (EVO SS), believing that the company should see a resurgence in the second half of the year from the addition of new live casino studios and a pick up in recently launched games. EBITDA margins should also improve along with the company guiding to substantially smaller FX headwinds. While the stock is not cheap trading at 16x 2025 earnings and 13x EBITDA, it is towards the bottom end of its historical range, presenting a compelling opportunity. The presenter is modeling €1.2 billion in FCF for 2024 based on 20%+ top line growth and EBITDA margins over 70%. If this happens he expects the stock to rerate to 25x FY2025 EPS and 15x EBITDA, equating to a SEK1600 price per share or 35% upside.

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Idea Discussion

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