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Evolution Gaming Group (EVOS) (Swedish)

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ADrunkenMarcus
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Evolution Gaming Group (EVOS) (Swedish)

#371577

Postby ADrunkenMarcus » December 31st, 2020, 10:33 am

Evolution Gaming Group (EVOS)

Sector: Travel & Leisure; Subsector: Casinos and Gambling.

Here's their q3 2020 presentation: https://www.evolution.com/sites/default ... 0_pres.pdf

The key stats look impressive:
66.3% ROCE;
61.5% CROIC;
43.1% EBIT margin.

Turnover has grown over nine-fold from 2013 to 2019 (hitting 365.8 Euro million) and it's forecast to reach 899.5 Euro millions by 2021, which would be about 23 times the figure for 2013. Operating profit has more than followed!

On the basis of forecasts for 2020, 2021 and 2022, the EBIT margin should rise to about 55% by 2022. Earnings per share growth is forecast at about 35% in 2021 and about 21% in 2022.

Based on estimates for 2022, it's trading on a 2.2% free cash flow yield and it's forecast to have almost twice that year's free cash flow of 390 Euro millions sitting on the balance sheet as the company's cash position balloons. (For 2020, it's trading on a c. 1.5% free cash flow yield or 54 times earnings on the EPS figures, just above its three-year average of c. 52 times EPS.)

Does anyone follow this company or know its business in detail?

Best wishes

Mark.

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Re: Evolution Gaming Group (EVO) (Swedish)

#371622

Postby Heinous » December 31st, 2020, 12:16 pm

I don't know Evolution Gaming Group (EVO) well, I couldn't begin to guess what 'live casino solutions for gaming operators' means, but it's clearly a large and expanding market.

EVO has had a boost recently by being added to the Swedish Stock Exchange's OMXS30 Index; the shares have risen by about a third in a month. They've also been on the takeover trail and have a co-operation agreement with William Hill (in the USA, I think).

The only red flag I can see is a hyperactive PR company: every time someone farts, there's a news story, making it a little harder to see what's actually important.

AndrewSmith259
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Re: Evolution Gaming Group (EVOS) (Swedish)

#390769

Postby AndrewSmith259 » February 28th, 2021, 4:39 am

I bought a few shares in this co recently. Seems interesting company. Following it with interest. May top up investment but seeing how things go for time being.

ADrunkenMarcus
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Re: Evolution Gaming Group (EVOS) (Swedish)

#390852

Postby ADrunkenMarcus » February 28th, 2021, 11:13 am

Morning Andrew, yes I bought into it too in January at about 839 SEK.

It's up about 25 percent at the moment in SEK but had touched as high as 34 percent or so. They also raised the dividend very substantially (paid in one annually). There seems very good potential for growth in new markets and margin expansion. I'd have been perfectly happy with this sort of return in a year, let alone less than two months!

Best wishes

Mark.

ADrunkenMarcus
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Re: Evolution Gaming Group (EVOS) (Swedish)

#397171

Postby ADrunkenMarcus » March 19th, 2021, 4:23 pm

I noted EVO hit 1226 today. Goldman Sachs slapped a 1500 SEK target price on it.

I'm up 45% or so since my purchase so will not complain!

Best wishes

Mark.

ADrunkenMarcus
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Re: Evolution Gaming Group (EVOS) (Swedish)

#407461

Postby ADrunkenMarcus » April 27th, 2021, 8:00 pm

Nor will I complain at today's rise, when EVO touched a return of 99.5% in SEK. Given the strength of the Pound against the Swedish Krona, my return in Sterling terms is somewhat less. Either way, it's essentially a double-bagger (the dividend is due shortly). I'd have been more than happy with such a return in three years, let alone three-and-a-half months. Goldman Sachs' target price seems out of date!

Best wishes

Mark.

ADrunkenMarcus
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Re: Evolution Gaming Group (EVOS) (Swedish)

#429287

Postby ADrunkenMarcus » July 21st, 2021, 11:40 am

The results for the first half of 2021 were OK.

Revenue up 100%, EBITDA up 115% and operating profit up 110%. Operating margin expanded to 68% and guidance that this will be in line with the entire year, which is higher than forecast; they cautioned that their priority is growth rather than margins, so margin expansion is welcome anyway.

Best wishes


Mark.


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