Evotec SE (EVO) AI Stock Analysis

Evotec SE serves as a key partner in drug discovery and development within the global pharmaceutical and biotechnology sectors. Headquartered in Hamburg, Germany, the company specializes in therapeutic areas such as diabetes, fibrosis, infectious diseases, CNS disorders, oncology, pain management, immunology, rare diseases, respiratory ailments, and women's health. Evotec collaborates with industry partners including Bayer AG, Lilly, Chinook Therapeutics, Novo Nordisk A/S, Galapagos, Pfizer Inc., CONBA Pharmaceutical Co., Ltd., Bristol Myers Squibb Company, Zhejiang JingXin Pharmaceutical Co., Ltd., Kazia Therapeutics, Apeiron Biologics, and Takeda Pharmaceuticals to advance pharmaceutical products and therapies.

Between FY2021 and FY2025, Evotec generated a five-year revenue CAGR of 8.6%, with annual revenue moving from $618.0M in FY2021 to $757.3M in FY2025. However, revenue fell 5.0% in FY2025, down from $797.0M in FY2024. Gross margin contracted from 24.5% in FY2021 to 8.3% in FY2025, and operating margin declined from 6.6% to -17.9%. Net income shifted from $215.5M in FY2021 to -$99.4M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue growth fell 16.2% year-over-year, and trailing twelve months operating margin stood at -62.3% on revenue of $717.3M.

As of June 30, 2026, Evotec held $465.6M in cash and short-term investments against total debt of $475.9M, resulting in net debt of $10.3M. Total assets stood at $1.57B and shareholders' equity was $665.6M, with a current ratio of 2.33 and a debt-to-equity ratio of 0.71. In FY2025, operating cash flow was -$9.1M and free cash flow was -$78.7M. For capital allocation in FY2025, the company deployed $69.7M toward capital expenditures and $1.5M toward share buybacks.

At a share price of $1.38, Evotec has a market cap of $490.4M and an enterprise value of $562.7M. The stock trades at a forward P/E of 19.6x and an EV/EBITDA of 34.4x, above the median of its US-listed Healthcare peers of 17.3x forward P/E and 12.0x EV/EBITDA. Its price-to-sales of 0.7x is below the peer median of 4.1x. Over the past year, EVO posted a return of -65.5%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, EVO returned -93.9% compared to 83.0% for the index.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 1 Hold rating, with no Sell or Strong Sell recommendations. The mean price target is $4.24, which is 207.3% above the last close of $1.38. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $598.8M and an EPS of -$1.48. For the next fiscal year, projected revenue is $721.4M with EPS of $0.07. Over the last four quarters, Evotec achieved 1 EPS beat.

This page is an AI-written research summary of Evotec SE (EVO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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