Evolution AB (EVVTY) is a leading player in the online casino industry, known for its high profitability and scalability. The company has achieved impressive financial performance, with net income margins over 60% and EPS growth of 30% year-on-year. Despite recent market underperformance, it still seems a strong buy due to its robust financials and market-leading position.
The stock is currently undervalued by about 25%, with an intrinsic value of $131.06 compared to a market price of $98.58. Evolution's strategic expansions, including new studios and acquisitions, further bolster its growth potential.
The only potential reasoning behind the market underperformance would be the ongoing Georgia strikes. This could disrupt operations, especially since more than half of Evolution's workforce is based in Georgia. However, this appears to be a short term obstacle.
What am I missing?
Leave a Reply