Evolution AB (publ)

E3G1.SG

Gambling, Resorts & Casinos · Consumer Cyclical

Price

€74.72

+0.02 (+0.03%)

Market Cap

€14.11B

Exchange

Stuttgart Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 28, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Weak

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Strong

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Share count falling — buybacks

−8.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 221.8M (2021) → 203.0M (2025)

Winston Score History

The full picture

Evolution AB is a Swedish company that provides live casino and online slot games to gambling operators around the world. Instead of running its own casino website, it builds and streams games like blackjack, roulette, and game shows from professional studios, which other betting companies then offer to their players. It is the dominant supplier of live dealer casino content globally.

Evolution makes money by taking a share of the gaming revenue its operator clients generate from its games — essentially a commission-based model. It operates studios across Europe, North America, and Asia, serving hundreds of licensed operators. The company's scale, proprietary technology, and large network of trained dealers create high barriers to entry for competitors. Key growth drivers include expansion into newly regulated US states and emerging markets, though the business faces ongoing regulatory scrutiny and reputational risks tied to the broader online gambling industry.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

57.5%

Premium pricing power — 57.5% gross margin

Profit after running costs

Operating Margin

57.5%

Excellent — 57.5% operating margin

Return on the money invested

ROCE

27.8%

Exceptional — 27.8% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

-26.3%

Shrinking sales (-26.3% YoY)

Profit growth

EPS YoY

-9.7%

Earnings shrinking (-9.7% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

124%

Turns 124% of profit into real cash

Spare cash per sale

FCF Margin

58.6%

Converts sales into free cash efficiently (58.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.00

Conservative — low debt load (0.00)

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.2x

Attractive valuation — P/E 14.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+1.6

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

3.75%

Moderate income — 3.75% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+177.0%

Dividend growing fast (177.0% YoY)

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