Evolent Health Inc (EVH): What Does Valuation Ratios Tell Us?

Evolent Health Inc (NYSE:EVH) saw an upside of 0.19% to $26.86 after adding $0.05 on Wednesday. The 5-day average trading volume is 961,716 shares of the company’s common stock. It has gained $27.32 in the past week and touched a new high 4 times within the past 5 days. An average of 940,774 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 885,930.

EVH’s 1-month performance is 5.62% or $1.38 on its low of $24.97 reached on 09/08/23. The company’s shares have touched a 52-week low of $21.83 and high of $37.98, with the stock’s rally to the 52-week high happening on 05/01/23. YTD, EVH has lost -4.34% or -$1.26 and has reached a new high 15 times. However, the current price is down -29.28% from the 52-week high price.

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Insider Transactions

EVH stock investors last saw insider trading activity on Aug 15.Rafferty Emily Ann (Chief Operating Officer) most recently sold 7,900 shares at $28.05 per share on Aug 15. This transaction cost the insider $221,595. Chief Executive Officer, Blackley Seth, sold 33,011 shares at a price of $30.78 on Jun 28. Then, on Jun 16, Chief Executive Officer Blackley Seth sold 2,098 shares at a price of $30.16 per share. This transaction amounted to $63,276.

Valuation Metrics

EVH stock has a beta of 1.48. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.86 while the price-to-book (PB) in the most recent quarter is 2.46.

Evolent Health Inc’s quick ratio for the period ended June 29 was 1.07, with the current ratio over the same period at 1.07. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.79, while the total debt to equity was 0.79. In terms of profitability, the gross margin trailing 12 months is 18.57%. The firm’s gross profit as reported stood at $316.58 million against revenue of $1.35 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 88.92% to -$41.41 million, while revenue of -$26.26 million was 36.59% off the previous quarter. Analysts expected EVH to announce $0.11 per share in earnings in its latest quarter, but it posted $0.14, representing a 27.30% surprise. EBITDA for the quarter stood at more than $14.95 million. EVH stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 1.38 billion, with total debt at $695.81 million. Shareholders hold equity totaling $113.25 million.

Let’s look briefly at Evolent Health Inc (EVH) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 26 September was 59.09% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.74%.

The stock’s 5-day moving average is $26.58, reflecting a +0.98% or $0.26 change from its current price. EVH is currently trading +4.28% above its 20-day SMA, -20.06% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -13.51% and SMA200 by-1.36%.

Stochastic %K and %D was 84.30% and 82.17% and the average true range (ATR) pointed at 0.70. The RSI (14) points at 53.10%, while the 14-day stochastic is at 78.72% with the period’s ATR at 0.73. The stock’s 9-day MACD Oscillator is pointing at 0.29 and 0.54 on the 14-day charts.