# Evolent Health (EVH.US)

Canonical: https://gigainvestors.com/s/EVH

Analysis as of: 2026-10-16T07:28:23.552Z. Financial observations: FY2012–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $4.87 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 10

- Operating margin variation: 1.40×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.93×

- FY2017: -0.17×

- FY2018: -0.08×

- FY2019: -0.45×

- FY2020: -0.28×

- FY2021: -0.05×

- FY2022: 0.00×

- FY2023: -0.04×

- FY2024: -0.02×

- FY2025: -0.00×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 9.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: -12.9%

- ROIC, second-lowest year: -69.9%

- Typical minus recent gross margin: 9.9 pp

- Typical gross margin (annual median): 25.0%

- Recent gross margin (lower of latest and 3-year median): 15.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: -5.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -1081.9%

- FY2017: -21.7%

- FY2018: -7.6%

- FY2019: -38.8%

- FY2020: -69.9%

- FY2021: -11.9%

- FY2022: 0.7%

- FY2023: -14.0%

- FY2024: -7.7%

- FY2025: -0.6%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$404M

- Net income, five-year total: -$766M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 2.6 pp

- Working capital / revenue, change between three-year averages: 18.9 pp

- Working capital / revenue, final three-year average: 15.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$2.5M

- FY2022: $33M

- FY2023: -$18M

- FY2024: $37M

- FY2025: -$453M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -21.7% vs -7.7%

- Per-share earnings: -0.94 to -1.02 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.5%

- Ordinary dilution, 5-year annual growth: 6.1%

- Market cap gain: -$210M

- Cumulative retained earnings: -$1.5B

- Diluted shares, 10-year annual growth: 9.5%

- Diluted shares, 5-year annual growth: 6.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.07

- Per-share value, starting three-year median: -$0.94

- Per-share value, ending three-year median: -$1.02

- Buybacks concentrated in cheaper years (correlation): -0.22

- Average buyback yield: 1.4%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.6B

- Cumulative net income, 10 years: -$1.7B

- ROIC, first three-year median: -21.7%

- ROIC, last three-year median: -7.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$3.55

- FY2017: -$0.94

- FY2018: -$0.68

- FY2019: -$3.67

- FY2020: -$3.94

- FY2021: -$0.44

- FY2022: -$0.20

- FY2023: -$1.02

- FY2024: -$0.54

- FY2025: -$4.68

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -30.2%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 102.3%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 3.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.4%

- FY2017: -2.5%

- FY2018: -1.9%

- FY2019: -17.3%

- FY2020: -21.6%

- FY2021: -5.4%

- FY2022: -0.4%

- FY2023: -9.5%

- FY2024: -3.2%

- FY2025: -30.2%

## Holders

- [Glenn Welling](https://gigainvestors.com/ENG): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 87% since Aug 2022 · sales -26.6%

Story as of 2026-10-16T09:58:43.332Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -26.6%; source https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm; observed 2026-02-25.

- FY2016: $254M 

- FY2017: $435M 

- FY2018: $627M 

- FY2019: $687M 

- FY2020: $925M 

- FY2021: $908M 

- FY2022: $1.4B 

- FY2023: $2.0B 

- FY2024: $2.6B 

- FY2025: $1.9B 

### Gross margin · FY2025

gross margin 15.1%; source https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm; observed 2026-02-25.

- FY2016: 39.0% 

- FY2017: 38.1% 

- FY2018: 47.7% 

- FY2019: 25.3% 

- FY2020: 24.7% 

- FY2021: 27.6% 

- FY2022: 23.4% 

- FY2023: 23.4% 

- FY2024: 14.4% 

- FY2025: 15.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in health information services; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm (filed 2026-02-25); FY2025: revenue 1876229000; grossProfit 284032000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); EVH.US: Evolent Health, Inc., through its subsidiary, provides specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company offers integrated value-based care platform for health plan administration and management. It also provides administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides Machinify Auth Intelligence, an artificial intelligence tool to aid nurses and physicians in completing clinical review of prior authorization requests. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.

### Why customers stay

Margins ranged from 14.4% to 23.4% during 2023–25; it lost 12.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 23.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 14.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 15.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,-10.819163013382557],[2017,-0.21661108057849685],[2018,-0.07639083779176688],[2019,-0.3881532671509718],[2020,-0.6992071129848002],[2021,-0.11901226542769153],[2022,0.006776835366413778],[2023,-0.13954974822017713],[2024,-0.07723271852678248],[2025,-0.006272714903124855]]; median -0.12928100682393434. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 40 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 38361000; owner earnings 32726000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 24893000; owner earnings 36652000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,61131000],[2020,20000000],[2021,1300000],[2022,14884000],[2023,18793000],[2024,20085000],[2025,11127000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 39996000 USD.

### Are managers owners

Insiders own 3.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); EVH.US SharesStats.PercentInsiders = 3.102 percentage points; cache date 2026-10-05.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 4.87 USD; reporting-to-trading FX 1; FY2025 annual sales per share 16.42817490893808; price multiple 0.2964419375246838. FY2025 cash earnings/share -3.9642319277108435. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $21.05 per share

- 2016-11: $18.80 per share

- 2016-12: $14.80 per share

- 2017-01: $18.20 per share

- 2017-02: $19.70 per share

- 2017-03: $22.30 per share

- 2017-04: $23.25 per share

- 2017-05: $22.95 per share

- 2017-06: $25.35 per share

- 2017-07: $24.70 per share

- 2017-08: $16.70 per share

- 2017-09: $17.80 per share

- 2017-10: $16.25 per share

- 2017-11: $12.85 per share

- 2017-12: $12.30 per share

- 2018-01: $14.10 per share

- 2018-02: $14.65 per share

- 2018-03: $14.25 per share

- 2018-04: $16.50 per share

- 2018-05: $20.45 per share

- 2018-06: $21.05 per share

- 2018-07: $20.20 per share

- 2018-08: $25.50 per share

- 2018-09: $28.40 per share

- 2018-10: $22.20 per share

- 2018-11: $25.70 per share

- 2018-12: $19.95 per share

- 2019-01: $17.68 per share

- 2019-02: $13.19 per share

- 2019-03: $12.58 per share

- 2019-04: $13.55 per share

- 2019-05: $10.64 per share

- 2019-06: $7.95 per share

- 2019-07: $6.82 per share

- 2019-08: $6.87 per share

- 2019-09: $7.19 per share

- 2019-10: $7.62 per share

- 2019-11: $7.21 per share

- 2019-12: $9.05 per share

- 2020-01: $10.08 per share

- 2020-02: $9.24 per share

- 2020-03: $5.43 per share

- 2020-04: $7.21 per share

- 2020-05: $8.88 per share

- 2020-06: $7.12 per share

- 2020-07: $11.65 per share

- 2020-08: $14.33 per share

- 2020-09: $12.41 per share

- 2020-10: $9.94 per share

- 2020-11: $14.53 per share

- 2020-12: $16.03 per share

- 2021-01: $17.07 per share

- 2021-02: $20.15 per share

- 2021-03: $20.20 per share

- 2021-04: $21.66 per share

- 2021-05: $19.43 per share

- 2021-06: $21.12 per share

- 2021-07: $22.94 per share

- 2021-08: $24.56 per share

- 2021-09: $31.00 per share

- 2021-10: $29.27 per share

- 2021-11: $26.00 per share

- 2021-12: $27.67 per share

- 2022-01: $23.71 per share

- 2022-02: $26.65 per share

- 2022-03: $32.30 per share

- 2022-04: $27.52 per share

- 2022-05: $28.13 per share

- 2022-06: $30.71 per share

- 2022-07: $33.99 per share

- 2022-08: $36.75 per share

- 2022-09: $35.93 per share

- 2022-10: $31.81 per share

- 2022-11: $28.79 per share

- 2022-12: $28.08 per share

- 2023-01: $32.22 per share

- 2023-02: $35.01 per share

- 2023-03: $32.45 per share

- 2023-04: $36.41 per share

- 2023-05: $29.14 per share

- 2023-06: $30.30 per share

- 2023-07: $30.39 per share

- 2023-08: $25.51 per share

- 2023-09: $27.23 per share

- 2023-10: $24.43 per share

- 2023-11: $27.80 per share

- 2023-12: $33.03 per share

- 2024-01: $29.41 per share

- 2024-02: $33.91 per share

- 2024-03: $32.79 per share

- 2024-04: $27.74 per share

- 2024-05: $21.19 per share

- 2024-06: $19.12 per share

- 2024-07: $23.32 per share

- 2024-08: $31.98 per share

- 2024-09: $28.28 per share

- 2024-10: $23.35 per share

- 2024-11: $12.92 per share

- 2024-12: $11.25 per share

- 2025-01: $10.45 per share

- 2025-02: $8.99 per share

- 2025-03: $9.47 per share

- 2025-04: $9.86 per share

- 2025-05: $7.45 per share

- 2025-06: $11.26 per share

- 2025-07: $10.05 per share

- 2025-08: $9.65 per share

- 2025-09: $8.46 per share

- 2025-10: $6.67 per share

- 2025-11: $4.20 per share

- 2025-12: $4.00 per share

- 2026-01: $3.21 per share

- 2026-02: $3.25 per share

- 2026-03: $2.28 per share

- 2026-04: $3.75 per share

- 2026-05: $3.95 per share

- 2026-06: $5.42 per share

- 2026-07: $3.09 per share

- 2026-08: $4.50 per share

- 2026-09: $3.49 per share

- 2026-10: $4.87 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1628908/000162890826000015/evh-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.