Evolution AB

"You would never invest in a company that exploits the addiction of its consumers, would you?" JD Vance has nothing to do with it

What other companies are involved?

$EVO (+0,67 %)
$MO (+0,34 %)
$PM (+0,16 %)
$BATS (+0,81 %)

Does anyone here have experience with Swedish dividends on Trade Republic? I have read that some brokers automatically reduce the Swedish withholding tax to 15% in advance. Since TR does this for US stocks, I would be interested to know if this also applies to Swedish stocks and you can save yourself the refund applications. I have searched the internet and TR's FAQ without success.

I am asking because I am considering $EVO (+0,67 %) adding them to my portfolio.

I simply had to strike again.

New addition to the depot: $PSTG (-0,31 %)

And additionally purchased:

$EVO (+0,67 %) (position full for now)

$BTC (+0,92 %) (unfortunately not yet 1 full)

Red prices are a starting signal. The first tranche goes in. I had built up cash for this scenario, even though I have to admit that 2 weeks ago I almost got impatient and wanted to liquidate the first part.

Unfortunately, I was only able to submit my transactions after work and wasn't able to take much of the rebound with me.

I used to look at the charts and think: "If you'd got in X months ago, the share would have hit a real low."

But when lows come, everyone cringes and stands on the sidelines...

For me, the golden question is the rule of thumb: Will the company be in a better position in 10 years' time than it is today? If so, you can start going in.

And for those who are interested in my new addition Pure Storage (I don't think there will be many, because it's a tech stock and not NVIDIA) in a nutshell:

They make very efficient storage solutions for data centers. They are currently still running with old hard disks, expensive and slower. The transition to modern technology is slowly beginning, and Pure Storage offers a complete solution.

My shovel manufacturer, which is supposed to take the money from the hyperscalers.

$

Now available for a P/E ratio of 17.

What the ESG bubble doesn't want, I'll gladly take.

Dividend currently at 3%, 50% payout ratio.

Could be increased to 4% by 2026.

Gambling may be sinful, but if mankind has been into it for 1,000 years, it would also be a sin not to offer it.

If the casino always wins, why not invest in the shovel manufacturer for casinos?

By the way, I have looked more deeply into the unregulated revenues that are currently causing a discount. Evolution has no direct business relationship with the end customer.

They can hardly influence which (mirror) sites customers then use to consume their products.

An investigation in the USA as a result of the Short Report was recently discontinued and nothing was found.

Of course, there is still a certain risk in Asia. A P/E ratio of between 20 and 25 is actually appropriate in my opinion.

But of course this is not an investment recommendation, everyone has to decide for themselves whether this is right for them ;)

Additional purchase of one of my top shares.

Market capitalization: € 21 billion

Sales growth: 21% estimated

Highly profitable.

Market growth: 15% p.a.

Dividend yield of 2.7% with 50% payout.

And all of this is currently available for a valuation of 18 PER.

Normally, I see shares with this kind of growth in valuation ranges above the 30 P/E ratio.

Why is that?

$EVO (+0,67 %) is in the online gambling business.

They are active in the B2B sector and supply the games for various gambling providers with which customers can put their luck to the test.

Not ESG-compliant and therefore excluded from the portfolio of many funds.

I see good growth potential, as online gambling currently only accounts for around 5% of the overall gambling market. But it is growing strongly. A lot of tailwind for $EVO (+0,67 %) the next few years in my view.

Risks can be seen in the regulatory environment, although Evo says it is only indirectly affected due to its B2B positioning. I can understand that, but it could still cause the share price to fall.

In my view, however, this in no way justifies such a valuation discount.

I would therefore be interested in your opinion:

For those familiar with the share:

• Can you explain the low valuation?
• What am I missing?

For those not familiar with the share:

• Is gambling really such a taboo investment?

In my opinion, gambling is probably one of the oldest trades in the world. Humans have a gambling instinct - in my view, it is legitimate to create offers here (in a regulated environment).

Your Money Man

$EVO (+0,67 %) (Evolution Ab) position.

After I bought the first small tranche 2 years ago at € 74.67, the position will be increased again and thus also made more expensive.

P/E 2024 -> 18.5x / cash flow yield 5.7%

P/E 2025 -> 15.8x / cash flow yield 7.2%

15-20% growth expected

Topic Sin Stocks - Stocks that are considered a sin

Hello Community,

Today I would like to introduce you to a stock category that should divide opinion. It's about so-called "sin stocks", or in German a bit bumpy "Sünden Aktien".

While many focus on ESG, sustainability and the like, there are also investors who look for the exact opposite. I am one of them.

Some people know sin stocks classically from the areas of alcohol, tobacco and gambling. I would like to make it a little more interesting and expand the sin area.

To do this, I'm using the 7 deadly sins of mankind and would like to present some stocks that (can) go hand in hand with them: Pride, Avarice, Lust, Envy, Gluttony, Wrath and Sloth.

First of all, I would like to avoid moral discussions if possible. If you are already catching your breath, please skip this article.

Sin 1: Pride.

He who is to perish first becomes proud, and pride comes before a fall

This includes companies that are active in the luxury segment. For example $RMS (-0,51 %) , $RACE (-0,21 %) or the very popular $MC (+0,13 %). In my view, what makes them interesting is that the more luxurious they are, the less dependent they are on the economy. The super-rich hardly mind if there is an economic crisis. They can also achieve exorbitant margins, as the pricing has to correspond to luxury.

Sin 2: Greed

Because greed is the root of all evil

Greed stocks include the financial sector and its shares. For example $JPM (+0,67 %) or $DBK (-3,82 %) but also commodity companies such as $XOM (+0,56 %)

To be honest, I am less familiar with this sector than with other sectors - the financial industry is generally less interesting due to its lack of transparency.

I find commodity companies more interesting - perhaps even more so "suppliers" such as $NE (-0,45 %) which count as manufacturers of drilling rigs.

Sin 3: Lust

I don't have any shares in this portfolio myself. For a long time I flirted with $RICK (+0,31 %) They are active in the adult entertainment sector and run strip clubs. They also run restaurants ("bombshells") where the waitresses' work clothes are made of very little material. However, these bombshells are not that attractive from my point of view, which is why I didn't get involved.

You can certainly also include apps like $GRND can certainly be included here.

Do you have / do you know of any stocks that you would classify here?

Sin 4: Envy

In this category you can put cosmetics stocks like $OR (-0,39 %) or social media stocks like $META (+0,13 %) can be counted in this category. My portfolio is also underrepresented here.

Sin 5: Gluttony

Binge drinking and gluttony characterize people who are lost

The classic among the sin stocks. These can include alcohol companies such as $DGE (+0,27 %) tobacco companies like $PM (+0,16 %) or fast food companies such as $MCD (+0,45 %)

Even more blatant would be something like $TSN (-0,11 %) as a meat producer.

Since tobacco or alcohol (can) be addictive, there is a strong lock-in effect. This is probably why many investors steer clear of such shares.

I see $MNST (+0,95 %) as one of the most exciting gluttony stocks. As manufacturers of energy drinks, they remind me a little of tobacco companies, but they are hardly regulated and can advertise freely. Strong growth of the market - and the share.

Sin 6: Anger

The second classic. All stocks in the defense industry can be counted under wrath. A few years ago, they were frowned upon from an ESG perspective, but they are now almost back in vogue. $LMT (+0,66 %) , $RTX (+0,57 %) or $RHM (+0,71 %) should be familiar to most people. They are heavily dependent on government orders and therefore political decisions. However, the trend over the next few years should be upwards.

In my view, an exciting "Zorn" share is $AXON (+0,53 %) . This is a supplier to the police, primarily in the USA. For example with bodycams or tasers. I was on the verge of getting in at 90$ - and unfortunately missed it.

Sin 7: Sloth

Don't be lazy when it comes to being diligent

Companies that contribute to inactivity or passivity could be categorized here. First and foremost the gambling industry. I see the most exciting value here in $EVO (+0,67 %). One of the stocks with the highest weighting in my portfolio. It is a "supplier" for online casinos. The growth is enormous - the gaming industry is still very much analog. However, the online segment is growing at double-digit rates per year - as is Evolution Gaming. Plus a nice dividend.

Otherwise, you can also make use of various stationary casino operators.

That was my ride through the Sin Stocks.

I would now like to know what exciting sin stocks you have.

And also whether you see any other sin stocks.

By the way, I had the prison operator in my head the whole time $GEO (+1,89 %) in my head the whole time - it seems to me to be the final stop for many sins.

Hello dear Getquin community,

actually I'm just a silent reader, since I'm currently enjoying a few days off, I wanted to contribute something to the community 😊

One company that I have been following for a long time is the Swedish company Evolution AB $EVO (+0,67 %) (formerly Evolution Gaming). Evolution AB is a leading company that specializes in the development, publication and marketing of live casino games on the internet. In addition to the usual games such as roulette, blackjack and poker, they also produce their own game shows such as Monopoly Live and Crazy Time.

The company itself does not operate casinos, but merely offers the games as "live shows" for online casinos and betting providers. The company's second division is slots. With Netent, Red-Tiger, BigTimeGaming and noLimit City, the company has four of the largest online slot operators. This means that almost no online casino can avoid Evolution AB at the moment.

This can also be seen in the share's key figures. Evolution AB was a corona profiteer, but continued to deliver even after corona. The EBIT margin is currently around 70% (Q3/2023)

• Earnings per share after tax (in SEK)

2019 8.77 - 2020 16.24 - 2021 28.75 - 2022 42.06 - 2023 (expected) 54.92

• Sales in SEK million

2019 3,872.13 - 2020 5,883.24 - 2021 10,844.79 - 2022 15,493.49 - 2023 (expected) 19,988

• Dividend per share (in SEK)

2019 4,43 - 2020 6,87 - 2021 14,66 - 2022 22,69 - 2023 27,57

Of course, in addition to the ethical aspect of not investing here, there is also a certain risk. I personally see the biggest risk in regulation.

Many countries are trying to restrict or even completely ban gambling. You should always bear this in mind when investing in this company.

Of course, this is not investment advice, but just a brief introduction to the company - I myself have also been invested since this year.

With that, I wish you a nice weekend and a happy holiday season.