Forensic Analysis · General / Diversified · as of Jun 27, 2026
Evolent Health, Inc. (EVH)
A forensic read on Evolent Health, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-3.0
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-71.5%
ROE
$620M
Market cap
Evolent Health, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -3.0, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-24%Return on invested capital.Return on invested capital is -24% and slipping from 0% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.3%/yrShare-count dilution.Diluted share count changed +22% over the last 3 years to FY2025 (+7.3%/yr). The count is GROWING — existing holders are being diluted. That's ~7.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~22%.
2% of revStock-based comp load.Stock-based compensation ran 2% of revenue and 836% of free cash flow in FY2025 — about $0.35 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
841% of FCFShareholder returns.Returned $40M to shareholders (buybacks + dividends) in FY2025 — 841% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.
$813MGoodwill impairments.Took $813M of goodwill writedowns across 3 year(s) (FY2019 ($200M), FY2020 ($215M), FY2025 ($398M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-28.5%
Debt / Equity2.34x
Free Cash Flow$4.8M
Latest Revenue$1.88B
Return on Equity-128.7%
Revenue Growth YoY-26.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Evolent Health, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about EVH's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown