Is EvoAir Holdings Inc. (EVOH) a good stock to buy?
Our tested checks disagree with each other, so the answer depends on something further down the page rather than on any one measure.
What each rating means, in numbers
Business quality — Middling. Passes 4 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, in every era and all twelve sectors.
What "tested" means here, and why there is no score out of 100
Tested means the read was measured against what actually happened afterwards, on a history that keeps the companies that were later delisted, using only figures that had been filed on the day they are used. Survival was ranked on companies that really did fail. What an owner keeps was tested across the universe from 2011 to 2025.
The full record of everything we have tested is on the research pages.
Which benchmark. Over the period we tested, the median listed company returned +5.8% a year while the S&P 500 returned about +13.9% — the index is weighted by size and was carried by a handful of enormous winners. So "beats the index" and "beats the other companies you could have bought" are different questions. Where a read says it picks better companies, it means the second one. None of these gets you an index fund's return, and we would rather say that than imply otherwise.
The quality read is the strongest thing we have tested: 131,000 company-quarters across 5,300 companies, where the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, holding in every era and all twelve sectors. It still says less likely to break, not likely to beat the market — every band in that study lost to the index at the median, because the median listed company does.
Each read is shown on its own rather than merged into a single score, so you can see which part is strong and which is weak instead of taking an average on trust.
▾ What goes into the smart-money reading
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.
Chance the S&P 500 falls 10% or more in the next three months.
Counted from every day since 2006. Says nothing about EVOH — see the board for how it is measured.
📍 Where to start on this page, and what to look at first
How to read EVOH (speculative micro-cap)
No model can pin a precise fair value on a company this small — but that does not mean there is nothing to learn. The useful questions are what the price is betting on, and whether the company can survive long enough to deliver it.
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1
Cash runway ↓
A pre-profit micro-cap lives or dies on whether it can fund itself to profitability before running out of money and diluting you.
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2
The raw financial statements + the 10-K ↓
At this scale, the actual numbers, insider ownership, and share-count trend tell you more than any ratio.
Standard DCF doesn't fit EVOH well — but that's expected for this kind of business. The Rule of 40 (Pre-Profit Growth) Lens below uses the metrics actually used by analysts who value air-cond & warm air heatg equip & comm & indl refrig equip.
How to read a company this small
EVOH is too small and/or too volatile for the valuation lenses we use on larger, more stable companies. The numbers shown below should be taken as rough orientation only.
- Latest annual revenue $319K — too small for meaningful growth percentages
Growth percentages on tiny revenue bases (1000% going from $200K to $2M is not predictive). P/E and ROE swing wildly with small earnings changes. Peer comparisons fail because there often aren't comparable companies at this scale.
Start with the Reverse-DCF above — it backs out the growth the price is betting on; if that figure is "historically unprecedented," the price is running on hype, not fundamentals. Then the cash runway (can it fund itself to profitability before diluting you?). Then the raw Financials table and the 10-K on SEC EDGAR — at this scale, insider ownership and the share-count trend often matter more than any ratio.
Classified as Speculative Nano / Micro-cap (confidence 80%). Disagree? An admin can override via the post edit screen.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
What these health ratings mean, in numbers
Business quality — Middling. Passes 4 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% within a year against 1.4% for the strongest, and that held in every era and all twelve sectors. It says "less likely to break", not "likely to beat the market".
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✗ Positive net incomeNet income -$4.1M in FY2026.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
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✗ Positive operating cash flowOperating cash flow -$1.4M (was -$1.1M the prior year).Why this matters: Profit can be an accounting figure; cash from running the business is harder to fake. Negative operating cash flow means the core business consumes cash and must be funded externally.
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✓ Cash flow backs up reported profitOperating cash flow -$1.4M vs net income -$4.1M.
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✓ Return on assets improvingReturn on assets -9.5% vs -32.0% a year ago.
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✗ Debt load (vs assets)Total debt is 1.3% of assets vs 0.0% a year ago ($0.5M of $43.3M assets).Why this matters: Rising debt relative to assets means more risk and more cash going to interest instead of shareholders. Falling debt is a sign of strengthening.
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✗ Short-term liquidity (current ratio)Current ratio 0.14x vs 0.16x a year ago — below 1.0, a caution flag.Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
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✗ Share count (dilution)Share count rose 1.3% (26.8M → 27.2M, average shares for the year, fiscal 2025 → 2026).Why this matters: Issuing lots of new shares splits the pie into more pieces, shrinking your slice. Stable or falling share count protects existing owners.
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✓ Gross margin improvingGross margin 6.7% vs -6.9% a year ago.
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✓ Sales per asset (asset turnover)Asset turnover 0.01x vs 0.01x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
Plain English: the company holds about $0M in cash and is burning roughly $1M/year in operations. At that pace, the cash lasts 2 mo before it must raise capital (diluting shareholders), take on debt, or cut spending.
Assumes constant burn and ignores financing/asset sales. For pre-profit biotech and growth companies, this matters more than a DCF — a great drug pipeline is worthless if they run out of money before approval.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for EvoAir Holdings Inc. due to its negative operating cash flow of -$1.4 million and net income of -$4.1 million in the latest fiscal year, indicating a cash-burning growth stage. Investors are likely betting on a significant turnaround or future product success, as the company currently exhibits declining revenue and compressing gross margins. The biggest risk to our assumptions is the continued decline in revenue, which has fallen by -28.1% annually over the last four years, from $1 million to $0 million.
As of 9 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real cost to shareholders even though no cash leaves the company). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Stabilization or growth in reported revenue
- Improvement in gross margin percentage
- Achievement of positive operating cash flow
The trend, in plain numbers (FY2025 → FY2026, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew 12.1%, from $285K to $319K.
- Free cash flow is negative at -$1.4M — the cash burn narrowed from -$4.4M the year before.
- Gross margin improved to 6.7%, from -6.9% (+13.7 pts).
- Still unprofitable at -$4.1M — loss narrowing from -$14.6M the year before.
Nothing was clearly worsening year-over-year.
Management & Leadership
The SEC filings we read list no officers for this company — it reports abroad in an annual report rather than on U.S. insider forms — so we do not name its executives here. Current leadership is listed in its latest annual report.
What They Make
EvoAir Holdings Inc. operates in the air-conditioning, warm air heating, and commercial/industrial refrigeration equipment industry. The company manufactures and sells equipment and related services, with paying customers being businesses and consumers requiring climate control and refrigeration solutions.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The income statement and balance sheet are also too incomplete here to substitute another lens honestly, so this page carries price, momentum and disclosure facts only.
The market is pricing EvoAir Holdings Inc. based on expectations of a future turnaround and potential for new product development, rather than current cash flows, which are negative at -$1.4 million for operating cash flow. The market may be assigning value to future product innovations in energy-efficient HVAC or refrigeration technologies, which are not in the model. This optionality may or may not materialize, given the company's current negative net income and declining revenue.
Business Model & Valuation
How They Make Money
Growth / Revenue DCF
This is the model the pipeline would normally apply to a company like this. Its output failed our checks here, so no intrinsic value is published; the notes below are context, not a valuation.
Show advanced inputs
| Revenue Growth | 2.0% |
What this model does NOT do: this is a consolidated owner-earnings cash-flow model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Revenue has been declining at -28.1% per year over the last four years, from $1 million to $0 million.
Geography & Markets
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)98.7OverboughtBought up hard recently — stretched; pullbacks are common from here.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (6 notes — click to expand/collapse)
Guardrail Notes (6)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- Terminal growth set to 1.6% — the lowest of the applicable caps (binding: 80% of near-term growth (2%)). We use one effective terminal rate everywhere on the page.
- INVARIANT: weighted IV is non-positive. Model may not be appropriate.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
- Extreme valuation gap (P/IV withheld — see the note above): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From EvoAir Holdings Inc.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | Diluted EPS |
|---|---|---|---|
| 2026 | 319,052 | -4.09M | $-0.15 |
| 2025 | 284,666 | -14.6M | $-0.55 |
| 2024 | 314,719 | -25.9M | $-1.01 |
| 2023 | 388,038 | -6.06M | $-0.24 |
| 2022 | 1.19M | -5.23M | $-0.08 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2026 | -1.36M | 1,247 | not reported | -1.36M |
| 2025 | -1.11M | 16,991 | 3.26M | -4.39M |
| 2024 | -939,775 | 146,269 | not reported | -1.09M |
| 2023 | -1.67M | 14,189 | not reported | -1.69M |
| 2022 | -1.54M | 561,315 | not reported | -2.10M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF starts from the projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 43.3M |
| Total Liabilities | 5.29M |
| Equity | 39.2M |
| Total Debt | 549,163 |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.
The questions people ask about EVOH
Is EvoAir Holdings Inc. (EVOH) a good stock to buy?
We do not publish a single fair value for EvoAir Holdings Inc., because one number would not be reliable for this business (the page explains why). Judge it on its financial-health checks, its record and what insiders are doing, all shown here from SEC filings. This is educational research from SEC filings, not investment advice.
Is EvoAir Holdings Inc. (EVOH) overvalued?
A single fair-value number is not reliable for EvoAir Holdings Inc., so we do not call it overvalued or undervalued. The page shows how the company's finances look and what insiders are doing instead. This is educational research from SEC filings, not investment advice.
Where do these numbers come from?
From EvoAir Holdings Inc.'s own SEC filings (10-K and 10-Q), Form 4 insider filings and daily market prices. Every figure on the page links to how it was calculated, and the model's weak spots are listed next to its results.