Envestnet Inc (ENV) Stock Fundamental Analysis
NYSE:ENV - US29404K1060 - Common Stock
63.14 USD
+0.05 (+0.08%)
63.14 USD
0 (0%)
Taking everything into account, ENV scores 4 out of 10 in our fundamental rating. ENV was compared to 282 industry peers in the Software industry. Both the profitability and financial health of ENV have multiple concerns. ENV is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ENV had positive earnings in the past year.
ENV had a positive operating cash flow in the past year.
ENV had negative earnings in 4 of the past 5 years.
Each year in the past 5 years ENV had a positive operating cash flow.
1.2 Ratios
ENV has a Return On Assets of -14.30%. This is in the lower half of the industry: ENV underperforms 66.31% of its industry peers.
With a Return On Equity value of -49.66%, ENV is not doing good in the industry: 68.82% of the companies in the same industry are doing better.
ENV has a Return On Invested Capital of 5.67%. This is in the better half of the industry: ENV outperforms 76.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.3% | ||
| ROE | -49.66% | ||
| ROIC | 5.67% |
ROA(3y)-5.32%
ROA(5y)-3.41%
ROE(3y)-17.12%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Operating Margin value of 6.50%, ENV is doing good in the industry, outperforming 73.48% of the companies in the same industry.
ENV's Operating Margin has improved in the last couple of years.
The Gross Margin of ENV (60.47%) is worse than 60.22% of its industry peers.
In the last couple of years the Gross Margin of ENV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.5% | ||
| PM (TTM) | N/A | ||
| GM | 60.47% |
OM growth 3Y23.84%
OM growth 5Y16.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.66%
GM growth 5Y-1.7%
2. Health
2.1 Basic Checks
ENV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ENV has more shares outstanding than it did 1 year ago.
ENV has more shares outstanding than it did 5 years ago.
ENV has a worse debt/assets ratio than last year.
2.2 Solvency
ENV has an Altman-Z score of 2.00. This is not the best score and indicates that ENV is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.00, ENV is in line with its industry, outperforming 44.09% of the companies in the same industry.
ENV has a debt to FCF ratio of 5.32. This is a neutral value as ENV would need 5.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.32, ENV is in line with its industry, outperforming 56.99% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ENV has dependencies on debt financing.
With a Debt to Equity ratio value of 1.07, ENV is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | 2 |
ROIC/WACC0.53
WACC10.64%
2.3 Liquidity
A Current Ratio of 0.59 indicates that ENV may have some problems paying its short term obligations.
ENV has a Current ratio of 0.59. This is amonst the worse of the industry: ENV underperforms 91.40% of its industry peers.
A Quick Ratio of 0.59 indicates that ENV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, ENV is doing worse than 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.53% over the past year.
The Earnings Per Share has been growing slightly by 2.10% on average over the past years.
Looking at the last year, ENV shows a quite strong growth in Revenue. The Revenue has grown by 9.50% in the last year.
Measured over the past years, ENV shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.
EPS 1Y (TTM)29.53%
EPS 3Y-6.07%
EPS 5Y2.1%
EPS Q2Q%25%
Revenue 1Y (TTM)9.5%
Revenue growth 3Y7.66%
Revenue growth 5Y8.92%
Sales Q2Q%9.18%
3.2 Future
ENV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.22% yearly.
The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
EPS Next Y27.65%
EPS Next 2Y25.28%
EPS Next 3Y24.88%
EPS Next 5Y18.22%
Revenue Next Year11.9%
Revenue Next 2Y11.98%
Revenue Next 3Y12.02%
Revenue Next 5Y8.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.26, the valuation of ENV can be described as expensive.
Based on the Price/Earnings ratio, ENV is valued a bit cheaper than 79.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ENV is valued at the same level.
With a Price/Forward Earnings ratio of 18.89, ENV is valued on the expensive side.
82.08% of the companies in the same industry are more expensive than ENV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, ENV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENV is valued cheaper than 84.95% of the companies in the same industry.
86.74% of the companies in the same industry are more expensive than ENV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.11 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ENV's earnings are expected to grow with 24.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)12.04
EPS Next 2Y25.28%
EPS Next 3Y24.88%
5. Dividend
5.1 Amount
No dividends for ENV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.14
+0.05 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.01%
Inst Owner Change-9.48%
Ins Owners3.19%
Ins Owner Change0%
Market Cap3.49B
Analysts51.43
Price Target65.92 (4.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.95%
Min EPS beat(2)-12.64%
Max EPS beat(2)0.74%
EPS beat(4)3
Avg EPS beat(4)4.28%
Min EPS beat(4)-12.64%
Max EPS beat(4)20.8%
EPS beat(8)6
Avg EPS beat(8)3.08%
EPS beat(12)9
Avg EPS beat(12)3.51%
EPS beat(16)13
Avg EPS beat(16)4.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.89%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.87%
Revenue beat(16)6
Avg Revenue beat(16)-0.58%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)7.26%
EPS NQ rev (3m)7.26%
EPS NY rev (1m)1.01%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)2.43%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 18.89 | ||
| P/S | 2.61 | ||
| P/FCF | 21.11 | ||
| P/OCF | 13.34 | ||
| P/B | 6.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)2.5
EY3.96%
EPS(NY)3.34
Fwd EY5.29%
FCF(TTM)2.99
FCFY4.74%
OCF(TTM)4.73
OCFY7.5%
SpS24.15
BVpS9.51
TBVpS-12.16
PEG (NY)0.91
PEG (5Y)12.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.3% | ||
| ROE | -49.66% | ||
| ROCE | 7.18% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.75% | ||
| ROICexgc | N/A | ||
| OM | 6.5% | ||
| PM (TTM) | N/A | ||
| GM | 60.47% | ||
| FCFM | 12.38% |
ROA(3y)-5.32%
ROA(5y)-3.41%
ROE(3y)-17.12%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y17.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y34.22%
ROICexc growth 5Y8.11%
OM growth 3Y23.84%
OM growth 5Y16.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.66%
GM growth 5Y-1.7%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 5.32 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 66.81% | ||
| Cap/Sales | 7.21% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 113.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2 |
F-Score4
WACC10.64%
ROIC/WACC0.53
Cap/Depr(3y)96.43%
Cap/Depr(5y)80.29%
Cap/Sales(3y)9.94%
Cap/Sales(5y)8.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.53%
EPS 3Y-6.07%
EPS 5Y2.1%
EPS Q2Q%25%
EPS Next Y27.65%
EPS Next 2Y25.28%
EPS Next 3Y24.88%
EPS Next 5Y18.22%
Revenue 1Y (TTM)9.5%
Revenue growth 3Y7.66%
Revenue growth 5Y8.92%
Sales Q2Q%9.18%
Revenue Next Year11.9%
Revenue Next 2Y11.98%
Revenue Next 3Y12.02%
Revenue Next 5Y8.64%
EBIT growth 1Y372.37%
EBIT growth 3Y33.33%
EBIT growth 5Y26.49%
EBIT Next Year80.72%
EBIT Next 3Y35.79%
EBIT Next 5Y22.81%
FCF growth 1Y253.69%
FCF growth 3Y-37.94%
FCF growth 5Y-19.53%
OCF growth 1Y57.06%
OCF growth 3Y-3.02%
OCF growth 5Y5.7%