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Envestnet Inc (ENV) Stock Fundamental Analysis

NYSE:ENV - New York Stock Exchange, Inc. - US29404K1060 - Common Stock - Currency: USD

63.14  +0.05 (+0.08%)

After market: 63.14 0 (0%)

Fundamental Rating

4

Overall ENV gets a fundamental rating of 4 out of 10. We evaluated ENV against 284 industry peers in the Software industry. Both the profitability and financial health of ENV have multiple concerns. ENV is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year ENV was profitable.
In the past year ENV had a positive cash flow from operations.
ENV had negative earnings in 4 of the past 5 years.
In the past 5 years ENV always reported a positive cash flow from operatings.
ENV Yearly Net Income VS EBIT VS OCF VS FCFENV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

ENV has a worse Return On Assets (-14.30%) than 66.31% of its industry peers.
ENV's Return On Equity of -49.66% is on the low side compared to the rest of the industry. ENV is outperformed by 68.82% of its industry peers.
ENV has a better Return On Invested Capital (5.67%) than 76.70% of its industry peers.
Industry RankSector 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
ENV Yearly ROA, ROE, ROICENV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

ENV has a better Operating Margin (6.50%) than 73.48% of its industry peers.
ENV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.47%, ENV is doing worse than 60.22% of the companies in the same industry.
ENV's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
ENV Yearly Profit, Operating, Gross MarginsENV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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1

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.
Compared to 1 year ago, ENV has more shares outstanding
The number of shares outstanding for ENV has been increased compared to 5 years ago.
The debt/assets ratio for ENV is higher compared to a year ago.
ENV Yearly Shares OutstandingENV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
ENV Yearly Total Debt VS Total AssetsENV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 2.00 indicates that ENV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ENV has a Altman-Z score of 2.00. This is comparable to the rest of the industry: ENV outperforms 44.09% of its industry peers.
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.
ENV's Debt to FCF ratio of 5.32 is in line compared to the rest of the industry. ENV outperforms 56.99% of its industry peers.
ENV has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
ENV has a Debt to Equity ratio of 1.07. This is in the lower half of the industry: ENV underperforms 77.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 5.32
Altman-Z 2
ROIC/WACC0.53
WACC10.64%
ENV Yearly LT Debt VS Equity VS FCFENV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

2.3 Liquidity

ENV has a Current Ratio of 0.59. This is a bad value and indicates that ENV is not financially healthy enough and could expect problems in meeting its short term obligations.
ENV has a worse Current ratio (0.59) than 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 RankSector Rank
Current Ratio 0.59
Quick Ratio 0.59
ENV Yearly Current Assets VS Current LiabilitesENV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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7

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.
ENV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.92% yearly.
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

Based on estimates for the next years, ENV will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.22% on average per year.
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.
ENV Yearly Revenue VS EstimatesENV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
ENV Yearly EPS VS EstimatesENV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.26, ENV can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ENV is valued a bit cheaper than 79.57% of the companies in the same industry.
ENV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 18.89, which indicates a rather expensive current valuation of ENV.
82.08% of the companies in the same industry are more expensive than ENV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. ENV is around the same levels.
Industry RankSector Rank
PE 25.26
Fwd PE 18.89
ENV Price Earnings VS Forward Price EarningsENV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

ENV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ENV is cheaper than 84.95% of the companies in the same industry.
ENV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENV is cheaper than 86.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.11
EV/EBITDA 18.08
ENV Per share dataENV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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%

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0

5. Dividend

5.1 Amount

ENV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Envestnet Inc

NYSE:ENV (11/22/2024, 8:04:00 PM)

After market: 63.14 0 (0%)

63.14

+0.05 (+0.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners93.01%
Inst Owner Change-81.76%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%