ENOVA INTERNATIONAL INC (ENVA) Stock Fundamental Analysis
NYSE:ENVA - New York Stock Exchange, Inc. - US29357K1034 - Common Stock - Currency: USD
ENVA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. ENVA gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: ENVA is growing strongly while it also seems undervalued. This makes ENVA very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
ENVA had positive earnings in the past year.
ENVA had a positive operating cash flow in the past year.
ENVA had positive earnings in each of the past 5 years.
ENVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENVA's Return On Assets of 4.29% is fine compared to the rest of the industry. ENVA outperforms 74.51% of its industry peers.
With a decent Return On Equity value of 19.55%, ENVA is doing good in the industry, outperforming 78.43% of the companies in the same industry.
ENVA's Return On Invested Capital of 9.25% is fine compared to the rest of the industry. ENVA outperforms 78.43% of its industry peers.
ENVA had an Average Return On Invested Capital over the past 3 years of 8.27%. This is below the industry average of 10.59%.
The last Return On Invested Capital (9.25%) for ENVA is above the 3 year average (8.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.55% | ||
| ROIC | 9.25% |
ROA(3y)4.43%
ROA(5y)8.1%
ROE(3y)16.37%
ROE(5y)22.75%
ROIC(3y)8.27%
ROIC(5y)10.19%
1.3 Margins
ENVA has a Profit Margin of 14.53%. This is in the better half of the industry: ENVA outperforms 66.67% of its industry peers.
ENVA's Profit Margin has improved in the last couple of years.
ENVA has a Operating Margin of 38.88%. This is amongst the best in the industry. ENVA outperforms 94.12% of its industry peers.
ENVA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.88% | ||
| PM (TTM) | 14.53% | ||
| GM | N/A |
OM growth 3Y-1.76%
OM growth 5Y12.6%
PM growth 3Y-18.2%
PM growth 5Y34.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENVA is creating some value.
The number of shares outstanding for ENVA has been reduced compared to 1 year ago.
The number of shares outstanding for ENVA has been reduced compared to 5 years ago.
ENVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 indicates that ENVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ENVA (2.51) is better than 76.47% of its industry peers.
The Debt to FCF ratio of ENVA is 2.45, which is a good value as it means it would take ENVA, 2.45 years of fcf income to pay off all of its debts.
ENVA's Debt to FCF ratio of 2.45 is fine compared to the rest of the industry. ENVA outperforms 78.43% of its industry peers.
A Debt/Equity ratio of 3.14 is on the high side and indicates that ENVA has dependencies on debt financing.
The Debt to Equity ratio of ENVA (3.14) is comparable to the rest of the industry.
Although ENVA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.02
WACC9.05%
2.3 Liquidity
A Current Ratio of 21.07 indicates that ENVA has no problem at all paying its short term obligations.
The Current ratio of ENVA (21.07) is better than 98.04% of its industry peers.
A Quick Ratio of 21.07 indicates that ENVA has no problem at all paying its short term obligations.
ENVA's Quick ratio of 21.07 is amongst the best of the industry. ENVA outperforms 98.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.07 | ||
| Quick Ratio | 21.07 |
3. Growth
3.1 Past
ENVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.27%, which is quite impressive.
The Earnings Per Share has been growing by 19.61% on average over the past years. This is quite good.
Looking at the last year, ENVA shows a very strong growth in Revenue. The Revenue has grown by 24.80%.
Measured over the past years, ENVA shows a small growth in Revenue. The Revenue has been growing by 5.42% on average per year.
EPS 1Y (TTM)47.27%
EPS 3Y6.64%
EPS 5Y19.61%
EPS Q2Q%56.02%
Revenue 1Y (TTM)24.8%
Revenue growth 3Y14.3%
Revenue growth 5Y5.42%
Sales Q2Q%22.24%
3.2 Future
Based on estimates for the next years, ENVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.89% on average per year.
Based on estimates for the next years, ENVA will show a quite strong growth in Revenue. The Revenue will grow by 16.55% on average per year.
EPS Next Y30.75%
EPS Next 2Y23.71%
EPS Next 3Y19.89%
EPS Next 5YN/A
Revenue Next Year18.15%
Revenue Next 2Y15.54%
Revenue Next 3Y16.55%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.04, the valuation of ENVA can be described as reasonable.
ENVA's Price/Earnings ratio is a bit cheaper when compared to the industry. ENVA is cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, ENVA is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.60, the valuation of ENVA can be described as very cheap.
66.67% of the companies in the same industry are more expensive than ENVA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ENVA to the average of the S&P500 Index (22.15), we can say ENVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENVA is valued a bit cheaper than the industry average as 74.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ENVA is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.53 | ||
| EV/EBITDA | 9.11 |
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.
The decent profitability rating of ENVA may justify a higher PE ratio.
A more expensive valuation may be justified as ENVA's earnings are expected to grow with 19.89% in the coming years.
PEG (NY)0.29
PEG (5Y)0.46
EPS Next 2Y23.71%
EPS Next 3Y19.89%
5. Dividend
5.1 Amount
No dividends for ENVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.67
-0.63 (-0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners94.64%
Inst Owner Change-57.28%
Ins Owners3.79%
Ins Owner Change-1.55%
Market Cap2.35B
Analysts84.62
Price Target129.39 (39.62%)
Short Float %8.49%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.43%
Min EPS beat(2)5.92%
Max EPS beat(2)12.95%
EPS beat(4)4
Avg EPS beat(4)6.83%
Min EPS beat(4)3.97%
Max EPS beat(4)12.95%
EPS beat(8)7
Avg EPS beat(8)2.33%
EPS beat(12)11
Avg EPS beat(12)3.67%
EPS beat(16)15
Avg EPS beat(16)11.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)1.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.04%
Revenue beat(12)4
Avg Revenue beat(12)-12.93%
Revenue beat(16)4
Avg Revenue beat(16)-14.26%
PT rev (1m)-2.09%
PT rev (3m)-2.09%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)2.28%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)1.87%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 6.6 | ||
| P/S | 1.46 | ||
| P/FCF | 1.53 | ||
| P/OCF | 1.49 | ||
| P/B | 1.96 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)10.25
EY11.06%
EPS(NY)14.05
Fwd EY15.16%
FCF(TTM)60.55
FCFY65.34%
OCF(TTM)62.32
OCFY67.25%
SpS63.45
BVpS47.17
TBVpS35.81
PEG (NY)0.29
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 19.55% | ||
| ROCE | 11.99% | ||
| ROIC | 9.25% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 9.9% | ||
| OM | 38.88% | ||
| PM (TTM) | 14.53% | ||
| GM | N/A | ||
| FCFM | 95.42% |
ROA(3y)4.43%
ROA(5y)8.1%
ROE(3y)16.37%
ROE(5y)22.75%
ROIC(3y)8.27%
ROIC(5y)10.19%
ROICexc(3y)8.42%
ROICexc(5y)10.94%
ROICexgc(3y)9.08%
ROICexgc(5y)12.42%
ROCE(3y)10.71%
ROCE(5y)13.21%
ROICexcg growth 3Y-13.52%
ROICexcg growth 5Y-10.29%
ROICexc growth 3Y-11.26%
ROICexc growth 5Y-7.56%
OM growth 3Y-1.76%
OM growth 5Y12.6%
PM growth 3Y-18.2%
PM growth 5Y34.46%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 5.64 | ||
| Cap/Depr | 112.67% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 237.46% | ||
| Profit Quality | 656.55% | ||
| Current Ratio | 21.07 | ||
| Quick Ratio | 21.07 | ||
| Altman-Z | 2.51 |
F-Score8
WACC9.05%
ROIC/WACC1.02
Cap/Depr(3y)114.91%
Cap/Depr(5y)115.67%
Cap/Sales(3y)3.47%
Cap/Sales(5y)3.53%
Profit Quality(3y)588.12%
Profit Quality(5y)425.04%
High Growth Momentum
Growth
EPS 1Y (TTM)47.27%
EPS 3Y6.64%
EPS 5Y19.61%
EPS Q2Q%56.02%
EPS Next Y30.75%
EPS Next 2Y23.71%
EPS Next 3Y19.89%
EPS Next 5YN/A
Revenue 1Y (TTM)24.8%
Revenue growth 3Y14.3%
Revenue growth 5Y5.42%
Sales Q2Q%22.24%
Revenue Next Year18.15%
Revenue Next 2Y15.54%
Revenue Next 3Y16.55%
Revenue Next 5YN/A
EBIT growth 1Y41.08%
EBIT growth 3Y12.28%
EBIT growth 5Y18.7%
EBIT Next Year33.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.97%
FCF growth 3Y50.09%
FCF growth 5Y11.81%
OCF growth 1Y54.64%
OCF growth 3Y48.28%
OCF growth 5Y11.93%