EngageSmart Inc (ESMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ESMT - US29283F1030 - Common Stock
23.05 USD
-0.02 (-0.09%)
23.09 USD
+0.04 (+0.17%)
Taking everything into account, ESMT scores 5 out of 10 in our fundamental rating. ESMT was compared to 277 industry peers in the Software industry. While ESMT has a great health rating, its profitability is only average at the moment. ESMT shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year ESMT was profitable.
- In the past year ESMT had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.68%, ESMT is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
- ESMT has a Return On Equity of 2.95%. This is in the better half of the industry: ESMT outperforms 76.26% of its industry peers.
- With a decent Return On Invested Capital value of 2.11%, ESMT is doing good in the industry, outperforming 74.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 2.95% | ||
| ROIC | 2.11% |
ROA(3y)0.02%
ROA(5y)N/A
ROE(3y)-0.06%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- ESMT has a better Profit Margin (6.83%) than 80.94% of its industry peers.
- With a decent Operating Margin value of 6.37%, ESMT is doing good in the industry, outperforming 76.62% of the companies in the same industry.
- ESMT's Gross Margin of 77.08% is fine compared to the rest of the industry. ESMT outperforms 73.38% of its industry peers.
- In the last couple of years the Gross Margin of ESMT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | 6.83% | ||
| GM | 77.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- ESMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ESMT has been increased compared to 1 year ago.
- There is no outstanding debt for ESMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- ESMT has an Altman-Z score of 27.53. This indicates that ESMT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ESMT (27.53) is better than 98.56% of its industry peers.
- There is no outstanding debt for ESMT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 27.53 |
ROIC/WACC0.22
WACC9.52%
2.3 Liquidity
- A Current Ratio of 6.71 indicates that ESMT has no problem at all paying its short term obligations.
- ESMT has a better Current ratio (6.71) than 91.73% of its industry peers.
- ESMT has a Quick Ratio of 6.71. This indicates that ESMT is financially healthy and has no problem in meeting its short term obligations.
- ESMT has a better Quick ratio (6.71) than 91.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.71 | ||
| Quick Ratio | 6.71 |
3. Growth
3.1 Past
- ESMT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.17%, which is quite impressive.
- ESMT shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.41%.
- ESMT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 54.50% yearly.
EPS 1Y (TTM)29.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)29.41%
Revenue growth 3Y54.5%
Revenue growth 5YN/A
Sales Q2Q%24.02%
3.2 Future
- Based on estimates for the next years, ESMT will show a very strong growth in Earnings Per Share. The EPS will grow by 20.41% on average per year.
- The Revenue is expected to grow by 23.24% on average over the next years. This is a very strong growth
EPS Next Y20.63%
EPS Next 2Y15.49%
EPS Next 3Y20.41%
EPS Next 5YN/A
Revenue Next Year27.7%
Revenue Next 2Y24.84%
Revenue Next 3Y23.24%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 74.35, ESMT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ESMT indicates a somewhat cheap valuation: ESMT is cheaper than 60.79% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ESMT to the average of the S&P500 Index (26.94), we can say ESMT is valued expensively.
- With a Price/Forward Earnings ratio of 66.46, ESMT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESMT is on the same level as its industry peers.
- ESMT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.35 | ||
| Fwd PE | 66.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESMT is valued a bit cheaper than the industry average as 67.63% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ESMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.93 | ||
| EV/EBITDA | 82.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESMT does not grow enough to justify the current Price/Earnings ratio.
- ESMT's earnings are expected to grow with 20.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.6
PEG (5Y)N/A
EPS Next 2Y15.49%
EPS Next 3Y20.41%
5. Dividend
5.1 Amount
- ESMT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.05
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-02 2023-11-02/bmo
Earnings (Next)02-13 2024-02-13/amc
Inst Owners0.09%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.88B
Revenue(TTM)364.47M
Net Income(TTM)24.88M
Analysts52.31
Price Target23.46 (1.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.72%
Min EPS beat(2)8.93%
Max EPS beat(2)68.5%
EPS beat(4)3
Avg EPS beat(4)19.11%
Min EPS beat(4)-7.51%
Max EPS beat(4)68.5%
EPS beat(8)7
Avg EPS beat(8)48.74%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)0.57%
Revenue beat(8)6
Avg Revenue beat(8)2.18%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.17%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.35 | ||
| Fwd PE | 66.46 | ||
| P/S | 10.65 | ||
| P/FCF | 74.93 | ||
| P/OCF | 63.98 | ||
| P/B | 4.61 | ||
| P/tB | 10.86 | ||
| EV/EBITDA | 82.01 |
EPS(TTM)0.31
EY1.34%
EPS(NY)0.35
Fwd EY1.5%
FCF(TTM)0.31
FCFY1.33%
OCF(TTM)0.36
OCFY1.56%
SpS2.17
BVpS5
TBVpS2.12
PEG (NY)3.6
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 2.95% | ||
| ROCE | 2.67% | ||
| ROIC | 2.11% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 93.16% | ||
| OM | 6.37% | ||
| PM (TTM) | 6.83% | ||
| GM | 77.08% | ||
| FCFM | 14.21% |
ROA(3y)0.02%
ROA(5y)N/A
ROE(3y)-0.06%
ROE(5y)N/A
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3%
GM growth 5YN/A
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 45.16% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 92.92 | ||
| Cash Conversion | 141.52% | ||
| Profit Quality | 208.12% | ||
| Current Ratio | 6.71 | ||
| Quick Ratio | 6.71 | ||
| Altman-Z | 27.53 |
F-Score7
WACC9.52%
ROIC/WACC0.22
Cap/Depr(3y)30.6%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.64%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
EPS Next Y20.63%
EPS Next 2Y15.49%
EPS Next 3Y20.41%
EPS Next 5YN/A
Revenue 1Y (TTM)29.41%
Revenue growth 3Y54.5%
Revenue growth 5YN/A
Sales Q2Q%24.02%
Revenue Next Year27.7%
Revenue Next 2Y24.84%
Revenue Next 3Y23.24%
Revenue Next 5YN/A
EBIT growth 1Y112.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.52%
EBIT Next 3Y38.68%
EBIT Next 5YN/A
FCF growth 1Y130%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.25%
OCF growth 3YN/A
OCF growth 5YN/A
EngageSmart Inc / ESMT FAQ
What is the ChartMill fundamental rating of EngageSmart Inc (ESMT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ESMT.
What is the valuation status for ESMT stock?
ChartMill assigns a valuation rating of 2 / 10 to EngageSmart Inc (ESMT). This can be considered as Overvalued.
How profitable is EngageSmart Inc (ESMT) stock?
EngageSmart Inc (ESMT) has a profitability rating of 4 / 10.
Can you provide the financial health for ESMT stock?
The financial health rating of EngageSmart Inc (ESMT) is 8 / 10.