EngageSmart Inc (ESMT) Stock Fundamental Analysis
USA - NYSE:ESMT - US29283F1030 - Common Stock
23.05 USD
-0.02 (-0.09%)
23.09 USD
+0.04 (+0.17%)
We assign a fundamental rating of 5 out of 10 to ESMT. ESMT was compared to 285 industry peers in the Software industry. ESMT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ESMT is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
ESMT had positive earnings in the past year.
In the past year ESMT had a positive cash flow from operations.
1.2 Ratios
ESMT has a better Return On Assets (2.68%) than 77.34% of its industry peers.
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.
ESMT's Return On Invested Capital of 2.11% is fine compared to the rest of the industry. ESMT outperforms 74.46% of its industry peers.
| 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 has a Gross Margin of 77.08%. This is in the better half of the industry: ESMT outperforms 73.38% of its industry peers.
ESMT's Gross Margin has improved in the last couple of years.
| 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.
ESMT has more shares outstanding than it did 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
An Altman-Z score of 27.53 indicates that ESMT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ESMT (27.53) is better than 98.56% of its industry peers.
ESMT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
The Current ratio of ESMT (6.71) is better 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.
With an excellent Quick ratio value of 6.71, ESMT belongs to the best of the industry, outperforming 91.73% of the companies in the same industry.
| 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%.
The Revenue has been growing by 54.50% on average over the past years. This is a very strong growth!
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
ESMT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.41% yearly.
Based on estimates for the next years, ESMT will show a very strong growth in Revenue. The Revenue will grow by 23.24% on average per year.
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
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 74.35, the valuation of ESMT can be described as expensive.
Based on the Price/Earnings ratio, ESMT is valued a bit cheaper than 60.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of ESMT to the average of the S&P500 Index (26.83), we can say ESMT is valued expensively.
The Price/Forward Earnings ratio is 66.46, which means the current valuation is very expensive for ESMT.
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 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.35 | ||
| Fwd PE | 66.46 |
4.2 Price Multiples
67.63% of the companies in the same industry are more expensive than ESMT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESMT is on the same level as its industry peers.
| 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
No dividends for ESMT!.
| 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)
Earnings (Next)
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 of EngageSmart Inc (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.
What are the PE and PB ratios of EngageSmart Inc (ESMT) stock?
The Price/Earnings (PE) ratio for EngageSmart Inc (ESMT) is 74.35 and the Price/Book (PB) ratio is 4.61.
What is the earnings growth outlook for EngageSmart Inc?
The Earnings per Share (EPS) of EngageSmart Inc (ESMT) is expected to grow by 20.63% in the next year.