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%)
ESMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. While ESMT has a great health rating, its profitability is only average at the moment. ESMT is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year ESMT was profitable.
ESMT had a positive operating cash flow in the past year.
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.
Looking at the Return On Invested Capital, with a value of 2.11%, ESMT is in the better half of 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's Profit Margin of 6.83% is amongst the best of the industry. ESMT outperforms 80.94% of its industry peers.
ESMT has a better Operating Margin (6.37%) than 76.62% of its industry peers.
The Gross Margin of ESMT (77.08%) is better than 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.
ESMT has more shares outstanding than it did 1 year ago.
ESMT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
ESMT has a better Altman-Z score (27.53) 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.
A Quick Ratio of 6.71 indicates that ESMT has no problem at all paying its short term obligations.
ESMT has a Quick ratio of 6.71. This is amongst the best in the industry. ESMT outperforms 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.
Looking at the last year, ESMT shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 20.41% on average over the next years. This is a very strong growth
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
The Price/Earnings ratio is 74.35, which means the current valuation is very expensive for ESMT.
Based on the Price/Earnings ratio, ESMT is valued a bit cheaper than the industry average as 60.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ESMT to the average of the S&P500 Index (27.17), we can say ESMT is valued expensively.
Based on the Price/Forward Earnings ratio of 66.46, the valuation of ESMT can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ESMT.
When comparing the Price/Forward Earnings ratio of ESMT to the average of the S&P500 Index (23.79), we can say ESMT is valued expensively.
| 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 an expensive valuation of the company.
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)
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 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.