EngageSmart Inc (ESMT) Fundamental Analysis & Valuation

NYSE:ESMT • US29283F1030

Current stock price

23.05 USD
-0.02 (-0.09%)
At close:
23.09 USD
+0.04 (+0.17%)
After Hours:

This ESMT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ESMT Profitability Analysis

1.1 Basic Checks

  • In the past year ESMT was profitable.
  • In the past year ESMT had a positive cash flow from operations.
ESMT Yearly Net Income VS EBIT VS OCF VS FCFESMT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 0 20M -20M 40M -40M

1.2 Ratios

  • ESMT has a Return On Assets of 2.68%. This is in the better half of the industry: ESMT outperforms 77.34% of its industry peers.
  • ESMT has a better Return On Equity (2.95%) than 76.26% of its industry peers.
  • ESMT has a Return On Invested Capital of 2.11%. This is in the better half of the industry: ESMT outperforms 74.46% of its industry peers.
Industry RankSector 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
ESMT Yearly ROA, ROE, ROICESMT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 0 -5 -10

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.
  • The Operating Margin of ESMT (6.37%) is better than 76.62% of its industry peers.
  • Looking at the Gross Margin, with a value of 77.08%, ESMT is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ESMT has grown nicely.
Industry RankSector 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
ESMT Yearly Profit, Operating, Gross MarginsESMT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. ESMT Health Analysis

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.
ESMT Yearly Shares OutstandingESMT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 50M 100M 150M
ESMT Yearly Total Debt VS Total AssetsESMT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 200M 400M 600M 800M

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.
  • ESMT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 27.53
ROIC/WACC0.22
WACC9.52%
ESMT Yearly LT Debt VS Equity VS FCFESMT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 0 200M 400M 600M 800M

2.3 Liquidity

  • ESMT has a Current Ratio of 6.71. This indicates that ESMT is financially healthy and has no problem in meeting its short term obligations.
  • ESMT's Current ratio of 6.71 is amongst the best of the industry. ESMT outperforms 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.
  • Looking at the Quick ratio, with a value of 6.71, ESMT belongs to the top of the industry, outperforming 91.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 6.71
Quick Ratio 6.71
ESMT Yearly Current Assets VS Current LiabilitesESMT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. ESMT Growth Analysis

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%.
  • Measured over the past years, ESMT shows a very strong growth in Revenue. The Revenue has been growing by 54.50% on average per year.
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.
ESMT Yearly Revenue VS EstimatesESMT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
ESMT Yearly EPS VS EstimatesESMT Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

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Find the best growth stocksShow best growing peers

2

4. ESMT Valuation Analysis

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.
  • ESMT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 66.46 indicates a quite expensive valuation of ESMT.
  • ESMT's Price/Forward Earnings ratio is in line with the industry average.
  • ESMT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.24.
Industry RankSector Rank
PE 74.35
Fwd PE 66.46
ESMT Price Earnings VS Forward Price EarningsESMT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESMT is valued a bit cheaper than 67.63% of the companies in the same industry.
  • 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 RankSector Rank
P/FCF 74.93
EV/EBITDA 82.01
ESMT Per share dataESMT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ESMT Dividend Analysis

5.1 Amount

  • No dividends for ESMT!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

ESMT Fundamentals: All Metrics, Ratios and Statistics

EngageSmart Inc

NYSE:ESMT (1/25/2024, 8:19:29 PM)

After market: 23.09 +0.04 (+0.17%)

23.05

-0.02 (-0.09%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-02
Earnings (Next)02-13
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


Can you provide the profitability details for EngageSmart Inc?

EngageSmart Inc (ESMT) has a profitability rating of 4 / 10.


What is the financial health of EngageSmart Inc (ESMT) stock?

The financial health rating of EngageSmart Inc (ESMT) is 8 / 10.