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EngageSmart Inc (ESMT) Stock Fundamental Analysis

NYSE:ESMT - US29283F1030 - Common Stock

23.05 USD
-0.02 (-0.09%)
Last: 1/25/2024, 8:19:29 PM
23.09 USD
+0.04 (+0.17%)
After Hours: 1/25/2024, 8:19:29 PM
Fundamental Rating

5

ESMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 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.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year ESMT was profitable.
ESMT had a positive operating cash flow in the past year.
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

With a decent Return On Assets value of 2.68%, ESMT is doing good in the industry, outperforming 77.34% of the companies in the same industry.
ESMT's Return On Equity of 2.95% is fine compared to the rest of the industry. ESMT outperforms 76.26% of its industry peers.
ESMT has a better Return On Invested Capital (2.11%) than 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

With an excellent Profit Margin value of 6.83%, ESMT belongs to the best of the industry, outperforming 80.94% of the companies in the same industry.
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.
ESMT's Gross Margin has improved in the last couple of years.
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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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESMT is destroying value.
The number of shares outstanding for ESMT has been increased compared to 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.
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

An Altman-Z score of 27.53 indicates that ESMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 27.53, ESMT belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
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

A Current Ratio of 6.71 indicates that ESMT has no problem at all paying its short term obligations.
ESMT has a Current ratio of 6.71. This is amongst the best in 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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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.17% over the past year.
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.
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.
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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2

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.
ESMT's Price/Earnings ratio is a bit cheaper when compared to the industry. ESMT is cheaper than 60.79% of the companies in the same industry.
ESMT is valuated expensively when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 66.46, ESMT can be considered very expensive at the moment.
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 22.76.
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 the industry average as 67.63% of the companies are valued more expensively.
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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0

5. Dividend

5.1 Amount

ESMT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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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 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
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
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
ROICexcg growth 3YN/A
ROICexcg 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