DB:EKE

Stock Analysis Report

Executive Summary

Esker SA provides document processing automation solutions in France and internationally.


Snowflake Analysis

High growth potential with solid track record.


Similar Companies

Share Price & News

How has Esker's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EKE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

EKE

-8.3%

DE Software

-6.8%

DE Market


1 Year Return

67.1%

EKE

27.2%

DE Software

6.5%

DE Market

Return vs Industry: EKE exceeded the German Software industry which returned 27.2% over the past year.

Return vs Market: EKE exceeded the German Market which returned 6.5% over the past year.


Shareholder returns

EKEIndustryMarket
7 Day-2.8%-8.3%-6.8%
30 Day2.2%-2.7%-3.7%
90 Day30.7%-1.9%-3.6%
1 Year68.0%67.1%28.9%27.2%9.8%6.5%
3 Year140.0%136.1%43.7%37.9%6.8%-2.6%
5 Year520.9%499.7%110.2%95.3%12.5%-2.9%

Price Volatility Vs. Market

How volatile is Esker's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Esker undervalued compared to its fair value and its price relative to the market?

63.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EKE (€109.8) is trading above our estimate of fair value (€56.86)

Significantly Below Fair Value: EKE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EKE is poor value based on its PE Ratio (63.3x) compared to the Software industry average (42.9x).

PE vs Market: EKE is poor value based on its PE Ratio (63.3x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: EKE is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: EKE is overvalued based on its PB Ratio (11.3x) compared to the DE Software industry average (3.1x).


Next Steps

Future Growth

How is Esker forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EKE's forecast earnings growth (22.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: EKE's earnings (22.8% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EKE's revenue (15.3% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: EKE's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EKE's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Esker performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EKE has high quality earnings.

Growing Profit Margin: EKE's current net profit margins (9.3%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: EKE's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: EKE's earnings growth over the past year (25.7%) exceeds its 5-year average (13% per year).

Earnings vs Industry: EKE earnings growth over the past year (25.7%) exceeded the Software industry 14.6%.


Return on Equity

High ROE: EKE's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Esker's financial position?


Financial Position Analysis

Short Term Liabilities: EKE's short term assets (€45.9M) exceed its short term liabilities (€19.0M).

Long Term Liabilities: EKE's short term assets (€45.9M) exceed its long term liabilities (€17.5M).


Debt to Equity History and Analysis

Debt Level: EKE's debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: EKE's debt to equity ratio has increased from 1.9% to 11.4% over the past 5 years.

Debt Coverage: EKE's debt is well covered by operating cash flow (257.6%).

Interest Coverage: EKE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EKE has a low level of unsold assets or inventory.

Debt Coverage by Assets: EKE's debt is covered by short term assets (assets are 7.8x debt).


Next Steps

Dividend

What is Esker's current dividend yield, its reliability and sustainability?

0.37%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: EKE's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: EKE's dividend (0.38%) is low compared to the top 25% of dividend payers in the German market (3.81%).


Stability and Growth of Payments

Stable Dividend: EKE is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: EKE is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EKE is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EKE's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.1yrs

Average board tenure


CEO

Jean-Michel Bérard (57yo)

€386,556

Compensation

Mr. Jean-Michel Bérard Founded Esker S.A. and serves as its Chief Executive Officer. Mr. Bérard is Co-Founder and Worldwide Chief Executive Officer of Esker Inc. He has been the Chairman of The Management  ...


CEO Compensation Analysis

Compensation vs Market: Jean-Michel's total compensation ($USD420.54K) is below average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Jean-Michel's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kleber Beauvillain
Vice Chairman of Supervisory Board20.1yrs€24.00k0.13% 775.3k
Thomas Wolfe
Member of Supervisory Board21.1yrs€21.00k4.84% 29.6m
Marie-Claude Bernal
Chair of the Supervisory Board0yrsno datano data
Nicole Pelletier-Perez
Member of Supervisory Board3.1yrs€24.00kno data

20.1yrs

Average Tenure

Experienced Board: EKE's board of directors are seasoned and experienced ( 20.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Esker SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Esker SA
  • Ticker: EKE
  • Exchange: DB
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €611.394m
  • Shares outstanding: 5.60m
  • Website: https://www.esker.fr

Number of Employees


Location

  • Esker SA
  • 113 Boulevard de Stalingrad
  • Villeurbanne
  • Lyon
  • Rhône-Alpes
  • 69100
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALESKENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 1997
0RSLLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1997
EKEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1997

Biography

Esker SA provides document processing automation solutions in France and internationally. It offers financial and customer service departments digitally transform their order-to-cash and purchase-to-pay cycles. The company provides document automation technologies, including Esker on Demand, a cloud-based document process and information exchange service that enables companies to automate business documents; Esker DeliveryWare, a license-based document process automation product; Esker Fax/VSI-Fax, which integrates fax with enterprise applications and messaging platforms; and FlyDoc for the delivery of mail on demand. The company also offers host access products to support the host access needs; and business process outsourcing solution that handles order and invoice data processing and validation. In addition, it provides maintenance services and related services, such as training and installation assistance; and outsourcing of fax and mail services; and fax boards. The company serves the life sciences, manufacturing, food and beverage, electronics, and chemical industries. Esker SA was founded in 1985 and is headquartered in Lyon, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:11
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.