AIM:ESYS

Stock Analysis Report

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Executive Summary

essensys plc provides mission-critical software-as-a-service platforms and on-demand cloud services to the high growth flexible workspace industry in the United Kingdom and the United States.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ESYS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ESYS

-1.7%

GB Software

-0.8%

GB Market


1 Year Return

-17.6%

ESYS

-12.5%

GB Software

-15.4%

GB Market

Return vs Industry: ESYS underperformed the UK Software industry which returned -11.8% over the past year.

Return vs Market: ESYS underperformed the UK Market which returned -16% over the past year.


Shareholder returns

ESYSIndustryMarket
7 Day0%-1.7%-0.8%
30 Day-1.6%-1.3%-3.4%
90 Day-1.6%11.0%5.6%
1 Year-17.6%-17.6%-10.7%-12.5%-11.4%-15.4%
3 Yearn/a-22.3%-33.7%-4.5%-16.3%
5 Yearn/a19.7%-3.0%12.7%-12.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESYS (£1.5) is trading below our estimate of fair value (£2.41)

Significantly Below Fair Value: ESYS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESYS is unprofitable, so we can't compare its PE Ratio to the GB Software industry average.

PE vs Market: ESYS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESYS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESYS is overvalued based on its PB Ratio (8x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

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

12.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ESYS's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if ESYS's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: ESYS's revenue (12.5% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: ESYS's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ESYS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has essensys performed over the past 5 years?

-40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESYS is currently unprofitable.

Growing Profit Margin: ESYS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ESYS is unprofitable, and losses have increased over the past 5 years at a rate of -40.6% per year.

Accelerating Growth: Unable to compare ESYS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ESYS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.8%).


Return on Equity

High ROE: ESYS has a negative Return on Equity (-12.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is essensys's financial position?


Financial Position Analysis

Short Term Liabilities: ESYS's short term assets (£8.7M) exceed its short term liabilities (£6.7M).

Long Term Liabilities: ESYS's short term assets (£8.7M) exceed its long term liabilities (£1.4M).


Debt to Equity History and Analysis

Debt Level: ESYS is debt free.

Reducing Debt: ESYS had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ESYS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ESYS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ESYS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ESYS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ESYS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ESYS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.2yrs

Average board tenure


CEO

Mark Furness (46yo)

no data

Tenure

UK£365,000

Compensation

Mr. Mark Furness has been Director at essensys plc since January 22, 2019 and also serves as Chief Executive Officer and Founder at essensys plc. Mr. Furness is the Founder and Chief Executive Officer of e ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD460.44K) is above average for companies of similar size in the UK market ($USD346.91K).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Mark Furness
Founderno dataUK£365.00k39.6% £31.3m
Alan Pepper
CFO & Director1.5yrsUK£612.00k0.94% £744.7k
Jonathan Lee
Independent Non-Executive Chairman1.17yrsUK£19.00k0.063% £49.7k
Charles Alistair Butler
Independent Non-Executive Director1.17yrsUK£12.00k0.063% £49.7k
Alexandra Notay
Independent Non-Executive Director0.50yrno datano data
Elizabeth Sandler
Independent Non-Executive Director0.50yrno datano data

1.2yrs

Average Tenure

48.5yo

Average Age

Experienced Board: ESYS's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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 9.6%.


Top Shareholders

Company Information

essensys plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: essensys plc
  • Ticker: ESYS
  • Exchange: AIM
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£79.115m
  • Shares outstanding: 52.74m
  • Website: https://www.essensys.tech

Number of Employees


Location

  • essensys plc
  • Aldgate Tower
  • 7th Floor
  • London
  • Greater London
  • E1 8FA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESYSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2019
3L8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2019

Biography

essensys plc provides mission-critical software-as-a-service platforms and on-demand cloud services to the high growth flexible workspace industry in the United Kingdom and the United States. The company’s products include Connect, a co-working software platform for multi-site operators that provides, manages, and monitors mission-critical infrastructure services in real-time; and Operate, an end-to-end solution for multi-site workspace operators for managing day-to-day co-working operations. It serves co-working spaces, serviced offices, science parks, property agents or brokers, commercial real estate stakeholders, business centers, and executive suites. The company was founded in 2006 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 20:52
End of Day Share Price2020/07/10 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.