essensys (AIM:ESYS) - Share price, News & Analysis

ESYS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

ESYS Stock Overview

essensys plc provides software-as-a-service platforms and on-demand cloud services to the workspace industry in the United Kingdom and the United States of America.

Rewards

Revenue is forecast to grow 16.64% per year

Risk Analysis

Earnings are forecast to decline by an average of 8.2% per year for the next 3 years

Highly volatile share price over the past 3 months

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk

essensys Competitors

ATTRAQT Group

AIM:ATQT

UK£50.4m

ActiveOps

AIM:AOM

UK£53.2m

Sopheon

AIM:SPE

UK£55.8m

Eleco

AIM:ELCO

UK£61.7m

Price History & Performance

Summary of all time highs, changes and price drops for essensys
Historical stock prices
Current Share Price	UK£0.77
52 Week High	UK£3.10
52 Week Low	UK£0.69
Beta	0.78
1 Month Change	-5.52%
3 Month Change	-3.75%
1 Year Change	-72.60%
3 Year Change	-59.90%
5 Year Change	n/a
Change since IPO	-55.75%

Shareholder Returns

	ESYS	GB Software	GB Market
7D	-4.1%	1.8%	1.8%
1Y	-72.6%	-22.5%	-7.3%

Return vs Industry: ESYS underperformed the UK Software industry which returned -22.5% over the past year.

Return vs Market: ESYS underperformed the UK Market which returned -7.3% over the past year.

Price Volatility

Is ESYS's price volatile compared to industry and market?
ESYS volatility
ESYS Average Weekly Movement	13.8%
Software Industry Average Movement	5.5%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: ESYS is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: ESYS's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2006	159	Mark Furness	https://www.essensys.tech

essensys plc provides software-as-a-service platforms and on-demand cloud services to the workspace industry in the United Kingdom and the United States of America. The company’s products include Connect, a software platform for multi-site operators that provide, manage, and monitor mission-critical infrastructure services in real-time; and Operate, an end-to-end solution for multi-site workspace operators for managing day-to-day operations. It serves multi-site flexible workspace providers, commercial real estate providers, and multi-site landlords.

essensys Fundamentals Summary

How do essensys's earnings and revenue compare to its market cap?
ESYS fundamental statistics
Market Cap	UK£49.58m
Earnings (TTM)	-UK£6.53m
Revenue (TTM)	UK£22.31m

2.2x

P/S Ratio

-7.6x

P/E Ratio

Is ESYS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESYS income statement (TTM)
Revenue	UK£22.31m
Cost of Revenue	UK£8.30m
Gross Profit	UK£14.02m
Other Expenses	UK£20.55m
Earnings	-UK£6.53m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.10
Gross Margin	62.81%
Net Profit Margin	-29.27%
Debt/Equity Ratio	0%

How did ESYS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ESYS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ESYS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ESYS. This is calculated by dividing ESYS's market cap by their current preferred multiple.
What is ESYS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£49.58m

ESYS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	-3.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ESYS's PS Ratio compare to its peers?

ESYS PS Ratio vs Peers

The above table shows the PS ratio for ESYS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.2x
ATQT ATTRAQT Group	2.2x	12.9%	UK£50.4m
AOM ActiveOps	2.4x	7.0%	UK£53.2m
SPE Sopheon	2x	8.0%	UK£55.8m
ELCO Eleco	2.3x	7.2%	UK£61.7m
ESYS essensys	2.2x	16.6%	UK£49.6m

Forward PS

Price-To-Sales vs Peers: ESYS is expensive based on its Price-To-Sales Ratio (2.2x) compared to the peer average (2.2x).

Price to Earnings Ratio vs Industry

How does ESYS's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Sales vs Industry: ESYS is good value based on its Price-To-Sales Ratio (2.2x) compared to the UK Software industry average (3.6x)

Price to Sales Ratio vs Fair Ratio

What is ESYS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ESYS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.2x
Fair PS Ratio	2.7x

Price-To-Sales vs Fair Ratio: ESYS is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

Share Price vs Fair Value

What is the Fair Price of ESYS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ESYS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ESYS's fair value for valuation analysis.

Price to Earnings Growth Ratio

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

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Future Growth

How is essensys forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESYS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ESYS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ESYS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ESYS's revenue (16.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ESYS's revenue (16.6% 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

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Past Performance

How has essensys performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-65.2%

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 65.2% 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 (-14.3%).

Return on Equity

High ROE: ESYS has a negative Return on Equity (-16.17%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is essensys's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ESYS's short term assets (£37.0M) exceed its short term liabilities (£5.1M).

Long Term Liabilities: ESYS's short term assets (£37.0M) exceed its long term liabilities (£3.3M).

Debt to Equity History and Analysis

Debt Level: ESYS is debt free.

Reducing Debt: ESYS has no debt compared to 5 years ago when its debt to equity ratio was 117.9%.

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: ESYS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ESYS has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of 59.6% each year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ESYS has not reported any payouts.

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Management

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

1.3yrs

Average management tenure

CEO

Mark Furness (47 yo)

no data

Tenure

UK£273,000

Compensation

Mr. Mark Furness has been Director at essensys plc since January 22, 2019 and also serves as its Chief Executive Officer. Mr. Furness has experience building IT and telecommunications organisations in both...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD332.74K) is about average for companies of similar size in the UK market ($USD335.69K).

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

Leadership Team

Experienced Management: ESYS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: ESYS's board of directors are considered experienced (3.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: ESYS insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/01/31
Annual Earnings	2021/07/31