NasdaqGS:EIGI

Stock Analysis Report

Endurance International Group Holdings

Executive Summary

Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses in the United States and internationally.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Endurance International Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.3%

EIGI

-1.8%

US IT

1.0%

US Market


1 Year Return

-49.7%

EIGI

20.6%

US IT

8.0%

US Market

Return vs Industry: EIGI underperformed the US IT industry which returned 20.6% over the past year.

Return vs Market: EIGI underperformed the US Market which returned 8% over the past year.


Shareholder returns

EIGIIndustryMarket
7 Day10.3%-1.8%1.0%
30 Day6.5%-0.9%-0.07%
90 Day-8.6%-5.5%-1.0%
1 Year-49.7%-49.7%21.9%20.6%10.4%8.0%
3 Year-46.6%-46.6%93.3%85.4%46.2%36.7%
5 Year-73.8%-73.8%146.1%123.5%64.3%46.2%

Price Volatility Vs. Market

How volatile is Endurance International Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Endurance International Group Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EIGI ($4.27) is trading below our estimate of fair value ($10.37)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EIGI is good value based on its PB Ratio (3.8x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Endurance International Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

73.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EIGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: EIGI is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: EIGI's loss is forecast to worsen by 0% next year.

Revenue vs Market: EIGI's revenue (1.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: EIGI's revenue (1.1% 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 EIGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Endurance International Group Holdings performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EIGI is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% per year.

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

Earnings vs Industry: EIGI is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (9.8%).


Return on Equity

High ROE: EIGI has a negative Return on Equity (-14.35%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EIGI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EIGI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Endurance International Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EIGI's short term assets ($237.6M) do not cover its short term liabilities ($545.1M)

Long Term Liabilities: EIGI's short term assets (237.6M) do not cover its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: EIGI's debt to equity ratio (1083%) is considered high

Reducing Debt: EIGI's debt to equity ratio has increased from 626% to 1083% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: EIGI's debt is not covered by short term assets (assets are 0.1x debt).


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 EIGI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EIGI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.3% per year.


Next Steps

Dividend

What is Endurance International Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if EIGI'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 EIGI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Endurance International Group Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Jeff Fox (57yo)

2.2yrs

Tenure

US$2,927,030

Compensation

Mr. Jeffrey H. Fox, also known as Jeff, has been Chief Executive Officer and President at Endurance International Group Holdings, Inc. since August 22, 2017. Mr. Fox is a Principal of The Circumference Gro ...


CEO Compensation Analysis

Compensation vs. Market: Jeff has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: EIGI's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: EIGI's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$128,85019 Jul 19
Okumus Fund Management, Ltd.
EntityCompany
Shares30,000
Max PriceUS$4.30
BuyUS$551,56317 May 19
Okumus Fund Management, Ltd.
EntityCompany
Shares114,200
Max PriceUS$4.94
BuyUS$2,067,18117 May 19
Okumus Fund Management, Ltd.
EntityCompany
Shares411,178
Max PriceUS$5.10
BuyUS$299,28014 May 19
Okumus Fund Management, Ltd.
EntityCompany
Shares50,000
Max PriceUS$5.99
BuyUS$2,048,34409 May 19
Okumus Fund Management, Ltd.
EntityCompany
Shares403,123
Max PriceUS$5.15
SellUS$22,85419 Nov 18
John Orlando
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer
Shares2,667
Max PriceUS$8.57

Ownership Breakdown


Management Team

  • Jeff Fox (57yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$2.93m
  • Marc Montagner (57yo)

    Chief Financial Officer

    • Tenure: 4.1yrs
    • Compensation: US$3.74m
  • David Bryson (66yo)

    Chief Legal Officer & Secretary

    • Tenure: 6.3yrs
    • Compensation: US$1.19m
  • John Orlando (53yo)

    Chief Marketing Officer

    • Tenure: 3.2yrs
    • Compensation: US$1.95m
  • Angela White

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Christine Barry (54yo)

    Chief Operating Officer of Web Presence

    • Tenure: 2.1yrs
    • Compensation: US$857.53k
  • Lauren Chacon

    Chief Sales Officer

    • Tenure: 1.8yrs
  • Allen Chaves

    Chief Technology Officer

    • Tenure: 2.4yrs
  • Mike Lillie

    Chief Information Officer

    • Tenure: 2.3yrs
  • Tom Aurelio

    Chief Human Resources Officer

    • Tenure: 0.9yrs

Board Members

  • Jim Neary (54yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
  • Jeff Fox (57yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$2.93m
  • Justin Sadrian (47yo)

    Independent Director

    • Tenure: 7.8yrs
  • L. Crandall (78yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$400.00k
  • Joe DiSabato (52yo)

    Independent Director

    • Tenure: 7.8yrs
  • Pete Perrone (51yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$390.00k
  • Chandler Reedy (39yo)

    Independent Director

    • Tenure: 7.8yrs
  • Tomas Gorny (44yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$380.00k
  • Andrea Ayers (55yo)

    Independent Director

    • Tenure: 0.7yrs
  • Alexi Wellman (49yo)

    Director

    • Tenure: 0.5yrs

Company Information

Endurance International Group Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Endurance International Group Holdings, Inc.
  • Ticker: EIGI
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$623.656m
  • Shares outstanding: 146.06m
  • Website: https://www.endurance.com

Number of Employees


Location

  • Endurance International Group Holdings, Inc.
  • 10 Corporate Drive
  • Suite 300
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EIGINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2013

Biography

Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses in the United States and internationally. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:33
End of Day Share Price2019/10/21 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.