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 Analysis

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

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


Market Performance


7 Day Return

12.5%

EIGI

4.3%

US IT

2.4%

US Market


1 Year Return

-70.8%

EIGI

-1.2%

US IT

-10.0%

US Market

Return vs Industry: EIGI underperformed the US IT industry which returned -1.2% over the past year.

Return vs Market: EIGI underperformed the US Market which returned -10% over the past year.


Shareholder returns

EIGIIndustryMarket
7 Day12.5%4.3%2.4%
30 Day-21.7%-10.0%-11.0%
90 Day-60.2%-15.6%-19.4%
1 Year-70.8%-70.8%-0.3%-1.2%-8.1%-10.0%
3 Year-71.1%-71.1%66.3%59.3%17.3%9.6%
5 Year-91.1%-91.1%94.7%77.7%36.1%21.1%

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 ($1.98) is trading below our estimate of fair value ($10.52)

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 (1.5x) compared to the US IT industry average (2.9x).


Next Steps

Future Growth

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

56.7%

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 (1.7%).

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

High Growth Earnings: EIGI's is expected to become profitable in the next 3 years.

Revenue vs Market: EIGI's revenue (1.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: EIGI's revenue (1.4% 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?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EIGI is currently unprofitable.

Growing Profit Margin: EIGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EIGI is unprofitable, but has reduced losses over the past 5 years at a rate of 5.7% 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 (13.7%).


Return on Equity

High ROE: EIGI has a negative Return on Equity (-6.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Endurance International Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EIGI's short term assets ($247.6M) do not cover its short term liabilities ($525.7M).

Long Term Liabilities: EIGI's short term assets ($247.6M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: EIGI's debt to equity ratio (853.7%) is considered high.

Reducing Debt: EIGI's debt to equity ratio has increased from 530.7% to 853.7% over the past 5 years.


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 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 11.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

2.8yrs

Average management tenure


CEO

Jeff Fox (57yo)

2.67s

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's total compensation ($USD2.93M) is above average for companies of similar size in the US market ($USD1.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Fox
President2.67yrsUS$2.93m0.73% $2.1m
Marc Montagner
Chief Financial Officer4.58yrsUS$3.74m0.37% $1.1m
David Bryson
Chief Legal Officer & Secretary6.75yrsUS$1.19m0.28% $833.2k
John Orlando
Chief Marketing Officer3.67yrsUS$1.95m0.065% $189.3k
Christine Barry
Chief Operating Officer of Web Presence2.58yrsUS$857.53k0.024% $69.5k
Michael Lillie
Chief Information Officer2.83yrsno datano data
Angela White
Vice President of Investor Relationsno datano datano data
Lauren Chacon
Chief Sales Officer2.25yrsno datano data
Tom Aurelio
Chief Human Resources Officer1.42yrsno datano data
Joe Bardenheier
Senior Vice President of M&Ano datano datano data

2.8yrs

Average Tenure

57yo

Average Age

Experienced Management: EIGI's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Fox
President2.67yrsUS$2.93m0.73% $2.1m
James Neary
Independent Chairman of the Board8.33yrsno datano data
Justin Sadrian
Independent Director8.33yrsno datano data
L. Crandall
Independent Director6.83yrsUS$400.00k0.053% $154.5k
Joseph DiSabato
Independent Director8.33yrsno datano data
Peter Perrone
Independent Director8.33yrsUS$390.00k0.063% $184.3k
Chandler Reedy
Independent Director8.33yrsno datano data
Tomas Gorny
Director13.25yrsUS$380.00k1.62% $4.7m
Andrea Ayers
Independent Director1.17yrsno datano data
Alexi Wellman
Director1yrno datano data

8.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: EIGI's board of directors are considered experienced (8.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

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$292.427m
  • Shares outstanding: 147.69m
  • 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
EI0BRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 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 company operates in three segments: Web Presence, Domain, and Email Marketing. It offers Web hosting services, including entry-level shared hosting, and virtual private server and dedicated hosting solutions; Website building tools that enable subscribers to create a Web presence; domain registration, management, and resale services; malware protection solutions to protect subscribers’ Websites from viruses, malicious code, and other threats; and backup control solutions that enable subscribers to schedule, maintain, manage, and restore backups of their online data and Websites. The company also provides solutions that allow subscribers to have their Websites rendered on mobile devices; search engine optimization and marketing solutions; tools and services that enable subscribers to communicate with their customers and potential customers through social networks; and control panels and dashboards that offer subscribers with tools to analyze activity on their Websites. In addition, it offers email marketing solutions that enable subscribers to communicate with their customers and potential customers through email; email capabilities, including custom mailboxes that reflect a subscriber’s domain name, spam filters, email aliases, and forwarding functionality; email, collaboration, and file sharing tools; products that enable secure and encrypted payments, shopping carts, payment processing and related services, and mobile payments; platform that creates and manages digital storefront listings through one interface; and professional services and Web design services. The company also offers Blue Flash, which offers personal guidance and helps users to build their Websites. The company was founded in 1997 and is headquartered in Burlington, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:56
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.