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EPAY

Bottomline TechnologiesNasdaqGS:EPAY Stock Report

Last Price

US$56.36

Market Cap

US$2.5b

7D

-0.2%

1Y

6.9%

Updated

18 Jan, 2022

Data

Company Financials +
EPAY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health6/6
Dividends0/6

EPAY Stock Overview

Bottomline Technologies, Inc. provides various solutions for the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries.

Bottomline Technologies Competitors

Coupa Software

NasdaqGS:COUP

US$9.9b

NCR

NYSE:NCR

US$5.5b

Vonage Holdings

NasdaqGS:VG

US$5.3b

ACI Worldwide

NasdaqGS:ACIW

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Bottomline Technologies
Historical stock prices
Current Share PriceUS$56.36
52 Week HighUS$56.80
52 Week LowUS$36.05
Beta1.41
1 Month Change0.41%
3 Month Change27.08%
1 Year Change6.93%
3 Year Change14.32%
5 Year Change119.47%
Change since IPO175.34%

Recent News & Updates

Dec 14

Bottomline: Cloud Solutions, Machine Learning, And Undervalued

Bottomline helps businesses accelerate the digital transformation of payments. The company’s Cloud Solutions segment will continue to drive revenue growth in the coming years. Take into account that the Cloud Computing industry is expected to grow at a CAGR of 17.5% in the next four years. In my opinion, EPAY already works with a large number of organizations, clients, and partners. Thus, finding new stakeholders will not be difficult. I assumed D&A of $60-$110 million, changes of accounts receivables of $7-$15 million, and capital expenditures of $45-$60 million. The free cash flow would increase from $85 million in 2024-2025 to $300 million in 2031.

Shareholder Returns

EPAYUS SoftwareUS Market
7D-0.2%-5.8%-3.5%
1Y6.9%12.7%10.2%

Return vs Industry: EPAY underperformed the US Software industry which returned 17.2% over the past year.

Return vs Market: EPAY underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is EPAY's price volatile compared to industry and market?
EPAY volatility
EPAY Average Weekly Movement8.5%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: EPAY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EPAY's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19892,344Rob Eberlehttps://www.bottomline.com

Bottomline Technologies, Inc. provides various solutions for the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Documents, and Other. The company’s products and services include Paymode-X, a SaaS solution, which allows businesses to transition from legacy invoice-to-pay processes maximizing cost-savings, efficiency, and security; PTX, a payment platform that offers various ways to pay and get paid to organizations; and financial messaging solutions for risk management to financial institutions and corporations.

Bottomline Technologies Fundamentals Summary

How do Bottomline Technologies's earnings and revenue compare to its market cap?
EPAY fundamental statistics
Market CapUS$2.53b
Earnings (TTM)-US$21.59m
Revenue (TTM)US$482.64m

5.3x

P/S Ratio

-117.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPAY income statement (TTM)
RevenueUS$482.64m
Cost of RevenueUS$202.24m
Gross ProfitUS$280.40m
ExpensesUS$301.99m
Earnings-US$21.59m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.48
Gross Margin58.10%
Net Profit Margin-4.47%
Debt/Equity Ratio30.1%

How did EPAY perform over the long term?

See historical performance and comparison

Valuation

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

5.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EPAY ($56.36) is trading above our estimate of fair value ($49.44)

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


Price To Earnings Ratio

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

PE vs Market: EPAY 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 EPAY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EPAY is overvalued based on its PB Ratio (5.7x) compared to the US Software industry average (5.1x).


Future Growth

How is Bottomline Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

44.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: EPAY's revenue (11% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: EPAY's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPAY's Return on Equity is forecast to be low in 3 years time (13.7%).


Past Performance

How has Bottomline Technologies performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPAY is currently unprofitable.

Growing Profit Margin: EPAY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EPAY is unprofitable, but has reduced losses over the past 5 years at a rate of 19.9% per year.

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

Earnings vs Industry: EPAY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20%).


Return on Equity

High ROE: EPAY has a negative Return on Equity (-4.9%), as it is currently unprofitable.


Financial Health

How is Bottomline Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: EPAY's short term assets ($237.8M) exceed its short term liabilities ($147.5M).

Long Term Liabilities: EPAY's short term assets ($237.8M) exceed its long term liabilities ($199.8M).


Debt to Equity History and Analysis

Debt Level: EPAY's net debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: EPAY's debt to equity ratio has reduced from 60.3% to 30.1% 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 EPAY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EPAY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.1% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EPAY'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 EPAY's dividends per share have been stable in the past.

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


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

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

8.1yrs

Average management tenure


CEO

Rob Eberle (60 yo)

17.42yrs

Tenure

US$6,413,247

Compensation

Mr. Robert A. Eberle, also known as Rob, has been the Chief Executive Officer of Bottomline Technologies(de), Inc. since November 16, 2006 and its President since August 27, 2004. Mr. Eberle serves as the...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD6.41M) is about average for companies of similar size in the US market ($USD5.13M).

Compensation vs Earnings: Rob's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: EPAY's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: EPAY's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EPAY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bottomline Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Bottomline Technologies, Inc.
  • Ticker: EPAY
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$2.534b
  • Shares outstanding: 44.96m
  • Website: https://www.bottomline.com

Number of Employees


Location

  • Bottomline Technologies, Inc.
  • 325 Corporate Drive
  • Portsmouth
  • New Hampshire
  • 03801-6808
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 23:54
End of Day Share Price2022/01/18 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.