NasdaqGS:EPAY

Stock Analysis Report

Bottomline Technologies (de)

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Bottomline Technologies (de)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.7%

EPAY

-6.6%

US Software

-4.2%

US Market


1 Year Return

-5.8%

EPAY

29.5%

US Software

14.0%

US Market

Return vs Industry: EPAY underperformed the US Software industry which returned 29.5% over the past year.

Return vs Market: EPAY underperformed the US Market which returned 14% over the past year.


Shareholder returns

EPAYIndustryMarket
7 Day-5.7%-6.6%-4.2%
30 Day-15.5%1.8%-1.8%
90 Day-7.7%8.4%2.6%
1 Year-5.8%-5.8%30.8%29.5%16.3%14.0%
3 Year86.3%86.3%138.3%128.2%43.2%34.0%
5 Year75.0%75.0%203.2%181.5%65.9%47.6%

Price Volatility Vs. Market

How volatile is Bottomline Technologies (de)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

341.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EPAY ($46.47) is trading above our estimate of fair value ($41.01)

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


Price To Earnings Ratio

PE vs Industry: EPAY is poor value based on its PE Ratio (341.5x) compared to the Software industry average (48.4x).

PE vs Market: EPAY is poor value based on its PE Ratio (341.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EPAY is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: EPAY is good value based on its PB Ratio (4.9x) compared to the US Software industry average (5.8x).


Next Steps

Future Growth

How is Bottomline Technologies (de) forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

65.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPAY's forecast earnings growth (65.5% per year) is above the savings rate (1.7%).

Earnings vs Market: EPAY's earnings (65.5% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: EPAY's revenue (10.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EPAY's revenue (10.7% 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 EPAY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bottomline Technologies (de) performed over the past 5 years?

46.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPAY has a large one-off gain of $5.2M impacting its December 31 2019 financial results.

Growing Profit Margin: EPAY's current net profit margins (1.3%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: EPAY has become profitable over the past 5 years, growing earnings by 46.6% per year.

Accelerating Growth: EPAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EPAY had negative earnings growth (-63.8%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: EPAY's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bottomline Technologies (de)'s financial position?


Financial Position Analysis

Short Term Liabilities: EPAY's short term assets ($196.8M) exceed its short term liabilities ($132.3M).

Long Term Liabilities: EPAY's short term assets ($196.8M) exceed its long term liabilities ($166.7M).


Debt to Equity History and Analysis

Debt Level: EPAY's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: EPAY's debt to equity ratio has reduced from 41.9% to 25.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: EPAY's debt is covered by short term assets (assets are 1.9x 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: EPAY is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: EPAY is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate EPAY'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 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

Management

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

8.5yrs

Average management tenure


CEO

Rob Eberle (58yo)

13.3yrs

Tenure

US$8,373,383

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 ($USD8.37M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Eberle
President13.3yrsUS$8.37m1.1% $22.5m
Richard Booth
CFO & Treasurer4.8yrsUS$2.21m0.26% $5.3m
John Kelly
GM of Legal Solutions8.8yrsUS$849.94k0.13% $2.6m
Nigel Savory
Managing Director of Europe16.2yrsUS$5.26m0.37% $7.5m
Norman DeLuca
Managing Director of Banking Solutions8.3yrsUS$2.23m0.18% $3.6m
John Mason
Chief Information Officer9.7yrsno datano data
David Sweet
Executive VP of Strategy & Corporate Development6.9yrsno datano data
Christine Nurnberger
Chief Marketing Officer5.4yrsno datano data
Stephanie Lucey
Chief People Officer1.8yrsno datano data
Andrew Mintzer
Executive VP of Product Strategy & Customer Delivery12.3yrsno datano data

8.5yrs

Average Tenure

54yo

Average Age

Experienced Management: EPAY's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Eberle
President13.3yrsUS$8.37m1.1% $22.5m
Joseph Mullen
Independent Chairman of the Board12.8yrsUS$414.96k0.18% $3.7m
Jeffrey Leathe
Independent Director14.5yrsUS$328.15k0.032% $650.5k
Paul Hough
Independent Director2.8yrsUS$308.15k0.043% $882.8k
Benjamin Robinson
Independent Director3.8yrsUS$309.15k0.041% $836.4k
Peter Gibson
Independent Director3.8yrsUS$310.65k0.070% $1.4m
Jennifer Gray
Independent Director7.8yrsUS$313.15k0.045% $929.5k
Kenneth D'Amato
Lead Director4.3yrsUS$330.65k0.059% $1.2m

6.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: EPAY's board of directors are considered experienced (6 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 been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Bottomline Technologies (de), Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bottomline Technologies (de), Inc.
  • Ticker: EPAY
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.045b
  • Shares outstanding: 44.01m
  • Website: https://www.bottomline.com

Number of Employees


Location

  • Bottomline Technologies (de), Inc.
  • 325 Corporate Drive
  • Portsmouth
  • New Hampshire
  • 3801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPAYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1999
BOTDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1999

Biography

Bottomline Technologies (de), 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 Transactional Documents, and Other. The company’s products and services include Paymode-X, an integrated payment solution, which allows businesses to transition from manual accounts payable payments processes to an integrated solution; and financial messaging solutions for risk management to banks and corporations. It also provides Digital Banking Intelligent Engagement platform that enables banks to engage with customers; legal spend management solutions and services, which integrate with claims management, and time and billing systems to automate legal invoice management processes, as well as provide insight into various areas of a company’s outside legal spend. In addition, the company offers cyber fraud and risk management solutions to monitor, replay, and analyse user behaviour and payment transactions to flag and stop suspicious activity in real time; payment automation solutions that generate various domestic and international payment instructions along with consolidated bank reporting of cash activity; and various solutions for healthcare industry to address patient registration, electronic signature, mobile document, payments, and cybersecurity. Further, it provides consulting, project implementation, and training services. The company serves customers in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies (de), Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:20
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.