NYSE:ENV

Stock Analysis Report

Executive Summary

Envestnet, Inc., together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Envestnet's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

ENV

2.1%

US Software

0.5%

US Market


1 Year Return

28.3%

ENV

37.9%

US Software

16.1%

US Market

Return vs Industry: ENV underperformed the US Software industry which returned 37.9% over the past year.

Return vs Market: ENV exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

ENVIndustryMarket
7 Day0.3%2.1%0.5%
30 Day8.5%10.7%3.9%
90 Day15.0%5.4%6.6%
1 Year28.3%28.3%40.0%37.9%18.7%16.1%
3 Year66.9%66.9%127.4%118.5%47.2%37.7%
5 Year24.3%24.3%174.2%154.6%61.5%43.7%

Price Volatility Vs. Market

How volatile is Envestnet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

3.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ENV ($65.27) is trading above our estimate of fair value ($59.66)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ENV is good value based on its PB Ratio (4x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Envestnet forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

104.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ENV's revenue (10.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ENV's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENV's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Envestnet performed over the past 5 years?

-15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENV has large one-off items impacting its financial results.

Growing Profit Margin: ENV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ENV is unprofitable, and losses have increased over the past 5 years at a rate of -15% per year.

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

Earnings vs Industry: ENV is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (25.8%).


Return on Equity

High ROE: ENV has a negative Return on Equity (-2.45%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Envestnet's financial position?


Financial Position Analysis

Short Term Liabilities: ENV's short term assets ($167.0M) do not cover its short term liabilities ($366.3M)

Long Term Liabilities: ENV's short term assets ($167.0M) do not cover its long term liabilities (559.9M)


Debt to Equity History and Analysis

Debt Level: ENV's debt to equity ratio (66.6%) is considered high.

Reducing Debt: ENV's debt to equity ratio has increased from 18% to 66.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ENV's debt is not covered by short term assets (assets are 0.3x 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 ENV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ENV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ENV'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 ENV'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 Envestnet's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Bill Crager (55yo)

0.08yrs

Tenure

US$2,713,845

Compensation

Mr. William C. Crager, also known as Bill, serves as the President at FDx Advisors, Inc. Mr. Crager is the Co-founder of Envestnet, Inc. and serves as its Interim Chief Executive Officer since October 2019 ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD2.71M) is below average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

5.8yrs

Average Tenure

53yo

Average Age

Experienced Management: ENV's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: ENV's board of directors are considered experienced (3.8 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

SellUS$386,36820 Aug 19
Joshua Mayer
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares6,881
Max PriceUS$56.15
SellUS$64,82901 Jul 19
Brandon Thomas
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Investment Officer
Shares961
Max PriceUS$67.46
SellUS$220,91719 Jun 19
Tiburon Strategic Advisors LLC, Asset Management Arm
EntityCompany
Shares3,165
Max PriceUS$69.80
SellUS$135,91107 Jun 19
Ross Chapin
EntityIndividual
Role
Chairman of the Board
Interim Chairman & Lead Director
Shares1,987
Max PriceUS$68.40
SellUS$67,54028 May 19
Joshua Mayer
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,000
Max PriceUS$67.54
SellUS$349,20822 Mar 19
Stuart DePina
EntityIndividual
Shares5,365
Max PriceUS$65.09
SellUS$743,61620 Mar 19
Shelly O'Brien
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares11,147
Max PriceUS$66.71
SellUS$673,63920 Mar 19
Scott Grinis
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares10,162
Max PriceUS$66.29

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.


Management Team

  • Pete D'Arrigo (51yo)

    Chief Financial Officer

    • Tenure: 11.8yrs
    • Compensation: US$1.70m
  • Bill Crager (55yo)

    Co-founder & Interim CEO

    • Tenure: 0.08yrs
    • Compensation: US$2.71m
  • Brandon Thomas (55yo)

    Co-Founder & Chief Investment Officer

    • Tenure: 20.8yrs
    • Compensation: US$289.42k
  • James Lumberg

    Co-Founder & Executive VP

    • Tenure: 0yrs
  • Scott Grinis (57yo)

    Chief Technology Officer

    • Tenure: 15.8yrs
    • Compensation: US$1.18m
  • Shelly O'Brien (53yo)

    Chief Legal Officer

    • Tenure: 17.8yrs
  • Matt Stroh

    Executive Vice President of Corporate Branding & Communications

    • Tenure: 0.5yrs
  • Chris Curtis (47yo)

    Division CFO & Head of Investor Relations

    • Tenure: 3.6yrs
  • Josh Mayer (45yo)

    Chief Operating Officer

    • Tenure: 5.6yrs
    • Compensation: US$699.31k
  • Debra DeVoe

    Chief Compliance Officer & MD

    • Tenure: 5.8yrs

Board Members

  • Ross Chapin (66yo)

    Interim Chairman & Lead Director

    • Tenure: 0.08yrs
    • Compensation: US$222.90k
  • Gayle Crowell (68yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$190.22k
  • Anil Arora (58yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$2.02m
  • Jim Fox (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$203.66k
  • Luis Aguilar (65yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$181.41k
  • Valerie Mosley (59yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$100.00k
  • Greg Smith (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$219.17k
  • Chip Roame (53yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$200.51k

Company Information

Envestnet, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Envestnet, Inc.
  • Ticker: ENV
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.425b
  • Shares outstanding: 52.47m
  • Website: https://www.envestnet.com

Number of Employees


Location

  • Envestnet, Inc.
  • 35 East Wacker Drive
  • Suite 2400
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENVNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2010
30EDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2010

Biography

Envestnet, Inc., together with its subsidiaries, provides intelligent systems for wealth management and financial wellness in the United States and internationally. It operates through Envestnet and Envest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:28
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.