company background image
ESMT

EngageSmart NYSE:ESMT Stock Report

Last Price

US$21.95

Market Cap

US$3.6b

7D

2.5%

1Y

n/a

Updated

15 Aug, 2022

Data

Company Financials +
ESMT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ESMT Stock Overview

EngageSmart, Inc. provides Software-as-a-Service based customer engagement software and integrated payment solutions.

Rewards

Earnings are forecast to grow 73.02% per year

Revenue grew by 41% over the past year

Risk Analysis

No risks detected for ESMT from our risk checks.

EngageSmart Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EngageSmart
Historical stock prices
Current Share PriceUS$21.95
52 Week HighUS$38.83
52 Week LowUS$15.64
Beta0
1 Month Change30.19%
3 Month Change9.75%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-35.67%

Recent News & Updates

Aug 07
Results: EngageSmart, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Results: EngageSmart, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

EngageSmart, Inc. ( NYSE:ESMT ) investors will be delighted, with the company turning in some strong numbers with its...

Aug 04

EngageSmart GAAP EPS of $0.04 beats by $0.02, revenue of $73.86M beats by $3.81M

EngageSmart press release (NYSE:ESMT): Q2 GAAP EPS of $0.04 beats by $0.02. Revenue of $73.86M (+42.7% Y/Y) beats by $3.81M.

Shareholder Returns

ESMTUS SoftwareUS Market
7D2.5%0.7%3.2%
1Yn/a-15.5%-10.2%

Return vs Industry: Insufficient data to determine how ESMT performed against the US Software industry.

Return vs Market: Insufficient data to determine how ESMT performed against the US Market.

Price Volatility

Is ESMT's price volatile compared to industry and market?
ESMT volatility
ESMT Average Weekly Movement7.3%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ESMT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ESMT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2018789Bob Bennetthttps://www.engagesmart.com

EngageSmart, Inc. provides Software-as-a-Service based customer engagement software and integrated payment solutions. It operates through two segments, Enterprise Solutions and SMB (small and medium sized business) Solutions. The company offers SimplePractice, an end-to-end practice management and electronic health record platform for health and wellness professionals to manage their practices; and InvoiceCloud, an electronic bill presentment and payment solution that helps government, utility, and financial services customers to digitize billing, client communications, and collections.

EngageSmart Fundamentals Summary

How do EngageSmart's earnings and revenue compare to its market cap?
ESMT fundamental statistics
Market CapUS$3.60b
Earnings (TTM)-US$301.00k
Revenue (TTM)US$258.33m

13.9x

P/S Ratio

9,999x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESMT income statement (TTM)
RevenueUS$258.33m
Cost of RevenueUS$63.47m
Gross ProfitUS$194.87m
Other ExpensesUS$195.17m
Earnings-US$301.00k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.0018
Gross Margin75.43%
Net Profit Margin-0.12%
Debt/Equity Ratio0%

How did ESMT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ESMT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ESMT?

Other financial metrics that can be useful for relative valuation.

ESMT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13x
Enterprise Value/EBITDA166.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ESMT's PS Ratio compare to its peers?

ESMT PS Ratio vs Peers
The above table shows the PS ratio for ESMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.8x
CWAN Clearwater Analytics Holdings
10.6x17.1%US$3.7b
SPT Sprout Social
16.4x27.1%US$3.6b
ALRM Alarm.com Holdings
4.7x7.5%US$3.8b
INST Instructure Holdings
7.8x10.9%US$3.5b
ESMT EngageSmart
13.9x26.1%US$3.7b

Price-To-Sales vs Peers: ESMT is expensive based on its Price-To-Sales Ratio (13.9x) compared to the peer average (9.8x).


Price to Earnings Ratio vs Industry

How does ESMT's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: ESMT is expensive based on its Price-To-Sales Ratio (13.9x) compared to the US Software industry average (5.4x)


Price to Sales Ratio vs Fair Ratio

What is ESMT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ESMT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.9x
Fair PS Ratio10.2x

Price-To-Sales vs Fair Ratio: ESMT is expensive based on its Price-To-Sales Ratio (13.9x) compared to the estimated Fair Price-To-Sales Ratio (10.2x).


Share Price vs Fair Value

What is the Fair Price of ESMT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ESMT ($21.95) is trading above our estimate of fair value ($11.04)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is EngageSmart forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


73.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESMT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: ESMT is expected to become profitable in the next 3 years.

Revenue vs Market: ESMT's revenue (26.1% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ESMT's revenue (26.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESMT's Return on Equity is forecast to be low in 3 years time (6.6%).


Discover growth companies

Past Performance

How has EngageSmart performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1,906.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: ESMT is currently unprofitable.

Growing Profit Margin: ESMT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ESMT's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ESMT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).


Return on Equity

High ROE: ESMT has a negative Return on Equity (-0.038%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is EngageSmart's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ESMT's short term assets ($298.8M) exceed its short term liabilities ($40.1M).

Long Term Liabilities: ESMT's short term assets ($298.8M) exceed its long term liabilities ($32.5M).


Debt to Equity History and Analysis

Debt Level: ESMT is debt free.

Reducing Debt: ESMT had no debt 5 years ago.


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

Forecast Cash Runway: ESMT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.1% per year.


Discover healthy companies

Dividend

What is EngageSmart current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ESMT's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ESMT has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Bob Bennett (65 yo)

3.58yrs

Tenure

US$2,667,286

Compensation

Mr. Robert P. Bennett, also known as Bob, is the Co-Founder, Chief Executive Officer and Director of Invoice Cloud, Inc. He serves as Founder, Chief Executive Officer and Director of EngageSmart, LLC. sinc...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.67M) is below average for companies of similar size in the US market ($USD6.53M).

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


Leadership Team

Experienced Management: ESMT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ESMT's board of directors are considered experienced (3.6 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: ESMT only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: EngageSmart, Inc.
  • Ticker: ESMT
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$3.596b
  • Shares outstanding: 163.84m
  • Website: https://www.engagesmart.com

Number of Employees


Location

  • EngageSmart, Inc.
  • 30 Braintree Hill Office Park
  • Suite 101
  • Braintree
  • Massachusetts
  • 2184
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.