Esker

EG: ALESK

€373.6m market cap

€67.4 last close

Esker provides end-to-end document automation solutions, offering on-premise and on-demand delivery models. The business generates 55% of revenues from Europe, c 40% from the US and the remainder from Asia and Australia.

Investment summary

Esker saw another strong quarter in Q418, with underlying revenue growth of 15% resulting in FY18 revenue growth of 14% (or 16% in constant currency). A strong uplift in the value of contracts signed in FY18 provides good visibility for FY19 and support for the company’s target of generating another year of double-digit revenue growth. We have revised our forecasts to reflect FY18 revenues and the company’s strategy of reinvesting any profits above the 15% target operating margin level.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 66.0 14.9 9.9 122.0 55.2 23.3
2017A 76.1 16.4 10.7 132.0 51.1 20.6
2018E 86.9 19.8 13.7 170.0 39.6 19.3
2019E 99.0 22.2 15.5 189.0 35.7 17.5
Last updated on 20/02/2019
Industry outlook

Esker’s DPA software operates across five areas: document delivery, accounts payable, accounts receivable, procurement and sales order processing. Competitors are different for each business process and consist of business process outsourcers and specialist DPA software companies. Customers move to using DPA software to reduce paper-related costs and errors in processing, to speed up the cash conversion cycle, to improve process visibility within the enterprise and to improve customer service.

Last updated on 20/02/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 15.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.7) 12.3 28.4
Relative* (9.1) 7.0 32.1
52-week high/low €70.7/€50.8
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO