Market Cap€752m

Last Close €125.8

Esker provides end-to-end SaaS-based document automation solutions supporting order-to-cash and procure-to-pay processes. In FY21, the business generated 55% of revenues from Europe, 39% from the United States and the remainder from Asia and Australia.

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Investment summary

Esker reported a robust H122 performance, with 19% revenue growth year-on-year, 41% operating profit growth and 19% growth in the annual recurring value of new contracts signed. Reflecting the potential for slowing demand due to current macroeconomic uncertainty, the company slightly reduced its revenue guidance for FY22 but expects to be at the upper end of its operating margin target range. We reduce our cost forecasts for FY22/23 and revenue forecast by 1% in FY23, driving a 16% EPS upgrade in FY22 and a 9% downgrade in FY23.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 112.3 21.9 14.5 199.0 63.2 N/A
2021A 133.6 25.7 18.0 236.0 53.3 N/A
2022E 158.0 34.1 25.4 320.0 39.3 N/A
2023E 180.9 35.1 25.0 310.0 40.6 N/A
Industry outlook

Esker’s document process automation (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 05/10/2022
Content on Esker
Esker – Better profitability in FY22
TMT | research Update | 20 September 2022
Esker 1
Esker – Maintaining outlook for FY22
TMT | research Update | 18 July 2022
Esker 1
Esker – Q1 revenue in line, outlook maintained
TMT | research Update | 21 April 2022
Esker 1
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Share price graph
Balance sheet
Forecast net cash (€m) 37.3
Forecast gearing ratio (%) N/A
Price performance
Actual (1.6) (3.4) (53.5)
Relative* 0.8 (5.9) (48.0)
52-week high/low €361.5/€108.6
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO