Esker

EG: ALESK

€440.9m market cap

€78.6 last close

Esker provides end-to-end document automation solutions, offering on-premise and on-demand delivery models. In FY18, the business generated 56% of revenues from Europe, 38% from the US and the remainder from Asia and Australia.

Investment summary

Esker’s Q219 revenue update confirmed continued strong demand for its SaaS software: Q2 revenue €26.1m (+18% y-o-y/+16% constant currency (cc)); H119 revenue €50.1m (+17% y-o-y/+15% cc). SaaS-based revenues made up 90% of Q2 revenues and grew 21% cc y-o-y. The value of contracts signed in H119 was 51% higher y-o-y, providing good support for medium-term growth. We have revised up our revenue forecasts (FY19 +1.6%, FY20 +1.7%), but maintain our EPS forecasts reflecting the initial costs of new contract implementations and the impact of the stronger dollar on the cost base.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 76.1 16.4 10.7 132.0 59.5 24.1
2018A 86.9 18.5 12.2 164.0 47.9 23.1
2019E 100.6 21.0 14.4 181.0 43.4 20.7
2020E 114.6 24.8 17.8 219.0 35.9 19.1
Last updated on 16/09/2019
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 16/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 23.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.8) (0.3) 28.9
Relative* (6.9) (4.4) 25.3
52-week high/low €87.3/€56.2
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO

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