Esker

EG: ALESK

€908m market cap

€156.6 last close

Esker provides end-to-end document automation solutions, offering on-premise and on-demand delivery models. In FY19, the business generated 57% of revenues from Europe, 38% from the US and the remainder from Asia and Australia.

Investment summary

Esker reported revenue growth of 7% y-o-y for Q320 and 8% for 9M20. The volume processed through its platform returned to close to pre-COVID levels by September. As companies look to Esker’s technology to support their digital transformation projects, orders for 9M20 grew 11% y-o-y. While management guidance for FY20 is maintained on a constant currency basis, we reduce our revenue forecasts for FY20/21 by 1% to reflect the recent strengthening of the euro, resulting in small EPS reductions.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 86.9 18.3 12.2 165.0 94.9 N/A
2019A 104.2 20.1 13.6 179.0 87.5 N/A
2020E 112.9 21.7 13.6 169.0 92.7 N/A
2021E 130.6 26.2 18.0 221.0 70.9 N/A
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 30/11/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 25.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 9.5 2.4 86.4
Relative* (8.7) (8.2) 98.3
52-week high/low €156.6/€81.0
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO

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