Esker

EG: ALESK

€663.8m market cap

€115.4 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’s Q1 revenue update confirmed that despite a small reduction in documents processed due to the COVID-19 disruption, revenues grew 17% y-o-y, with cloud-related revenues up 21% y-o-y. Management maintained its outlook for c 10% revenue growth in FY20 and highlighted that the crisis is bringing into focus the benefits of automating back-office processes. We maintain our forecasts, which were recently revised to take account of COVID-19 restrictions.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 86.9 18.2 12.2 164.0 70.4 34.0
2019A 104.2 20.0 13.6 176.0 65.6 31.3
2020E 114.8 22.0 14.7 173.0 66.7 30.2
2021E 132.9 25.9 17.9 207.0 55.7 27.9
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 03/06/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 26.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.3 8.3 48.9
Relative* (1.5) 16.6 55.4
52-week high/low €118.0/€76.7
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO

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