€1148.1m market cap

€198 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 has confirmed it is still generating revenue growth, despite the continued COVID-19 restrictions around the world, with constant currency growth of 11% for Q420 and 9% for FY20. Order intake was 17% higher in FY20, accelerating to 30% growth in Q4, providing support for the company’s double-digit revenue growth expectations for FY21. We have trimmed our forecasts to reflect FY20 revenues and the stronger euro, reducing normalised diluted EPS by 3.4% in FY20e and 5.1% in FY21e. In our view, Esker is well positioned to benefit from the accelerating adoption of digital automation solutions within the corporate world.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 86.9 18.3 12.2 165.0 120.0 N/A
2019A 104.2 20.1 13.6 179.0 110.6 N/A
2020E 112.3 21.3 13.1 163.0 121.5 N/A
2021E 128.7 25.3 17.1 210.0 94.3 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 04/03/2021
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Share price graph
Balance sheet
Forecast net cash (€m) 27
Forecast gearing ratio (%) N/A
Price performance
Actual (17.5) 20.3 88.9
Relative* (20.2) 15.8 77.6
52-week high/low €240.0/€82.0
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO

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