Esker

EG: ALESK

€458.3m market cap

€81.7 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 has reported another record quarter for revenues, with Q119 constant currency revenue growth of 14% year-on-year for the group and 17% for SaaS-related revenues. The value of orders received in Q1 was 79% higher than a year ago and, combined with 80% recurring revenues, gives the company good visibility for its double-digit FY19 revenue growth target. We maintain our forecasts.

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 61.9 25.0
2018A 86.9 18.5 12.2 164.0 49.8 24.0
2019E 99.1 21.0 14.4 181.0 45.1 21.4
2020E 112.7 24.8 17.8 219.0 37.3 19.5
Last updated on 18/06/2019
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 18/06/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 23.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.1 19.6 35.3
Relative* 6.8 18.0 35.9
52-week high/low €82.0/€56.2
*% relative to local index
Key management
Jean-Michel Bérard CEO
Sophie Rolland-Moritz CFO
Emmanuel Olivier COO