Esker

EG: ALESK

€466.1m market cap

€83.1 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 seen revenue growth accelerate through the course of 2019, with group revenues up 18% y-o-y in Q3 on a constant currency basis. Cloud-based revenues (SaaS and consulting) made up more than 90% of Q3 revenues, growing 25% y-o-y and 22% in constant currency (up from 17% in Q1 and 21% in Q2). The company has maintained its full year revenue guidance, which we view as conservative. We maintain our estimates, but highlight that risk is weighted to the upside.

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 63.0 25.4
2018A 86.9 18.2 12.2 164.0 50.7 24.5
2019E 100.6 20.9 14.4 174.0 47.8 22.0
2020E 114.6 25.0 18.0 212.0 39.2 20.1
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 21/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 20.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.1) 2.6 37.8
Relative* (4.7) (4.7) 18.1
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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