Esker (PAR: ALESK)

Last close As at 27/03/2024

EUR184.00

2.50 (1.38%)

Market capitalisation

EUR1,097m

Esker provides end-to-end SaaS-based document automation solutions supporting order-to-cash and procure-to-pay processes. In H123, the business generated 53% of revenues from Europe, 41% from North America and the remainder from Asia and Australia.

Esker’s document process automation (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.

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Sector

TMT

Equity Analyst

Key Management

  • Emmanuel Olivier

    COO

  • Jean-Michel Bérard

    CEO

Balance Sheet

Forecast net cash (€m)

39.8

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 13.1 14.4 37.9
Relative 9.6 6.3 19.5
52 week high/low €186.1/€111.7

Financials

Esker reported FY23 revenue growth of 12% (14% in constant currency (cc)), at the lower end of its guidance range. New contract wins in Q423 were 38% higher cc than in Q323 and 58% higher cc year-on-year, reflecting strong demand in France and the rest of Europe. FY23 operating profitability will take a hit as sales commission for better-than-expected new business is recognised in Q423. As FY24 guidance is more conservative than we expected, we have reduced FY24e normalised EPS by 7.6%. While current economic conditions are weighing on the volume of transactions processed by Esker’s platform, the strength of new contract wins provides good support for medium-term growth.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 133.6 25.7 18.0 236.68 77.7 37.1
2022A 159.0 31.8 23.4 304.35 60.5 48.5
2023E 178.6 29.7 19.7 245.61 74.9 33.9
2024E 201.6 37.1 25.9 317.66 57.9 32.3

Thematics

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MediaWatch – Still waiting…

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