Esker (ALESK); Setting its sights higher

Published on 23-09-2019 07:43:44
Author Sparks Team
Esker 1

Esker reported another period of strong revenue and profit growth while continuing to invest in product development, consulting and sales & marketing resource. This policy of ongoing investment has fuelled double-digit revenue growth, 80% of which is recurring, over the last five years and supports the company’s premium rating.

Compared to companies with a similar SaaS business model, however, Esker trades at a discount on all multiples. As the company accelerates revenue growth towards its 20% target, we would expect the shares to re-rate. Esker has a strong balance sheet with €15m net cash at the end of H119, representing ample funds for growth via internal investment or selective M&A.

Author: Katherine Thompson

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