EngageSmart, Inc.
EngageSmart, Inc. Fundamental Analysis
EngageSmart, Inc. (ESMT) shows weak financial fundamentals with a PE ratio of 183.36, profit margin of 6.78%, and ROE of 2.64%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESMT's fundamental strength across five key dimensions:
Efficiency Score
WeakESMT struggles to generate sufficient returns from assets.
Valuation Score
ModerateESMT shows balanced valuation metrics.
Growth Score
ModerateESMT shows steady but slowing expansion.
Financial Health Score
ExcellentESMT maintains a strong and stable balance sheet.
Profitability Score
ModerateESMT maintains healthy but balanced margins.
Key Financial Metrics
Is ESMT Expensive or Cheap?
P/E Ratio
ESMT trades at 183.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ESMT's PEG of 1.83 indicates fair valuation.
Price to Book
The market values EngageSmart, Inc. at 4.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 107.65 times EBITDA. This signals the market has high growth expectations.
How Well Does ESMT Make Money?
Net Profit Margin
For every $100 in sales, EngageSmart, Inc. keeps $6.78 as profit after all expenses.
Operating Margin
Core operations generate 5.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.64 in profit for every $100 of shareholder equity.
ROA
EngageSmart, Inc. generates $2.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EngageSmart, Inc. produces operating cash flow of $53.76M, showing steady but balanced cash generation.
Free Cash Flow
EngageSmart, Inc. generates strong free cash flow of $47.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
ESMT converts 1.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
183.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ESMT Stacks Against Its Sector Peers
| Metric | ESMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 183.36 | 35.19 | Worse (Expensive) |
| ROE | 2.64% | 1155.00% | Weak |
| Net Margin | 6.78% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 6.51 | 4.71 | Strong Liquidity |
| ROA | 2.32% | -314918.00% (disorted) | Weak |
ESMT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EngageSmart, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta