€479m market cap

€85.4 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

Continued strong demand for Esker’s SaaS-based software in H119, with group revenue growth of 17% y-o-y and the value of contracts signed 51% higher y-o-y, prompts us to upgrade our revenue forecasts for FY19 and FY20. In our view, high levels of recurring revenue, a strong balance sheet and a focus on investing to maintain growth justify Esker’s premium valuation.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 76.1 16.4 10.7 132.0 64.7 26.1
2018A 86.9 18.5 12.2 164.0 52.1 25.1
2019E 100.6 21.0 14.4 181.0 47.2 22.5
2020E 114.6 24.8 17.8 219.0 39.0 20.8
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 25/07/2019
Share price graph
Balance sheet
Forecast net cash (€m) 23.3
Forecast gearing ratio (%) N/A
Price performance
Actual 3.5 18.3 42.6
Relative* 2.0 18.1 40.4
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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