We assign a fundamental rating of 6 out of 10 to ENFN. ENFN was compared to 278 industry peers in the Software industry. ENFN has an excellent financial health rating, but there are some minor concerns on its profitability. ENFN is valued quite expensively, but it does show have an excellent growth rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ENFN was profitable.
ENFN had a positive operating cash flow in the past year.
In multiple years ENFN reported negative net income over the last 5 years.
ENFN had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of ENFN (1.97%) is better than 67.61% of its industry peers.
With a decent Return On Equity value of 3.86%, ENFN is doing good in the industry, outperforming 68.66% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.55%, ENFN is doing good in the industry, outperforming 73.24% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	1.97%
ROE	3.86%
ROIC	3.55%

ROA(3y)0.28%

ROA(5y)-33.14%

ROE(3y)0.81%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

ENFN has a better Profit Margin (1.40%) than 65.14% of its industry peers.
ENFN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.05%, ENFN is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Operating Margin of ENFN has declined.
ENFN has a Gross Margin (67.82%) which is comparable to the rest of the industry.
ENFN's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	3.05%
PM (TTM)	1.4%
GM	67.82%

OM growth 3YN/A

OM growth 5Y-33.55%

PM growth 3YN/A

PM growth 5Y-42.1%

GM growth 3Y-1.76%

GM growth 5Y-1.01%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ENFN is destroying value.
ENFN has more shares outstanding than it did 1 year ago.
ENFN has more shares outstanding than it did 5 years ago.
There is no outstanding debt for ENFN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

ENFN has an Altman-Z score of 12.41. This indicates that ENFN is financially healthy and has little risk of bankruptcy at the moment.
ENFN has a better Altman-Z score (12.41) than 90.49% of its industry peers.
ENFN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	12.41

ROIC/WACC0.32

WACC11%

2.3 Liquidity

ENFN has a Current Ratio of 3.42. This indicates that ENFN is financially healthy and has no problem in meeting its short term obligations.
ENFN has a Current ratio of 3.42. This is in the better half of the industry: ENFN outperforms 76.76% of its industry peers.
ENFN has a Quick Ratio of 3.42. This indicates that ENFN is financially healthy and has no problem in meeting its short term obligations.
ENFN has a better Quick ratio (3.42) than 76.76% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.42
Quick Ratio	3.42

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 35.71% over the past year.
Measured over the past years, ENFN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.78% on average per year.
ENFN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.51%.
Measured over the past years, ENFN shows a very strong growth in Revenue. The Revenue has been growing by 27.86% on average per year.

EPS 1Y (TTM)35.71%

EPS 3YN/A

EPS 5Y-22.78%

EPS Q2Q%-25%

Revenue 1Y (TTM)15.51%

Revenue growth 3Y21.76%

Revenue growth 5Y27.86%

Sales Q2Q%13.88%

3.2 Future

ENFN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.93% yearly.
Based on estimates for the next years, ENFN will show a quite strong growth in Revenue. The Revenue will grow by 15.45% on average per year.

EPS Next Y50.32%

EPS Next 2Y40.46%

EPS Next 3Y27.93%

EPS Next 5YN/A

Revenue Next Year16.39%

Revenue Next 2Y16.32%

Revenue Next 3Y15.45%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

ENFN is valuated quite expensively with a Price/Earnings ratio of 56.63.
Compared to the rest of the industry, the Price/Earnings ratio of ENFN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.25, ENFN is valued quite expensively.
A Price/Forward Earnings ratio of 37.68 indicates a quite expensive valuation of ENFN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENFN indicates a somewhat cheap valuation: ENFN is cheaper than 60.56% of the companies listed in the same industry.
ENFN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	56.63
Fwd PE	37.68

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENFN indicates a somewhat cheap valuation: ENFN is cheaper than 61.97% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENFN is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	58.73
EV/EBITDA	74.97

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ENFN's earnings are expected to grow with 27.93% in the coming years.