ENV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. Both the profitability and financial health of ENV have multiple concerns. ENV is not priced too expensively while it is growing strongly. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ENV had positive earnings in the past year.
In the past year ENV had a positive cash flow from operations.
In the past 5 years ENV reported 4 times negative net income.
ENV had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ENV has a Return On Assets of -14.30%. This is in the lower half of the industry: ENV underperforms 66.31% of its industry peers.
Looking at the Return On Equity, with a value of -49.66%, ENV is doing worse than 68.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.67%, ENV is in the better half of the industry, outperforming 76.70% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-14.3%
ROE	-49.66%
ROIC	5.67%

ROA(3y)-5.32%

ROA(5y)-3.41%

ROE(3y)-17.12%

ROE(5y)-10.72%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

ENV has a better Operating Margin (6.50%) than 73.48% of its industry peers.
ENV's Operating Margin has improved in the last couple of years.
ENV's Gross Margin of 60.47% is on the low side compared to the rest of the industry. ENV is outperformed by 60.22% of its industry peers.
In the last couple of years the Gross Margin of ENV has declined.

		Industry Rank	Sector Rank
OM	6.5%
PM (TTM)	N/A
GM	60.47%

OM growth 3Y23.84%

OM growth 5Y16.13%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-3.66%

GM growth 5Y-1.7%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ENV is destroying value.
ENV has more shares outstanding than it did 1 year ago.
ENV has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.00 indicates that ENV is not a great score, but indicates only limited risk for bankruptcy at the moment.
ENV has a Altman-Z score of 2.00. This is comparable to the rest of the industry: ENV outperforms 44.09% of its industry peers.
The Debt to FCF ratio of ENV is 5.32, which is a neutral value as it means it would take ENV, 5.32 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.32, ENV perfoms like the industry average, outperforming 56.99% of the companies in the same industry.
A Debt/Equity ratio of 1.07 is on the high side and indicates that ENV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.07, ENV is doing worse than 77.42% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.07
Debt/FCF	5.32
Altman-Z	2

ROIC/WACC0.53

WACC10.64%

2.3 Liquidity

ENV has a Current Ratio of 0.59. This is a bad value and indicates that ENV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ENV (0.59) is worse than 91.40% of its industry peers.
A Quick Ratio of 0.59 indicates that ENV may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, ENV is not doing good in the industry: 91.04% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.59
Quick Ratio	0.59

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ENV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.53%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.10% on average over the past years.
ENV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.50%.
Measured over the past years, ENV shows a quite strong growth in Revenue. The Revenue has been growing by 8.92% on average per year.

EPS 1Y (TTM)29.53%

EPS 3Y-6.07%

EPS 5Y2.1%

EPS Q2Q%25%

Revenue 1Y (TTM)9.5%

Revenue growth 3Y7.66%

Revenue growth 5Y8.92%

Sales Q2Q%9.18%

3.2 Future

ENV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.22% yearly.
Based on estimates for the next years, ENV will show a quite strong growth in Revenue. The Revenue will grow by 8.64% on average per year.

EPS Next Y27.65%

EPS Next 2Y25.28%

EPS Next 3Y24.88%

EPS Next 5Y18.22%

Revenue Next Year11.9%

Revenue Next 2Y11.98%

Revenue Next 3Y12.02%

Revenue Next 5Y8.64%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

ENV is valuated quite expensively with a Price/Earnings ratio of 25.26.
Compared to the rest of the industry, the Price/Earnings ratio of ENV indicates a somewhat cheap valuation: ENV is cheaper than 79.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, ENV is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.89, the valuation of ENV can be described as rather expensive.
82.08% of the companies in the same industry are more expensive than ENV, based on the Price/Forward Earnings ratio.
ENV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	25.26
Fwd PE	18.89

4.2 Price Multiples

84.95% of the companies in the same industry are more expensive than ENV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ENV is valued cheaper than 86.74% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	21.11
EV/EBITDA	18.08

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ENV's earnings are expected to grow with 24.88% in the coming years. This may justify a more expensive valuation.