EverCommerce Inc. (NASDAQ: EVCM)

Sector: Technology Industry: Software - Infrastructure CIK: 0001853145
Market Cap 2.21 Bn
P/B 3.04
P/E -3,267.48
P/S 3.61
ROIC (Qtr) 2.43
Div Yield % 0.00
Rev 1y % (Qtr) 5.25
Total Debt (Qtr) 524.61 Mn
Debt/Equity (Qtr) 0.72

About

EverCommerce Inc., known by its ticker symbol EVCM, operates in the technology sector, specifically as a leading provider of Software-as-a-Service (SaaS) solutions for small- and medium-sized service businesses (SMBs). The company's platform encompasses the entire spectrum of interactions between consumers and service professionals, offering tailored solutions to address the unique needs of service SMBs across various stages of their business lifecycle. EverCommerce's primary business activities involve providing SaaS solutions that cater to the...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 106.90M provide 19.44x coverage of short-term debt 5.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 278.58M provide exceptional 12.12x coverage of deferred revenue 22.99M, showing strong service capability backing.
  • Robust free cash flow of 111.10M exceeds capital expenditure of 27.50M by 4.04x, indicating strong organic growth funding capability.
  • Operating cash flow of 138.60M provides strong 6.03x coverage of deferred revenue 22.99M, indicating service delivery capability.
  • Operating cash flow of 138.60M provides solid 1.19x coverage of current liabilities 116.89M, showing strong operational health.

Bear case

  • Operating cash flow of 138.60M barely covers its investment activities of (61.08M), with a coverage ratio of -2.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (61.08M) provide weak support for R&D spending of 78.06M, which is -0.78x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 106.90M provide limited coverage of acquisition spending of (33.59M), which is -3.18x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 138.60M shows concerning coverage of stock compensation expenses of 28.35M, with a 4.89 ratio indicating potential earnings quality issues.
  • Operating earnings of 33.08M show weak coverage of depreciation charges of 73.26M, with a 0.45 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.85 2.69
EV to Cash from Ops. EV/CFO 18.69 28.91
EV to Debt EV to Debt 4.94 19.83
EV to EBIT EV/EBIT 78.30 -9.95
EV to EBITDA EV/EBITDA 24.15 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 23.32 26.09
EV to Market Cap EV to Market Cap 1.17 0.36
EV to Revenue EV/Rev 4.23 -9.34
Price to Book Value [P/B] P/B 3.04 3.88
Price to Earnings [P/E] P/E -3,267.48 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 1.02 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -34.18 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.24 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -300.19 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.92 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 175.19 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 101.78 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 38.40 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.67 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.44 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.91 1.22
Current Ratio Curr Ratio (Qtr) 2.02 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 -0.96
Interest Cover Ratio Int Coverage (Qtr) 1.02 -14.20
Times Interest Earned Times Interest Earned (Qtr) 1.02 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.40 -548.16
EBIT Margin % EBIT Margin % (Qtr) 5.40 -199.84
EBT Margin % EBT Margin % (Qtr) 0.12 -607.20
Gross Margin % Gross Margin % (Qtr) 75.70 51.88
Net Profit Margin % Net Margin % (Qtr) -0.10 -610.00