EverCommerce Inc. (EVCM) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001853145

P/B 3.41

P/E -3,667.02

P/S 4.05

Market Cap 2.48 Bn

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...

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 diverse workflows and customer interactions of professionals in home services, health services, and fitness & wellness services. The company's platform includes Business Management Software, Billing & Payment Solutions, Customer Experience Solutions, and Marketing Technology Solutions, serving the needs of service SMBs across multiple micro-verticals.

The company's revenue generation primarily stems from its EverPro suite of solutions in Home Services, EverHealth suite of solutions in Health Services, and EverWell suite of solutions in Fitness & Wellness Services. These offerings streamline daily business operations, enhance customer engagement, and boost revenue for service SMBs. EverCommerce holds a significant market share in its industry and competes with other SaaS providers, differentiating itself through its vertically-tailored approach, integrated solutions, and focus on service SMBs.

With a customer base of approximately 708,000, EverCommerce serves businesses across three core verticals: Home Services, Health Services, and Fitness & Wellness Services. These businesses operate in various micro-verticals such as home improvement contractors, physician practices, personal trainers, and salon owners. EverCommerce's success can be attributed to its strong market position, customer-centric solutions, and a growing customer base.

The company's competitive advantages include its vertically-tailored solutions, integrated offerings, and a customer-centric approach. EverCommerce has established a strong reputation in the market by focusing on unique customer needs, workflow requirements, and delivering exceptional customer experiences.

EverCommerce's product strategy revolves around understanding its target industries and delivering an integrated value chain to its customers. The company's go-to-market organization comprises centralized marketing, business development, sales, and customer success functions, all aligned to build positive customer experiences.

The company's commitment to its people, culture, and values plays a crucial role in its success. EverCommerce emphasizes strong relationships with its employees, fostering engagement and commitment to the organization. The company believes that exceptional customer service and strong business performance are direct outcomes of positive employee relationships.

Technology is another essential aspect of EverCommerce's business, with its SaaS solutions strategically integrated to best serve its service SMB customers. The company leverages a common set of best practices, IT infrastructure, and architectures to provide highly scalable and secure software solutions.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.04	2.56
EV to Cash from Ops.	20.64	38.32
EV to Debt	5.45	-11.37
EV to EBIT	86.48	-12.79
EV to EBITDA	26.67	7.72
EV to Free Cash Flow [EV/FCF]	25.75	24.22
EV to Market Cap	1.15	0.58
EV to Revenue	4.67	-35.00
Price to Book Value [P/B]	3.41	3.74
Price to Earnings [P/E]	-3,667.02	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	1.02	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-34.18	-404.11
Cash and Equivalents Growth (1y) %	5.24	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	-300.19	31.15
EBITDA Growth (1y) %	0.92	49.02
EBIT Growth (1y) %	175.19	25.85
EBT Growth (1y) %	101.78	17.82
EPS Growth (1y) %	0.00	70.69
FCF Growth (1y) %	38.40	295.45
Gross Profit Growth (1y) %	5.67	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.44	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.91	1.21
Current Ratio	2.02	2.57
Debt to Equity Ratio	0.72	-0.93
Interest Cover Ratio	1.02	-13.15
Times Interest Earned	1.02	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	17.40	-544.82
EBIT Margin %	5.40	-197.78
EBT Margin %	0.12	-602.74
Gross Margin %	75.70	52.06
Net Profit Margin %	-0.10	-605.52

EverCommerce Inc. (NASDAQ: EVCM)