Enfusion (ENFN) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 527.5
• Beta (1Y): 0.60
• Revenue Growth: 15.51%
• EPS Growth: -55.49%
• Country: US
• Employees: 1,143
• Sector: Technology
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 94,802,000
• 10 Day Avg. Volume: 1,558,031
• 30 Day Avg. Volume: 1,194,553
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.10
• Price to Cash Flow (P/CF): 37.00
• P/FCF Ratio: 37.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.25
• Price Target Upside: 4.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Enfusion's strong financial health and impressive revenue growth are key strengths, but these are counterbalanced by a challenging technical outlook and a high P/E ratio, suggesting overvaluation. The lack of dividend yield further dampens the stock's attractiveness. Enhancing operational efficiency and profitability could improve the company's valuation in the future.

Positive Factors

Acquisition Premium

The acquisition by Clearwater Analytics values Enfusion at approximately $1.5 billion, with a ~50/50 split between cash and stock.

Strategic Value

Sale to Clearwater unlocks untapped strategic value that would be challenging to extract in the public markets.

Negative Factors

Revenue Outlook

Enfusion announced that it is tracking towards or beyond the low-end of its previously announced outlook, which implicitly decreases the probability of near-term revenue reacceleration.

Stock Downgrade

The stock rating has been downgraded from Overweight to Equal-weight.

Enfusion Business Overview & Revenue Model

Company Description

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It provides portfolio management system, which generates a real-time investment book of record that consists of valuation and risk tools that allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and order and execution management system that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. The company also offers accounting/general ledger system, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion analytics system, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion Inc. was incorporated in 2021 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Enfusion makes money primarily through subscription fees for its cloud-based software solutions. Clients pay for access to Enfusion's integrated platform, which offers various modules tailored to specific needs within investment management operations. The company also generates revenue from professional services, such as implementation support and ongoing customer service, which help clients effectively integrate and utilize the platform. Additionally, Enfusion may engage in partnerships with other financial technology providers to expand its product offerings and reach a broader client base, further contributing to its revenue streams.

Enfusion Financial Statement Overview

Summary

Enfusion displays strong revenue growth and profitability improvements. The balance sheet shows low leverage and a strong equity position, while cash flow generation is robust, supporting strategic initiatives. However, there is room for enhanced profitability and operational efficiency.

Income Statement

Enfusion has shown consistent revenue growth over recent years, increasing from $111.7M in 2021 to $201.6M in 2024. The gross profit margin improved, indicating better cost management, although the net profit margin remains relatively low due to fluctuating net income. The EBIT margin has improved but still indicates room for operational efficiency gains.

Balance Sheet

The company's balance sheet shows a healthy equity position with a positive stockholders' equity of $73.2M in 2024, up from negative values in earlier years. The debt-to-equity ratio is low at 0.28, reflecting low leverage, which is favorable. However, the equity ratio remains moderate, suggesting a balanced approach to financing.

Cash Flow

Enfusion has demonstrated strong growth in free cash flow, with a notable increase in operating cash flow. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. The company has managed capital expenditures effectively, supporting future growth while maintaining cash flow strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
201.61M	174.53M	150.35M	111.70M	79.56M
	Gross Profit
136.74M	116.89M	103.25M	79.86M	58.21M
	EBIT
6.16M	11.95M	-11.96M	-275.88M	6.07M
	EBITDA
6.16M	21.93M	-5.62M	-271.91M	8.37M
	Net Income Common Stockholders
2.82M	6.03M	-13.26M	-282.24M	4.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.48M	35.60M	62.55M	64.36M	13.94M
	Total Assets
143.26M	108.97M	123.78M	106.08M	39.10M
	Total Debt
20.31M	15.44M	6.99M	0.00	98.56M
	Net Debt
-34.17M	-20.17M	-55.56M	-64.36M	84.63M
	Total Liabilities
43.72M	31.49M	20.34M	8.64M	272.66M
	Stockholders Equity
73.22M	53.67M	65.01M	55.29M	-233.56M
Cash Flow		Free Cash Flow
31.05M	15.96M	6.22M	-8.33M	-3.40M
	Operating Cash Flow
34.68M	25.63M	14.16M	-318.00K	1.67M
	Investing Cash Flow
-13.89M	-9.67M	-7.93M	-8.01M	-5.07M
	Financing Cash Flow
-1.40M	-43.08M	-7.96M	58.85M	11.56M

Enfusion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENFN, the sentiment is Negative. The current price of 10.76 is below the 20-day moving average (MA) of 10.90, below the 50-day MA of 11.08, and above the 200-day MA of 9.85, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENFN.

Enfusion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPNS	75 Outperform	$1.55B	21.52	15.57%	2.09%	5.40%	14.68%
JAMF	65 Neutral	$1.49B	―	-9.55%	―	11.92%	39.34%
AMPL	61 Neutral	$1.15B	―	-31.90%	―	8.32%	2.04%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%
MLNK	57 Neutral	$1.27B	―	-6.36%	―	4.18%	27.11%
ENFN	56 Neutral	$1.39B	527.45	4.45%	―	15.51%	-55.49%
DBD	52 Neutral	$1.57B	0.78	-1.66%	―	-0.25%	-100.93%

Enfusion Corporate Events

Enfusion Completes Merger with Clearwater, Delists from NYSE

Enfusion and Clearwater completed a merger on April 21, 2025, resulting in the termination of Enfusion’s credit facilities and the delisting of its common stock from the NYSE. The merger agreement outlined various compensation options for shareholders, including cash, Clearwater stock, or a combination of both, with specific terms based on stock prices and proration rules. This strategic move led to changes in Enfusion’s corporate structure, including the cessation of its board members’ service and amendments to its incorporation documents.

Spark’s Take on ENFN Stock

According to Spark, TipRanks’ AI Analyst, ENFN is a Neutral.

Enfusion’s overall score reflects strong financial health and a positive outlook from the merger with Clearwater. However, the high valuation and moderate technical indicators temper the score. Enhancing profitability and operational efficiency remains crucial for future growth.

To see Spark’s full report on ENFN stock, click here.