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Enfusion (ENFN)
NYSE:ENFN
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Enfusion
(NYSE:ENFN)
62Neutral
Positive Factors
Acquisition
The acquisition proposal price is set at $11.25, indicating a potential value for shareholders.
Strategic Synergy
The merger of Enfusion and Clearwater represents a strategic combination of two highly complementary solutions to form an end-to-end platform between the front-, middle-, and back-office for asset managers and asset owners.
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 (ENFN) vs. S&P 500 (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)974.76K
Price to Earnings (P/E)519.1
Beta (1Y)0.66
Revenue Growth15.51%
EPS Growth-55.49%
CountryUS
Employees1,143
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding94,802,070
10 Day Avg. Volume815,568
30 Day Avg. Volume974,764
Financial Highlights & Ratios
PEG RatioN/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 Ratio37.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.25Price Target Upside6.23% Upside
Rating ConsensusHold
Number of Analyst Covering3
Enfusion Business Overview & Revenue Model
Company DescriptionEnfusion (ENFN) is a leading provider of cloud-based investment management software and services. The company caters to hedge funds, asset managers, and other financial institutions, streamlining their operations by offering a comprehensive platform that integrates portfolio management, order management, accounting, and risk management functionalities. Enfusion's solutions are designed to enhance operational efficiency, reduce costs, and improve decision-making processes for its clients.
How the Company Makes MoneyEnfusion 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.65
Positive
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.70
Positive
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.72
Positive
| 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
Negative
10.59
Price Trends
11.17
Negative
10.74
Negative
9.72
Positive
Market Momentum
-0.01
Positive
47.45
Neutral
54.03
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 10.59 is below the 20-day moving average (MA) of 11.08, below the 50-day MA of 11.17, and above the 200-day MA of 9.72, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 54.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENFN.
Enfusion Risk Analysis
Enfusion disclosed 56 risk factors in its most recent earnings report. Enfusion reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enfusion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $19.71B | 26.69 | 11.81% | 1.24% | 6.89% | 26.17% | |
78 Outperform | $26.33B | 35.21 | 35.34% | 1.53% | 5.73% | 11.41% | |
76 Outperform | $137.81B | 21.13 | 14.67% | 2.31% | 12.15% | 15.17% | |
75 Outperform | $16.62B | 31.06 | 28.12% | 0.95% | 4.66% | 11.15% | |
73 Outperform | $8.15B | 29.70 | 20.45% | 1.38% | 9.06% | 6.10% | |
62 Neutral | $1.42B | 519.12 | 4.45% | ― | 15.51% | -55.49% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% |
* Technology Sector Average
Performance Comparison
ENFN
Enfusion
10.59
0.99
10.31%
BLK
BlackRock
822.62
37.45
4.77%
BR
Broadridge Financial Solutions
225.04
23.40
11.60%
FDS
Factset Research
416.19
-19.93
-4.57%
MKTX
Marketaxess Holdings
212.94
-8.41
-3.80%
SSNC
SS&C Technologies Holdings
74.35
12.53
20.27%
Enfusion Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -6.86% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant revenue and client growth, driven by strategic expansions and product innovations. However, challenges remain in the APAC region and with back book growth. The company's overall outlook remains positive, supported by strong market presence and innovative product developments.Highlights
Strong Revenue and Client Growth
Enfusion reported a 15% year-over-year revenue growth to $51.2 million in Q3 2024, with adjusted EBITDA totaling $11.1 million and a margin of 21.8%. The company signed 38 new clients, increasing the total client count to 894.
Expansion in Key Markets
Revenue in the Americas grew by 17% year-over-year, and EMEA saw a 22% growth. Enfusion signed notable clients such as Agile Investment Management and Frontier Global Partners, expanding their market share in institutional asset management.
Innovative Product Developments
The Portfolio Workbench tool continued to drive client wins and expand serviceable TAM, contributing to new client acquisitions and enhanced offerings.
Positive Adjusted Gross Margin
Adjusted gross profit increased by 17% year-over-year to $35.2 million, with an adjusted gross margin of 68.8%, showing sequential expansion for the third quarter.
Record ARR Achievement
ARR crossed the $200 million mark for the first time, reaching $202.7 million, representing a 14% year-over-year increase.
Lowlights
Moderation in APAC Growth
Revenue growth in the Asia Pacific region slowed to 6% year-over-year, affected by geopolitical trends and capital outflows.
Challenges with Back Book Growth
The back book's contribution to growth was only 1% in Q3, with softness attributed to geopolitical headwinds in Asia and client scrutiny on OpEx due to election uncertainty.
Involuntary Churn in EMEA
EMEA experienced an unusually high amount of involuntary churn at the end of Q2 and beginning of Q3, impacting growth trajectory despite having the best quarterly bookings in the region's history.
Company Guidance
During Enfusion's Q3 2024 earnings call, the company reported a robust performance with a 15% year-over-year revenue growth, reaching $51.2 million in Q3, and an adjusted EBITDA of $11.1 million, representing a margin of 21.8%. The company also signed 38 new clients in the quarter, bringing the total client count to 894. Enfusion's Annual Contract Value (ACV) increased to a record $229,000, marking a 5.7% growth. The company highlighted its success in the U.S. launch market, with 8 new launches in Q3 and a total of 31 year-to-date in the Americas. Furthermore, they reported a significant revenue growth of 22% in EMEA and 6% in APAC, despite geopolitical challenges. Enfusion remains on track for its medium-term guidance of a 20% to 22% revenue growth rate from 2025 to 2027, leveraging product enhancements and strategic client wins to drive expansion.Enfusion Corporate Events
Delistings and Listing ChangesM&A Transactions
Enfusion to Merge with Clearwater Analytics Holdings
Positive
Jan 13, 2025
Enfusion, Inc. has entered into a Merger Agreement with Clearwater Analytics Holdings, which will result in Enfusion becoming a wholly-owned subsidiary of Clearwater. The merger will involve several corporate restructuring steps, and upon completion, Enfusion’s Class A Common Stock will be delisted from the NYSE. The agreement has been unanimously recommended by Enfusion’s board, and significant shareholders have committed to supporting the merger. If finalized, this merger is expected to streamline operations and potentially enhance market positioning for both Enfusion and Clearwater.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.