EverCommerce (EVCM) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: N/A
• Average Volume (3M): 160.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 3.46%
• EPS Growth: 7.88%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 63
• Industry: Software - Infrastructure
• EPS (TTM): -0.22
• Shares Outstanding: 183,389,360
• 10 Day Avg. Volume: 123,416
• 30 Day Avg. Volume: 160,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.65
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.75
• Price Target Upside: 12.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

EverCommerce's overall stock score reflects strong revenue growth and cash flow management but is hindered by ongoing profitability challenges. The earnings call provided positive guidance, highlighting revenue and EBITDA growth, yet technical indicators suggest a lack of clear momentum. Valuation concerns, particularly the negative P/E ratio, weigh on the stock's attractiveness. The company's focus on strategic growth areas is promising, but financial improvements are necessary for a stronger score.

Positive Factors

Business Strategy

The divestiture of the Marketing Technology Solutions business should lead to improved visibility and growth for the core business, creating a more compelling financial picture.

Financial Performance

EverCommerce's revenue and EBITDA surpassed the high-end of guidance, with a 7% proforma revenue growth and 29% EBITDA margins, setting a new high-water mark for the business.

Market Valuation

EVCM shares are considered cheap enough, supporting a BUY rating due to the potential for a leaner, more focused business delivering reliable growth.

Negative Factors

Earnings Guidance

The MarTech segment has been associated with mixed or disappointing earnings guidance in several quarters, indicating challenges in this area.

Market Complexity

An eventual sale of the MarTech assets is expected to simplify EverCommerce's complex public market story and potentially lead to a higher stock valuation.

Revenue Quality

The MarTech segment is considered lower-quality revenue due to its lower gross margin and adjusted EBITDA margin.

EverCommerce Business Overview & Revenue Model

Company Description

EverCommerce (EVCM) is a leading service commerce platform that provides vertically tailored, integrated software-as-a-service (SaaS) solutions for service-based small and medium-sized businesses (SMBs). The company operates across various sectors, including health services, home services, and fitness and wellness, offering a comprehensive suite of solutions aimed at streamlining business operations, improving customer engagement, and driving growth for its clients.

How the Company Makes Money

EverCommerce generates revenue primarily through its subscription-based software solutions, which provide businesses with tools for business management, customer engagement, and payment processing. The company offers a variety of integrated platforms that cater to specific industries, ensuring that they meet the unique needs of their clients. In addition to subscription fees, EverCommerce may also earn revenue from transaction fees associated with payment processing services. Key partnerships with industry-specific service providers enhance its product offerings and create opportunities for cross-selling, further contributing to its earnings.

EverCommerce Financial Statement Overview

Summary

EverCommerce exhibits positive revenue growth and effective cash flow management, underpinned by a strong equity position. However, the company struggles with profitability, as indicated by persistent net losses and weak EBIT margins. While the low leverage reduces financial risk, the negative return on equity and net profit margin highlight areas for improvement to enhance shareholder value.

Income Statement

EverCommerce shows a consistent revenue growth trend, with a 3.46% increase from 2023 to 2024. The gross profit margin remains robust at 67.34%, indicating efficient cost management relative to sales. However, the company faces challenges in profitability, as evidenced by negative net income and a net profit margin of -5.88% for 2024. The EBIT margin has significantly declined, and EBITDA margin stands at 0.91%, reflecting limited profitability from core operations.

Balance Sheet

The balance sheet presents a strong equity position, with an equity ratio of 52.83% for 2024, suggesting a solid capital structure. The debt-to-equity ratio is low at 0.01, indicating limited leverage and reduced financial risk. Despite these strengths, the return on equity is negative due to ongoing net losses, which could pose challenges for shareholder returns.

Cash Flow

EverCommerce demonstrates strong cash flow management, with a significant free cash flow growth of 37.02% from 2023 to 2024. The operating cash flow to net income ratio is favorable at -2.75, highlighting effective cash generation relative to reported losses. The company maintains a healthy free cash flow to net income ratio of -2.72, emphasizing its ability to sustain operations despite profitability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
698.76M	675.37M	620.75M	490.14M	337.52M
	Gross Profit
470.39M	444.36M	403.37M	327.91M	222.50M
	EBIT
252.00K	2.43M	-30.59M	-27.19M	-22.04M
	EBITDA
89.08M	106.63M	80.21M	45.53M	54.80M
	Net Income Common Stockholders
-41.09M	-45.62M	-59.82M	-81.97M	-59.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
135.78M	92.61M	92.63M	93.99M	96.03M
	Total Assets
1.42B	1.52B	1.59B	1.66B	1.33B
	Total Debt
5.50M	532.20M	536.45M	546.13M	698.33M
	Net Debt
-130.28M	439.59M	443.82M	452.13M	602.30M
	Total Liabilities
670.44M	692.03M	685.03M	677.73M	808.43M
	Stockholders Equity
750.83M	826.04M	906.69M	985.65M	519.16M
Cash Flow		Free Cash Flow
94.26M	81.53M	46.72M	22.69M	44.46M
	Operating Cash Flow
113.16M	104.61M	64.80M	37.48M	57.54M
	Investing Cash Flow
-12.30M	-38.02M	-18.08M	-379.67M	-418.31M
	Financing Cash Flow
-59.61M	-66.63M	-47.31M	341.18M	401.85M

EverCommerce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Positive. The current price of 10.46 is above the 20-day moving average (MA) of 10.01, above the 50-day MA of 10.00, and below the 200-day MA of 10.66, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVCM.

EverCommerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	80 Outperform	$1.70B	19.51	31.25%	2.06%	2.39%	39.20%
MQ	65 Neutral	$2.00B	84.29	2.34%	―	-25.02%	―
FIVN	64 Neutral	$1.91B	―	-2.21%	―	14.44%	84.58%
TDC	64 Neutral	$2.08B	18.53	85.07%	―	-4.53%	93.29%
TUYA	63 Neutral	$1.36B	255.17	0.51%	2.74%	29.84%	―
EVCM	61 Neutral	$1.92B	―	-5.21%	―	3.46%	7.88%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%

EverCommerce Corporate Events

EverCommerce Faces Nasdaq Non-Compliance After Director Resignation

On April 9, 2025, Alexi Wellman resigned from the Board of Directors of EverCommerce Inc., effective April 10, 2025, for personal reasons, without any disagreement with the company. Her resignation leaves a vacancy on the Audit Committee, reducing its members to two, which does not comply with Nasdaq’s requirement for three members. EverCommerce has informed Nasdaq of this non-compliance and plans to appoint a new director within 180 days to meet the criteria.

Spark’s Take on EVCM Stock

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

EverCommerce’s score reflects a strong financial structure and effective cash flow management, but profitability challenges and a negative P/E ratio impact the valuation component. Technical indicators suggest a neutral market sentiment. While the company is strategically positioned for growth with leadership changes, key risks like profitability remain.

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

EverCommerce Appoints Tanner Austin as New Director

On February 12, 2025, John Marquis resigned from the Board of Directors of EverCommerce Inc., a decision not due to any disagreements with the company’s operations or policies. Subsequently, on February 14, 2025, Tanner Austin was elected to fill the vacancy as a Class III director, a move in line with the Stockholders Agreement with Providence Strategic Growth II L.P. Mr. Austin has chosen to waive participation in the company’s Non-Employee Director Compensation Program and is expected to enter the standard indemnification agreement.