EverCommerce (EVCM) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: N/A
• Average Volume (3M): 142.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 3.46%
• EPS Growth: 7.88%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 43
• Industry: Software - Infrastructure
• EPS (TTM): -0.22
• Shares Outstanding: 183,389,360
• 10 Day Avg. Volume: 137,105
• 30 Day Avg. Volume: 142,976
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.50
• Price Target Upside: 17.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

EverCommerce's overall score reflects a mix of strengths and challenges. The company shows strong revenue growth and cash flow management, bolstered by strategic leadership changes and a solid equity position. However, technical indicators signal a bearish trend, and valuation metrics are weak due to negative earnings. The recent earnings call was positive, but concerns over profitability and specific segment challenges persist.

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.

Shareholder Value

Management continues to take shareholder-friendly actions as evidenced by the company repurchasing ~$146.4M of stock since June 2022 at an average price of $9.42.

Negative Factors

Revenue Quality

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

Segment Challenges

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

EverCommerce Business Overview & Revenue Model

Company Description

EverCommerce Inc., together with its subsidiaries, engages in providing integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company's solutions include business management software, including route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions that comprise e-invoicing, mobile payments, and integrated payment processing; customer engagement applications, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, including implementation, configuration, installation, or training services. It serves home service professionals, such as home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. The company was incorporated in 2016 and is headquartered in Denver, Colorado.

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: Negative
• Last Price: 9.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Negative. The current price of 9.77 is below the 20-day moving average (MA) of 9.89, below the 50-day MA of 10.11, and below the 200-day MA of 10.70, indicating a bearish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 54.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVCM.

EverCommerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTU	79 Outperform	$167.33B	55.93	17.43%	0.65%	13.73%	9.93%
VEEV	79 Outperform	$36.04B	51.15	13.63%	―	16.20%	34.71%
ADBE	75 Outperform	$156.52B	24.19	47.28%	―	10.65%	44.84%
HUBS	67 Neutral	$27.53B	6,151.40	0.29%	―	21.07%	―
EVCM	61 Neutral	$1.79B	―	-5.21%	―	3.46%	7.88%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%

EverCommerce Corporate Events

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.

EverCommerce Restructures Leadership to Boost Growth

EverCommerce announced the appointment of Evan Berlin as the leader of its EverHealth healthcare vertical. Berlin, who has been with EverCommerce since its early days, previously served as Chief Operating Officer and was instrumental in the company’s growth and strategy. His new leadership role aligns with EverCommerce’s strategy to focus on high-growth verticals, and the company will not backfill his previous position. This move is part of a broader transformation initiative aimed at accelerating growth in EverHealth and other strategic areas.