essensys PLC (ESYS) AI Stock Analysis

• Market Cap: £21.04M
• Dividend Yield: N/A
• Average Volume (3M): 21.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -5.21%
• EPS Growth: 76.14%
• Country: UK
• Employees: 116
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 64,727,010
• 10 Day Avg. Volume: 20,162
• 30 Day Avg. Volume: 21,502
• PEG Ratio: -0.36
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.20
• 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: £41.00
• Price Target Upside: 26.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: 33.00p ▲(1.54%Upside)

The overall score reflects significant financial challenges and valuation concerns due to persistent losses and negative cash flows despite a stable balance sheet. Technical analysis provides some positive short-term momentum, but the stock may be overbought. The corporate event involving the new adviser appointment is a positive strategic step, providing some optimism.

essensys PLC Business Overview & Revenue Model

Company Description

essensys plc provides software-as-a-service platforms and on-demand cloud services to the workspace industry in the United Kingdom and the United States of America. The company's products include Connect, a software platform for multi-site operators that provide, manage, and monitor mission-critical infrastructure services in real-time; and Operate, an end-to-end solution for multi-site workspace operators for managing day-to-day operations. It serves multi-site flexible workspace providers, commercial real estate providers, and multi-site landlords. The company was founded in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

Essensys PLC generates revenue primarily through the sale of its software services and technology infrastructure solutions. The company offers a subscription-based model for its cloud-based software platform, which provides workspace operators with tools for managing operations, including billing, member management, and network services. Additionally, Essensys earns revenue from the installation and maintenance of its technology infrastructure, which includes network systems and connectivity solutions. The company's earnings are bolstered by its strategic partnerships with flexible workspace providers and commercial real estate companies, which help broaden its market reach and drive sales of its proprietary technology solutions.

essensys PLC Financial Statement Overview

Summary

Essensys PLC faces considerable financial challenges with declining revenues, persistent losses, and negative cash flows. Despite a strong gross profit margin and low leverage, profitability and liquidity issues pose significant risks.

Income Statement

The company's income statement reveals a challenging financial position with declining revenue and persistent losses. Revenue decreased by 4.45% from the previous year, and net income remains negative, indicating ongoing profitability issues. The gross profit margin stands at 56.93%, which is relatively strong, but the net profit margin is negative at -13.71%, pointing to significant operational challenges.

Balance Sheet

The balance sheet shows a moderately stable financial position with a debt-to-equity ratio of 0.09, indicating low leverage. However, the return on equity is negative at -19.73%, reflecting the company's inability to generate profits on its equity base. The equity ratio is 73.77%, demonstrating a strong equity position relative to total assets.

Cash Flow

Cash flow analysis highlights liquidity challenges, with negative operating cash flow and free cash flow. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.96, suggesting some improvement in cash management, but overall cash flow remains negative, indicating liquidity constraints.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
22.82M	24.13M	25.25M	23.30M	21.98M	22.50M
	Gross Profit
8.02M	13.74M	14.91M	14.11M	14.23M	14.38M
	EBIT
-3.81M	-5.38M	-15.51M	-11.03M	-2.80M	476.00K
	EBITDA
597.00K	-637.00K	-10.46M	-7.81M	681.00K	3.50M
	Net Income Common Stockholders
-2.57M	-3.31M	-15.71M	-10.80M	-3.34M	155.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.19M	3.10M	7.86M	24.12M	36.90M	8.50M
	Total Assets
19.53M	22.72M	27.52M	47.33M	52.20M	22.77M
	Total Debt
731.00K	1.44M	1.57M	3.13M	1.94M	2.14M
	Net Debt
-1.46M	-1.66M	-6.29M	-20.99M	-34.97M	-6.35M
	Total Liabilities
4.50M	5.96M	6.93M	11.85M	7.27M	6.67M
	Stockholders Equity
15.03M	16.76M	20.58M	35.48M	44.92M	16.10M
Cash Flow		Free Cash Flow
2.53M	-3.18M	-14.31M	-12.43M	-1.39M	789.00K
	Operating Cash Flow
2.60M	-1.07M	-9.84M	-6.80M	1.89M	4.07M
	Investing Cash Flow
-2.22M	-2.09M	-4.14M	-5.53M	-3.28M	-3.28M
	Financing Cash Flow
-1.55M	-1.54M	-2.00M	-1.04M	29.82M	5.04M

essensys PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ESYS, the sentiment is Positive. The current price of 32.5 is equal to the 20-day moving average (MA) of 32.50, above the 50-day MA of 29.91, and above the 200-day MA of 31.50, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ESYS.

essensys PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NET	72 Outperform	£197.62M	37.98	12.87%	0.75%	15.40%	-6.59%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
SPA	60 Neutral	£53.98M	323.33	0.88%	―	4.80%	350.00%
ESYS	55 Neutral	£21.04M	―	-15.60%	―	-5.21%	76.14%
PULS	54 Neutral	£54.92M	―	-14.23%	―	-0.65%	16.80%
TERN		£8.38M	―	-32.79%	―	―	―
SAAS		£121.16M	335.48	-2.78%	1.19%	―	―

essensys PLC Corporate Events

Essensys PLC Appoints New Nominated Adviser and Sole Broker

Essensys PLC, a prominent provider in the flexible workspace industry, has appointed Canaccord Genuity Limited as its Nominated Adviser and Sole Broker. This strategic move is expected to bolster essensys’ market positioning and enhance its operational capabilities, potentially benefiting stakeholders by ensuring the company remains competitive in the evolving workplace landscape.

Essensys PLC Updates Directors’ Disclosures Under AIM Rule 17

Essensys PLC, a prominent player in the flexible workspace industry, announced updates related to directors’ disclosures under AIM Rule 17. These updates pertain to the current and former directorships of Charles Butler and Jon Lee, with specific mention of Jon Lee’s past involvement with VLOC Holdings Limited, which underwent a creditors voluntary liquidation. This disclosure is part of the company’s commitment to transparency and regulatory compliance, potentially impacting stakeholders’ perception of governance practices.

Essensys PLC Announces Change in Major Shareholder Holdings

Essensys PLC, a UK-based company, has reported a change in its major holdings. Canaccord Genuity Group Inc., based in Vancouver, Canada, has adjusted its voting rights in Essensys PLC, reducing its stake from 11.7817% to 10.7529%. This adjustment in holdings could impact the company’s governance and decision-making processes.

Essensys PLC Issues New Shares Following Option Exercise

Essensys PLC has announced the issuance and allotment of 27,263 new ordinary shares following the exercise of share options by a former employee. These shares are set to commence trading on AIM on April 17, 2025, increasing the company’s total issued share capital to 64,727,011 ordinary shares. This development reflects Essensys’s ongoing operational adjustments and may influence shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.