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Envestnet, Inc. ENV has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of quality and sustainability of its growth. Envestnet’s revenues are expected to register 15.3% growth in 2021 and 11.6% in 2022.
Factors That Auger Well
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Notably, asset-based recurring revenues of $159.4 million increased 18% and subscription-based recurring revenues of $109.8 million were up 5% in the first quarter of 2021.
The company’s technology-enabled services are expected to register handsome growth as trends such as increasing demand for personalized wealth management services and cost-effective guided advice are creating significant market opportunities.
Envestnet continues to focus on technology development to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. The company’s technology design facilitates significant scalability.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Envestnet's total-debt-to-total-capital ratio of 0.48 at the end of the first quarter of 2021 was higher than the previous quarter’s 0.44. A higher debt, as a percentage of total capital, indicates a higher risk of insolvency.
Further, cash and cash equivalent balance of $372 million at the end of the quarter was well below the long-term debt level of $845 million. This underscores that the company doesn’t have enough cash to meet this debt burden.
Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the broader Zacks Business Services sector are Accenture ACN, Cross Country Healthcare CCRN and Paychex PAYX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Accenture, Cross Country Healthcare and Paychexis pegged at 10%, 10.5% and 8%, respectively.
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Accenture PLC (ACN) : Free Stock Analysis Report
Paychex, Inc. (PAYX) : Free Stock Analysis Report
Envestnet, Inc (ENV) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
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