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Reasons to Retain Envestnet (ENV) Stock in Your Portfolio

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·2 min read
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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 and EPS Surprise
Envestnet, Inc Price, Consensus and EPS Surprise

Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote

Some Risks

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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