We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Envestnet (ENV) Benefits From Recurring Revenue Strength
Read MoreHide Full Article
Envestnet, Inc. (ENV - Free Report) is currently benefiting from a strong asset-based and subscription-based recurring revenue generation capacity.
The company recently reported second-quarter 2021 adjusted earnings per share of 67 cents that outpaced the Zacks Consensus Estimate by 24.1% and improved 14% year over year. Revenues of $288.7 million surpassed the consensus mark by 2% and climbed 23% year over year.
Envestnet shares have gained 22.8% over the past six months against 7% decline of the industry it belongs to.
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to financial services clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Notably, asset-based recurring revenues of $170 million increased 39% and subscription-based recurring revenues of $113 million were up 7% in the second 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.
Some Risks
Envestnet's total-debt-to-total-capital ratio of 0.48 at the end of the second quarter of 2021 was higher than the industry’s 0.37. A higher debt, as a percentage of total capital, indicates a higher risk of insolvency.
Envestnet's cash and cash equivalent balance of $370 million at the end of the quarter was well below the long-term debt level of $846 million. This underscores that the company doesn’t have enough cash to meet this debt burden.
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and TransUnion is pegged at 23.1%, 15.2% and 22%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Envestnet (ENV) Benefits From Recurring Revenue Strength
Envestnet, Inc. (ENV - Free Report) is currently benefiting from a strong asset-based and subscription-based recurring revenue generation capacity.
The company recently reported second-quarter 2021 adjusted earnings per share of 67 cents that outpaced the Zacks Consensus Estimate by 24.1% and improved 14% year over year. Revenues of $288.7 million surpassed the consensus mark by 2% and climbed 23% year over year.
Envestnet shares have gained 22.8% over the past six months against 7% decline of the industry it belongs to.
Envestnet, Inc Price
Envestnet, Inc price | Envestnet, Inc Quote
How is Envestnet Doing?
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. The company provides asset-based and subscription-based services on a business-to-business-to-consumer basis to financial services clients. These clients offer solutions based on Envestnet’s platform to their end users. On a business-to-business basis, the company delivers an open platform to customers and third-party developers through an open API framework. Notably, asset-based recurring revenues of $170 million increased 39% and subscription-based recurring revenues of $113 million were up 7% in the second 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.
Some Risks
Envestnet's total-debt-to-total-capital ratio of 0.48 at the end of the second quarter of 2021 was higher than the industry’s 0.37. A higher debt, as a percentage of total capital, indicates a higher risk of insolvency.
Envestnet's cash and cash equivalent balance of $370 million at the end of the quarter was well below the long-term debt level of $846 million. This underscores that the company doesn’t have enough cash to meet this debt burden.
Zacks Rank and Other Stocks to Consider
Envestnet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other similarly ranked stocks in the broader Zacks Business Services sector are ManpowerGroup Inc. (MAN - Free Report) , Equifax (EFX - Free Report) and TransUnion (TRU - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and TransUnion is pegged at 23.1%, 15.2% and 22%, respectively.