Envestnet, Inc.
ENV
currently benefits from recurring revenue-generation capacity and development in technology.
ENV has an impressive
Growth Score
of B. This style score condenses all the essential metrics from Envestnet’s financial statements to get a true sense of the quality and sustainability of its growth. Moreover, revenues are expected to increase 10.7% and 13.4 year over year in 2022 and 2023, respectively.
Factors That Augur Well
Envestnet’s business model ensures solid asset-based and subscription-based recurring revenue generation capacity. ENV provides asset-based and subscription-based services on a business-to-business-to-consumer (B2B2C) basis for financial services clients. These clients offer solutions based on ENV’s platform to their end users. On a business-to-business (B2B) basis, ENV delivers an open platform to customers and third-party developers through an open API framework.
Envestnet’s recurring revenues increased 11% year over year in 2019, 10.2% in 2020 and 20.2% in 2021. In the first quarter of 2022, asset-based recurring revenues rose 27% year over year, while subscription-based recurring revenues gained 4%.
ENV continues focusing on technology development with a view to improve operational efficiency, increase market competitiveness, address regulatory demands and cater to client-driven requests for new capabilities. Per management, ENV’s technology design allows significant scalability.
Envestnet’s current ratio at the end of the March quarter was pegged at 1.83, lower than the current ratio of 1.97 reported at the end of the December quarter and the prior-year quarter’s current ratio of 2.14. Decreasing current ratio is not desirable as it indicates that a company may have problems meeting its short-term debt obligations.
Shares of Envestnet have plunged 29.5% in the past year compared with a 33.4% decrease of the
industry
it belongs to.
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Zacks Rank and Stocks to Consider
Envestnet currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks
Business Services
sector are
Avis Budget Group, Inc.
CAR
, Cross Country Healthcare
CCRN
and
CRA International, Inc.
CRAI
.
Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Cross Country Healthcare flaunts a Zacks Rank of 1 at present. CCRN has a long-term earnings growth expectation of 6.9%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.
CRA International carries a Zacks Rank #2 (Buy), currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.
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