| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 16.87 | -94 |
| Graham Formula | 50.49 | -82 |
Esker SA is a leading provider of SaaS-based document process automation solutions, headquartered in Lyon, France. Founded in 1985, Esker specializes in procure-to-pay (P2P) and order-to-cash (O2C) automation, along with document delivery and automation technologies. The company serves industries such as life sciences, building materials, food, electronics, and chemicals, helping businesses streamline operations through cloud-based solutions like Esker on Demand and VSI-Fax. Esker's innovative approach to business process automation enhances efficiency, reduces costs, and improves compliance for its global clientele. With a strong presence in France and international markets, Esker continues to expand its footprint in the fast-growing SaaS and automation sector, positioning itself as a key player in digital transformation for enterprises.
Esker SA presents an attractive investment opportunity due to its strong position in the growing SaaS-based document automation market. The company reported €190.9 million in revenue for FY 2023, with a net income of €14.9 million and diluted EPS of €2.45. Esker's operating cash flow of €31.5 million and solid cash position (€42.6 million) underscore its financial stability. However, investors should consider the company's beta of 1.202, indicating higher volatility compared to the market. The dividend yield, with a payout of €0.65 per share, adds to its appeal for income-focused investors. Risks include competition in the SaaS automation space and potential macroeconomic pressures affecting IT spending.
Esker SA competes in the document automation and SaaS-based business process management market, leveraging its specialized solutions in P2P and O2C automation. The company's competitive advantage lies in its deep industry expertise, particularly in sectors like life sciences and manufacturing, where compliance and efficiency are critical. Esker's cloud-native platform, Esker on Demand, provides scalability and integration capabilities that appeal to mid-sized and large enterprises. However, the company faces stiff competition from larger players like SAP and Oracle, which offer broader ERP solutions with embedded automation features. Esker differentiates itself through a focused approach, superior customer service, and ease of implementation. Its ability to integrate with multiple ERP systems without heavy customization is a key strength. Nevertheless, the company must continue innovating to maintain its edge against niche competitors and tech giants expanding into automation.