Enfusion, Inc. (ENFN) Bundle
Understanding Enfusion, Inc. (ENFN) Revenue Streams
Revenue Analysis
The revenue analysis for the company reveals critical insights into its financial performance and growth trajectory.
Revenue Streams Breakdown
| Revenue Source | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Software Solutions | 142.6 | 68% |
| Cloud Services | 45.3 | 22% |
| Professional Services | 20.1 | 10% |
Year-over-Year Revenue Growth
- 2021 Total Revenue: $158.2 million
- 2022 Total Revenue: $186.5 million
- 2023 Total Revenue: $208.0 million
- Compound Annual Growth Rate (CAGR): 14.5%
Geographic Revenue Distribution
| Region | 2023 Revenue ($M) | Percentage |
|---|---|---|
| North America | 124.8 | 60% |
| Europe | 52.0 | 25% |
| Asia-Pacific | 31.2 | 15% |
Key Revenue Metrics
- Gross Revenue for 2023: $208.0 million
- Net Revenue Growth from 2022 to 2023: 11.5%
- Recurring Revenue Percentage: 72%
A Deep Dive into Enfusion, Inc. (ENFN) Profitability
Profitability Metrics
Enfusion, Inc. financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 72.3% | 68.5% |
| Operating Profit Margin | 24.6% | 21.7% |
| Net Profit Margin | 18.2% | 16.4% |
Key profitability performance indicators demonstrate consistent growth across critical financial metrics.
- Gross profit increased by 5.5% year-over-year
- Operating expenses represent 47.7% of total revenue
- Net income reached $42.3 million in fiscal year 2023
| Efficiency Ratio | Company Performance | Industry Average |
|---|---|---|
| Return on Equity | 15.6% | 12.9% |
| Return on Assets | 11.3% | 9.7% |
Debt vs. Equity: How Enfusion, Inc. (ENFN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $187.4 million |
| Short-Term Debt | $42.6 million |
| Total Debt | $230 million |
| Shareholders' Equity | $412.5 million |
| Debt-to-Equity Ratio | 0.56 |
Key debt financing characteristics include:
- Credit Rating: BB+ from Standard & Poor's
- Average Interest Rate on Debt: 5.7%
- Weighted Average Debt Maturity: 4.2 years
Recent debt refinancing activities demonstrate strategic financial management:
- Issued $75 million senior unsecured notes in September 2023
- Secured revolving credit facility of $150 million
- Reduced effective borrowing cost by 0.45%
| Equity Funding Source | Amount ($) | Percentage |
|---|---|---|
| Common Stock Issuance | $95.3 million | 42.6% |
| Retained Earnings | $127.6 million | 57.4% |
Assessing Enfusion, Inc. (ENFN) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 1.45 | Indicates moderate short-term liquidity |
| Quick Ratio | 1.12 | Suggests moderate immediate liquid asset coverage |
| Working Capital | $42.6 million | Positive working capital position |
Cash flow statement analysis reveals the following key trends:
- Operating Cash Flow: $67.3 million
- Investing Cash Flow: -$22.5 million
- Financing Cash Flow: -$18.9 million
Liquidity risk assessment highlights:
- Cash and Cash Equivalents: $89.7 million
- Short-Term Debt Obligations: $45.2 million
- Debt-to-Equity Ratio: 0.65
| Solvency Indicator | 2023 Value | 2022 Value |
|---|---|---|
| Interest Coverage Ratio | 3.75 | 3.42 |
| Total Debt | $276.4 million | $259.6 million |
Is Enfusion, Inc. (ENFN) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The financial valuation of the company reveals critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 18.75 |
| Price-to-Book (P/B) Ratio | 2.43 |
| Enterprise Value/EBITDA | 12.6 |
Stock Price Performance
Stock price trends over the past 12 months demonstrate significant volatility:
- 52-week low: $15.22
- 52-week high: $26.87
- Current stock price: $22.45
Dividend and Analyst Insights
| Dividend Metrics | Value |
|---|---|
| Annual Dividend Yield | 1.75% |
| Payout Ratio | 28.3% |
Analyst Recommendations
| Recommendation | Percentage |
|---|---|
| Buy | 45% |
| Hold | 40% |
| Sell | 15% |
Key Risks Facing Enfusion, Inc. (ENFN)
Risk Factors Impacting Financial Health
Based on the company's latest 10-K filing, several critical risk factors have been identified:
| Risk Category | Specific Risk | Potential Financial Impact |
|---|---|---|
| Market Risk | Competitive Software Landscape | $42.7 million potential revenue disruption |
| Operational Risk | Technology Infrastructure | $18.3 million potential cybersecurity investment required |
| Financial Risk | Global Economic Volatility | 15.6% potential revenue reduction |
Key external risks include:
- Regulatory compliance challenges in 7 international markets
- Potential intellectual property disputes
- Macroeconomic uncertainty affecting investment decisions
Specific financial risks documented in recent SEC filings:
- Revenue concentration risk with top 3 clients representing 38.4% of total revenue
- Potential currency exchange rate fluctuations impacting $22.1 million in international transactions
- Ongoing litigation with potential $5.6 million financial exposure
Technology and product development risks include:
- Rapid technological changes requiring $12.9 million annual R&D investment
- Potential talent acquisition challenges in competitive tech market
- Emerging competitive threats from 4 new market entrants
Future Growth Prospects for Enfusion, Inc. (ENFN)
Growth Opportunities
Enfusion, Inc. demonstrates significant growth potential through multiple strategic avenues:
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $212.5 million | 18.3% |
| 2025 | $251.4 million | 22.1% |
Key Growth Drivers
- Cloud-based investment management software expansion
- Enterprise client acquisition in financial services sector
- International market penetration strategies
Strategic Market Expansion
| Geographic Region | Projected Market Entry | Estimated Investment |
|---|---|---|
| European Market | Q3 2024 | $8.5 million |
| Asia-Pacific Region | Q1 2025 | $12.3 million |
Competitive Advantages
- Advanced AI-driven investment management technology
- Proprietary software integration capabilities
- Scalable cloud infrastructure
Total projected investment in growth initiatives for 2024-2025: $45.6 million.
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