Breaking Down Enfusion, Inc. (ENFN) Financial Health: Key Insights for Investors

Breaking Down Enfusion, Inc. (ENFN) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NYSE

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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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