EPAY

Bottomline Technologies Inc

TMT, Finance/Real Estate


Presented:11/18/2019
Price:$47.25
Cap:$2.08B
Current Price:$56.99
Cap:$2.51B

Presented

Date11/18/2019
Price$47.25
Market Cap$2.08B
Ent Value$1.86B
P/E Ratio219.85x
Book Value$9.03
Div Yield0%
Shares O/S43.97M
Ave Daily Vol242,055
Short Int2.38%

Current

Price$56.99
Market Cap$2.51B
Bottomline Technologies, Inc. engages in facilitating electronic payments and transaction settlement between businesses, vendors, and banks. It operates through the following segments: Cloud Solutions; Banking Solutions; Payments and Transactional Documents; and Other. The Cloud Solutions segment provides customers with SaaS technology offerings that facilitate electronic payment, electronic invoicing, and spend management. The Banking Solutions segment offers solutions that are specifically designed for banking and financial institution customers. The Payments and Transactional Documents segment supplies software products that provide a range of financial business process management solutions including making and collecting payments, sending and receiving invoices, and generating and storing business documents. The Other segment consists healthcare and cyber fraud and risk management solutions. The company was founded by Daniel M. McGurl and James L. Loomis in May 1989 and is headquartered in Portsmouth, NH.

Publicly traded companies mentioned herein: Bank of America Corp (BAC), Bottomline Technologies DE Inc (EPAY), Coupa Software Inc (COUP), FleetCor Technologies Inc (FLT), Toronto-Dominion Bank/The (TD CN)

Highlights

The presenter is long shares of Bottomline Technologies DE Inc (EPAY), a payment automation technology company with a ~$2.1B market cap. Shares of EPAY, which trade at ~$47 (~5x consensus 2020 revenue), had been down ~20% YTD as recently as mid-October but recovered in the past month and are approximately flat YTD. Going forward, the presenter sees upside due to its attractive B2B business model and competitive advantages in the form of existing relationships with banks. As the company’s growth accelerates and outperforms expectations over the next few quarters, he anticipates ~60% upside to ~$75 per share.

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