ENV

Envestnet Inc.

TMT, Finance/Real Estate


Presented:12/13/2023
Price:$45.93
Cap:$2.51B
Current Price:$62.70
Cap:$3.46B

Presented

Date12/13/2023
Price$45.93
Market Cap$2.51B
Ent Value$3.38B
P/E RatioN/A
Book Value$13.61
Div Yield0%
Shares O/S54.66M
Ave Daily Vol827,227
Short Int14.60%

Current

Price$62.70
Market Cap$3.46B
Envestnet, Inc. engages in the provision of intelligent systems for wealth management and financial wellness. It operates through Envestnet Wealth Solutions and Envestnet Data and Analytics segments. The Envestnet Wealth Solutions segment provides unified wealth management software and services to empower financial advisors and institutions. The Envestnet Data and Analytics segment is involved in data aggregation and a data analytics platform powering dynamic, cloud-based innovation for digital financial services. The company was founded by Judson Taft Bergman, James Winfield Lumberg, William C. Crager, and Brandon Rockwell Thomas in 1999 and is headquartered in Berwyn, PA.

Publicly traded companies mentioned herein: Bank of New York Mellon Corp/The (BK), Charles Schwab Corp/The (SCHW), Envestnet Inc (ENV), Fidelity National Financial Inc (FNF)

Highlights

The presenter is short shares of Envestnet Inc (ENV), which is the largest outsourced technology provider for financial advisors/RIAs. ENV’s core business (Wealth Solutions) spans from a basic set of reporting tools an advisor would use to share account information with clients each month to a fully outsourced fiduciary model (i.e., making the investment allocation decisions on behalf of the RIA). There is also a Data & Analytics segment (20% of 2022 EBITDA, 13% of YTD EBITDA), formerly Yodlee that ENV acquired in 2015, which he thinks is under pressure from a worrying customer health dynamic. He therefore sees earnings risk in 2024 and is incrementally bearish based on earnings quality issues and aggressive medium-term targets. 

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Idea Discussion

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