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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Escher Grp | ESCH | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 189.50 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 189.50 |
| Top Posts |
|---|
Posted at 10/6/2014 20:23 by aishah I'm slightly amazed to see ESCH shareholders still keeping the faith in fact, they've pushed the share price higher (though it's backed off from a March high of 395p). But with 42% of Escher owned by management, and another 40% in the hands of its three main institutional investors, the share price isn't necessarily that representative of underlying intrinsic value anyway. The company's 2013 performance definitely struck a bum note vs. the high growth/high margin story shareholders bought into so enthusiastically. Revenues only increased 8% to USD 24.7 million, putting ESCH on a 4.2 Price/Sales multiple!That looks pretty rich when its operating free cash flow margin's averaged just 6.8% in the past two years, while free cash flow was negligible. Even more so, when you ponder its revenue composition: A whopping 50% of Escher's revenue comes from its top 2 customers, plus software development & consulting's actually been the key revenue growth driver in the past 2 years (and is now almost 50% of total revenue). Now, we can obviously expect a migration from consulting revenue to recurring contract revenue, but how much & when are crucial questions. One way or the other, the transition will likely present another revenue growth challenge. [However, I'm encouraged by promising signs of diversification into e-government, and mobile loyalty, reward & payment - though I suspect these are small revenue streams for the moment. Revenue of USD 6 M deferred into H1-2014 is encouraging too - but doesn't necessarily guarantee a blockbuster year]. Historically, Escher has managed to clock up 30%+ operating margins which intuitively makes sense for this kind of business unfortunately, those margins are likely to remain out of reach in the near/medium-term. Right now, for valuation purposes, let's bridge the gap by assuming ESCH can re-attain half those margins and I mean on a cash flow basis which deserves a 1.5 Price/Sales multiple. With cash & debt broadly similar, and free cash flow roughly neutral, we can ignore any potential cash/debt adjustments: USD 24.7 M Revenue * 1.5 P/S / 1.6719 GBP/USD / 18.7 M shares = GBP 119p Escher remains substantially over-valued. While a share price of 330p might reflect the future outlook for ESCH, it certainly doesn't appear to adequately reflect the gap (& the risks) between today's financials & that potential future... Time will tell investors may simply prefer to keep focusing on a diet of fresh contracts/news flow, rather than profits. Price Target: GBP 119p Upside/(Downside): (64)% |
Posted at 05/6/2014 13:48 by sharesoc Shareholders and potential investors in Escher Group will probably be interested in attending ShareSoc's growth company seminar on the 25th June where ESCH will be presenting. More at: hxxp://www.sharesoc. |
Posted at 11/2/2014 17:02 by knackers Clear and concise, interview with Escher CFO Jonathan O'Connell at the recent Shares Mag Investors Tech Conference: |
Posted at 28/1/2014 11:59 by knackers Tech teach-in to Instl investors by Escher currently underway at Panmure Gordon:George O Connor @GeorgeO 33m @escher_group #investorteachin There are 200 National Post authorities 34 are Escher customers they are the largest retailers in country Something of a market opportunity... |
Posted at 22/10/2013 09:47 by 43rick I cannot buy more than 150 shares on line with interactive investor - anything more and it is route trade to dealer - presumably that is why that 820 tranche went for 10% over the ask - selling is no problem |
Posted at 17/10/2013 07:09 by knackers OK Aishah ;o) But the best place to head for half-decent coverage on this stock has to be Panmure. Worth getting your mitts on their 2013 notes since Easter - or their morning coverage. Proactive Investors sometimes carry summaries. |
Posted at 16/10/2013 06:56 by knackers Escher Group gets Panmure stamp of approval(c/o Proactive Investors) 14 October 1.48pm The Royal Mail flotation has thrown the spotlight on the postal delivery, which can only be of benefit to Escher (LON:ESCH), Panmure Gordon reckons. Escher Group, is the leading provider of distributed messaging and data management solutions to the world's postal industry. The company allows post office authorities to run their current transactions and their point of service applications (be they mail, financial, retail or government services), Panmure Gordon notes. "More importantly Escher is leading postal clients through the digital revolution. As the ballyhoo about the Royal Mail IPO pricing abates, wise heads will look to Escher as a lead indicator of what 'good looks like' in the Postal industry," the broker argues. The company announced last week it has agreed a revised banking facility with the Bank of Ireland, comprising a five-year term loan facility and a revolving 12-month facility for US$3mln. Liam Church, Escher's chief executive officer, said the refinancing would assist the business in its current phase of rapid growth. Ends |
Posted at 16/7/2013 20:45 by glasshalfull I've been researching ESCH and like what I've uncovered.Clearly the company is under the radar of many investors with no comment on the last 3 x RNS announcements over last few months which indicate a 4 year renewal; 7 year renewal & first contract win in mobile payment respectively. Seems decent momentum. Panmure have also upgraded price forecasts and had this to say on the 8th July in relation to their contract extension with An Post, Panmure Gordon retained its "buy" recommendation on software provider Escher Group Holdings (ESCH) with a target price of 465p. The broker notes that Escher has recently signed a seven-year contract extension with long-term customer An Post, Ireland's national postal operator. Panmure feels that this contract shows that Escher continues to be able to offer postal authorities operational efficiencies. The broker also labels the valuation as "sizzling" with the shares currently trading on a PE ratio of 8.2. The shares remained flat at 225p. I continue to research and appreciate any views from lurkers/holders as the valuation looks very compelling for a company on prospective PER of 9 for the current year, which appears to have a dominant position in point of sale software for the global postal market. Yep, their recognition of licensing revenue can make for lumpy results but I'm far more interested in their "moat" and recurring revenue via maintenance and service revenue. Also their development into other vertical markets. I'd suggest that companies such as SAP, IBM, Fujitsu must be casting their eye over ESCH & imagine that they will be acquired at some point given their entrenched position. As such, I've dipped my toe in. Regards, GHF |
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