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Envestnet Inc ENV

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Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Envestnet Has a Solid Quarter and Market Appreciation Boosts Outlook

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Narrow-moat Envestnet started 2021 on solid footing with results modestly beating expectations. Revenue of $275 million was 1% ahead of the Visible Alpha consensus of $273 million and above the firm’s outlook of $270 million-$273 million. Adjusted EBITDA of $68.3 million beat the consensus of $65.0 million and guidance of $63 million-$65 million. Given the strong quarter and continued rise in equity markets, Envestnet tweaked its full-year revenue and adjusted EBITDA outlook higher. We will maintain our narrow moat rating and fair value estimate of $65 per share as increases in revenue are offset by a higher assumed long-term tax rate.

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Company Profile

Business Description

Envestnet provides wealth-management technology and solutions to registered investment advisors, banks, broker/dealers, and other firms. Its Tamarac platform provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software to high-end RIAs. Envestnet’s portfolio management consultants provides research services and consulting services to assist advisors, including vetted third-party managed account products. In November 2015, Envestnet acquired Yodlee, a provider of data aggregation.

Contact
35 East Wacker Drive, Suite 2400, 24th Floor
Chicago, IL, 60601
T +1 312 827-2800
Sector Technology
Industry Software - Application
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 4,250

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