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Envestnet Inc ENV

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Solid Quarter and Revenue Outlook for Envestnet, but We Lower FVE on Elevated Expense Outlook

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Narrow-moat-rated Envestnet reported solid fourth-quarter results and 2021 revenue outlook, but we suspect investment spending will disappoint investors in the near term. Revenue outlook for 2021 of $1.105 billion-$1.120 billion was in line with the FactSet consensus of $1.111 billion, but as the company ramps up investment spending, adjusted EBITDA margins are expected to decline to 20.7% from the 24.3% in 2020 and the 21.4% in 2019. As a result, Envestnet’s 2021 adjusted EPS outlook of $1.95 to $2.08 missed the consensus estimate of $2.71. We are lowering our fair value estimate on Envestnet's shares to $65 from $74 to account for higher expenses in our model.

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Company Profile

Business Description

Envestnet Inc 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 Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 4,250