essensys PLC (ESYS) AI Stock Analysis

• Market Cap: £17.15M
• Dividend Yield: N/A
• Average Volume (3M): 20.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -5.21%
• EPS Growth: 76.14%
• Country: UK
• Employees: 116
• Sector: Technology
• Sector Strength: 51
• Industry: Software - Application
• EPS (TTM): -0.04
• Shares Outstanding: 64,699,745
• 10 Day Avg. Volume: 38,429
• 30 Day Avg. Volume: 20,599
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.93
• Price to Cash Flow (P/CF): 6.90
• P/FCF Ratio: 17.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Essensys PLC's overall score reflects significant financial and operational challenges, as well as negative market sentiment. While recent corporate events highlight strategic efforts to improve performance, the company's current financial instability and unattractive valuation weigh heavily on its stock potential.

essensys PLC Business Overview & Revenue Model

Company Description

Essensys PLC (ESYS) is a leading provider of software and technology solutions for flexible workspaces. The company operates in the technology and real estate sectors, offering cloud-based services designed to streamline operations and enhance user experiences in flexible workspace environments. Essensys's core products include an integrated management platform that enables workspace operators to manage their spaces efficiently and deliver seamless experiences to their clients.

How the Company Makes Money

Essensys PLC generates revenue primarily through subscription fees for its software-as-a-service (SaaS) platform, which is used by workspace operators to manage their flexible workspaces. The company offers various modules and features that clients can choose from, providing scalability and customization options to meet specific operational needs. Additionally, Essensys may earn income from professional services, such as implementation and support, to assist clients in integrating and optimizing their use of the platform. Strategic partnerships with real estate firms and workspace providers further enhance Essensys's market reach and contribute to its revenue generation.

essensys PLC Financial Statement Overview

Summary

Overall, essensys PLC faces considerable financial challenges, characterized by declining revenues, persistent losses, and negative cash flows. While the company maintains a relatively stable balance sheet with low leverage, its profitability and liquidity issues pose significant risks. Improvements in revenue growth and operational efficiency are critical for a better financial outlook.

Income Statement

The company's income statement reveals a challenging financial position with declining revenue and persistent losses. Revenue decreased by 4.45% from the previous year, and net income remains negative, indicating ongoing profitability issues. The gross profit margin stands at 56.93%, which is relatively strong, but the net profit margin is negative at -13.71%, pointing to significant operational challenges.

Balance Sheet

The balance sheet shows a moderately stable financial position with a debt-to-equity ratio of 0.09, indicating low leverage. However, the return on equity is negative at -19.73%, reflecting the company's inability to generate profits on its equity base. The equity ratio is 73.77%, demonstrating a strong equity position relative to total assets.

Cash Flow

Cash flow analysis highlights liquidity challenges, with negative operating cash flow and free cash flow. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.96, suggesting some improvement in cash management, but overall cash flow remains negative, indicating liquidity constraints.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
24.08M	24.13M	25.25M	23.30M	21.98M	22.50M
	Gross Profit
9.90M	13.74M	14.91M	14.11M	14.23M	14.38M
	EBIT
-8.63M	-5.38M	-15.51M	-11.03M	-2.80M	476.00K
	EBITDA
-3.84M	-637.00K	-10.46M	-7.81M	681.00K	3.50M
	Net Income Common Stockholders
-10.73M	-3.31M	-15.71M	-10.80M	-3.34M	155.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.46M	3.10M	7.86M	24.12M	36.90M	8.50M
	Total Assets
23.47M	22.72M	27.52M	47.33M	52.20M	22.77M
	Total Debt
1.28M	1.44M	1.57M	3.13M	1.94M	2.14M
	Net Debt
-2.18M	-1.66M	-6.29M	-20.99M	-34.97M	-6.35M
	Total Liabilities
5.58M	5.96M	6.93M	11.85M	7.27M	6.67M
	Stockholders Equity
17.89M	16.76M	20.58M	35.48M	44.92M	16.10M
Cash Flow		Free Cash Flow
-7.59M	-3.18M	-14.31M	-12.43M	-1.39M	789.00K
	Operating Cash Flow
-4.39M	-1.07M	-9.84M	-6.80M	1.89M	4.07M
	Investing Cash Flow
-3.08M	-2.09M	-4.14M	-5.53M	-3.28M	-3.28M
	Financing Cash Flow
-1.95M	-1.54M	-2.00M	-1.04M	29.82M	5.04M

essensys PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ESYS, the sentiment is Negative. The current price of 26.5 is below the 20-day moving average (MA) of 30.52, below the 50-day MA of 34.26, and below the 200-day MA of 31.67, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 12.66 is Positive, neither overbought nor oversold. The STOCH value of 20.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ESYS.

essensys PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUTO	74 Outperform	£6.79B	24.95	50.14%	1.28%	11.68%	21.35%
WIZZ	62 Neutral	£1.53B	6.09	88.27%	―	5.20%	13.48%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%
FDEV	55 Neutral	£75.96M	4.73	21.85%	―	-6.57%	―
ESYS	45 Neutral	£17.15M	―	-15.60%	―	-5.21%	76.14%
SYN	38 Underperform	£2.96M	0.48	56.96%	―	-55.66%	―

essensys PLC Corporate Events

Essensys PLC Returns to Profit and Launches New Product Amid CEO Succession

Essensys PLC reported a return to positive adjusted EBITDA for the first half of 2025, driven by a simplified operational structure and a focus on strategic customers. The company launched a new product, elumo, aimed at driving growth over the next five years by helping landlords and operators manage shared meeting rooms. Despite a challenging macroeconomic environment and the downsizing of a large strategic customer, essensys remains on track for cash generation and profitability by the end of the fiscal year. The company also announced a planned succession in the Chief Executive Officer role, with James Lowery set to take over from founder Mark Furness in May 2025.

Leadership Transition at essensys plc: James Lowery to Succeed Mark Furness as CEO

essensys plc announced the retirement of its founder and CEO, Mark Furness, effective 1 May 2025, with James Lowery, the current COO, set to succeed him. This leadership transition marks a new phase for essensys, as Lowery brings experience in scaling real estate solutions and consulting, positioning the company to further capitalize on opportunities in the flexible workspace industry.

essensys PLC Announces Upcoming Financial Results Release and Investor Presentation

essensys PLC has scheduled the release of its financial results for the six months ending January 31, 2025, on March 13, 2025. The announcement will include a live investor presentation, reflecting the company’s commitment to transparency and stakeholder engagement. This event could provide insights into essensys’ market positioning and future strategic direction in the evolving flexible workspace industry.

Essensys PLC Grants Share Options to Key Executives

Essensys PLC announced the grant of 1,855,000 options over ordinary shares to key directors and PDMRs under its Long-Term Incentive Plan. The options, subject to performance conditions, highlight the company’s commitment to aligning management incentives with shareholder interests. This move, involving significant figures like the CEO, COO, CFO, and Chief Product & Technology Officer, underscores Essensys’s strategy to maintain a strong leadership team as it navigates the challenges and opportunities within the flexible workspace industry. The grant also reflects the company’s proactive approach in managing its share capital, ensuring strategic stability and growth potential by maintaining a substantial portion of its issued share capital as outstanding options.