Envestnet Stock: Short-Term Pain, Long-Term Gain

Oct. 08, 2021 12:30 PM ETEnvestnet, Inc. (ENV) StockENV
The Value Pendulum
Investing Group Leader

Summary

  • Envestnet targets to deliver much faster top line growth in the next few years, compared with what Wall Street analysts are currently forecasting.
  • On the flip side, the key downside risk for Envestnet is weaker-than-expected profitability in FY 2022 as a result of greater-than-expected investment spending.
  • The market currently values Envestnet at 34.7 times FY 2021 P/E and 33.8 times FY 2022 P/E, which I view as unattractive.
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Elevator Pitch

I continue to assign a Neutral rating to Envestnet, Inc. (ENV). My prior update for ENV was published more than five months ago on April 26, 2021.

Taxes, managed accounts, and direct indexing are incremental revenue

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This article was written by

The Value Pendulum
12.83K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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