Buy or Sell EverCommerce Stock?
EverCommerce (EVCM) stock has jumped 11% during the past day, and is currently trading at $13.36. We believe there are a few things to fear in EVCM stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Moderate |
| What you get: | |
| Growth | Strong |
| Profitability | Very Weak |
| Financial Stability | Strong |
| Downturn Resilience | Very Weak |
| Operating Performance | Moderate |
| Stock Opinion | Fairly Priced |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $2.4 Bil in market cap, EverCommerce provides integrated SaaS solutions for service-based SMBs, including business management, billing, payment processing, and specialized home and health service software suites.
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[1] Valuation Looks Moderate
| EVCM | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 2.8 | 11.4 |
| Price-to-Earnings Ratio | -2975.3 | 37.5 |
| Price-to-Free Cash Flow Ratio | 18.1 | 54.0 |
This table highlights how EVCM is valued vs broader market. For more details see: EVCM Valuation Ratios
[2] Growth Is Strong
- EverCommerce has seen its top line grow at an average rate of 7.5% over the last 3 years
- Its revenues have grown 22% from $588 Mil to $718 Mil in the last 12 months
- Also, its quarterly revenues grew 5.3% to $147 Mil in the most recent quarter from $140 Mil a year ago.
| EVCM | S&P 500 | |
|---|---|---|
| 3-Year Average | 7.5% | 12.2% |
| Latest Twelve Months* | 22.1% | 13.2% |
| Most Recent Quarter (YoY)* | 5.3% | 15.9% |
This table highlights how EVCM is growing vs broader market. For more details see: EVCM Revenue Comparison
[3] Profitability Appears Very Weak
- EVCM last 12 month operating income was $61 Mil representing operating margin of 8.5%
- With cash flow margin of 19.3%, it generated nearly $139 Mil in operating cash flow over this period
- For the same period, EVCM generated nearly $-0.7 Mil in net income, suggesting net margin of about -0.09%
| EVCM | S&P 500 | |
|---|---|---|
| Current Operating Margin | 8.5% | 37.5% |
| Current OCF Margin | 19.3% | 35.5% |
| Current Net Income Margin | -0.1% | 27.6% |
This table highlights how EVCM profitability vs broader market. For more details see: EVCM Operating Income Comparison
[4] Financial Stability Looks Strong
- EVCM Debt was $525 Mil at the end of the most recent quarter, while its current Market Cap is $2.4 Bil. This implies Debt-to-Equity Ratio of 26.0%
- EVCM Cash (including cash equivalents) makes up $107 Mil of $1.4 Bil in total Assets. This yields a Cash-to-Assets Ratio of 7.6%
| EVCM | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 26.0% | 2.7% |
| Current Cash-to-Assets Ratio | 7.6% | 16.0% |
[5] Downturn Resilience Is Very Weak
EVCM has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- EVCM stock fell 74.1% from a high of $22.92 on 26 August 2021 to $5.94 on 7 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $13.36 on 15 December 2025 $13.36
| EVCM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -74.1% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read EVCM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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