Envirosuite share price flat after FY20 results

The Envirosuite share price is flatlining today after the the environmental management company posted its FY20 results.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Envirosuite Ltd (ASX: EVS) share price is trading flat today after the company posted its FY20 results. The share price is trading at 16 cents at the time of writing, after reaching as high as 17 cents in morning trade. Envirosuite is an environmental management technology company that helps customers with compliance around environmental management. Many client companies extend their business relationship, however, because the Software-as-a-Service platform enables them to unlock value beyond compliance monitoring.

Envirosuite FY 2020 results

The Envirosuite share price tumbled 27% from its early highs in FY20. Despite this, the company achieved a number of business objectives in FY20.

Envirosuite posted $24 million of revenue of which 75% is recurring. This is an increase of 210% in the company's revenue. However, the cost of revenue grew an even greater amount, increasing by 229%. This lead to an $18 million operating loss for the company.

It's not necessarily bad news as the operating loss was a result of the company establishing operations with China, a huge potential market for Envirosuite. The loss was also driven by increased investment in people and operation and integration costs of EMS business. As a result, the company announced negative adjusted EBITDA of $12 million.

However, the SaaS company said it would remove $8 million in costs due to duplicate and redundant roles. An additional $3 million will be cut as a result of operational synergies. The cuts are expected to be made in early FY21.

The company has $24.4 million in cash and cash equivalents. However, $4.2 million is earmarked for the remaining settlement for EMS and another $1.3 million for the AqMB acquisition.

Outlook for the Envirosuite share price

Looking ahead, Envirosuite shareholders have plenty to be excited about. The company has a 3-stage expansion plan with a target of $100 million in revenue by June 2023. Envirosuite is currently achieving annual recurring revenue of $43 million.

While the company has not disclosed a revenue target for FY21, it expects to be EBITDA-positive by March next year.

Should you invest $1,000 in Envirosuite Limited right now?

Before you buy Envirosuite Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Envirosuite Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Daniel Ewing owns shares of EnviroSuite Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Opinions

Where I'd invest in ASX shares after the RBA interest rate cut

These stocks look really attractive to me. Here’s why…

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Share Market News

5 things to watch on the ASX 200 on Wednesday

A good session is expected for Aussie investors on hump day.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares returned to positive territory this Tuesday.

Read more »

Multiple percentage signs in the palm of a man's hand.
Share Market News

ASX 200 lifts on the RBA's latest interest rate call

The ASX 200 is up 0.5% on the heels of the RBA’s interest rate announcement.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Macquarie tips 40% upside for this ASX 200 real estate stock

Let's see what the broker is saying about this stock.

Read more »

Woman sits at her desk working at night, while traffic flows on a busy freeway out the window behind her.
Broker Notes

Transurban shares: Buy, hold, sell? Here's Macquarie's recommendation

Macquarie’s analysts just ran their slide rules over Transurban shares. Here’s what they found.

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

Which 'enduring high-quality business' has become a forgotten ASX 200 stock?

Fundie says this ASX 200 consumer discretionary stock has been flying under investors' radar.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Want a financial stock outside the big 4 banks? Macquarie tips 15% upside for this small cap financial

For those searching on the edges, this name could be worth a second look according to Macquarie.

Read more »