Enzumo Limited (“ENZ” or ‘the Group’) is a leading provider of software services and research to the financial planning and superannuation industries. The Group comprises two businesses – Enzumo and Chant West.
The superannuation industry is mandated by the Federal Government to grow due to compulsory superannuation. The financial planning industry, due to FOFA changes, is heading towards greater professionalism which will benefit advisers and consumers. The Group is uniquely positioned to deliver software tools to support these industries that are growing but ever changing.
Overall, the Group’s clients include the majority of Australia’s leading superannuation funds, institutional wealth managers and financial planning dealer groups. More than 8,000 financial planners have access to their services.
From a valuation perspective, ENZ is a standout on annualised cash receipt multiples, trading at 1.4x against a “peer” average closer to 5.2x based on the 2016 September quarter. Our risk weighted DCF valuation is $0.35/share which would still see ENZ trading on cash flow multiples below the current sector average.