ENERGIEKONTOR AG (EKT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EKT - DE0005313506 - Common Stock
39 EUR
+0.15 (+0.39%)
EKT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 75 industry peers in the Electrical Equipment industry. EKT has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: EKT is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
- EKT had positive earnings in the past year.
- EKT had a negative operating cash flow in the past year.
- In the past 5 years EKT has always been profitable.
- Of the past 5 years EKT 4 years had a positive operating cash flow.
1.2 Ratios
- EKT has a better Return On Assets (3.89%) than 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 16.35%, EKT is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
- EKT has a better Return On Invested Capital (7.61%) than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EKT is in line with the industry average of 9.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 16.35% | ||
| ROIC | 7.61% |
ROA(3y)7.16%
ROA(5y)6.5%
ROE(3y)31.02%
ROE(5y)33.65%
ROIC(3y)10.72%
ROIC(5y)10.89%
1.3 Margins
- EKT has a Profit Margin of 27.99%. This is amongst the best in the industry. EKT outperforms 100.00% of its industry peers.
- EKT's Profit Margin has improved in the last couple of years.
- EKT has a Operating Margin of 52.51%. This is amongst the best in the industry. EKT outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of EKT has grown nicely.
- EKT's Gross Margin of 98.62% is amongst the best of the industry. EKT outperforms 98.67% of its industry peers.
- EKT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.51% | ||
| PM (TTM) | 27.99% | ||
| GM | 98.62% |
OM growth 3Y-8.82%
OM growth 5Y3.19%
PM growth 3Y-8.29%
PM growth 5Y115.6%
GM growth 3Y2.28%
GM growth 5Y-4.18%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EKT is still creating some value.
- EKT has more shares outstanding than it did 1 year ago.
- EKT has less shares outstanding than it did 5 years ago.
- EKT has a worse debt/assets ratio than last year.
2.2 Solvency
- EKT has an Altman-Z score of 1.42. This is a bad value and indicates that EKT is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.42, EKT is not doing good in the industry: 65.33% of the companies in the same industry are doing better.
- EKT has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.76, EKT is not doing good in the industry: 85.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC1.06
WACC7.19%
2.3 Liquidity
- EKT has a Current Ratio of 1.99. This is a normal value and indicates that EKT is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.99, EKT is doing good in the industry, outperforming 72.00% of the companies in the same industry.
- A Quick Ratio of 0.88 indicates that EKT may have some problems paying its short term obligations.
- EKT has a Quick ratio of 0.88. This is comparable to the rest of the industry: EKT outperforms 54.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- EKT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.65%.
- The Earnings Per Share has been growing by 149.05% on average over the past years. This is a very strong growth
- EKT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -51.12%.
- EKT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.70% yearly.
EPS 1Y (TTM)-52.65%
EPS 3Y-13.71%
EPS 5Y149.05%
EPS Q2Q%102.9%
Revenue 1Y (TTM)-51.12%
Revenue growth 3Y-6.86%
Revenue growth 5Y14.7%
Sales Q2Q%-2.54%
3.2 Future
- EKT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.28% yearly.
- The Revenue is expected to grow by 31.78% on average over the next years. This is a very strong growth
EPS Next Y14.9%
EPS Next 2Y88.03%
EPS Next 3Y55.28%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y42.73%
Revenue Next 3Y31.78%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.66, EKT is valued correctly.
- EKT's Price/Earnings ratio is rather cheap when compared to the industry. EKT is cheaper than 89.33% of the companies in the same industry.
- EKT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- EKT is valuated cheaply with a Price/Forward Earnings ratio of 7.03.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EKT indicates a rather cheap valuation: EKT is cheaper than 94.67% of the companies listed in the same industry.
- EKT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EKT is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
- EKT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- EKT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as EKT's earnings are expected to grow with 55.28% in the coming years.
PEG (NY)1.05
PEG (5Y)0.11
EPS Next 2Y88.03%
EPS Next 3Y55.28%
5. Dividend
5.1 Amount
- EKT has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
- EKT's Dividend Yield is a higher than the industry average which is at 0.79.
- Compared to the average S&P500 Dividend Yield of 1.82, EKT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
- The dividend of EKT is nicely growing with an annual growth rate of 24.51%!
Dividend Growth(5Y)24.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The dividend of EKT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y88.03%
EPS Next 3Y55.28%
ENERGIEKONTOR AG / EKT.DE FAQ
What is the ChartMill fundamental rating of ENERGIEKONTOR AG (EKT.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EKT.DE.
What is the valuation status of ENERGIEKONTOR AG (EKT.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to ENERGIEKONTOR AG (EKT.DE). This can be considered as Undervalued.
Can you provide the profitability details for ENERGIEKONTOR AG?
ENERGIEKONTOR AG (EKT.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for EKT stock?
The financial health rating of ENERGIEKONTOR AG (EKT.DE) is 2 / 10.
How sustainable is the dividend of ENERGIEKONTOR AG (EKT.DE) stock?
The dividend rating of ENERGIEKONTOR AG (EKT.DE) is 4 / 10 and the dividend payout ratio is 0%.