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ERC

Emirates Refreshments (P.S.C.) DFM:ERC Stock Report

Last Price

د.إ3.91

Market Cap

د.إ1.3b

7D

23.0%

1Y

-40.3%

Updated

12 Aug, 2022

Data

Company Financials
ERC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends0/6

ERC Stock Overview

Emirates Refreshments (P.S.C.) engages in the bottling, distribution, and trading of mineral water, carbonated soft drinks, juices, and evaporated milk in the United Arab Emirates, rest of the Middle East, and Africa.

Emirates Refreshments (P.S.C.) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Emirates Refreshments (P.S.C.)
Historical stock prices
Current Share Priceد.إ3.91
52 Week Highد.إ15.40
52 Week Lowد.إ2.30
Beta0.91
1 Month Change19.21%
3 Month Change-67.69%
1 Year Change-40.31%
3 Year Changen/a
5 Year Changen/a
Change since IPO-60.90%

Recent News & Updates

Shareholder Returns

ERCAE BeverageAE Market
7D23.0%-0.6%3.7%
1Y-40.3%0.5%31.5%

Return vs Industry: ERC underperformed the AE Beverage industry which returned 0.5% over the past year.

Return vs Market: ERC underperformed the AE Market which returned 31.5% over the past year.

Price Volatility

Is ERC's price volatile compared to industry and market?
ERC volatility
ERC Average Weekly Movement29.5%
Beverage Industry Average Movement4.9%
Market Average Movement4.7%
10% most volatile stocks in AE Market8.6%
10% least volatile stocks in AE Market2.8%

Stable Share Price: ERC is more volatile than 90% of AE stocks over the past 3 months, typically moving +/- 29% a week.

Volatility Over Time: ERC's weekly volatility has increased from 18% to 29% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1980n/an/ahttps://erc.jeemawater.com

Emirates Refreshments (P.S.C.) engages in the bottling, distribution, and trading of mineral water, carbonated soft drinks, juices, and evaporated milk in the United Arab Emirates, rest of the Middle East, and Africa. The company also manufactures plastic bottles and containers. It markets and sells its products under the Jeema brand name.

Emirates Refreshments (P.S.C.) Fundamentals Summary

How do Emirates Refreshments (P.S.C.)'s earnings and revenue compare to its market cap?
ERC fundamental statistics
Market Capد.إ1.25b
Earnings (TTM)د.إ1.78m
Revenue (TTM)د.إ25.99m

703.2x

P/E Ratio

48.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERC income statement (TTM)
Revenueد.إ25.99m
Cost of Revenueد.إ16.12m
Gross Profitد.إ9.87m
Other Expensesد.إ8.09m
Earningsد.إ1.78m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.0056
Gross Margin37.97%
Net Profit Margin6.84%
Debt/Equity Ratio145.9%

How did ERC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ERC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERC?

Other financial metrics that can be useful for relative valuation.

ERC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue48.3x
Enterprise Value/EBITDA-205.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ERC's PS Ratio compare to its peers?

ERC PS Ratio vs Peers
The above table shows the PS ratio for ERC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.1x
RAPCO Ras Al Khaimah Poultry & Feeding P.S.C
14.7xn/aد.إ171.1m
1115 Tibet Water Resources
3xn/aHK$1.6b
OUL Les Eaux Minérales d'Oulmès
1.7x10.0%د.م2.9b
SSC Sermsuk
0.8xn/a฿7.6b
ERC Emirates Refreshments (P.S.C.)
46.4xn/aد.إ1.3b

Price-To-Sales vs Peers: ERC is expensive based on its Price-To-Sales Ratio (46.4x) compared to the peer average (5.1x).


Price to Earnings Ratio vs Industry

How does ERC's PE Ratio compare vs other companies in the Asian Beverage Industry?

Price-To-Sales vs Industry: ERC is expensive based on its Price-To-Sales Ratio (46.4x) compared to the Asian Beverage industry average (2x)


Price to Sales Ratio vs Fair Ratio

What is ERC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio48.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ERC's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of ERC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ERC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ERC's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Emirates Refreshments (P.S.C.) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.0%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Emirates Refreshments (P.S.C.) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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Past Performance

How has Emirates Refreshments (P.S.C.) performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERC has a high level of non-cash earnings.

Growing Profit Margin: ERC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ERC has become profitable over the past 5 years, growing earnings by -8.1% per year.

Accelerating Growth: ERC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ERC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (18%).


Return on Equity

High ROE: ERC's Return on Equity (9.9%) is considered low.


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Financial Health

How is Emirates Refreshments (P.S.C.)'s financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERC's short term assets (AED43.5M) exceed its short term liabilities (AED37.9M).

Long Term Liabilities: ERC's short term assets (AED43.5M) exceed its long term liabilities (AED9.3M).


Debt to Equity History and Analysis

Debt Level: ERC has more cash than its total debt.

Reducing Debt: ERC's debt to equity ratio has increased from 5.8% to 145.9% over the past 5 years.

Debt Coverage: ERC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if ERC's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Emirates Refreshments (P.S.C.) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ERC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ERC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ERC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: ERC is not paying a notable dividend for the AE market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ERC has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average board tenure


CEO

Emirates Refreshments (P.S.C.) has no CEO, or we have no data on them.


Board Members

Experienced Board: ERC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 966.2%.


Top Shareholders

Company Information

Emirates Refreshments (P.S.C.)'s employee growth, exchange listings and data sources


Key Information

  • Name: Emirates Refreshments (P.S.C.)
  • Ticker: ERC
  • Exchange: DFM
  • Founded: 1980
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: د.إ1.251b
  • Shares outstanding: 319.87m
  • Website: https://erc.jeemawater.com

Location

  • Emirates Refreshments (P.S.C.)
  • 20 3B Street
  • Behind Khaleej Times
  • Dubai
  • United Arab Emirates

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.