Emirates Refreshments (P.S.C.) (DFM:ERC) - Share price, News & Analysis

ERC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

ERC Stock Overview

Rewards

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Emirates Refreshments (P.S.C.) Competitors

Ras Al Khaimah Poultry & Feeding P.S.C

ADX:RAPCO

د.إ171.1m

Tibet Water Resources

SEHK:1115

HK$1.6b

Les Eaux Minérales d'Oulmès

CBSE:OUL

د.م2.9b

Sermsuk

SET:SSC

฿7.6b

Price History & Performance

Summary of all time highs, changes and price drops for Emirates Refreshments (P.S.C.)
Historical stock prices
Current Share Price	د.إ3.91
52 Week High	د.إ15.40
52 Week Low	د.إ2.30
Beta	0.91
1 Month Change	19.21%
3 Month Change	-67.69%
1 Year Change	-40.31%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-60.90%

Shareholder Returns

	ERC	AE Beverage	AE Market
7D	23.0%	-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 Movement	29.5%
Beverage Industry Average Movement	4.9%
Market Average Movement	4.7%
10% most volatile stocks in AE Market	8.6%
10% least volatile stocks in AE Market	2.8%

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

Founded	Employees	CEO	Website
1980	n/a	n/a	https://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 Cap	د.إ1.25b
Earnings (TTM)	د.إ1.78m
Revenue (TTM)	د.إ25.99m

703.2x

P/E Ratio

48.1x

P/S Ratio

Is ERC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERC income statement (TTM)
Revenue	د.إ25.99m
Cost of Revenue	د.إ16.12m
Gross Profit	د.إ9.87m
Other Expenses	د.إ8.09m
Earnings	د.إ1.78m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.0056
Gross Margin	37.97%
Net Profit Margin	6.84%
Debt/Equity Ratio	145.9%

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.

The above table shows the n/a ratio for ERC. This is calculated by dividing ERC's market cap by their current preferred multiple.
What is ERC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	د.إ1.25b

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/Revenue	48.3x
Enterprise Value/EBITDA	-205.1x
PEG Ratio	n/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.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.1x
RAPCO Ras Al Khaimah Poultry & Feeding P.S.C	14.7x	n/a	د.إ171.1m
1115 Tibet Water Resources	3x	n/a	HK$1.6b
OUL Les Eaux Minérales d'Oulmès	1.7x	10.0%	د.م2.9b
SSC Sermsuk	0.8x	n/a	฿7.6b
ERC Emirates Refreshments (P.S.C.)	46.4x	n/a	د.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 Ratio	48.1x
Fair PS Ratio	n/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.

Discover strong past performing companies

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%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31