Emirates Central Cooling Systems Corporation

DFM:EMPOWER Stock Report

Market Cap: د.إ19.1b

Emirates Central Cooling Systems Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: EMPOWER (AED1.91) is trading below our estimate of fair value (AED2.42)

Significantly Below Fair Value: EMPOWER is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As EMPOWER is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EMPOWER. This is calculated by dividing EMPOWER's market cap by their current earnings.
What is EMPOWER's PE Ratio?
PE Ratio20.8x
Earningsد.إ917.84m
Market Capد.إ19.10b

Price to Earnings Ratio vs Peers

How does EMPOWER's PE Ratio compare to its peers?

The above table shows the PE ratio for EMPOWER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
TABREED National Central Cooling Company PJSC
14.2x8.3%د.إ8.1b
DEWA Dubai Electricity and Water Authority (PJSC)
18x8.1%د.إ127.5b
AWR American States Water
29.1x8.7%US$3.2b
000598 Chengdu Xingrong Environment
10.7x11.6%CN¥21.3b
EMPOWER Emirates Central Cooling Systems
20.8x6.8%د.إ19.1b

Price-To-Earnings vs Peers: EMPOWER is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does EMPOWER's PE Ratio compare vs other companies in the Asian Water Utilities Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EMPOWER 20.8xIndustry Avg. 15.0xNo. of Companies7PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EMPOWER is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the Asian Water Utilities industry average (15x).

Price to Earnings Ratio vs Fair Ratio

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

EMPOWER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: EMPOWER is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

Analyst Price Targets

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

The above table shows the analyst EMPOWER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentد.إ1.91
د.إ2.11
+10.7%
12.5%د.إ2.70د.إ1.80n/a10
Nov ’25د.إ1.79
د.إ2.08
+16.4%
11.2%د.إ2.70د.إ1.80n/a10
Oct ’25د.إ1.70
د.إ2.08
+22.4%
11.4%د.إ2.70د.إ1.77n/a10
Sep ’25د.إ1.72
د.إ2.08
+21.2%
12.0%د.إ2.70د.إ1.77n/a9
Aug ’25د.إ1.66
د.إ2.08
+25.6%
12.0%د.إ2.70د.إ1.77n/a9
Jul ’25د.إ1.55
د.إ2.11
+36.3%
11.4%د.إ2.70د.إ1.77n/a9
Jun ’25د.إ1.53
د.إ2.11
+38.1%
11.4%د.إ2.70د.إ1.77n/a9
May ’25د.إ1.61
د.إ2.11
+31.2%
13.2%د.إ2.80د.إ1.77n/a9
Apr ’25د.إ1.65
د.إ2.11
+28.0%
13.2%د.إ2.80د.إ1.77n/a9
Mar ’25د.إ1.66
د.إ2.11
+27.2%
13.2%د.إ2.80د.إ1.77n/a9
Feb ’25د.إ1.75
د.إ2.16
+23.3%
14.4%د.إ2.80د.إ1.77n/a8
Jan ’25د.إ1.66
د.إ2.13
+28.6%
14.0%د.إ2.80د.إ1.77n/a9
Dec ’24د.إ1.67
د.إ2.12
+27.1%
13.5%د.إ2.80د.إ1.77n/a9
Nov ’24د.إ1.78
د.إ2.13
+19.8%
14.2%د.إ2.80د.إ1.77د.إ1.798
Oct ’24د.إ1.89
د.إ2.19
+15.9%
14.1%د.إ2.80د.إ1.95د.إ1.705
Sep ’24د.إ1.86
د.إ2.19
+17.7%
14.1%د.إ2.80د.إ1.95د.إ1.725
Aug ’24د.إ1.91
د.إ2.18
+14.3%
16.5%د.إ2.80د.إ1.93د.إ1.664
Jul ’24د.إ1.80
د.إ2.01
+11.5%
3.5%د.إ2.10د.إ1.93د.إ1.554
Jun ’24د.إ1.73
د.إ1.86
+7.5%
6.1%د.إ1.95د.إ1.70د.إ1.533
May ’24د.إ1.72
د.إ1.69
-1.6%
0.6%د.إ1.70د.إ1.68د.إ1.613
Apr ’24د.إ1.76
د.إ1.69
-3.8%
0.6%د.إ1.70د.إ1.68د.إ1.653
Mar ’24د.إ1.54
د.إ1.69
+10.0%
0.6%د.إ1.70د.إ1.68د.إ1.663
Feb ’24د.إ1.50
د.إ1.69
+12.9%
0.6%د.إ1.70د.إ1.68د.إ1.753
Jan ’24د.إ1.42
د.إ1.69
+19.0%
0.6%د.إ1.70د.إ1.68د.إ1.662

Analyst Forecast: Target price is less than 20% higher than the current share price.

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