Heidelberg District Community Enterprise (NSX:EIC) - Share price, News & Analysis

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

EIC (A$0.2) is trading below our estimate of [[fair value]] (A$1.49)

EIC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	1/6
Dividends	2/6

EIC Stock Overview

Heidelberg District Community Enterprise Limited operates franchised branches of Bendigo and Adelaide Bank Limited in Australia.

Rewards

Trading at 86.6% below our estimate of its fair value

Risk Analysis

Revenue has declined by 17.6% over the past year

Shares are highly illiquid

Does not have a meaningful market cap (A$460K)

Dividend of 10% is not well covered by earnings

+ 2 more risks

Heidelberg District Community Enterprise Competitors

Manningham Community Enterprises

NSX:DCE

AU$1.3m

Logan Community Financial Services

NSX:LCB

AU$1.6m

BNK Banking

ASX:BBC

AU$73.6m

Yellow Brick Road Holdings

ASX:YBR

AU$30.2m

Price History & Performance

Summary of all time highs, changes and price drops for Heidelberg District Community Enterprise
Historical stock prices
Current Share Price	AU$0.20
52 Week High	AU$0.40
52 Week Low	AU$0.20
Beta	0.17
1 Month Change	0%
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-76.05%

Shareholder Returns

	EIC	AU Banks	AU Market
7D	0%	0.2%	0.7%
1Y	n/a	-5.7%	-8.0%

Return vs Industry: Insufficient data to determine how EIC performed against the Australian Banks industry.

Return vs Market: Insufficient data to determine how EIC performed against the Australian Market.

Price Volatility

Is EIC's price volatile compared to industry and market?
EIC volatility
EIC Average Weekly Movement	n/a
Banks Industry Average Movement	3.6%
Market Average Movement	10.5%
10% most volatile stocks in AU Market	17.6%
10% least volatile stocks in AU Market	4.6%

Stable Share Price: Insufficient data to determine EIC's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine EIC's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2000	n/a	n/a	https://www.bendigobank.com.au/heidelberg

Heidelberg District Community Enterprise Limited operates franchised branches of Bendigo and Adelaide Bank Limited in Australia. It provides home loans, term deposits, and call deposits under the brand of Bendigo Banks to individuals, businesses, and organizations. The company was incorporated in 2000 and is based in Ivanhoe East, Australia.

Heidelberg District Community Enterprise Fundamentals Summary

How do Heidelberg District Community Enterprise's earnings and revenue compare to its market cap?
EIC fundamental statistics
Market Cap	AU$459.68k
Earnings (TTM)	-AU$29.45k
Revenue (TTM)	AU$1.82m

0.2x

P/B Ratio

0.3x

P/S Ratio

Is EIC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EIC income statement (TTM)
Revenue	AU$1.82m
Cost of Revenue	AU$0
Gross Profit	AU$1.82m
Other Expenses	AU$1.84m
Earnings	-AU$29.45k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.013
Gross Margin	100.00%
Net Profit Margin	-1.62%
Debt/Equity Ratio	0.06%

How did EIC perform over the long term?

See historical performance and comparison

Dividends

10.0%

Current Dividend Yield

-156%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book 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 EIC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EIC. This is calculated by dividing EIC's market cap by their current preferred multiple.
What is EIC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$459.68k

EIC 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	0.09x
Enterprise Value/EBITDA	1x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does EIC's PB Ratio compare to its peers?

EIC PB Ratio vs Peers

The above table shows the PB ratio for EIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.8x
DCE Manningham Community Enterprises	1.1x	n/a	AU$1.3m
LCB Logan Community Financial Services	0.6x	n/a	AU$1.6m
BBC BNK Banking	0.6x	n/a	AU$73.6m
YBR Yellow Brick Road Holdings	0.7x	n/a	AU$30.2m
EIC Heidelberg District Community Enterprise	0.2x	n/a	AU$459.7k

Price-To-Book vs Peers: EIC is good value based on its Price-To-Book Ratio (0.2x) compared to the peer average (0.8x).

Price to Earnings Ratio vs Industry

How does EIC's PE Ratio compare vs other companies in the Global Banks Industry?

Price-To-Book vs Industry: EIC is good value based on its Price-To-Book Ratio (0.2x) compared to the Australian Banks industry average (0.9x)

Price to Book Ratio vs Fair Ratio

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

EIC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.2x
Fair PB Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: EIC (A$0.2) is trading below our estimate of fair value (A$1.49)

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

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.

Discover undervalued companies

Future Growth

How is Heidelberg District Community Enterprise 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

4.9%

Forecasted Banks 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 Heidelberg District Community Enterprise 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.

Discover growth companies

Examine whether Heidelberg District Community Enterprise is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Heidelberg District Community Enterprise performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-112.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: EIC is currently unprofitable.

Growing Profit Margin: EIC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if EIC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare EIC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EIC is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (16.5%).

Return on Equity

High ROE: EIC has a negative Return on Equity (-1.27%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Heidelberg District Community Enterprise's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

1/6

Financial Health Score 1/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: EIC's Assets to Equity ratio (1.5x) is low.

Allowance for Bad Loans: Insufficient data to determine if EIC has a sufficient allowance for bad loans.

Low Risk Liabilities: EIC reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if EIC has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: EIC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if EIC has an appropriate level of bad loans.

Discover healthy companies

Dividend

What is Heidelberg District Community Enterprise current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

10.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EIC's dividend (10%) is higher than the bottom 25% of dividend payers in the Australian market (2.65%).

High Dividend: EIC's dividend (10%) is in the top 25% of dividend payers in the Australian market (6.3%)

Stability and Growth of Payments

Stable Dividend: EIC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EIC has only been paying a dividend for 5 years, and since then payments have fallen.

Current Payout to Shareholders

Earnings Coverage: EIC is paying a dividend but the company is unprofitable.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies

Management

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

5.1yrs

Average board tenure

CEO

Heidelberg District Community Enterprise has no CEO, or we have no data on them.

Board Members

Experienced Board: EIC's board of directors are considered experienced (5.1 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30