ASX:EOS

Stock Analysis Report

Electro Optic Systems Holdings

Executive Summary

Electro Optic Systems Holdings Limited develops, manufactures, and sells telescopes and dome enclosures, laser satellite tracking systems, and electro-optic fire control systems in Australia, the United States, Singapore, the Middle East, Germany, and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Electro Optic Systems Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EOS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.2%

EOS

-19.4%

AU Aerospace & Defense

-7.1%

AU Market


1 Year Return

183.3%

EOS

83.5%

AU Aerospace & Defense

6.7%

AU Market

Return vs Industry: EOS exceeded the Australian Aerospace & Defense industry which returned 81.5% over the past year.

Return vs Market: EOS exceeded the Australian Market which returned 7.9% over the past year.


Shareholder returns

EOSIndustryMarket
7 Day-24.2%-19.4%-7.1%
30 Day-27.5%-14.6%-5.3%
90 Day8.8%-7.1%-3.2%
1 Year183.3%183.3%87.6%83.5%11.3%6.7%
3 Year276.3%276.3%113.0%102.2%28.2%11.2%
5 Year1011.9%1011.9%210.2%181.1%40.9%9.2%

Price Volatility Vs. Market

How volatile is Electro Optic Systems Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Electro Optic Systems Holdings undervalued compared to its fair value and its price relative to the market?

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EOS (A$7.45) is trading below our estimate of fair value (A$8.54)

Significantly Below Fair Value: EOS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EOS is poor value based on its PE Ratio (38.7x) compared to the Aerospace & Defense industry average (25.9x).

PE vs Market: EOS is poor value based on its PE Ratio (38.7x) compared to the Australian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: EOS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: EOS is overvalued based on its PB Ratio (6.9x) compared to the AU Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Electro Optic Systems Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EOS's forecast earnings growth (25.4% per year) is above the savings rate (1.1%).

Earnings vs Market: EOS's earnings (25.4% per year) are forecast to grow faster than the Australian market (9.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EOS's revenue (25.8% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: EOS's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EOS's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Electro Optic Systems Holdings performed over the past 5 years?

41.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: EOS's current net profit margins (16%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: EOS has become profitable over the past 5 years, growing earnings by 41.8% per year.

Accelerating Growth: EOS's earnings growth over the past year (8616.7%) exceeds its 5-year average (41.8% per year).

Earnings vs Industry: EOS earnings growth over the past year (8616.7%) exceeded the Aerospace & Defense industry 14.8%.


Return on Equity

High ROE: EOS's Return on Equity (16.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Electro Optic Systems Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EOS's short term assets (A$111.0M) exceed its short term liabilities (A$28.5M).

Long Term Liabilities: EOS's short term assets (A$111.0M) exceed its long term liabilities (A$8.8M).


Debt to Equity History and Analysis

Debt Level: EOS is debt free.

Reducing Debt: EOS had no debt 5 years ago.

Debt Coverage: EOS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EOS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EOS has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if EOS's debt is covered by short term assets.


Next Steps

Dividend

What is Electro Optic Systems Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.8%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EOS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

10.8yrs

Average board tenure


CEO

Ben Greene (68yo)

AU$972,383

Compensation

Dr. Benny Allan Greene, also known as Ben, BE (Hons), Ph.D. in Applied Physics serves as the Chief Executive Officer of Electro Optic Systems Holdings Ltd at EOS Technologies, Inc. Dr. Greene was involved  ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD638.09K) is about average for companies of similar size in the Australian market ($USD712.55K).

Compensation vs Earnings: Ben's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Benny Greene
CEO & Executive Director0yrsAU$972.38k5.28% A$46.0m
Ian Dennis
Company Secretary & Director19.8yrsAU$177.77k0.21% A$1.8m
Frederick Bart
Non Executive Chairman0yrsAU$87.37k4.69% A$40.9m
Peter Leahy
Independent Non-Executive Director10.8yrsAU$57.77k0.22% A$1.9m
Kate Lundy
Director1.9yrsAU$44.86k0.18% A$1.6m
Geoffrey Brown
Non-Executive Director3.8yrsAU$65.15k0.19% A$1.6m

10.8yrs

Average Tenure

65yo

Average Age

Experienced Board: EOS's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EOS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.9%.


Top Shareholders

Company Information

Electro Optic Systems Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Electro Optic Systems Holdings Limited
  • Ticker: EOS
  • Exchange: ASX
  • Founded: 1983
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: AU$870.702m
  • Shares outstanding: 113.08m
  • Website: https://www.eos-aus.com

Number of Employees


Location

  • Electro Optic Systems Holdings Limited
  • 90 Sheppard Street
  • Hume
  • Australian Capital Territory
  • 2620
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2000
EOPS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2000
EOSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2000
EOPS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 2010

Biography

Electro Optic Systems Holdings Limited develops, manufactures, and sells telescopes and dome enclosures, laser satellite tracking systems, and electro-optic fire control systems in Australia, the United States, Singapore, the Middle East, Germany, and internationally. It operates through Defense Systems and Space segments. The Defense Systems segment develops, manufactures, and markets fire control, surveillance, and weapon systems to military customers. It also provides sensors; and fire control software products. The Space segment designs, manufactures, delivers, and operates sensors and systems for space situational awareness and space control. Its products include debris management space systems, defense missiles, optical communications systems, surveillance systems, and space products. This segment also manufactures and sells telescopes and dome enclosures for space projects. Electro Optic Systems Holdings Limited was founded in 1983 and is based in Hume, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:33
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.