ASX:ECG

Stock Analysis Report

Executive Summary

eCargo Holdings Limited, together with its subsidiaries, provides e-commerce enabling and operation outsourcing services to designer brands, retailers, and branded manufacturers in the People’s Republic of China, Australia, South Africa, the United Kingdom, and internationally.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

ECG

1.5%

AU Commercial Services

0.4%

AU Market


1 Year Return

-64.6%

ECG

10.8%

AU Commercial Services

9.8%

AU Market

Return vs Industry: ECG underperformed the Australian Commercial Services industry which returned 10.8% over the past year.

Return vs Market: ECG underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

ECGIndustryMarket
7 Day0%1.5%0.4%
30 Day-23.3%2.0%-1.3%
90 Day-23.3%-3.4%-0.5%
1 Year-64.6%-64.6%15.4%10.8%16.1%9.8%
3 Year-79.1%-79.1%27.2%14.4%36.1%17.9%
5 Yearn/a74.0%47.5%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is eCargo Holdings undervalued compared to its fair value and its price relative to the market?

14.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ECG (A$0.05) is trading above our estimate of fair value (A$0)

Significantly Below Fair Value: ECG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ECG is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: ECG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ECG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ECG is overvalued based on its PB Ratio (14.5x) compared to the AU Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is eCargo Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

Forecasted Commercial Services 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 eCargo Holdings 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.


Next Steps

Past Performance

How has eCargo Holdings performed over the past 5 years?

-16.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ECG is unprofitable, and losses have increased over the past 5 years at a rate of -16.1% per year.

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

Earnings vs Industry: ECG is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (20.4%).


Return on Equity

High ROE: ECG has a negative Return on Equity (-814.2%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ECG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ECG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is eCargo Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ECG's short term assets (HK$80.9M) exceeds its short term liabilities (HK$61.1M)

Long Term Liabilities: ECG's short term assets (80.9M) do not cover its long term liabilities (121.8M)


Debt to Equity History and Analysis

Debt Level: ECG's debt to equity ratio (914.2%) is considered high

Reducing Debt: Insufficient data to determine if ECG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: ECG has a low level of unsold assets or inventory.

Debt Coverage by Assets: ECG's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ECG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ECG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 104.2% per year.


Next Steps

Dividend

What is eCargo Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ECG'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 ECG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of eCargo Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Will Zhao 0

0.7yrs

Tenure

0

Mr. Will Zhao has been Chief Executive Officer of eCargo Holdings Limited since February 25, 2019. Mr. Zhao serves as Head of China Operations at Metcash Limited. Prior to joining Metcash in 2016, Mr. Zhao ...


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: ECG's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

60yo

Average Age

Experienced Board: ECG's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Lau (71yo)

    Executive Chairman

    • Tenure: 0yrs
  • Irene Yip

    Company Secretary

    • Tenure: 0yrs
  • John Muir

    Sales Director

    • Tenure: 0yrs
  • Franc Renzi

    Chief Operating Officer

    • Tenure: 4.3yrs
  • Garnok Cheung (43yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
  • Justus Johannes Wilde

    Chief Strategy Officer

    • Tenure: 4.3yrs
  • Lawrence Lun

    Chief Commercial Officer

    • Tenure: 0yrs
  • Haiyun Chen

    Chief Product Officer

    • Tenure: 0.7yrs
  • Will Zhao

    Chief Executive Officer

    • Tenure: 0.7yrs

Board Members

  • Rupert H. Myer (60yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$88.98k
  • John Lau (71yo)

    Executive Chairman

    • Tenure: 0yrs
  • Heath Zarin

    Independent Non-Executive Director

    • Tenure: 5.3yrs
  • Christopher Lau (39yo)

    Non-Independent Non-Executive Director

    • Tenure: 5.5yrs
  • Dennis Lin

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$67.49k
  • Jessica Rudd

    Non-Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$89.99k

Company Information

eCargo Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: eCargo Holdings Limited
  • Ticker: ECG
  • Exchange: ASX
  • Founded: 2014
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$28.302m
  • Shares outstanding: 615.25m
  • Website: https://www.ecargo.com

Location

  • eCargo Holdings Limited
  • 13103N, ATL Logistics Centre B
  • Berth 3, 3 Kwai Chung Container Terminals
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECGASX (Australian Securities Exchange)YesNPV CDI 1:1AUAUDNov 2014
ECGCHIA (Chi-X Australia)YesNPV CDI 1:1AUAUDNov 2014

Biography

eCargo Holdings Limited, together with its subsidiaries, provides e-commerce enabling and operation outsourcing services to designer brands, retailers, and branded manufacturers in the People’s Republic of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:39
End of Day Share Price2019/10/18 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.