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EOF

EcofibreASX:EOF Stock Report

Market Cap

AU$269.5m

7D

1.2%

1Y

-54.4%

Updated

18 Oct, 2021

Data

Company Financials
EOF fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

EOF Overview

Ecofibre Limited, together with its subsidiaries, engages in the breeding, growing, manufacturing, marketing, and selling hemp products in the United States and Australia.

Risk Analysis

No risks detected for EOF from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Ecofibre
Historical stock prices
Current Share PriceAU$0.82
52 Week HighAU$0.47
52 Week LowAU$2.32
Beta1.05
1 Month Change-2.37%
3 Month Change3.13%
1 Year Change-54.42%
3 Year Changen/a
5 Year Changen/a
Change since IPO-51.47%

Recent News & Updates

Jun 04
One Forecaster Is Now More Bearish On Ecofibre Limited (ASX:EOF) Than They Used To Be

One Forecaster Is Now More Bearish On Ecofibre Limited (ASX:EOF) Than They Used To Be

Market forces rained on the parade of Ecofibre Limited ( ASX:EOF ) shareholders today, when the covering analyst...

Mar 31
Ecofibre (ASX:EOF) Has Debt But No Earnings; Should You Worry?

Ecofibre (ASX:EOF) Has Debt But No Earnings; Should You Worry?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 05
Would Shareholders Who Purchased Ecofibre's (ASX:EOF) Stock Year Be Happy With The Share price Today?

Would Shareholders Who Purchased Ecofibre's (ASX:EOF) Stock Year Be Happy With The Share price Today?

The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that...

Shareholder Returns

EOFAU PharmaceuticalsAU Market
7D1.2%0.04%0.9%
1Y-54.4%-2.4%20.2%

Return vs Industry: EOF underperformed the Australian Pharmaceuticals industry which returned -2.4% over the past year.

Return vs Market: EOF underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EOF's price volatile compared to industry and market?
EOF volatility
EOF Beta1.05
Industry Beta1.3
Market Beta1

Stable Share Price: EOF is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: EOF's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009n/aEric Wanghttps://www.ecofibre.com

Ecofibre Limited, together with its subsidiaries, engages in the breeding, growing, manufacturing, marketing, and selling hemp products in the United States and Australia. The company operates through Ananda Health, Ananda Food, and Hemp Black segments. It offers nutraceutical products for human and pet consumption, as well as topical creams and salves; CBD products; grows and produces hemp food products, including protein powders, de-hulled hemp seed, and hemp oil; and develops and produces hemp-based textile products.

Ecofibre Fundamentals Summary

How do Ecofibre's earnings and revenue compare to its market cap?
EOF fundamental statistics
Market CapAU$269.52m
Earnings (TTM)-AU$6.99m
Revenue (TTM)AU$28.79m

9.4x

P/S Ratio

-38.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EOF income statement (TTM)
RevenueAU$28.79m
Cost of RevenueAU$12.06m
Gross ProfitAU$16.73m
ExpensesAU$23.72m
Earnings-AU$6.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.021
Gross Margin58.12%
Net Profit Margin-24.26%
Debt/Equity Ratio9.0%

How did EOF perform over the long term?

See historical performance and comparison

Valuation

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

2.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EOF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EOF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EOF is unprofitable, so we can't compare its PE Ratio to the Oceanic Pharmaceuticals industry average.

PE vs Market: EOF 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 EOF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EOF is good value based on its PB Ratio (2.4x) compared to the AU Pharmaceuticals industry average (3.3x).


Future Growth

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

66.2%

Forecasted Pharmaceuticals & Biotech 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 Ecofibre 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.


Past Performance

How has Ecofibre performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EOF is currently unprofitable.

Growing Profit Margin: EOF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EOF is unprofitable, but has reduced losses over the past 5 years at a rate of 39.1% per year.

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

Earnings vs Industry: EOF is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (17.4%).


Return on Equity

High ROE: EOF has a negative Return on Equity (-6.25%), as it is currently unprofitable.


Financial Health

How is Ecofibre's financial position?


Financial Position Analysis

Short Term Liabilities: EOF's short term assets (A$39.2M) exceed its short term liabilities (A$5.7M).

Long Term Liabilities: EOF's short term assets (A$39.2M) exceed its long term liabilities (A$24.2M).


Debt to Equity History and Analysis

Debt Level: EOF's debt to equity ratio (9%) is considered satisfactory.

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

Debt Coverage: EOF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if EOF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Ecofibre current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EOF'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 EOF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EOF'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 EOF'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?

1.8yrs

Average management tenure


CEO

Eric Wang

3.83yrs

Tenure

AU$1,084,107

Compensation

Mr. Eric Wang has been Chief Executive Officer and Managing Director of Ecofibre Limited since December 2017 and has been its Director since December 2015. Mr. Wang has leadership and executive management...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD804.65K) is above average for companies of similar size in the Australian market ($USD556.28K).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EOF's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: EOF's board of directors are not considered experienced ( 1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ecofibre Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ecofibre Limited
  • Ticker: EOF
  • Exchange: ASX
  • Founded: 2009
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$269.525m
  • Shares outstanding: 326.70m
  • Website: https://www.ecofibre.com

Location

  • Ecofibre Limited
  • 680 George Street
  • Level 12
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:39
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.