TSX:ETX

Stock Analysis Report

Executive Summary

Etrion Corporation, an independent power producer, develops, builds, owns, and operates solar power generation plants.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

ETX

2.6%

CA Renewable Energy

0.6%

CA Market


1 Year Return

-16.0%

ETX

26.6%

CA Renewable Energy

7.4%

CA Market

Return vs Industry: ETX underperformed the Canadian Renewable Energy industry which returned 26.6% over the past year.

Return vs Market: ETX underperformed the Canadian Market which returned 7.4% over the past year.


Shareholder returns

ETXIndustryMarket
7 Day5.0%2.6%0.6%
30 Day5.0%6.5%3.3%
90 Day-8.7%8.3%3.6%
1 Year-16.0%-16.0%32.9%26.6%11.0%7.4%
3 Year-32.3%-32.3%48.9%28.6%18.1%7.5%
5 Year-55.3%-55.3%61.9%25.0%27.1%8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ETX is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ETX is overvalued based on its PB Ratio (27.2x) compared to the CA Renewable Energy industry average (2x).


Next Steps

Future Growth

How is Etrion forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ETX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ETX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ETX's revenue (5.6% per year) is forecast to grow faster than the Canadian market (4.8% per year).

High Growth Revenue: ETX's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ETX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Etrion performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETX has large one-off items impacting its financial results.

Growing Profit Margin: ETX's current net profit margins (-6%) are higher than last year (-58.3%).


Past Earnings Growth Analysis

Earnings Trend: ETX is unprofitable, but has reduced losses over the past 5 years at a rate of 20.9% per year.

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

Earnings vs Industry: ETX is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-28.4%).


Return on Equity

High ROE: ETX has a negative Return on Equity (-30.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Etrion's financial position?


Financial Position Analysis

Short Term Liabilities: ETX's short term assets ($159.1M) exceeds its short term liabilities ($21.2M)

Long Term Liabilities: ETX's short term assets ($159.1M) do not cover its long term liabilities (335.1M)


Debt to Equity History and Analysis

Debt Level: ETX's debt to equity ratio (9502.4%) is considered high.

Reducing Debt: ETX's debt to equity ratio has increased from 1150.5% to 9502.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ETX's debt is not covered by short term assets (assets are 0.5x 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: ETX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ETX has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 63.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Marco Northland (60yo)

10.2yrs

Tenure

US$691,126

Compensation

Mr. Marco Antonio Northland has been the Chief Executive Officer at Etrion Corporation since September 11, 2009. Mr. Northland served as the Chief Executive Officer at Etrion SA from October 2008 to Septem ...


CEO Compensation Analysis

Compensation vs Market: Marco's total compensation ($USD691.13K) is above average for companies of similar size in the Canadian market ($USD136.08K).

Compensation vs Earnings: Marco's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.3yrs

Average Tenure

Experienced Management: ETX's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

52yo

Average Age

Experienced Board: ETX's board of directors are considered experienced (6 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Management Team

  • Marco Northland (60yo)

    CEO & Director

    • Tenure: 10.2yrs
    • Compensation: US$691.13k
  • Giora Salita

    Executive Vice President of Business Development and Mergers & Acquisitions

    • Tenure: 7.3yrs
    • Compensation: US$440.41k
  • David Knight

    Corporate Secretary

    • Tenure: 11.6yrs
  • Christian Lacueva Canut

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$393.96k
  • Martin Oravec

    Chief Investment Officer

    • Tenure: 1.8yrs
    • Compensation: US$355.47k

Board Members

  • Garrett Soden (45yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$37.50k
  • Marco Northland (60yo)

    CEO & Director

    • Tenure: 10.2yrs
    • Compensation: US$691.13k
  • Ian Lundin (59yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$37.50k
  • Aksel Azrac

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$37.50k
  • Henrika Frykman (42yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Etrion Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Etrion Corporation
  • Ticker: ETX
  • Exchange: TSX
  • Founded: 1993
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$70.211m
  • Shares outstanding: 334.34m
  • Website: https://www.etrion.com

Number of Employees


Location

  • Etrion Corporation
  • Rue du Commerce 4
  • Geneva
  • Geneva
  • 1204
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1997
4QPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1997
ETXOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJan 1997
0OQRLSE (London Stock Exchange)YesCommon SharesGBSEKJan 1997
ETRX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1997
ETXSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJan 1997

Biography

Etrion Corporation, an independent power producer, develops, builds, owns, and operates solar power generation plants. The company owns 57 megawatts of installed solar capacity in Japan. It sells its elect ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:55
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.