DB:E4GA

Stock Analysis Report

Ever-Glory International Group

Executive Summary

Ever-Glory International Group, Inc. manufactures, distributes, and retails apparel in the People’s Republic of China, Germany, the United Kingdom, rest of Europe, Japan, and the United States.

Rewards

Trading at 97.3% below its fair value

Risk Analysis

Earnings have declined by -9.05% per year over past 5 years

Highly volatile share price over past 3 months

Profit margins (1.3%) are lower than last year (2.9%)

Does not have a meaningful market cap (€21M)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Ever-Glory International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: E4GA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

E4GA

-0.07%

DE Luxury

0.1%

DE Market


1 Year Return

-60.8%

E4GA

36.8%

DE Luxury

14.1%

DE Market

Return vs Industry: E4GA underperformed the German Luxury industry which returned 36.8% over the past year.

Return vs Market: E4GA underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

E4GAIndustryMarket
7 Day1.6%-0.07%0.1%
30 Day-3.0%-7.6%0.2%
90 Day-3.7%5.0%3.3%
1 Year-60.8%-60.8%39.0%36.8%17.6%14.1%
3 Year-38.6%-38.6%86.9%77.1%14.8%4.8%
5 Year-76.7%-76.7%217.2%180.6%22.2%5.4%

Price Volatility Vs. Market

How volatile is Ever-Glory International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ever-Glory International Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: E4GA (€1.29) is trading below our estimate of fair value (€47.14)

Significantly Below Fair Value: E4GA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: E4GA is good value based on its PE Ratio (4.1x) compared to the Luxury industry average (26.7x).

PE vs Market: E4GA is good value based on its PE Ratio (4.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate E4GA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E4GA is good value based on its PB Ratio (0.2x) compared to the DE Luxury industry average (1.8x).


Next Steps

Future Growth

How is Ever-Glory International Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

Forecasted Consumer Durables 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 Ever-Glory International Group 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 Ever-Glory International Group performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E4GA has high quality earnings.

Growing Profit Margin: E4GA's current net profit margins (1.3%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: E4GA's earnings have declined by -9% per year over the past 5 years.

Accelerating Growth: E4GA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: E4GA had negative earnings growth (-57%) over the past year, making it difficult to compare to the Luxury industry average (-0.9%).


Return on Equity

High ROE: E4GA's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ever-Glory International Group's financial position?


Financial Position Analysis

Short Term Liabilities: E4GA's short term assets ($215.8M) exceed its short term liabilities ($161.8M).

Long Term Liabilities: E4GA's short term assets ($215.8M) exceed its long term liabilities ($8.5M).


Debt to Equity History and Analysis

Debt Level: E4GA's debt to equity ratio (30.9%) is considered satisfactory.

Reducing Debt: E4GA's debt to equity ratio has reduced from 71.3% to 30.9% over the past 5 years.

Debt Coverage: E4GA's debt is well covered by operating cash flow (57%).

Interest Coverage: E4GA's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Inventory Level: E4GA has a high level of physical assets or inventory.

Debt Coverage by Assets: E4GA's debt is covered by short term assets (assets are 6.1x debt).


Next Steps

Dividend

What is Ever-Glory International Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate E4GA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E4GA'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 E4GA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E4GA'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 E4GA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

15.1yrs

Average management tenure


CEO

Edward Kang (56yo)

15.1yrs

Tenure

US$289,427

Compensation

Mr. Yihua Kang, also known as Edward, has been the Chief Executive Officer and President of Ever-Glory International Group Inc. since 2005. Mr. Kang served as the Chairman and President of Goldenway Nanjin ...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD289.43K) is about average for companies of similar size in the German market ($USD413.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yihua Kang
Chairman of the Board15.1yrsUS$289.43k33.63% $6.5m
Jiansong Wang
CFO & Corporate Secretary9.4yrsUS$41.24kno data
Jiajun Sun
COO & Director15.1yrsUS$216.34k1.18% $228.3k

15.1yrs

Average Tenure

46yo

Average Age

Experienced Management: E4GA's management team is seasoned and experienced (15.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yihua Kang
Chairman of the Board15.1yrsUS$289.43k33.63% $6.5m
Jiajun Sun
COO & Director15.1yrsUS$216.34k1.18% $228.3k
Zhixue Zhang
Independent Non-Executive Director11.9yrsUS$5.00k0.17% $32.3k
Merry Tang
Independent Director8.5yrsUS$34.00k0.070% $13.6k
Jianhua Wang
Independent Director6.1yrsUS$5.00k0.069% $13.3k

11.9yrs

Average Tenure

52yo

Average Age

Experienced Board: E4GA's board of directors are seasoned and experienced ( 11.9 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.


Top Shareholders

Company Information

Ever-Glory International Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ever-Glory International Group, Inc.
  • Ticker: E4GA
  • Exchange: DB
  • Founded:
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$20.870m
  • Listing Market Cap: US$19.332m
  • Shares outstanding: 14.80m
  • Website: https://www.everglorygroup.com

Number of Employees


Location

  • Ever-Glory International Group, Inc.
  • Ever-Glory Commercial Center
  • 509 Chengxin Road
  • Nanjing
  • Jiangsu Province
  • 211102
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 2005
E4GADB (Deutsche Boerse AG)YesCommon StockDEEURAug 2005

Biography

Ever-Glory International Group, Inc. manufactures, distributes, and retails apparel in the People’s Republic of China, Germany, the United Kingdom, rest of Europe, Japan, and the United States. It operates in two segments, Wholesale and Retail. The company primarily offers casual wear, outerwear, and sportswear. Its products include coats, jackets, slacks, skirts, shirts, trousers, and jeans for women; vests, jackets, trousers, skiwear, shirts, coats, and jeans for men; and coats, vests, down jackets, trousers, knitwear, and jeans for children. The company offers its woman apparel under the La Go Go, Velwin, Sea To Sky, and idole brands. Ever-Glory International Group, Inc. provides its products directly to consumers through retail stores, as well as online stores at Tmall, Dangdang mall, JD.com and VIP.com, etc. As of December 31, 2018, it operated 1,381 stores, including 79 flagship stores as stores-within-a-store in large and mid-tier department stores located in approximately 20 provinces in China. Ever-Glory International Group, Inc. is based in Nanjing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:11
End of Day Share Price2020/02/19 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.