DB:7ES1

Stock Analysis Report

Eastern Water Resources Development and Management

Executive Summary

Eastern Water Resources Development and Management Public Company Limited, together with its subsidiaries, develops and manages water distribution pipeline systems in the eastern seaboard area of Thailand.

Rewards

PE ratio (17.8x) is below the German market (20.7x)

Earnings are forecast to grow 6.86% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

How has Eastern Water Resources Development and Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7ES1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

7ES1

4.5%

DE Water Utilities

0.2%

DE Market


1 Year Return

11.0%

7ES1

33.3%

DE Water Utilities

14.4%

DE Market

Return vs Industry: 7ES1 underperformed the German Water Utilities industry which returned 33.3% over the past year.

Return vs Market: 7ES1 underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

7ES1IndustryMarket
7 Day-4.7%4.5%0.2%
30 Day-3.0%5.5%0.9%
90 Day3.2%22.5%4.6%
1 Year15.6%11.0%39.8%33.3%17.9%14.4%
3 Year25.4%10.2%37.5%19.7%15.7%5.6%
5 Year45.8%17.8%53.5%23.0%23.4%6.5%

Price Volatility Vs. Market

How volatile is Eastern Water Resources Development and Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eastern Water Resources Development and Management undervalued compared to its fair value and its price relative to the market?

17.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7ES1 (€0.32) is trading above our estimate of fair value (€0.28)

Significantly Below Fair Value: 7ES1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7ES1 is good value based on its PE Ratio (17.8x) compared to the Water Utilities industry average (18.5x).

PE vs Market: 7ES1 is good value based on its PE Ratio (17.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 7ES1 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 7ES1 is good value based on its PB Ratio (1.8x) compared to the XE Water Utilities industry average (1.9x).


Next Steps

Future Growth

How is Eastern Water Resources Development and Management forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7ES1's forecast earnings growth (6.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: 7ES1's earnings (6.9% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: 7ES1's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7ES1's revenue (3.5% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 7ES1's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7ES1's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Eastern Water Resources Development and Management performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7ES1 has high quality earnings.

Growing Profit Margin: 7ES1's current net profit margins (23.5%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: 7ES1's earnings have declined by -6.1% per year over the past 5 years.

Accelerating Growth: 7ES1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7ES1 had negative earnings growth (-2.6%) over the past year, making it difficult to compare to the Water Utilities industry average (5.4%).


Return on Equity

High ROE: 7ES1's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eastern Water Resources Development and Management's financial position?


Financial Position Analysis

Short Term Liabilities: 7ES1's short term assets (฿1.1B) do not cover its short term liabilities (฿2.4B).

Long Term Liabilities: 7ES1's short term assets (฿1.1B) do not cover its long term liabilities (฿7.3B).


Debt to Equity History and Analysis

Debt Level: 7ES1's debt to equity ratio (66.8%) is considered high.

Reducing Debt: 7ES1's debt to equity ratio has increased from 64.6% to 66.8% over the past 5 years.

Debt Coverage: 7ES1's debt is well covered by operating cash flow (29.3%).

Interest Coverage: 7ES1's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet

Inventory Level: 7ES1 has a high level of physical assets or inventory.

Debt Coverage by Assets: 7ES1's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Eastern Water Resources Development and Management's current dividend yield, its reliability and sustainability?

4.21%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: 7ES1's dividend (4.21%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: 7ES1's dividend (4.21%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: 7ES1's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7ES1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.8%), 7ES1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jirayut Rungsrithong (52yo)

3.8yrs

Tenure

฿665,000

Compensation

Mr. Jirayut Rungsrithong has been the Chief Executive Officer and President at Eastern Water Resources Development and Management Public Company Limited since April 1, 2016 and was its Acting EVP and Chief ...


Leadership Team

NamePositionTenureCompensationOwnership
Jirayut Rungsrithong
President3.8yrs฿665.00kno data
Sombat Yusamart
Senior EVP & CFO2.3yrsno datano data
Bordin Udol
Senior EVP2.3yrsno datano data
Phanumart Preebua
Vice President of Accounting Department2.3yrsno datano data
Araya Ponvichai
Vice President of Business Administration Department2.3yrsno datano data
Chatkaew Poomarin
Vice President of Corporate Communication Department1.8yrsno datano data
Doungrat Pitak
Vice President of Human Resource Department2.7yrsno datano data
Namphon Rassadanukul
Executive VP & Company Secretary0yrs฿40.51kno data
Cherdchai Pitiwacharakul
Senior Executive Vice President4.5yrsno datano data
Thidarut Kraiprasit
Executive Vice President of Internal Audit Office1.8yrsno data0.036% ฿203.0k

2.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 7ES1's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jirayut Rungsrithong
President3.8yrs฿665.00kno data
Siwa Sangmanee
Advisor to the Board2.3yrs฿155.20kno data
Amorn Laohamontri
Independent Director5.2yrs฿1.40mno data
Premjiras Tanathaipakdee
Independent Director5.2yrs฿1.15mno data
Tatchada Jitmahawong
Independent Director5.2yrs฿1.45mno data
Sucheep Whoungmaitree
Independent Director0.7yrsno datano data
Vicha Nilpetploy
Advisor to the Board4.1yrsno datano data
Surachai Kanasa
Independent Director2.6yrs฿916.73kno data
Veerasak Kositpaisal
Independent Chairman1.8yrs฿507.00kno data
Asvini Tailanga
Independent Director1.8yrs฿555.33kno data

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: 7ES1's board of directors are considered experienced (3.2 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

Eastern Water Resources Development and Management Public Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eastern Water Resources Development and Management Public Company Limited
  • Ticker: 7ES1
  • Exchange: DB
  • Founded: 1992
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: ฿18.966b
  • Listing Market Cap: ฿562.971m
  • Shares outstanding: 1.66b
  • Website: https://www.investor.eastwater.com

Location

  • Eastern Water Resources Development and Management Public Company Limited
  • East Water Building
  • 23rd-26th Floors
  • Bangkok
  • 10900
  • Thailand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EASTWSET (The Stock Exchange of Thailand)YesOrdinary SharesTHTHBJul 1997
EASTW-RSET (The Stock Exchange of Thailand)THB1(NVDR)THTHBAug 2001
7ES1DB (Deutsche Boerse AG)THB1(NVDR)DEEURAug 2001

Biography

Eastern Water Resources Development and Management Public Company Limited, together with its subsidiaries, develops and manages water distribution pipeline systems in the eastern seaboard area of Thailand. It produces and supplies tap water; provides water treatment, waterworks management, operation and maintenance management, and engineering services; recycles water; and supplies raw water. Eastern Water Resources Development and Management Public Company Limited was founded in 1992 and is headquartered in Bangkok, Thailand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:30
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.