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ESRS

Ezz SteelCASE:ESRS Stock Report

Market Cap

ج.م8.4b

7D

5.6%

1Y

132.6%

Updated

26 Oct, 2021

Data

Company Financials +
ESRS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health0/6
Dividends0/6

ESRS Overview

Ezz Steel Company, together with its subsidiaries, produces and sells long and flat steel products in the Middle East and North Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Ezz Steel
Historical stock prices
Current Share Priceج.م16.35
52 Week Highج.م6.32
52 Week Lowج.م16.75
Beta0.92
1 Month Change22.66%
3 Month Change20.93%
1 Year Change132.58%
3 Year Change-14.40%
5 Year Change133.57%
Change since IPO79.28%

Recent News & Updates

Shareholder Returns

ESRSEG Metals and MiningEG Market
7D5.6%-8.0%3.0%
1Y132.6%5.8%12.4%

Return vs Industry: ESRS exceeded the EG Metals and Mining industry which returned 5.8% over the past year.

Return vs Market: ESRS exceeded the EG Market which returned 12.4% over the past year.

Price Volatility

Is ESRS's price volatile compared to industry and market?
ESRS volatility
ESRS Beta0.92
Industry Beta1.15
Market Beta1

Stable Share Price: ESRS is not significantly more volatile than the rest of EG stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ESRS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994n/aPaul Chekaibanhttps://www.ezzindustries.com

Ezz Steel Company, together with its subsidiaries, produces and sells long and flat steel products in the Middle East and North Africa. The company offers plain and deformed steel rebars for various applications; wire rods for use in construction, engineering, and manufacturing applications; hot rolled flat steel products for use in industrial, commercial, and domestic applications; and welded steel fabric used for concrete structures in the construction industry. It exports its steel products to various countries worldwide.

Ezz Steel Fundamentals Summary

How do Ezz Steel's earnings and revenue compare to its market cap?
ESRS fundamental statistics
Market Capج.م8.43b
Earnings (TTM)ج.م308.61m
Revenue (TTM)ج.م51.22b

28.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESRS income statement (TTM)
Revenueج.م51.22b
Cost of Revenueج.م43.69b
Gross Profitج.م7.52b
Expensesج.م7.21b
Earningsج.م308.61m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.58
Gross Margin14.69%
Net Profit Margin0.60%
Debt/Equity Ratio-628.9%

How did ESRS perform over the long term?

See historical performance and comparison

Valuation

Is Ezz Steel 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: ESRS (EGP16.35) is trading below our estimate of fair value (EGP41.34)

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


Price To Earnings Ratio

PE vs Industry: ESRS is poor value based on its PE Ratio (28.2x) compared to the African Metals and Mining industry average (7.4x).

PE vs Market: ESRS is poor value based on its PE Ratio (28.2x) compared to the EG market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: ESRS is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ESRS has negative assets, so we can't compare its PB Ratio to the XF Metals and Mining industry average.


Future Growth

How is Ezz Steel forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESRS's forecast earnings growth (7.1% per year) is below the savings rate (9.1%).

Earnings vs Market: ESRS's earnings (7.1% per year) are forecast to grow slower than the EG market (13.6% per year).

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

Revenue vs Market: ESRS's revenue (5.9% per year) is forecast to grow slower than the EG market (9.8% per year).

High Growth Revenue: ESRS's revenue (5.9% 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 ESRS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ezz Steel performed over the past 5 years?

-35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESRS has high quality earnings.

Growing Profit Margin: ESRS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ESRS has become profitable over the past 5 years, growing earnings by -35.1% per year.

Accelerating Growth: ESRS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ESRS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (212.9%).


Return on Equity

High ROE: ESRS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Ezz Steel's financial position?


Financial Position Analysis

Short Term Liabilities: ESRS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ESRS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ESRS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ESRS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: ESRS's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: ESRS's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

What is Ezz Steel current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ESRS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ESRS is not paying a notable dividend for the EG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ESRS's dividend in 3 years as they are not forecast to pay a notable one for the EG market.


Next Steps

Management

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

19.8yrs

Average management tenure


CEO

Paul Chekaiban

16.75yrs

Tenure

Mr. Paul Philipe Chekaiban has been Managing Director of EZZ Steel Company S.A.E (alternate name Ezz Steel) since 2005 and served as its Chairman since May 17, 2011 until September 2020. Mr. Chekaiban serv...


Leadership Team

Experienced Management: ESRS's management team is seasoned and experienced (19.8 years average tenure).


Board Members

Experienced Board: ESRS's board of directors are not considered experienced ( 1.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Ezz Steel Company's employee growth, exchange listings and data sources


Key Information

  • Name: Ezz Steel Company
  • Ticker: ESRS
  • Exchange: CASE
  • Founded: 1994
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ج.م8.430b
  • Shares outstanding: 532.89m
  • Website: https://www.ezzindustries.com

Location

  • Ezz Steel Company
  • Four Seasons Nile Plaza
  • 1089 Cornich El-Nil
  • Cairo
  • Egypt

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:13
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.