AIM:EKF

Stock Analysis Report

EKF Diagnostics Holdings

Executive Summary

EKF Diagnostics Holdings plc designs, develops, manufactures, and sells diagnostic instruments, reagents, and other ancillary products in the Americas, Europe, the Middle East, Africa, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has EKF Diagnostics Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

41.8%

EKF

13.7%

GB Medical Equipment

10.0%

GB Market


1 Year Return

-11.7%

EKF

-1.1%

GB Medical Equipment

-23.0%

GB Market

Return vs Industry: EKF underperformed the UK Medical Equipment industry which returned -1.4% over the past year.

Return vs Market: EKF exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

EKFIndustryMarket
7 Day41.8%13.7%10.0%
30 Day-5.9%-15.3%-17.6%
90 Day-18.2%-18.5%-27.3%
1 Year-11.7%-11.7%0.7%-1.1%-18.9%-23.0%
3 Year60.1%31.0%5.7%0.9%-12.9%-24.2%
5 Year80.1%47.4%37.3%25.7%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EKF Diagnostics Holdings undervalued compared to its fair value and its price relative to the market?

11.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EKF (£0.28) is trading above our estimate of fair value (£0.18)

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


Price To Earnings Ratio

PE vs Industry: EKF is good value based on its PE Ratio (11.8x) compared to the Medical Equipment industry average (26.9x).

PE vs Market: EKF is good value based on its PE Ratio (11.8x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EKF is good value based on its PB Ratio (1.9x) compared to the GB Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is EKF Diagnostics Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EKF's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if EKF's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EKF's revenue (4.7% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: EKF's revenue (4.7% 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 EKF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EKF Diagnostics Holdings performed over the past 5 years?

51.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EKF has a large one-off gain of £6.7M impacting its June 30 2019 financial results.

Growing Profit Margin: EKF's current net profit margins (24.7%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: EKF has become profitable over the past 5 years, growing earnings by 51.7% per year.

Accelerating Growth: EKF's earnings growth over the past year (195%) exceeds its 5-year average (51.7% per year).

Earnings vs Industry: EKF earnings growth over the past year (195%) exceeded the Medical Equipment industry -7.4%.


Return on Equity

High ROE: EKF's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is EKF Diagnostics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EKF's short term assets (£27.7M) exceed its short term liabilities (£15.3M).

Long Term Liabilities: EKF's short term assets (£27.7M) exceed its long term liabilities (£4.3M).


Debt to Equity History and Analysis

Debt Level: EKF's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: EKF's debt to equity ratio has reduced from 6% to 1.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: EKF's debt is covered by short term assets (assets are 28.6x 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: EKF is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if EKF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is EKF Diagnostics Holdings's current dividend yield, its reliability and sustainability?

3.71%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Julian Baines (54yo)

no data

Tenure

UK£346,000

Compensation

Mr. Julian Huw Baines, MBE, is Non-Executive Chairman of Renalytix AI plc. Mr. Baines serves as the Chief Executive Officer and Executive Director of EKF Diagnostics Holdings plc. Mr. Baines serves as a Di ...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD429.47K) is below average for companies of similar size in the UK market ($USD761.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Julian Baines
CEO & Executive Directorno dataUK£346.00k0.41% £519.5k
Richard Evans
COO, Finance Director & Executive Directorno dataUK£283.00k0.039% £50.1k
Christopher Mills
Non-Executive Chairman3.92yrsUK£25.00k0.033% £42.0k
Carl Contadini
Non-Executive Director3.67yrsUK£25.00kno data
Adam Reynolds
Senior Independent Directorno dataUK£30.00k0.37% £467.2k

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: EKF's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

EKF Diagnostics Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EKF Diagnostics Holdings plc
  • Ticker: EKF
  • Exchange: AIM
  • Founded: 1990
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£127.146m
  • Shares outstanding: 454.09m
  • Website: https://www.ekfdiagnostics.com

Number of Employees


Location

  • EKF Diagnostics Holdings plc
  • Avon House
  • 19 Stanwell Road
  • Cardiff
  • South Glamorgan
  • CF64 2EZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EKFAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2002
EKDH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002

Biography

EKF Diagnostics Holdings plc designs, develops, manufactures, and sells diagnostic instruments, reagents, and other ancillary products in the Americas, Europe, the Middle East, Africa, Asia, and internationally. It offers DiaSpect Tm and DiaSpect T hemoglobin analyzers; DiaSpect Hemoglobin T Low to determine low levels of hemoglobin in plasma and serum specimens, aqueous solutions, or stored or banked erythrocytes; Hemo Control, a point-of-care hemoglobin analyzer that provides quantitative and lab quality hemoglobin results; and HemataStat II, a microhematocrit centrifuge that provides a quantitative hematocrit reading for six blood samples. The company also provides glucose and lactate analyzers, such as Biosen C-Line GP+ and C-Line Clinic; Quo-Lab A1c, a desktop point-of-care analyzer for measuring glycated hemoglobin; Quo-Test A1c for the monitoring and management of diabetes in a point-of-care setting; and STAT-Site M Beta-hydroxybutyrate analyzer. In addition, it offers Creamatocrit Plus, an analyzer for detecting the lipid concentration and calorific density in mothers’ milk; QuPID and True20 pregnancy tests; and Lactate Scout 4, a lactate analyzer. Further, the company offers Altair 240, a chemistry analyzer; Excel, a semi-automated chemistry analyzer; Micro 12, a micro centrifuge for clinical, molecular, and bacteriological applications; reagents, calibrators, standards, and controls; immunoassay kits; Hema-Screen Serology, an analyzer dependent for early detection of colorectal cancer; sTNFRr1, a predictive marker of end stage renal disease; and Uri-Trak 120 urine analyzer. Additionally, it provides contract manufacturing services, as well as services and distributes third party company's products. It sells its products directly to hospitals, laboratories, and government agencies, as well as through a network of distributors. The company was founded in 1990 and is headquartered in Cardiff, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:58
End of Day Share Price2020/03/30 00:00
Earnings2019/06/30
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.