SEHK:1395

Stock Analysis Report

ELL Environmental Holdings

Executive Summary

ELL Environmental Holdings Limited, an investment holding company, designs, constructs, operates, and manages wastewater treatment facilities in the People’s Republic of China, Indonesia, and Hong Kong.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.8%

1395

0.6%

HK Water Utilities

0.9%

HK Market


1 Year Return

-15.1%

1395

9.2%

HK Water Utilities

0.6%

HK Market

Return vs Industry: 1395 underperformed the Hong Kong Water Utilities industry which returned 9.2% over the past year.

Return vs Market: 1395 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1395IndustryMarket
7 Day-5.8%0.6%0.9%
30 Day-11.0%1.7%0.5%
90 Day-9.2%-2.7%-4.3%
1 Year-15.1%-15.1%13.4%9.2%4.2%0.6%
3 Year-74.2%-74.2%16.1%4.3%15.6%4.0%
5 Year-90.1%-90.6%37.1%18.7%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ELL Environmental Holdings 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: 1395 (HK$0.13) is trading below our estimate of fair value (HK$5.93)

Significantly Below Fair Value: 1395 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1395 is unprofitable, so we can't compare its PE Ratio to the Water Utilities industry average.

PE vs Market: 1395 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1395's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1395 is good value based on its PB Ratio (0.4x) compared to the HK Water Utilities industry average (0.6x).


Next Steps

Future Growth

How is ELL Environmental Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.2%

Forecasted Utilities 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 ELL Environmental Holdings 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 ELL Environmental Holdings performed over the past 5 years?

-70.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1395 is unprofitable, and losses have increased over the past 5 years at a rate of -70.9% per year.

Accelerating Growth: Unable to compare 1395's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1395 is unprofitable, making it difficult to compare its past year earnings growth to the Water Utilities industry (13.4%).


Return on Equity

High ROE: 1395 has a negative Return on Equity (-29.79%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1395 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1395 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ELL Environmental Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1395's short term assets (HK$99.9M) exceeds its short term liabilities (HK$43.5M)

Long Term Liabilities: 1395's short term assets (99.9M) exceeds its long term liabilities (52.7M)


Debt to Equity History and Analysis

Debt Level: 1395's debt to equity ratio (10.8%) is considered satisfactory

Reducing Debt: 1395's debt to equity ratio has increased from 10.8% to 10.8% over the past 5 years.


Balance Sheet

Inventory Level: 1395 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1395's debt is covered by short term assets (assets are 2.534580x 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: Whilst unprofitable 1395 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1395 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 111.7% per year.


Next Steps

Dividend

What is ELL Environmental Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1395's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1395's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1395's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1395's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1395 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1395's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Kwan Chan (36yo)

5.1yrs

Tenure

HK$1,952,000

Compensation

Mr. Kwan Chan has been the Chief Executive Officer of ELL Environmental Holdings Limited since September 5, 2014. Mr. Chan is responsible for all major affairs of ELL Environmental Holdings, including proj ...


CEO Compensation Analysis

Compensation vs. Market: Kwan's total compensation ($USD248.91K) is about average for companies of similar size in the Hong Kong market ($USD214.48K).

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


Management Age and Tenure

4.7yrs

Average Tenure

41yo

Average Age

Experienced Management: 1395's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

44yo

Average Age

Experienced Board: 1395's board of directors are considered experienced (5.1 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


Management Team

  • Yuen Chau (71yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: HK$1.39m
  • Seaman Kwok (60yo)

    Company Secretary

    • Tenure: 5.6yrs
  • Kwan Chan (36yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$1.95m
  • Benny Chau (37yo)

    Deputy GM & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$100.00k
  • Chi Chiu Fan (33yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
  • Radius Suhendra (45yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: HK$100.00k

Board Members

  • Yuen Chau (71yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: HK$1.39m
  • Kwan Chan (36yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$1.95m
  • Brian Chan (30yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$543.00k
  • Benny Chau (37yo)

    Deputy GM & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$100.00k
  • Linda Ng (43yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$120.00k
  • Man Kung Ng (68yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$120.00k
  • Radius Suhendra (45yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: HK$100.00k
  • Nancy Leung (47yo)

    Independent Non-Executive Director

    • Tenure: 0yrs

Company Information

ELL Environmental Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ELL Environmental Holdings Limited
  • Ticker: 1395
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: HK$142.842m
  • Shares outstanding: 1.11b
  • Website: https://www.ellhk.com

Number of Employees


Location

  • ELL Environmental Holdings Limited
  • Rugao Hengfa Municipal and Industrial Wastewater Treatment Facility
  • North of Huimin Road
  • Rugao
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1395SEHK (The Stock Exchange of Hong Kong Ltd.)YesNew Ordinary SharesHKHKDSep 2014
6ELDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURSep 2014

Biography

ELL Environmental Holdings Limited, an investment holding company, designs, constructs, operates, and manages wastewater treatment facilities in the People’s Republic of China, Indonesia, and Hong Kong. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:59
End of Day Share Price2019/10/18 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.