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

Flawless balance sheet and fair value.

Risks

  • ELL Environmental Holdings is not covered by any analysts.

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

-8.7%

1395

-0.1%

HK Water Utilities

-0.6%

HK Market


1 Year Return

-11.6%

1395

8.5%

HK Water Utilities

-6.7%

HK Market

1395 underperformed the Water Utilities industry which returned 8.5% over the past year.

1395 underperformed the Market in Hong Kong which returned -6.7% over the past year.


Share holder returns

1395IndustryMarket
7 Day-8.7%-0.1%-0.6%
30 Day3.8%1.2%3.0%
90 Day-12.2%-0.3%-4.9%
1 Year-11.6%-11.6%12.6%8.5%-3.3%-6.7%
3 Year-70.5%-70.5%19.4%7.9%15.5%3.7%
5 Yearn/a42.7%25.5%16.8%-2.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ELL Environmental Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

ELL Environmental Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

ELL Environmental Holdings is loss making, we can't compare its value to the HK Water Utilities industry average.

ELL Environmental Holdings is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for ELL Environmental Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

ELL Environmental Holdings is good value based on assets compared to the HK Water Utilities industry average.


Next Steps

Future Growth

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

10.7%

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

ELL Environmental Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare ELL Environmental Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare ELL Environmental Holdings's 1-year growth to the HK Water Utilities industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if ELL Environmental Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if ELL Environmental Holdings has efficiently used its assets last year compared to the HK Water Utilities industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if ELL Environmental Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is ELL Environmental Holdings's financial position?


Financial Position Analysis

ELL Environmental Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ELL Environmental Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ELL Environmental Holdings's level of debt (10.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (10.8% vs 10.8% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.5x 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.

Whilst loss making ELL Environmental Holdings has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making ELL Environmental Holdings has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -117.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate ELL Environmental Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate ELL Environmental Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as ELL Environmental Holdings has not reported any payouts.

Unable to verify if ELL Environmental Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as ELL Environmental Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

4.6yrs

Average management tenure


CEO

Kwan Chan (36yo)

5yrs

Tenure

HK$3,804,000

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

Kwan's remuneration is higher than average for companies of similar size in Hong Kong.

Kwan's compensation has increased whilst company is loss making.


Management Age and Tenure

4.6yrs

Average Tenure

41yo

Average Age

The tenure for the ELL Environmental Holdings management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

43yo

Average Age

The tenure for the ELL Environmental Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yuen Chau (71yo)

    Chairman

    • Tenure: 5yrs
    • Compensation: HK$1.46m
  • Seaman Kwok (60yo)

    Company Secretary

    • Tenure: 5.5yrs
  • Kwan Chan (36yo)

    CEO & Executive Director

    • Tenure: 5yrs
    • Compensation: HK$3.80m
  • Benny Chau (37yo)

    Deputy GM & Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$100.00k
  • Chi Chiu Fan (33yo)

    Chief Financial Officer

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

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$100.00k

Board Members

  • Yuen Chau (71yo)

    Chairman

    • Tenure: 5yrs
    • Compensation: HK$1.46m
  • Kwan Chan (36yo)

    CEO & Executive Director

    • Tenure: 5yrs
    • Compensation: HK$3.80m
  • Brian Chan (30yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$543.00k
  • Benny Chau (37yo)

    Deputy GM & Executive Director

    • Tenure: 5.5yrs
    • Compensation: HK$100.00k
  • Linda Ng (43yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$120.00k
  • Man Kung Ng (68yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$120.00k
  • Radius Suhendra (45yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$100.00k

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$151.700m
  • 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 Analysis2019/09/19 12:52
End of Day Share Price2019/09/18 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.