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ERNT

Ericsson Nikola Tesla d.d ZGSE:ERNT Stock Report

Last Price

Kn1.56k

Market Cap

Kn2.1b

7D

-4.6%

1Y

-8.2%

Updated

23 Sep, 2022

Data

Company Financials +
ERNT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends3/6

ERNT Stock Overview

Ericsson Nikola Tesla d.d. provides communication products, solutions, and software in the Republic of Croatia, Bosnia and Herzegovina, and Central and Eastern Europe.

Ericsson Nikola Tesla d.d Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ericsson Nikola Tesla d.d
Historical stock prices
Current Share PriceKn1,560.00
52 Week HighKn2,040.00
52 Week LowKn1,415.00
Beta0.33
1 Month Change-4.29%
3 Month Change-12.36%
1 Year Change-8.24%
3 Year Change30.54%
5 Year Change36.72%
Change since IPO352.17%

Recent News & Updates

Aug 12
Estimating The Fair Value Of Ericsson Nikola Tesla d.d. (ZGSE:ERNT)

Estimating The Fair Value Of Ericsson Nikola Tesla d.d. (ZGSE:ERNT)

Today we will run through one way of estimating the intrinsic value of Ericsson Nikola Tesla d.d. ( ZGSE:ERNT ) by...

Shareholder Returns

ERNTHR CommunicationsHR Market
7D-4.6%-5.5%-0.1%
1Y-8.2%-21.0%0.3%

Return vs Industry: ERNT exceeded the HR Communications industry which returned -18.2% over the past year.

Return vs Market: ERNT underperformed the HR Market which returned -1.2% over the past year.

Price Volatility

Is ERNT's price volatile compared to industry and market?
ERNT volatility
ERNT Average Weekly Movement3.5%
Communications Industry Average Movement5.3%
Market Average Movement3.6%
10% most volatile stocks in HR Market8.5%
10% least volatile stocks in HR Market2.0%

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

Volatility Over Time: ERNT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19493,471Gordana Kovacevichttps://www.ericsson.hr

Ericsson Nikola Tesla d.d. provides communication products, solutions, and software in the Republic of Croatia, Bosnia and Herzegovina, and Central and Eastern Europe. The company engages in the research and development of telecommunications software and services; design, testing, and integration of communications solutions; provision of managed services, including networks, information technology, and network design and optimization; and supply and maintenance of communications, and information and communication technology solutions. It also offers digital transformation services in the field of healthcare, e-business, transport, national security and public safety, e-government, machine to machine communication, and various businesses as well as Internet of Things, 5G, and cloud services.

Ericsson Nikola Tesla d.d Fundamentals Summary

How do Ericsson Nikola Tesla d.d's earnings and revenue compare to its market cap?
ERNT fundamental statistics
Market CapKn2.06b
Earnings (TTM)Kn196.17m
Revenue (TTM)Kn2.28b

10.5x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERNT income statement (TTM)
RevenueKn2.28b
Cost of RevenueKn2.01b
Gross ProfitKn274.07m
Other ExpensesKn77.90m
EarningsKn196.17m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)148.32
Gross Margin12.00%
Net Profit Margin8.59%
Debt/Equity Ratio6.0%

How did ERNT perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ERNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERNT?

Other financial metrics that can be useful for relative valuation.

ERNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA6.4x
PEG Ratio-2.3x

Price to Earnings Ratio vs Peers

How does ERNT's PE Ratio compare to its peers?

ERNT PE Ratio vs Peers
The above table shows the PE ratio for ERNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.6x
EVS EVS Broadcast Equipment
7.4x3.8%€258.5m
300514 Shenzhen Friendcom Technology Development
26.5xn/aCN¥1.9b
3558 Senao Networks
12.8xn/aNT$9.0b
504112 Nelco
123.5xn/a₹20.3b
ERNT Ericsson Nikola Tesla d.d
10.5x-4.6%Kn2.1b

Price-To-Earnings vs Peers: ERNT is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (42.6x).


Price to Earnings Ratio vs Industry

How does ERNT's PE Ratio compare vs other companies in the European Communications Industry?

Price-To-Earnings vs Industry: ERNT is good value based on its Price-To-Earnings Ratio (10.5x) compared to the European Communications industry average (21.7x)


Price to Earnings Ratio vs Fair Ratio

What is ERNT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ERNT's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of ERNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERNT (HRK1560) is trading below our estimate of fair value (HRK1972.11)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Ericsson Nikola Tesla d.d forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-4.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERNT's earnings are forecast to decline over the next 3 years (-4.6% per year).

Earnings vs Market: ERNT's earnings are forecast to decline over the next 3 years (-4.6% per year).

High Growth Earnings: ERNT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ERNT's revenue (2.8% per year) is forecast to grow slower than the HR market (4.4% per year).

High Growth Revenue: ERNT's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERNT's Return on Equity is forecast to be high in 3 years time (30.4%)


Discover growth companies

Past Performance

How has Ericsson Nikola Tesla d.d performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERNT has high quality earnings.

Growing Profit Margin: ERNT's current net profit margins (8.6%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: ERNT's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: ERNT's earnings growth over the past year (85.4%) exceeds its 5-year average (12.3% per year).

Earnings vs Industry: ERNT earnings growth over the past year (85.4%) exceeded the Communications industry 30.5%.


Return on Equity

High ROE: ERNT's Return on Equity (42.5%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Ericsson Nikola Tesla d.d's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERNT's short term assets (HRK1.0B) exceed its short term liabilities (HRK715.2M).

Long Term Liabilities: ERNT's short term assets (HRK1.0B) exceed its long term liabilities (HRK53.2M).


Debt to Equity History and Analysis

Debt Level: ERNT has more cash than its total debt.

Reducing Debt: ERNT's debt to equity ratio has increased from 2.8% to 6% over the past 5 years.

Debt Coverage: ERNT's debt is well covered by operating cash flow (1053.4%).

Interest Coverage: ERNT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Ericsson Nikola Tesla d.d current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ERNT's dividend (4.1%) is higher than the bottom 25% of dividend payers in the HR market (2.26%).

High Dividend: ERNT's dividend (4.1%) is low compared to the top 25% of dividend payers in the HR market (4.55%).


Stability and Growth of Payments

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

Growing Dividend: ERNT's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.6%), ERNT's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.7%), ERNT's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.7yrs

Average management tenure


CEO

Gordana Kovacevic

17.67yrs

Tenure

Ms. Gordana Kovacevic, MSc, serves as President and Chief Executive Officer at Ericsson Nikola Tesla d.d. since January 1, 2005. She serves as Managing Director and President of Management Board at Ericsso...


Leadership Team

Experienced Management: ERNT's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: ERNT's board of directors are considered experienced (4 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

Top 14 shareholders own 67.78% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
49.41%
Telefonaktiebolaget LM Ericsson (publ)
653,441HRK1.0b0%no data
11.07%
Raiffeisen drustvo za upravljanje obveznim i dobrovoljnim mirovinskim fondovima d.d.
146,348HRK228.3m4.27%6.37%
3.06%
PBZ Croatia Osiguranje d.d.
40,482HRK63.2m0%1.64%
2.08%
ERSTE d.o.o. - drustvo za upravljanje obveznim i dobrovoljnim mirovinskim fondovima
27,565HRK43.0m-5.05%1.53%
0.66%
OTP Invest d.o.o.
8,789HRK13.7m4.77%25.03%
0.4%
Ivica Vuleta
5,327HRK8.3m0%no data
0.31%
Triglav Skladi d. o. o.
4,129HRK6.4m0%0.09%
0.3%
NLB Skladi, Upravljanje Premozenja, d.o.o.
3,995HRK6.2m0%6.57%
0.24%
KD Skladi druzba za upravljanje, d.o.o.
3,181HRK5.0m0%0.15%
0.18%
Eaton Vance Management
2,433HRK3.8m0%no data
0.038%
Security Kapitalanlage AG
499HRK778.4k0%0.01%
0.0076%
Carrera Asset Management Co., Ltd
100HRK156.0k0%0.01%
0.0057%
SAVA INFOND, druzba za upravljanje, d.o.o.
76HRK118.6k0%no data
0.0042%
Expat Asset Management Ead
55HRK85.8k0%0.02%

Company Information

Ericsson Nikola Tesla d.d.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ericsson Nikola Tesla d.d.
  • Ticker: ERNT
  • Exchange: ZGSE
  • Founded: 1949
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: Kn2.063b
  • Shares outstanding: 1.32m
  • Website: https://www.ericsson.hr

Number of Employees


Location

  • Ericsson Nikola Tesla d.d.
  • Krapinska 45
  • PO Box 93
  • Zagreb
  • 10002
  • Croatia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERNTZGSE (Zagreb Stock Exchange)YesOrdinary SharesHRHRKMar 2003

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.