ERNT

Ericsson Nikola Tesla d.dZGSE:ERNT Stock Report

Market Cap

Kn2.3b

7D

-0.3%

1Y

30.4%

Updated

17 Sep, 2021

Data

Company Financials +
ERNT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends3/6

ERNT 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 PriceKn1,695.00
52 Week HighKn1,300.00
52 Week LowKn1,735.00
Beta0.32
1 Month Change-0.29%
3 Month Change0.30%
1 Year Change30.39%
3 Year Change59.16%
5 Year Change49.87%
Change since IPO391.30%

Recent News & Updates

May 02
Ericsson Nikola Tesla d.d (ZGSE:ERNT) Knows How To Allocate Capital

Ericsson Nikola Tesla d.d (ZGSE:ERNT) Knows How To Allocate Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Mar 25
Is Ericsson Nikola Tesla d.d (ZGSE:ERNT) A Risky Investment?

Is Ericsson Nikola Tesla d.d (ZGSE:ERNT) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

ERNTHR CommunicationsHR Market
7D-0.3%-2.7%-0.2%
1Y30.4%18.4%15.1%

Return vs Industry: ERNT exceeded the HR Communications industry which returned 18.4% over the past year.

Return vs Market: ERNT exceeded the HR Market which returned 15.1% over the past year.

Price Volatility

Is ERNT's price volatile compared to industry and market?
ERNT volatility
ERNT Beta0.32
Industry Beta0.67
Market Beta1

Stable Share Price: ERNT is not significantly more volatile than the rest of HR stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ERNT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19493,361Gordana 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; 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 comprising, healthcare, e-business, transport, national security and public safety, e-government, machine to machine communication, business users, and new areas, as well as Internet of Things, 5G, and cloud services.

Valuation

Is Ericsson Nikola Tesla d.d undervalued compared to its fair value and its price relative to the market?

14.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ERNT (HRK1695) is trading above our estimate of fair value (HRK1511.86)

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


Price To Earnings Ratio

PE vs Industry: ERNT is good value based on its PE Ratio (14x) compared to the European Communications industry average (29.3x).

PE vs Market: ERNT is good value based on its PE Ratio (14x) compared to the HR market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: ERNT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ERNT is overvalued based on its PB Ratio (6.7x) compared to the XE Communications industry average (3.7x).


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?

-3.2%

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 (-3.2% per year).

Earnings vs Market: ERNT's earnings are forecast to decline over the next 3 years (-3.2% 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 (31.2%)


Past Performance

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

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERNT has high quality earnings.

Growing Profit Margin: ERNT's current net profit margins (7.8%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: ERNT's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: ERNT's earnings growth over the past year (142.5%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: ERNT earnings growth over the past year (142.5%) exceeded the Communications industry 99.1%.


Return on Equity

High ROE: ERNT's Return on Equity (47.5%) is considered outstanding.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: ERNT's short term assets (HRK1.0B) exceed its short term liabilities (HRK838.0M).

Long Term Liabilities: ERNT's short term assets (HRK1.0B) exceed its long term liabilities (HRK90.1M).


Debt to Equity History and Analysis

Debt Level: ERNT's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: ERNT's debt to equity ratio has increased from 1.2% to 28.6% over the past 5 years.

Debt Coverage: ERNT's debt is well covered by operating cash flow (301.9%).

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


Balance Sheet


Dividend

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

4.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ERNT's dividend (4.84%) is higher than the bottom 25% of dividend payers in the HR market (2.06%).

High Dividend: ERNT's dividend (4.84%) is in the top 25% of dividend payers in the HR market (4.16%)


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.2%), ERNT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ERNT's dividends in 3 years are forecast to be covered by earnings (72.8% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Gordana Kovacevic

16.67yrs

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 (2.7 years average tenure).


Board Members

Experienced Board: ERNT's board of directors are considered experienced (3.3 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

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
  • Market Cap: Kn2.257b
  • Shares outstanding: 1.33m
  • Website: https://www.ericsson.hr

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 22:27
End of Day Share Price2021/09/17 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.