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ELCO

Elco TASE:ELCO Stock Report

Last Price

₪232.60

Market Cap

₪6.4b

7D

6.9%

1Y

19.9%

Updated

29 Jun, 2022

Data

Company Financials
ELCO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends0/6

ELCO Stock Overview

Elco Ltd. operates in the construction, infrastructure, consumer electronics, telecommunications, entertainment, and real estate sectors in Israel.

Elco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Elco
Historical stock prices
Current Share Price₪232.60
52 Week High₪292.80
52 Week Low₪181.20
Beta0.22
1 Month Change5.25%
3 Month Change-14.80%
1 Year Change19.90%
3 Year Change191.59%
5 Year Change232.19%
Change since IPO974.49%

Recent News & Updates

Feb 27
Does Elco (TLV:ELCO) Have A Healthy Balance Sheet?

Does Elco (TLV:ELCO) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 29
Here's Why Elco (TLV:ELCO) Has A Meaningful Debt Burden

Here's Why Elco (TLV:ELCO) Has A Meaningful Debt Burden

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 29
We Think Elco (TLV:ELCO) Can Stay On Top Of Its Debt

We Think Elco (TLV:ELCO) Can Stay On Top Of Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

ELCOIL ConstructionIL Market
7D6.9%4.2%1.6%
1Y19.9%1.2%9.5%

Return vs Industry: ELCO exceeded the IL Construction industry which returned 1.9% over the past year.

Return vs Market: ELCO exceeded the IL Market which returned 9.5% over the past year.

Price Volatility

Is ELCO's price volatile compared to industry and market?
ELCO volatility
ELCO Average Weekly Movement6.0%
Construction Industry Average Movement5.9%
Market Average Movement5.6%
10% most volatile stocks in IL Market9.0%
10% least volatile stocks in IL Market3.6%

Stable Share Price: ELCO is not significantly more volatile than the rest of IL stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ELCO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194914,029Haim Zalkindhttps://www.elco.co.il

Elco Ltd. operates in the construction, infrastructure, consumer electronics, telecommunications, entertainment, and real estate sectors in Israel. The company is involved in the development, construction, operation, management, and maintenance of various projects; import, marketing, and sale of air conditioning and electronic home appliances; operation and management of multi-family properties; and content and distribution, leisure, and cinema businesses. It also markets, supplies, and distributes LPG, natural gas, and CNG to private households, as well as industrial, commercial, and transportation sectors.

Elco Fundamentals Summary

How do Elco's earnings and revenue compare to its market cap?
ELCO fundamental statistics
Market Cap₪6.36b
Earnings (TTM)₪748.60m
Revenue (TTM)₪16.94b

8.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELCO income statement (TTM)
Revenue₪16.94b
Cost of Revenue₪13.30b
Gross Profit₪3.64b
Other Expenses₪2.89b
Earnings₪748.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)27.39
Gross Margin21.48%
Net Profit Margin4.42%
Debt/Equity Ratio132.6%

How did ELCO perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ELCO 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/Revenue0.9x
Enterprise Value/EBITDA7.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

ELCO PE Ratio vs Peers
The above table shows the PE ratio for ELCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.3x
ELTR Electra
37.9xn/a₪7.5b
SKBN Shikun & Binui
62.3xn/a₪6.5b
SPEN Shapir Engineering and Industry
23.2xn/a₪10.4b
ASHG Ashtrom Group
9.6xn/a₪7.9b
ELCO Elco
8.5xn/a₪6.4b

Price-To-Earnings vs Peers: ELCO is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (33.3x).


Price to Earnings Ratio vs Industry

How does ELCO's PE Ratio compare vs other companies in the Asian Construction Industry?

Price-To-Earnings vs Industry: ELCO is good value based on its Price-To-Earnings Ratio (8.5x) compared to the IL Construction industry average (13.1x)


Price to Earnings Ratio vs Fair Ratio

What is ELCO'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.

ELCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: ELCO (₪232.6) is trading above our estimate of fair value (₪41.25)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.5%

Forecasted Capital Goods 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 Elco 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.


Discover growth companies

  • Check out Elco's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Elco performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELCO has high quality earnings.

Growing Profit Margin: ELCO's current net profit margins (4.4%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: ELCO's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: ELCO's earnings growth over the past year (447.9%) exceeds its 5-year average (29.5% per year).

Earnings vs Industry: ELCO earnings growth over the past year (447.9%) exceeded the Construction industry 30.3%.


Return on Equity

High ROE: Whilst ELCO's Return on Equity (26.36%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Elco's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELCO's short term assets (₪8.4B) do not cover its short term liabilities (₪8.5B).

Long Term Liabilities: ELCO's short term assets (₪8.4B) exceed its long term liabilities (₪7.5B).


Debt to Equity History and Analysis

Debt Level: ELCO's net debt to equity ratio (100.1%) is considered high.

Reducing Debt: ELCO's debt to equity ratio has increased from 115.6% to 132.6% over the past 5 years.

Debt Coverage: ELCO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ELCO's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


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Dividend

What is Elco current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELCO's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the IL market (2.03%).

High Dividend: ELCO's dividend (1.1%) is low compared to the top 25% of dividend payers in the IL market (6.18%).


Stability and Growth of Payments

Stable Dividend: ELCO is not paying a notable dividend for the IL market, therefore no need to check if payments are stable.

Growing Dividend: ELCO is not paying a notable dividend for the IL market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: ELCO is not paying a notable dividend for the IL market.


Cash Payout to Shareholders

Cash Flow Coverage: ELCO is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

7.3yrs

Average board tenure


CEO

Haim Zalkind (60 yo)

no data

Tenure

₪4,559,000

Compensation

Mr. Daniel M. Zalkind, also known as Haim, serves as Chairman of the Board of Directors at Supergas Energy Ltd. He is the Co-Chief Executive Officer at Elco Ltd. and has been its Director since May 20, 20...


CEO Compensation Analysis

Compensation vs Market: Haim's total compensation ($USD1.32M) is about average for companies of similar size in the IL market ($USD1.18M).

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


Board Members

Experienced Board: ELCO's board of directors are considered experienced (7.3 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

Elco Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Elco Ltd.
  • Ticker: ELCO
  • Exchange: TASE
  • Founded: 1949
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: ₪6.358b
  • Shares outstanding: 27.34m
  • Website: https://www.elco.co.il

Number of Employees


Location

  • Elco Ltd.
  • Electra Tower
  • 50th Floor
  • Tel Aviv
  • 978914
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 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.