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ETWO

Equity Two COSE:ETWO.N0000 Stock Report

Last Price

LK₨38.00

Market Cap

LK₨1.2b

7D

8.6%

1Y

-30.9%

Updated

17 Aug, 2022

Data

Company Financials
ETWO.N0000 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends2/6

ETWO.N0000 Stock Overview

Equity Two PLC engages in letting office premises for commercial purposes in Sri Lanka.

Equity Two Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Equity Two
Historical stock prices
Current Share PriceLK₨38.00
52 Week HighLK₨74.00
52 Week LowLK₨30.00
Beta0.42
1 Month Change22.58%
3 Month Change21.02%
1 Year Change-30.91%
3 Year Change-35.59%
5 Year Change-30.91%
Change since IPO181.48%

Recent News & Updates

Shareholder Returns

ETWO.N0000LK Real EstateLK Market
7D8.6%-0.4%8.0%
1Y-30.9%-23.9%5.6%

Return vs Industry: ETWO.N0000 underperformed the LK Real Estate industry which returned -23.9% over the past year.

Return vs Market: ETWO.N0000 underperformed the LK Market which returned 5.6% over the past year.

Price Volatility

Is ETWO.N0000's price volatile compared to industry and market?
ETWO.N0000 volatility
ETWO.N0000 Average Weekly Movement11.3%
Real Estate Industry Average Movement5.2%
Market Average Movement8.6%
10% most volatile stocks in LK Market13.3%
10% least volatile stocks in LK Market4.8%

Stable Share Price: ETWO.N0000 is more volatile than 75% of LK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ETWO.N0000's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of LK stocks.

About the Company

FoundedEmployeesCEOWebsite
19906n/ahttps://www.carsoncumberbatch.com/investor_information/investor_information_equity_two_plc.php

Equity Two PLC engages in letting office premises for commercial purposes in Sri Lanka. The company was incorporated in 1990 and is based in Colombo, Sri Lanka. Equity Two PLC is a subsidiary of Equity One Limited.

Equity Two Fundamentals Summary

How do Equity Two's earnings and revenue compare to its market cap?
ETWO.N0000 fundamental statistics
Market CapLK₨1.18b
Earnings (TTM)LK₨104.39m
Revenue (TTM)LK₨133.57m

11.3x

P/E Ratio

8.8x

P/S Ratio

Is ETWO.N0000 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETWO.N0000 income statement (TTM)
RevenueLK₨133.57m
Cost of RevenueLK₨41.12m
Gross ProfitLK₨92.44m
Other Expenses-LK₨11.94m
EarningsLK₨104.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.37
Gross Margin69.21%
Net Profit Margin78.16%
Debt/Equity Ratio0.0%

How did ETWO.N0000 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

19%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ETWO.N0000 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 ETWO.N0000?

Other financial metrics that can be useful for relative valuation.

ETWO.N0000 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/Revenue7.9x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does ETWO.N0000's PE Ratio compare to its peers?

ETWO.N0000 PE Ratio vs Peers
The above table shows the PE ratio for ETWO.N0000 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.2x
CABO.N0000 Cargo Boat Development
9.3xn/aLK₨806.0m
CSD.N0000 Seylan Developments
6.8xn/aLK₨1.9b
ONAL.N0000 On'ally Holdings
2.6xn/aLK₨2.8b
SLND.N0000 Serendib Land
20.5xn/aLK₨409.8m
ETWO.N0000 Equity Two
11.3xn/aLK₨1.2b

Price-To-Earnings vs Peers: ETWO.N0000 is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does ETWO.N0000's PE Ratio compare vs other companies in the Asian Real Estate Industry?

Price-To-Earnings vs Industry: ETWO.N0000 is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the LK Real Estate industry average (7.4x)


Price to Earnings Ratio vs Fair Ratio

What is ETWO.N0000'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.

ETWO.N0000 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ETWO.N0000's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of ETWO.N0000 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ETWO.N0000 (LKR38) is trading above our estimate of fair value (LKR14.56)

Significantly Below Fair Value: ETWO.N0000 is trading above our estimate of fair value.


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Equity Two 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


11.5%

Forecasted Real Estate 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 Equity Two 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.


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  • Examine Equity Two's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Equity Two performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ETWO.N0000 has a large one-off gain of LKR48.0M impacting its March 31 2022 financial results.

Growing Profit Margin: ETWO.N0000's current net profit margins (78.2%) are lower than last year (92.7%).


Past Earnings Growth Analysis

Earnings Trend: ETWO.N0000's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: ETWO.N0000's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETWO.N0000 had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Real Estate industry average (4.7%).


Return on Equity

High ROE: ETWO.N0000's Return on Equity (7.2%) is considered low.


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Financial Health

How is Equity Two'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: ETWO.N0000's short term assets (LKR223.3M) exceed its short term liabilities (LKR10.7M).

Long Term Liabilities: ETWO.N0000's short term assets (LKR223.3M) do not cover its long term liabilities (LKR339.7M).


Debt to Equity History and Analysis

Debt Level: ETWO.N0000 is debt free.

Reducing Debt: ETWO.N0000 had no debt 5 years ago.

Debt Coverage: ETWO.N0000 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ETWO.N0000 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Equity Two current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ETWO.N0000's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the LK market (2.28%).

High Dividend: ETWO.N0000's dividend (1.71%) is low compared to the top 25% of dividend payers in the LK market (8.33%).


Stability and Growth of Payments

Stable Dividend: ETWO.N0000 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ETWO.N0000's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.3%), ETWO.N0000's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (47.5%), ETWO.N0000's dividend payments are well covered by cash flows.


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Management

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

1.9yrs

Average board tenure


CEO

Equity Two has no CEO, or we have no data on them.


Board Members

Experienced Board: ETWO.N0000's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

Equity Two PLC's employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Equity Two PLC
  • No 61, Janadhipathi Mawatha
  • Colombo
  • 1
  • Sri Lanka

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.