ENXTAM:ECMPA

Stock Analysis Report

Eurocommercial Properties

Executive Summary

At the outset Eurocommercial invested in a variety of countries, including France where the Company made its first investment in 1992 with the acquisition of Les Atlantes shopping centre in Tours.

Rewards

Trading at 45.4% below its fair value

Earnings are forecast to grow 2.35% per year

Pays a high and reliable dividend of 8.44%

Risk Analysis

Large one-off items impacting financial results

Profit margins (19.8%) are lower than last year (33.8%)



Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has Eurocommercial Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECMPA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

ECMPA

0.06%

NL REITs

0.5%

NL Market


1 Year Return

-8.9%

ECMPA

-3.0%

NL REITs

14.5%

NL Market

Return vs Industry: ECMPA underperformed the Dutch REITs industry which returned -3% over the past year.

Return vs Market: ECMPA underperformed the Dutch Market which returned 14.5% over the past year.


Shareholder returns

ECMPAIndustryMarket
7 Day-1.1%0.06%0.5%
30 Day-5.7%-1.0%-0.4%
90 Day8.2%17.0%4.2%
1 Year-1.6%-8.9%4.9%-3.0%19.7%14.5%
3 Year-8.7%-25.3%37.7%18.2%41.2%25.1%
5 Year1.0%-25.4%57.5%23.6%73.9%39.2%

Price Volatility Vs. Market

How volatile is Eurocommercial Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eurocommercial Properties undervalued compared to its fair value and its price relative to the market?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECMPA (€25.82) is trading below our estimate of fair value (€47.31)

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


Price To Earnings Ratio

PE vs Industry: ECMPA is poor value based on its PE Ratio (27.3x) compared to the REITs industry average (14x).

PE vs Market: ECMPA is poor value based on its PE Ratio (27.3x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: ECMPA is poor value based on its PEG Ratio (11.6x)


Price to Book Ratio

PB vs Industry: ECMPA is good value based on its PB Ratio (0.7x) compared to the NL REITs industry average (0.7x).


Next Steps

Future Growth

How is Eurocommercial Properties forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECMPA's forecast earnings growth (2.4% per year) is above the savings rate (-0.2%).

Earnings vs Market: ECMPA's earnings (2.4% per year) are forecast to grow slower than the Dutch market (11.8% per year).

High Growth Earnings: ECMPA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ECMPA's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: ECMPA's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECMPA's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Eurocommercial Properties performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECMPA has a large one-off loss of €12.2M impacting its September 30 2019 financial results.

Growing Profit Margin: ECMPA's current net profit margins (19.8%) are lower than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: ECMPA's earnings have declined by -10.5% per year over the past 5 years.

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

Earnings vs Industry: ECMPA had negative earnings growth (-40.6%) over the past year, making it difficult to compare to the REITs industry average (13.6%).


Return on Equity

High ROE: ECMPA's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eurocommercial Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ECMPA has a high level of physical assets or inventory.

Debt Coverage by Assets: ECMPA's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: ECMPA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ECMPA has a sufficient allowance for bad loans.

Low Risk Liabilities: ECMPA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ECMPA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ECMPA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ECMPA has an appropriate level of bad loans.


Next Steps

Dividend

What is Eurocommercial Properties's current dividend yield, its reliability and sustainability?

8.44%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%2.2%markettop25%5.6%industryaverage7.7%forecastin3Years8.6%

Current dividend yield vs market & industry

Notable Dividend: ECMPA's dividend (8.44%) is higher than the bottom 25% of dividend payers in the Dutch market (2.19%).

High Dividend: ECMPA's dividend (8.44%) is in the top 25% of dividend payers in the Dutch market (5.65%)


Stability and Growth of Payments

Stable Dividend: ECMPA's dividends per share have been stable in the past 10 years.

Growing Dividend: ECMPA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.9%), ECMPA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECMPA's dividends in 3 years are forecast to be covered by earnings (93.2% payout ratio).


Next Steps

Management

What is the CEO of Eurocommercial Properties's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Jeremy Lewis (74yo)

0yrs

Tenure

€1,081,000

Compensation

Mr. Jeremy P. Lewis serves as the Chief Executive Officer and Chairman of the Management Board of Eurocommercial Properties N.V. and has been its Member of Management Board since 1991. Mr. Lewis has almost ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD1.20M) is below average for companies of similar size in the Dutch market ($USD1.76M).

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


Management Age and Tenure

1.1yrs

Average Tenure

60yo

Average Age

Experienced Management: ECMPA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

67yo

Average Age

Experienced Board: ECMPA's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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.


Management Team

  • Evert van Garderen (57yo)

    Finance Director & Member of Management Board

    • Tenure: 0yrs
    • Compensation: €704.00k
  • Tom Newton (61yo)

    Consultant

    • Tenure: 0.9yrs
  • Jeremy Lewis (74yo)

    Chairman of the Management Board & CEO

    • Tenure: 0yrs
    • Compensation: €1.08m
  • Peter Mills (60yo)

    Member of the Board of Management

    • Tenure: 1.1yrs
    • Compensation: €510.00k
  • Pascal Le Goueff

    Head of Eurocommercial France & Director

    • Tenure: 0yrs
  • Roberto Fraticelli (48yo)

    Member of Board of Management

    • Tenure: 1.1yrs
    • Compensation: €589.00k
  • Anna Davies

    Investor Relations Director

    • Tenure: 2.9yrs
  • Nicolas Bourimoff

    Leasing Director of France

    • Tenure: 0yrs
  • Sergio Olgiati

    Administrative Director

    • Tenure: 0yrs
  • Tom Agren

    Controller

    • Tenure: 0yrs

Board Members

  • Bas T. M. Bisschop (70yo)

    Supervisory Board Chairman

    • Tenure: 5.1yrs
    • Compensation: €61.00k
  • Carlo Croff (64yo)

    Supervisory Board Member

    • Tenure: 6.1yrs
    • Compensation: €47.00k
  • Karin Laglas (60yo)

    Supervisory Director

    • Tenure: 0.08yrs
  • Jan-Åke Persson (70yo)

    Supervisory Board Member

    • Tenure: 6.1yrs
    • Compensation: €47.00k
  • Brigitte Carrière (73yo)

    Supervisory Board Member

    • Tenure: 5.1yrs
    • Compensation: €47.00k
  • Emmanuèle Attout (60yo)

    Member of the Supervisory Board

    • Tenure: 1.1yrs
    • Compensation: €31.00k

Company Information

Eurocommercial Properties N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eurocommercial Properties N.V.
  • Ticker: ECMPA
  • Exchange: ENXTAM
  • Founded: 1991
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: €1.255b
  • Shares outstanding: 48.92m
  • Website: https://www.eurocommercialproperties.com

Number of Employees


Location

  • Eurocommercial Properties N.V.
  • Herengracht 469
  • Amsterdam
  • Noord-Holland
  • 1017 BS
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECMPAENXTAM (Euronext Amsterdam)YesCVA EUR0.50 (REP 10 SHS)NLEURJan 1992
EUCM.FOTCPK (Pink Sheets LLC)YesCVA EUR0.50 (REP 10 SHS)USUSDJan 1992
0LNILSE (London Stock Exchange)YesCVA EUR0.50 (REP 10 SHS)GBEURJan 1992
N4SDB (Deutsche Boerse AG)YesCVA EUR0.50 (REP 10 SHS)DEEURJan 1992
ECMPAABATS-CHIXE (BATS 'Chi-X Europe')YesCVA EUR0.50 (REP 10 SHS)GBEURJan 1992

Biography

At the outset Eurocommercial invested in a variety of countries, including France where the Company made its first investment in 1992 with the acquisition of Les Atlantes shopping centre in Tours. In 1994  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 20:53
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.