OB:ECO

Stock Analysis Report

NOT FOR DISTRIBUTION

EcoOnline Holding

Market Cap

kr3.6b

Last Updated

2021/08/01 16:20 UTC

Data Sources

Company Financials +

Executive Summary

EcoOnline Holding AS, a software as a service solutions company, engages in the development of cloud-based software solutions for the health, environment, safety, management and documentation, and chemical applications in the workplaces. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has EcoOnline Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECO is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: Insufficient data to determine ECO's volatility change over the past year.


Market Performance


7 Day Return

4.8%

ECO

3.8%

NO Software

0.2%

NO Market


1 Year Return

n/a

ECO

34.3%

NO Software

31.8%

NO Market

Return vs Industry: Insufficient data to determine how ECO performed against the Norwegian Software industry.

Return vs Market: Insufficient data to determine how ECO performed against the Norwegian Market.


Shareholder returns

ECOIndustryMarket
7 Day4.8%3.8%0.2%
30 Day-5.2%7.3%-0.8%
90 Day-12.9%-6.4%2.1%
1 Yearn/a34.3%34.3%36.7%31.8%
3 Yearn/a48.4%40.9%18.7%5.2%
5 Yearn/a102.4%85.6%77.4%44.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is EcoOnline Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECO (NOK22) is trading below our estimate of fair value (NOK63.69)

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


Price To Earnings Ratio

PE vs Industry: ECO is unprofitable, so we can't compare its PE Ratio to the European Software industry average.

PE vs Market: ECO is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ECO is good value based on its PB Ratio (2.1x) compared to the NO Software industry average (3.6x).


Future Growth

How is EcoOnline Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

43.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ECO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ECO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ECO's revenue (22.6% per year) is forecast to grow faster than the Norwegian market (5.5% per year).

High Growth Revenue: ECO's revenue (22.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECO's Return on Equity is forecast to be low in 3 years time (2.8%).


Past Performance

How has EcoOnline Holding performed over the past 5 years?

13.3%

Historical Software annual earnings growth


Earnings and Revenue History

Quality Earnings: ECO is currently unprofitable.

Growing Profit Margin: ECO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if ECO's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare ECO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ECO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (17.1%).


Return on Equity

High ROE: ECO has a negative Return on Equity (-11.92%), as it is currently unprofitable.


Financial Health

How is EcoOnline Holding's financial position?


Financial Position Analysis

Short Term Liabilities: ECO's short term assets (NOK696.2M) exceed its short term liabilities (NOK381.7M).

Long Term Liabilities: ECO's short term assets (NOK696.2M) exceed its long term liabilities (NOK394.1M).


Debt to Equity History and Analysis

Debt Level: ECO's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ECO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ECO's debt is not well covered by operating cash flow (6.5%).

Interest Coverage: Insufficient data to determine if ECO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is EcoOnline Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ECO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ECO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ECO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ECO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ECO's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

1.2yrs

Average board tenure


CEO

Jens Lindo (48 yo)

3.17yrs

Tenure

Mr. Göran Lindö is CEO at EcoOnline Holding AS since May 2018. He was Vice President of SMB & B2C at Dustin AB (publ) from September 10, 2016 to 2018. Prior to that he was head of all Operations and M&A at...


Board Members

Experienced Board: ECO's board of directors are not considered experienced ( 1.2 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: ECO only recently listed within the past 12 months.


Top Shareholders

Company Information

EcoOnline Holding AS's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EcoOnline Holding AS
  • Ticker: ECO
  • Exchange: OB
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr3.606b
  • Shares outstanding: 163.93m
  • Website: https://www.ecoonline.com

Number of Employees


Location

  • EcoOnline Holding AS
  • Grev Wedels gate 1
  • Tønsberg
  • Vestfold
  • 3111
  • Norway

Listings


Biography

EcoOnline Holding AS, a software as a service solutions company, engages in the development of cloud-based software solutions for the health, environment, safety, management and documentation, and chemical...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 16:20
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.