EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||NZ$5.62|
|52 Week High||NZ$3.90|
|52 Week Low||NZ$6.77|
|1 Month Change||-4.58%|
|3 Month Change||-13.54%|
|1 Year Change||36.08%|
|3 Year Change||92.47%|
|5 Year Change||203.78%|
|Change since IPO||65.29%|
Recent News & Updates
Calculating The Fair Value Of EROAD Limited (NZSE:ERD)
In this article we are going to estimate the intrinsic value of EROAD Limited ( NZSE:ERD ) by taking the expected...
We Take A Look At Why EROAD Limited's (NZSE:ERD) CEO Compensation Is Well Earned
It would be hard to discount the role that CEO Steven Newman has played in delivering the impressive results at EROAD...
|ERD||NZ Electronic||NZ Market|
Return vs Industry: ERD underperformed the NZ Electronic industry which returned 48.1% over the past year.
Return vs Market: ERD exceeded the NZ Market which returned 1.9% over the past year.
Stable Share Price: ERD is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ERD's weekly volatility (3%) has been stable over the past year.
About the Company
EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand and internationally. The company offers products to reduce the time and money spend on road user charges compliance; and manage obligations and risks associated with the Health and Safety at Work Act, as well as fleet management products. It also designs and manufactures in-vehicle hardware; and operates secure payment and merchant gateways, as well as provides web-based value-added services.
EROAD Fundamentals Summary
|ERD fundamental statistics|
Is ERD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ERD income statement (TTM)|
|Cost of Revenue||NZ$65.10m|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.021|
|Net Profit Margin||2.18%|
How did ERD perform over the long term?See historical performance and comparison
Is EROAD undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERD (NZ$5.62) is trading below our estimate of fair value (NZ$6.46)
Significantly Below Fair Value: ERD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ERD is poor value based on its PE Ratio (270.6x) compared to the Oceanic Electronic industry average (30.5x).
PE vs Market: ERD is poor value based on its PE Ratio (270.6x) compared to the NZ market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: ERD is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: ERD is overvalued based on its PB Ratio (5.2x) compared to the XO Electronic industry average (4.7x).
How is EROAD forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERD's forecast earnings growth (80.4% per year) is above the savings rate (2.1%).
Earnings vs Market: ERD's earnings (80.4% per year) are forecast to grow faster than the NZ market (9.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ERD's revenue (20.4% per year) is forecast to grow faster than the NZ market (5.2% per year).
High Growth Revenue: ERD's revenue (20.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ERD's Return on Equity is forecast to be low in 3 years time (9.9%).
How has EROAD performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERD has a large one-off loss of NZ$2.6M impacting its March 31 2021 financial results.
Growing Profit Margin: ERD's current net profit margins (2.2%) are higher than last year (1.2%).
Past Earnings Growth Analysis
Earnings Trend: ERD has become profitable over the past 5 years, growing earnings by 38.2% per year.
Accelerating Growth: ERD's earnings growth over the past year (100%) exceeds its 5-year average (38.2% per year).
Earnings vs Industry: ERD earnings growth over the past year (100%) underperformed the Electronic industry 142.2%.
Return on Equity
High ROE: ERD's Return on Equity (1.9%) is considered low.
How is EROAD's financial position?
Financial Position Analysis
Short Term Liabilities: ERD's short term assets (NZ$81.3M) exceed its short term liabilities (NZ$31.9M).
Long Term Liabilities: ERD's short term assets (NZ$81.3M) exceed its long term liabilities (NZ$35.5M).
Debt to Equity History and Analysis
Debt Level: ERD's debt to equity ratio (33.5%) is considered satisfactory.
Reducing Debt: ERD's debt to equity ratio has increased from 2.1% to 33.5% over the past 5 years.
Debt Coverage: ERD's debt is well covered by operating cash flow (80.3%).
Interest Coverage: ERD's interest payments on its debt are not well covered by EBIT (2.6x coverage).
What is EROAD current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ERD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ERD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ERD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ERD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ERD's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Steven Newman has been the Chief Executive Officer at EROAD Limited since 2007, and serves as its Managing Director. Mr. Newman has a wealth of experience to EROAD after a long and successful associati...
CEO Compensation Analysis
Compensation vs Market: Steven's total compensation ($USD521.07K) is about average for companies of similar size in the NZ market ($USD496.31K).
Compensation vs Earnings: Steven's compensation has been consistent with company performance over the past year.
Experienced Management: ERD's management team is considered experienced (2.7 years average tenure).
Experienced Board: ERD's board of directors are considered experienced (3.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ERD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.
EROAD Limited's employee growth, exchange listings and data sources
- Name: EROAD Limited
- Ticker: ERD
- Exchange: NZSE
- Founded: 2000
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: NZ$544.033m
- Shares outstanding: 96.29m
- Website: https://www.eroad.co.nz
Number of Employees
- EROAD Limited
- 260 Oteha Valley Road
- Level 3
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/19 06:01|
|End of Day Share Price||2021/10/19 00:00|
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.