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ERD

EROADNZSE:ERD Stock Report

Market Cap

NZ$544.0m

7D

2.4%

1Y

36.1%

Updated

19 Oct, 2021

Data

Company Financials +
ERD fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance3/6
Financial Health4/6
Dividends0/6

ERD Overview

EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for EROAD
Historical stock prices
Current Share PriceNZ$5.62
52 Week HighNZ$3.90
52 Week LowNZ$6.77
Beta1.19
1 Month Change-4.58%
3 Month Change-13.54%
1 Year Change36.08%
3 Year Change92.47%
5 Year Change203.78%
Change since IPO65.29%

Recent News & Updates

Sep 14
Calculating The Fair Value Of EROAD Limited (NZSE:ERD)

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...

Jul 23
We Take A Look At Why EROAD Limited's (NZSE:ERD) CEO Compensation Is Well Earned

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...

Shareholder Returns

ERDNZ ElectronicNZ Market
7D2.4%1.9%-0.1%
1Y36.1%48.1%1.9%

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.

Price Volatility

Is ERD's price volatile compared to industry and market?
ERD volatility
ERD Beta1.19
Industry Beta0.96
Market Beta1

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

FoundedEmployeesCEOWebsite
2000363Steven Newmanhttps://www.eroad.co.nz

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

How do EROAD's earnings and revenue compare to its market cap?
ERD fundamental statistics
Market CapNZ$544.03m
Earnings (TTM)NZ$2.00m
Revenue (TTM)NZ$91.60m

270.6x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERD income statement (TTM)
RevenueNZ$91.60m
Cost of RevenueNZ$65.10m
Gross ProfitNZ$26.50m
ExpensesNZ$24.50m
EarningsNZ$2.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.021
Gross Margin28.93%
Net Profit Margin2.18%
Debt/Equity Ratio33.5%

How did ERD perform over the long term?

See historical performance and comparison

Valuation

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

13.1%

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).


Future Growth

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

80.4%

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%).


Past Performance

How has EROAD performed over the past 5 years?

38.2%

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.


Financial Health

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).


Balance Sheet


Dividend

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.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Steven Newman

14.75yrs

Tenure

NZ$736,945

Compensation

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.


Leadership Team

Experienced Management: ERD's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: ERD's board of directors are considered experienced (3.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.


Top Shareholders

Company Information

EROAD Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • EROAD Limited
  • 260 Oteha Valley Road
  • Level 3
  • Auckland
  • 632
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 06:01
End of Day Share Price2021/10/19 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.