EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand and internationally. More Details
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has EROAD's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ERD is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ERD's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ERD exceeded the NZ Electronic industry which returned 37.1% over the past year.
Return vs Market: ERD exceeded the NZ Market which returned 8.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is EROAD's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StEROAD Limited's (NZSE:ERD) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
1 month ago | Simply Wall StA Look At EROAD's (NZSE:ERD) CEO Remuneration
1 month ago | Simply Wall StWhat Is The Ownership Structure Like For EROAD Limited (NZSE:ERD)?
Is EROAD undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ERD (NZ$4.62) is trading above our estimate of fair value (NZ$1.42)
Significantly Below Fair Value: ERD is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ERD is poor value based on its PE Ratio (153.3x) compared to the XO Electronic industry average (28.6x).
PE vs Market: ERD is poor value based on its PE Ratio (153.3x) compared to the NZ market (23x).
Price to Earnings Growth Ratio
PEG Ratio: ERD is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: ERD is good value based on its PB Ratio (3.4x) compared to the XO Electronic industry average (4.3x).
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 (79.9% per year) is above the savings rate (2.6%).
Earnings vs Market: ERD's earnings (79.9% per year) are forecast to grow faster than the NZ market (11.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ERD's revenue (14.8% per year) is forecast to grow faster than the NZ market (5.5% per year).
High Growth Revenue: ERD's revenue (14.8% per year) is forecast to grow slower 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 (8%).
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$2.0M impacting its September 30 2020 financial results.
Growing Profit Margin: ERD became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ERD has become profitable over the past 5 years, growing earnings by 12.7% per year.
Accelerating Growth: ERD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ERD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-1.1%).
Return on Equity
High ROE: ERD's Return on Equity (2.3%) is considered low.
How is EROAD's financial position?
Financial Position Analysis
Short Term Liabilities: ERD's short term assets (NZ$72.8M) exceed its short term liabilities (NZ$31.6M).
Long Term Liabilities: ERD's short term assets (NZ$72.8M) exceed its long term liabilities (NZ$38.7M).
Debt to Equity History and Analysis
Debt Level: ERD's debt to equity ratio (41%) is considered high.
Reducing Debt: ERD's debt to equity ratio has increased from 0.04% to 41% over the past 5 years.
Debt Coverage: ERD's debt is well covered by operating cash flow (73.1%).
Interest Coverage: ERD's interest payments on its debt are not well covered by EBIT (2.9x coverage).
What is EROAD current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ERD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ERD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ERD's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ERD's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ERD's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Steven Newman has been the Chief Executive Officer at EROAD Limited since 2007. Mr. Newman has a wealth of experience to EROAD after a long and successful association with Navman, which he Co-Founded. ...
CEO Compensation Analysis
Compensation vs Market: Steven's total compensation ($USD728.19K) is above average for companies of similar size in the NZ market ($USD555.99K).
Compensation vs Earnings: Steven's compensation has been consistent with company performance over the past year.
|CEO & Executive Director||13.83yrs||NZ$1.04m||0.16% |
|Chief Financial Officer||1.75yrs||no data||0.012% |
|Chief Operating Officer||4.33yrs||no data||0.45% |
|Executive VP||no data||no data||no data|
|Chief Marketing Officer & GM of EROAD Where||2yrs||no data||no data|
|Chief People Officer||1.83yrs||no data||no data|
|Executive Vice President of Operations||1.67yrs||no data||no data|
|Chief Product Officer||no data||no data||no data|
|President of North America||3.83yrs||no data||no data|
Experienced Management: ERD's management team is considered experienced (2 years average tenure).
|CEO & Executive Director||13.83yrs||NZ$1.04m||0.16% |
|Independent Director||1.67yrs||NZ$80.00k||0.016% |
|Independent Chairman of the Board||2.25yrs||NZ$110.00k||0.065% |
|Independent Director||11.08yrs||NZ$63.00k||0.72% |
|Independent Director||0.83yr||NZ$44.63k||no data|
Experienced Board: ERD's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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 20.2%.
EROAD Limited's company bio, 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$374.298m
- Shares outstanding: 81.02m
- Website: https://www.eroad.co.nz
Number of Employees
- EROAD Limited
- 260 Oteha Valley Road
- Level 3
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ERD||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Aug 2014|
|ERDL.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Aug 2014|
|ERD||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Aug 2014|
|ERD||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Aug 2014|
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 ro...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/27 06:08|
|End of Day Share Price||2020/11/27 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.