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ERD

EROAD NZSE:ERD Stock Report

Last Price

NZ$1.61

Market Cap

NZ$177.7m

7D

-4.2%

1Y

-72.0%

Updated

28 Sep, 2022

Data

Company Financials +
ERD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

ERD Stock Overview

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

EROAD Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EROAD
Historical stock prices
Current Share PriceNZ$1.61
52 Week HighNZ$5.80
52 Week LowNZ$1.42
Beta1.84
1 Month Change8.05%
3 Month Change13.38%
1 Year Change-72.00%
3 Year Change-46.51%
5 Year Change-29.08%
Change since IPO-52.65%

Recent News & Updates

Shareholder Returns

ERDNZ ElectronicNZ Market
7D-4.2%-6.0%-2.5%
1Y-72.0%-49.3%-17.6%

Return vs Industry: ERD underperformed the NZ Electronic industry which returned -49.3% over the past year.

Return vs Market: ERD underperformed the NZ Market which returned -17.6% over the past year.

Price Volatility

Is ERD's price volatile compared to industry and market?
ERD volatility
ERD Average Weekly Movement8.7%
Electronic Industry Average Movement8.9%
Market Average Movement3.9%
10% most volatile stocks in NZ Market7.7%
10% least volatile stocks in NZ Market2.8%

Stable Share Price: ERD is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ERD's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
2000363Mark Heinehttps://www.eroad.co.nz

EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand, Australia, the United States, 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$177.71m
Earnings (TTM)-NZ$9.60m
Revenue (TTM)NZ$114.90m

1.5x

P/S Ratio

-18.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERD income statement (TTM)
RevenueNZ$114.90m
Cost of RevenueNZ$93.10m
Gross ProfitNZ$21.80m
Other ExpensesNZ$31.40m
Earnings-NZ$9.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.087
Gross Margin18.97%
Net Profit Margin-8.36%
Debt/Equity Ratio13.0%

How did ERD perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ERD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERD?

Other financial metrics that can be useful for relative valuation.

ERD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA19.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ERD's PS Ratio compare to its peers?

ERD PS Ratio vs Peers
The above table shows the PS ratio for ERD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3x
IKE ikeGPS Group
7.4x28.9%NZ$118.0m
RAK Rakon
1.6x10.3%NZ$272.4m
6217 C.C.P. Contact Probes
0.9xn/aNT$3.2b
3508 Ways Technical
2.2xn/aNT$3.3b
ERD EROAD
1.5x19.4%NZ$177.7m

Price-To-Sales vs Peers: ERD is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (3x).


Price to Earnings Ratio vs Industry

How does ERD's PE Ratio compare vs other companies in the Oceanian Electronic Industry?

Price-To-Sales vs Industry: ERD is good value based on its Price-To-Sales Ratio (1.5x) compared to the Oceanic Electronic industry average (1.9x)


Price to Sales Ratio vs Fair Ratio

What is ERD's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: ERD is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).


Share Price vs Fair Value

What is the Fair Price of ERD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERD (NZ$1.61) is trading below our estimate of fair value (NZ$5.13)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


93.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

Earnings vs Market: ERD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ERD is expected to become profitable in the next 3 years.

Revenue vs Market: ERD's revenue (19.4% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: ERD's revenue (19.4% 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 (5.2%).


Discover growth companies

Past Performance

How has EROAD performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERD is currently unprofitable.

Growing Profit Margin: ERD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERD is unprofitable, but has reduced losses over the past 5 years at a rate of 26.1% per year.

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

Earnings vs Industry: ERD is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (19%).


Return on Equity

High ROE: ERD has a negative Return on Equity (-3.88%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is EROAD's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ERD's short term assets (NZ$61.5M) do not cover its short term liabilities (NZ$65.9M).

Long Term Liabilities: ERD's short term assets (NZ$61.5M) exceed its long term liabilities (NZ$53.5M).


Debt to Equity History and Analysis

Debt Level: ERD's net debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: ERD's debt to equity ratio has reduced from 15.7% to 13% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ERD has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ERD has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is EROAD current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

EROAD Dividend Yield vs Market
How does EROAD dividend yield compare to the market?
SegmentDividend Yield
Company (EROAD)n/a
Market Bottom 25% (NZ)2.9%
Market Top 25% (NZ)6.1%
Industry Average (Electronic)2.2%
Analyst forecast in 3 Years (EROAD)n/a

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ERD has not reported any payouts.


Discover strong dividend paying companies

Management

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

0.7yrs

Average management tenure


CEO

Mark Heine

0.42yr

Tenure

Mr. Mark Heine serves as an Executive Vice President and Company Secretary at EROAD Limited as well as CEO since June 21, 2022 and served as its Acting CEO since April 08, 2022 until June 21, 2022. He serv...


Leadership Team

Experienced Management: ERD's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ERD's board of directors are considered experienced (3.1 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

NZSE:ERD Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Sep 22BuyNZ$12,999,019First NZ Capital Ltd., Asset Management ArmCompany4,461,258NZ$2.93
08 Sep 22BuyNZ$2,998,014Harbour Asset Management LimitedCompany629,221NZ$4.76
08 Sep 22SellNZ$12,601,198First NZ Capital Ltd., Asset Management ArmCompany3,860,710NZ$3.28
08 Sep 22SellNZ$777,729Harbour Asset Management LimitedCompany270,568NZ$2.87
26 Jul 22BuyNZ$4,725,367Colonial First State Investments LimitedCompany1,373,783NZ$3.44
30 Jun 22BuyNZ$52,657Graham StuartIndividual35,000NZ$1.50
28 Jun 22SellNZ$857,744Colonial First State Investments LimitedCompany202,713NZ$4.91
17 Jun 22BuyNZ$2,056,257Colonial First State Investments LimitedCompany658,995NZ$3.12
07 Jun 22BuyNZ$580,740Selwyn PellettIndividual236,710NZ$2.45
01 Jun 22BuyNZ$1,812,838ASB Group Investments Ltd.Company704,202NZ$2.57
19 May 22BuyNZ$1,488,746Australian Ethical Investment Ltd.Company605,441NZ$2.46
16 Mar 22BuyNZ$4,974,211Australian Ethical Investment Ltd.Company1,239,463NZ$5.02
01 Mar 22SellNZ$718,963Colonial First State Investments LimitedCompany165,146NZ$4.35
22 Dec 21BuyNZ$4,519,454ASB Group Investments Ltd.Company830,099NZ$5.49
17 Dec 21SellNZ$7,579,641Australian Ethical Investment Ltd.Company1,372,870NZ$5.84
15 Dec 21BuyNZ$56,085Graham StuartIndividual11,446NZ$4.90
06 Dec 21SellNZ$28,533Colonial First State Investments LimitedCompany5,763NZ$4.98
02 Dec 21BuyNZ$4,565,219First NZ Capital Ltd., Asset Management ArmCompany876,252NZ$5.30
02 Dec 21BuyNZ$11,814Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany2,223NZ$5.31
02 Dec 21SellNZ$4,886,962First NZ Capital Ltd., Asset Management ArmCompany940,412NZ$5.22
02 Dec 21SellNZ$2,551Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany526NZ$4.85
29 Nov 21BuyNZ$13,387,982Australian Ethical Investment Ltd.Company2,623,431NZ$5.69
18 Nov 21BuyNZ$26,068,831Colonial First State Investments LimitedCompany7,403,312NZ$3.52
16 Nov 21SellNZ$22,787,170Colonial First State Investments LimitedCompany6,589,756NZ$3.46
30 Sep 21BuyNZ$24,322,890First NZ Capital Ltd., Asset Management ArmCompany4,502,768NZ$5.54
30 Sep 21SellNZ$25,122,461First NZ Capital Ltd., Asset Management ArmCompany4,642,265NZ$5.58

Ownership Breakdown

What is the ownership structure of ERD?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders3,169,7682.9%
Private Companies15,594,90314.1%
Institutions33,697,54430.5%
General Public57,915,89152.5%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Top 25 shareholders own 47.53% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.24%
NMC Investment Trust
13,512,942NZ$21.8m0%no data
8.39%
Australian Ethical Investment Ltd.
9,257,841NZ$14.9m17.03%1.88%
6.65%
Colonial First State Investments Limited
7,334,835NZ$11.8m4.53%0.08%
4.75%
First NZ Capital Ltd., Asset Management Arm
5,248,302NZ$8.4m7.76%0.82%
4.63%
Allianz Asset Management AG
5,110,960NZ$8.2m0%no data
2.46%
Accident Compensation Corporation, Asset Management Arm
2,715,020NZ$4.4m0%0.1%
1.89%
J E & A L Marris Trustees Limited
2,081,961NZ$3.4m0%no data
1.88%
Selwyn Pellett
2,072,516NZ$3.3m12.89%no data
1.39%
ASB Group Investments Ltd.
1,534,301NZ$2.5m84.83%0.68%
1.37%
Milford Asset Management Limited
1,509,518NZ$2.4m0%0.18%
0.56%
Anthony Gibson
616,662NZ$992.8k0%no data
0.32%
Harbour Asset Management Limited
358,653NZ$577.4k-87.71%0.07%
0.25%
Nova Scotia Health Employees' Pension Plan
273,207NZ$439.9k0%no data
0.16%
Steven Newman
177,028NZ$285.0k5.42%no data
0.095%
Graham Stuart
105,000NZ$169.1k50%no data
0.092%
Mark Heine
101,085NZ$162.7k0%no data
0.077%
Dimensional Fund Advisors LP
84,446NZ$136.0k3.98%no data
0.066%
Alex Ball
73,302NZ$118.0k500.15%no data
0.061%
Virtus Investment Advisers, Inc.
67,775NZ$109.1k0%no data
0.058%
First Sentier Investors (Australia) IM Ltd
64,481NZ$103.8k191.91%no data
0.05%
Morgan Stanley, Investment Banking and Brokerage Investments
55,541NZ$89.4k-10.8%no data
0.036%
Kayne Anderson Rudnick Investment Management, LLC
39,472NZ$63.5k0%no data
0.035%
Acadian Asset Management LLC
38,338NZ$61.7k93.71%no data
0.015%
Susan Paterson
16,561NZ$26.7k0%no data
0.0069%
Margaret Warrington
7,614NZ$12.3k0%no data

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
  • Implied Market Cap: NZ$177.709m
  • Shares outstanding: 110.38m
  • Website: https://www.eroad.co.nz

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERDNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDAug 2014
ERDL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2014
ERDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014
ERDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.