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EFER

Engro Fertilizers KASE:EFERT Stock Report

Last Price

PK₨88.78

Market Cap

PK₨118.5b

7D

-3.3%

1Y

30.1%

Updated

16 May, 2022

Data

Company Financials +
EFERT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends2/6

EFERT Stock Overview

Engro Fertilizers Limited manufactures, purchases, and markets fertilizers, seeds, and pesticides in Pakistan.

Engro Fertilizers Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Engro Fertilizers
Historical stock prices
Current Share PricePK₨88.78
52 Week HighPK₨102.40
52 Week LowPK₨67.78
Beta0.29
1 Month Change-5.77%
3 Month Change5.45%
1 Year Change30.14%
3 Year Change39.75%
5 Year Change52.10%
Change since IPO33.40%

Recent News & Updates

Shareholder Returns

EFERTPK ChemicalsPK Market
7D-3.3%-0.6%-1.8%
1Y30.1%4.8%-12.1%

Return vs Industry: EFERT exceeded the PK Chemicals industry which returned 6.1% over the past year.

Return vs Market: EFERT exceeded the PK Market which returned -9.9% over the past year.

Price Volatility

Is EFERT's price volatile compared to industry and market?
EFERT volatility
EFERT Average Weekly Movement3.3%
Chemicals Industry Average Movement4.5%
Market Average Movement5.8%
10% most volatile stocks in PK Market8.8%
10% least volatile stocks in PK Market3.6%

Stable Share Price: EFERT is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EFERT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20091,382Nadir Qureshihttps://www.engrofertilizers.com

Engro Fertilizers Limited manufactures, purchases, and markets fertilizers, seeds, and pesticides in Pakistan. The company offers urea, phosphate, nitrogen, phosphorous, and potassium fertilizers under the engro urea, engro DAP, engro Zorawar, Engro Zarkhez Plus, Engro Zarkhez Khaas, engro zingro, engro zabardast urea, engro NP plus, engro MOP, engro SOP, engro ammonium sulphate, engro zoron, engro potash power, and engro phos power. It also provides rice and wheat seeds under the Bharosa brand; insecticides under the veyong jinteng and sega pest clear names; fungicides under the azidox and pivot names; herbicides under the truce xtra and fushu names; and micro nutrients.

Engro Fertilizers Fundamentals Summary

How do Engro Fertilizers's earnings and revenue compare to its market cap?
EFERT fundamental statistics
Market CapPK₨118.55b
Earnings (TTM)PK₨20.86b
Revenue (TTM)PK₨139.73b

5.7x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EFERT income statement (TTM)
RevenuePK₨139.73b
Cost of RevenuePK₨96.37b
Gross ProfitPK₨43.37b
Other ExpensesPK₨22.50b
EarningsPK₨20.86b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)15.62
Gross Margin31.04%
Net Profit Margin14.93%
Debt/Equity Ratio41.6%

How did EFERT perform over the long term?

See historical performance and comparison

Dividends

18.6%

Current Dividend Yield

115%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


34.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EFERT (PKR88.78) is trading below our estimate of fair value (PKR135.73)

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


Price To Earnings Ratio

PE vs Industry: EFERT's PE Ratio (5.7x) is in line with the PK Chemicals industry average.

PE vs Market: EFERT's PE Ratio (5.7x) is in line with the PK market.


Price to Earnings Growth Ratio

PEG Ratio: EFERT is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: EFERT is overvalued based on its PB Ratio (2.6x) compared to the PK Chemicals industry average (1.2x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFERT's forecast earnings growth (1.9% per year) is below the savings rate (10.2%).

Earnings vs Market: EFERT's earnings (1.9% per year) are forecast to grow slower than the PK market (4.4% per year).

High Growth Earnings: EFERT's earnings are forecast to grow, but not significantly.

Revenue vs Market: EFERT's revenue (2.6% per year) is forecast to grow slower than the PK market (4.1% per year).

High Growth Revenue: EFERT's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFERT's Return on Equity is forecast to be high in 3 years time (36.3%)


Past Performance

How has Engro Fertilizers performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EFERT has a high level of non-cash earnings.

Growing Profit Margin: EFERT's current net profit margins (14.9%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: EFERT's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: EFERT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EFERT had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Chemicals industry average (44.1%).


Return on Equity

High ROE: EFERT's Return on Equity (45.4%) is considered outstanding.


Financial Health

How is Engro Fertilizers's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EFERT's short term assets (PKR53.0B) do not cover its short term liabilities (PKR55.8B).

Long Term Liabilities: EFERT's short term assets (PKR53.0B) exceed its long term liabilities (PKR31.5B).


Debt to Equity History and Analysis

Debt Level: EFERT's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: EFERT's debt to equity ratio has reduced from 83.8% to 41.6% over the past 5 years.

Debt Coverage: EFERT's debt is well covered by operating cash flow (124.9%).

Interest Coverage: EFERT's interest payments on its debt are well covered by EBIT (565.2x coverage).


Balance Sheet


Dividend

What is Engro Fertilizers's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


18.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EFERT's dividend (18.59%) is higher than the bottom 25% of dividend payers in the PK market (3.66%).

High Dividend: EFERT's dividend (18.59%) is in the top 25% of dividend payers in the PK market (10.86%)


Stability and Growth of Payments

Stable Dividend: EFERT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EFERT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (115.2%), EFERT's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (201.6%), EFERT's dividend payments are not well covered by cash flows.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Nadir Qureshi

3.42yrs

Tenure

Mr. Nadir Salar Qureshi has been Chief Executive Officer of Engro Fertilizers at Engro Corporation Limited since December 2018. He had been Chief Strategy Officer at Engro Corporation Limited since March 2...


Leadership Team

Experienced Management: EFERT's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: EFERT's board of directors are considered experienced (3.4 years average tenure).


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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Engro Fertilizers Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Engro Fertilizers Limited
  • Ticker: EFERT
  • Exchange: KASE
  • Founded: 2009
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Implied Market Cap: PK₨118.548b
  • Shares outstanding: 1.34b
  • Website: https://www.engrofertilizers.com

Number of Employees


Location

  • Engro Fertilizers Limited
  • Harbor Front Building
  • 7th & 8th Floor, Marine Drive
  • Karachi
  • 75600
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.