Engro (KASE:ENGRO) - Share price, News & Analysis

ENGRO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	4/6

ENGRO Stock Overview

Engro Corporation Limited, through its subsidiaries, engages in fertilizers, foods, energy, chemical storage and handling, trading, and petrochemicals businesses.

Rewards

Trading at 9.6% below our estimate of its fair value

Risk Analysis

Earnings have declined by 20.5% per year over past 5 years

Has a high level of debt

Unstable dividend track record

Engro Competitors

Agritech

KASE:AGL

PK₨2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Engro
Historical stock prices
Current Share Price	PK₨267.20
52 Week High	PK₨320.95
52 Week Low	PK₨261.00
Beta	0.49
1 Month Change	-9.35%
3 Month Change	-3.36%
1 Year Change	-13.47%
3 Year Change	-4.91%
5 Year Change	-26.22%
Change since IPO	1,290.23%

Shareholder Returns

	ENGRO	PK Chemicals	PK Market
7D	-1.0%	0.9%	-0.8%
1Y	-13.5%	5.0%	-12.1%

Return vs Industry: ENGRO underperformed the PK Chemicals industry which returned 5.3% over the past year.

Return vs Market: ENGRO underperformed the PK Market which returned -11.6% over the past year.

Price Volatility

Is ENGRO's price volatile compared to industry and market?
ENGRO volatility
ENGRO Average Weekly Movement	3.0%
Chemicals Industry Average Movement	4.6%
Market Average Movement	5.8%
10% most volatile stocks in PK Market	9.1%
10% least volatile stocks in PK Market	3.5%

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

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

About the Company

Founded	Employees	CEO	Website
1965	2,687	Ghias Khan	https://www.engro.com

Engro Corporation Limited, through its subsidiaries, engages in fertilizers, foods, energy, chemical storage and handling, trading, and petrochemicals businesses. The company operates through Fertilizer, Polymer, Terminal, Power and Mining, and Other Operations segments. It manufactures, markets, and sells fertilizers, including urea under the Engro Zarkhez, Zingro, Engro DAP, and Envy brands; and poly vinyl chloride (PVC), PVC compounds, caustic soda, sodium hypochlorite, hydrochloric acid and other chlorine by-products, chlor-vinyl, and related chemicals, as well as imports and sells phosphate products.

Engro Fundamentals Summary

How do Engro's earnings and revenue compare to its market cap?
ENGRO fundamental statistics
Market Cap	PK₨154.64b
Earnings (TTM)	PK₨27.91b
Revenue (TTM)	PK₨311.59b

5.5x

P/E Ratio

0.5x

P/S Ratio

Is ENGRO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENGRO income statement (TTM)
Revenue	PK₨311.59b
Cost of Revenue	PK₨212.13b
Gross Profit	PK₨99.45b
Other Expenses	PK₨71.54b
Earnings	PK₨27.91b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	48.45
Gross Margin	31.92%
Net Profit Margin	8.96%
Debt/Equity Ratio	95.6%

How did ENGRO perform over the long term?

See historical performance and comparison

Dividends

9.4%

Current Dividend Yield

52%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ENGRO (PKR267.2) is trading below our estimate of fair value (PKR295.57)

Significantly Below Fair Value: ENGRO is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: ENGRO is good value based on its PE Ratio (5.5x) compared to the PK Chemicals industry average (5.8x).

PE vs Market: ENGRO is good value based on its PE Ratio (5.5x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ENGRO's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: ENGRO is good value based on its PB Ratio (1x) compared to the PK Chemicals industry average (1.2x).

Future Growth

How is Engro forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-4.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ENGRO's forecast earnings growth is above the savings rate (10.2%).

Earnings vs Market: Insufficient data to determine if ENGRO's earnings are forecast to grow faster than the PK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENGRO's revenue is expected to decline over the next 3 years (-4.6% per year).

High Growth Revenue: ENGRO's revenue is forecast to decline over the next 3 years (-4.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ENGRO's Return on Equity is forecast to be low in 3 years time (13.8%).

Past Performance

How has Engro performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENGRO has high quality earnings.

Growing Profit Margin: ENGRO's current net profit margins (9%) are lower than last year (10.2%).

Past Earnings Growth Analysis

Earnings Trend: ENGRO's earnings have declined by 20.5% per year over the past 5 years.

Accelerating Growth: ENGRO's earnings growth over the past year (10%) exceeds its 5-year average (-20.5% per year).

Earnings vs Industry: ENGRO earnings growth over the past year (10%) underperformed the Chemicals industry 44.1%.

Return on Equity

High ROE: ENGRO's Return on Equity (22.2%) is considered high.

Financial Health

How is Engro's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENGRO's short term assets (PKR247.8B) exceed its short term liabilities (PKR168.5B).

Long Term Liabilities: ENGRO's short term assets (PKR247.8B) exceed its long term liabilities (PKR212.2B).

Debt to Equity History and Analysis

Debt Level: ENGRO's net debt to equity ratio (47.8%) is considered high.

Reducing Debt: ENGRO's debt to equity ratio has increased from 46.5% to 95.6% over the past 5 years.

Debt Coverage: ENGRO's debt is well covered by operating cash flow (29.4%).

Interest Coverage: ENGRO's interest payments on its debt are well covered by EBIT (5x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

9.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ENGRO's dividend (9.36%) is higher than the bottom 25% of dividend payers in the PK market (3.69%).

High Dividend: ENGRO's dividend (9.36%) is low compared to the top 25% of dividend payers in the PK market (11.07%).

Stability and Growth of Payments

Stable Dividend: ENGRO's dividend payments have been volatile in the past 10 years.

Growing Dividend: ENGRO's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.6%), ENGRO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.7%), ENGRO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure

CEO

Ghias Khan

5.42yrs

Tenure

Mr. Ghias Uddin Khan serves as Chairman at Engro Enfrashare (Private) Limited. He serves as Director at Engro Enfrashare (Private) Limited 2016. He has been instrumental in revamping Engro’s strategy, cult...

Leadership Team

Experienced Management: ENGRO's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: ENGRO's board of directors are considered experienced (5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31