WSE:ERB

Stock Analysis Report

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Executive Summary

Erbud S.A., together with its subsidiaries, engages in the construction business in European Union countries. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Erbud's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ERB is not significantly more volatile than the rest of Polish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ERB's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-7.5%

ERB

5.5%

PL Construction

-2.9%

PL Market


1 Year Return

83.0%

ERB

94.7%

PL Construction

18.9%

PL Market

Return vs Industry: ERB underperformed the Polish Construction industry which returned 88.4% over the past year.

Return vs Market: ERB exceeded the Polish Market which returned 15.8% over the past year.


Shareholder returns

ERBIndustryMarket
7 Day-7.5%5.5%-2.9%
30 Day-0.3%9.3%1.2%
90 Day68.2%36.6%6.2%
1 Year83.0%83.0%98.7%94.7%20.0%18.9%
3 Year67.3%56.3%61.3%44.9%-4.1%-9.9%
5 Year42.3%22.4%57.6%33.8%18.8%5.3%

Long-Term Price Volatility Vs. Market

How volatile is Erbud's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

10.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ERB (PLN33.3) is trading above our estimate of fair value (PLN22.35)

Significantly Below Fair Value: ERB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ERB is poor value based on its PE Ratio (10.7x) compared to the PL Construction industry average (8.8x).

PE vs Market: ERB is good value based on its PE Ratio (10.7x) compared to the Polish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: ERB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ERB is overvalued based on its PB Ratio (1.4x) compared to the PL Construction industry average (1x).


Next Steps

Future Growth

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

-10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERB's earnings are forecast to decline over the next 3 years (-10.8% per year).

Earnings vs Market: ERB's earnings are forecast to decline over the next 3 years (-10.8% per year).

High Growth Earnings: ERB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ERB's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: ERB's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERB's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Erbud performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERB has high quality earnings.

Growing Profit Margin: ERB's current net profit margins (1.9%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: ERB's earnings have declined by 5.3% per year over the past 5 years.

Accelerating Growth: ERB's earnings growth over the past year (29.4%) exceeds its 5-year average (-5.3% per year).

Earnings vs Industry: ERB earnings growth over the past year (29.4%) underperformed the Construction industry 34.3%.


Return on Equity

High ROE: ERB's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is Erbud's financial position?


Financial Position Analysis

Short Term Liabilities: ERB's short term assets (PLN1.1B) exceed its short term liabilities (PLN901.7M).

Long Term Liabilities: ERB's short term assets (PLN1.1B) exceed its long term liabilities (PLN82.7M).


Debt to Equity History and Analysis

Debt Level: ERB's debt to equity ratio (64.2%) is considered high.

Reducing Debt: ERB's debt to equity ratio has increased from 49.2% to 64.2% over the past 5 years.

Debt Coverage: ERB's debt is well covered by operating cash flow (28.5%).

Interest Coverage: ERB's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.05%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ERB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ERB'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 ERB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ERB is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERB's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Dariusz Grzeszczak

no data

Tenure

zł3,085,000

Compensation

Mr. Dariusz Grzeszczak is a Chairman of Management Board at Erbud S.A. He serves as President of the ERBUD Spolka Akcyjna's subsidiary companies, Toplux Ltd., GWI GmbH Dusseldorf and Aug and Prien-Erbud In...


Leadership Team

NamePositionTenureCompensationOwnership
Dariusz Grzeszczak
Chairman of Management Boardno datazł3.09m6.03%
PLN 24.9m
Agnieszka Glowacka
CFO & Vice Chairman of Management Boardno datazł720.00k0.032%
PLN 131.1k
Jacek Leczkowski
Vice Chairman of Management Board1yrno data0.042%
PLN 172.3k
Radoslaw Górski
Member of Management Board0.33yrno datano data
Mariola Zielinska
Chief Accountant3.08yrsno datano data
Dorota Truskiewicz
Director of Marketing & PR Departmentno datano datano data
Dagmara Sobolewska
Director of HR Divisionno datano datano data
Bogdan Durr
President of the Board ERBUD International Sp. z o.o.no datano datano data
Wodzimierz Czystowski
Joint Procuristno datazł196.00kno data
Waldemar Kozowski
Joint Procuristno datazł228.00kno data

1.0yrs

Average Tenure

Experienced Management: ERB's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bogdan Durr
President of the Board ERBUD International Sp. z o.o.no datano datano data
Janusz Reiter
Independent Member of the Supervisory Board4.83yrszł60.00kno data
Gabriel Glówka
Deputy Chairman of the Supervisory Boardno datazł72.00kno data
Albert Durr
Member of the Supervisory Board14.25yrszł60.00k0.22%
PLN 916.0k
Udo Berner
Chairman of the Supervisory Board11.17yrszł90.00kno data
Michal Otto
Independent Member of the Supervisory Board8.75yrszł60.00kno data
Piotr Kaczmarek
Independent Member of the Supervisory Board2.75yrszł60.00kno data
Jerzy Polaszek
Adviser to the Management Boardno datano datano data

8.8yrs

Average Tenure

Experienced Board: ERB's board of directors are considered experienced (8.8 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

Erbud S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Erbud S.A.
  • Ticker: ERB
  • Exchange: WSE
  • Founded: 1990
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: zł412.899m
  • Shares outstanding: 12.40m
  • Website: https://www.erbud.pl

Number of Employees


Location

  • Erbud S.A.
  • ul. Franciszka Klimczaka 1
  • Warsaw
  • 02-797
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERBWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJun 2007

Biography

Erbud S.A., together with its subsidiaries, engages in the construction business in European Union countries. It operates through Residential/Commercial Buildings at Home, Residential/Commercial Buildings ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 18:08
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.