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.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

ERB

0.9%

PL Construction

2.3%

PL Market


1 Year Return

47.8%

ERB

48.1%

PL Construction

-7.9%

PL Market

Return vs Industry: ERB matched the Polish Construction industry which returned 48.1% over the past year.

Return vs Market: ERB exceeded the Polish Market which returned -7.9% over the past year.


Shareholder returns

ERBIndustryMarket
7 Day-0.3%0.9%2.3%
30 Day-11.3%0.2%1.5%
90 Day26.7%13.3%18.0%
1 Year47.8%47.8%50.9%48.1%-6.7%-7.9%
3 Year-24.5%-29.5%-11.4%-20.0%-18.4%-23.3%
5 Year-29.9%-39.7%1.5%-14.2%-8.1%-18.7%

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?

11.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERB (PLN19.95) is trading below our estimate of fair value (PLN22.47)

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


Price To Earnings Ratio

PE vs Industry: ERB is poor value based on its PE Ratio (8.2x) compared to the PL Construction industry average (7.4x).

PE vs Market: ERB is good value based on its PE Ratio (8.2x) compared to the Polish market (13.9x).


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 (0.9x) compared to the PL Construction industry average (0.8x).


Next Steps

Future Growth

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

-8.1%

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 (-8.1% per year).

Earnings vs Market: ERB's earnings are forecast to decline over the next 3 years (-8.1% 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 (-1.5% per year).

High Growth Revenue: ERB's revenue is forecast to decline over the next 3 years (-1.5% 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 (6%).


Next Steps

Past Performance

How has Erbud performed over the past 5 years?

-15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERB has high quality earnings.

Growing Profit Margin: ERB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ERB's earnings have declined by 15.4% per year over the past 5 years.

Accelerating Growth: ERB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ERB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (5%).


Return on Equity

High ROE: ERB's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Erbud's financial position?


Financial Position Analysis

Short Term Liabilities: ERB's short term assets (PLN1.0B) exceed its short term liabilities (PLN804.9M).

Long Term Liabilities: ERB's short term assets (PLN1.0B) exceed its long term liabilities (PLN127.9M).


Debt to Equity History and Analysis

Debt Level: ERB's debt to equity ratio (72.4%) is considered high.

Reducing Debt: ERB's debt to equity ratio has increased from 37.7% to 72.4% over the past 5 years.

Debt Coverage: ERB's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: ERB's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.36%

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?

8.3yrs

Average board 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 ...


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 Board4.33yrszł60.00kno data
Gabriel Glówka
Deputy Chairman of the Supervisory Boardno datazł72.00kno data
Albert Durr
Member of the Supervisory Board13.75yrszł60.00k0.22%
PLN 558.6k
Udo Berner
Chairman of the Supervisory Board10.67yrszł90.00kno data
Michal Otto
Independent Member of the Supervisory Board8.25yrszł60.00kno data
Piotr Kaczmarek
Independent Member of the Supervisory Board2.25yrszł60.00kno data
Jerzy Polaszek
Adviser to the Management Boardno datano datano data

8.3yrs

Average Tenure

Experienced Board: ERB's board of directors are considered experienced (8.3 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: zł255.597m
  • Shares outstanding: 12.81m
  • 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
0LTLLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNJun 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 Analysis2020/08/09 21:45
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
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.