WSE:ECH

Stock Analysis Report

Executive Summary

Echo Investment S.A., through its subsidiaries, engages in the construction, lease, and sale of office, retail, and residential buildings in Poland and Hungary.

Snowflake

Fundamentals

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

WSE:ECH

-1.4%

PL Real Estate

-2.6%

PL Market


1 Year Return

3.8%

WSE:ECH

-5.2%

PL Real Estate

-8.1%

PL Market

ECH outperformed the Real Estate industry which returned -5.2% over the past year.

ECH outperformed the Market in Poland which returned -8.1% over the past year.


Share holder returns

ECHIndustryMarket
7 Day-0.8%-1.4%-2.6%
30 Day-0.3%-2.8%-9.8%
90 Day20.1%-0.3%-4.9%
1 Year18.7%3.8%-0.5%-5.2%-5.3%-8.1%
3 Year61.7%1.6%-36.5%-41.0%7.8%-0.1%
5 Year173.1%-28.5%26.2%-3.0%-1.8%-14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Echo Investment undervalued based on future cash flows and its price relative to the stock market?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Echo Investment's share price is below the future cash flow value, and at a moderate discount (> 20%).

Echo Investment's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Echo Investment is good value based on earnings compared to the PL Real Estate industry average.

Echo Investment is good value based on earnings compared to the Poland market.


Price Based on Expected Growth

Echo Investment is poor value based on expected growth next year.


Price Based on Value of Assets

Echo Investment is overvalued based on assets compared to the PL Real Estate industry average.


Next Steps

Future Growth

How is Echo Investment expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Echo Investment's revenue is expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

Echo Investment's earnings are expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

Echo Investment's revenue growth is expected to exceed the Poland market average.

Echo Investment's earnings growth is positive but not above the Poland market average.

Echo Investment's earnings growth is positive but not above the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Echo Investment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Echo Investment performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Echo Investment's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Echo Investment's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Echo Investment's 1-year earnings growth is negative, it can't be compared to the PL Real Estate industry average.


Return on Equity

Echo Investment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Echo Investment used its assets more efficiently than the PL Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Echo Investment's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Echo Investment's financial position?


Financial Position Analysis

Echo Investment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Echo Investment's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Echo Investment's level of debt (96.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87.9% vs 96.8% today).

Debt is not well covered by operating cash flow (6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 0.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

What is Echo Investment's current dividend yield, its reliability and sustainability?

9.40%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Echo Investment's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.9%).

Echo Investment's dividend is above the markets top 25% of dividend payers in Poland (7.33%).

Echo Investment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Echo Investment has only been paying a dividend for 4 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Echo Investment's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Nicklas Lindberg 0

3.3yrs

Tenure

zł5,092,335

Compensation

Mr. Nicklas Lindberg has been President of the Management Board at Echo Investment S.A. since April 18, 2016 and serves as its Chief Executive Officer. Mr. Lindberg served as the President of Skanska Comme ...


CEO Compensation Analysis

Nicklas's remuneration is higher than average for companies of similar size in Poland.

Nicklas's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

The tenure for the Echo Investment management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

The tenure for the Echo Investment board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Artur Langner

    Vice President of the Management Board

    • Tenure: 11.2yrs
    • Compensation: zł360.00k
  • Piotr Gromniak

    Vice-President of the Management Board & COO

    • Tenure: 3.3yrs
    • Compensation: zł337.00k
  • Nicklas Lindberg

    President of the Management Board & CEO

    • Tenure: 3.3yrs
    • Compensation: zł5.09m
  • Maciej Drozd (57yo)

    Vice President of the Management Board & CFO

    • Tenure: 4.1yrs
    • Compensation: zł3.11m
  • Marcin Materny

    Head of Shopping Center Department and Member of Management Board

    • Tenure: 2.9yrs
    • Compensation: zł323.00k
  • Andrzej Zalucki

    Head of Marketing Department

    • Tenure: 0.0yrs
  • Rafal Mazurczak

    Head of Office & Hotel Department and Member of Management Board

    • Tenure: 2.9yrs
    • Compensation: zł233.62k
  • Wojciech Gepner

    Head of Public Relations Department

    • Tenure: 0.0yrs
  • Anna Gabryszewska-Wybraniec

    Chief Accountant

    • Tenure: 0.0yrs
  • Waldemar Olbryk

    Member of Management Board

    • Tenure: 1.8yrs
    • Compensation: zł158.52k

Board Members

  • Laurent Luccioni (47yo)

    Vice-President of the Supervisory Board

    • Tenure: 4.1yrs
  • Mark Abramson

    Independent Member of the Supervisory Board

    • Tenure: 1.8yrs
  • Nebil Senman (47yo)

    Member of Supervisory Board

    • Tenure: 4.2yrs
  • Sebastian Zilles

    Member of Supervisory Board

    • Tenure: 3.8yrs
  • Karim Khairallah

    Chairman of the Supervisory Board

    • Tenure: 4.1yrs
  • Maciej Dyjas

    Member of Supervisory Board

    • Tenure: 4.2yrs
  • Stefan Kawalec

    Independent Member of Supervisory Board

    • Tenure: 4.2yrs

Company Information

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


Key Information

  • Name: Echo Investment S.A.
  • Ticker: ECH
  • Exchange: WSE
  • Founded: 1994
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: zł1.799b
  • Shares outstanding: 412.69m
  • Website: https://www.echo.com.pl

Number of Employees


Location

  • Echo Investment S.A.
  • al. Solidarnosci 36
  • Kielce
  • 25-323
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECHWSE (Warsaw Stock Exchange)YesOrdinary Bearer SharesPLPLNMar 1996

Biography

Echo Investment S.A., through its subsidiaries, engages in the construction, lease, and sale of office, retail, and residential buildings in Poland and Hungary. The company operates through Residential Are ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 21:10
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.