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

Average dividend payer with imperfect balance sheet.


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

-6.8%

ECH

0.03%

PL Real Estate

1.5%

PL Market


1 Year Return

7.1%

ECH

2.4%

PL Real Estate

-3.1%

PL Market

Return vs Industry: ECH exceeded the Polish Real Estate industry which returned 2.4% over the past year.

Return vs Market: ECH exceeded the Polish Market which returned -3.1% over the past year.


Share holder returns

ECHIndustryMarket
7 Day-6.8%0.03%1.5%
30 Day-5.5%0.2%-2.1%
90 Day5.0%-0.3%-7.7%
1 Year36.7%7.1%9.0%2.4%-0.2%-3.1%
3 Year66.7%-6.2%-24.4%-31.5%12.0%4.0%
5 Year216.2%-25.9%31.2%0.3%0.2%-11.9%

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?

7.48x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ECH (PLN4.48) is trading above our estimate of fair value (PLN3.06)

Significantly Undervalued: ECH is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ECH is poor value based on its PE Ratio (7.5x) compared to the Real Estate industry average (7.2x).

PE vs Market: ECH is good value based on its PE Ratio (7.5x) compared to the Polish market (10x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: ECH is overvalued based on its PB Ratio (1.2x) compared to the PL Real Estate industry average (0.6x).


Next Steps

Future Growth

How is Echo Investment expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ECH's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: ECH's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: ECH's revenue (11.3% per year) is forecast to grow faster than the Polish market (5.3% per year).

High Growth Revenue: ECH's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ECH's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Echo Investment performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ECH's earnings have declined by -5.5% per year over the past 5 years.

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

Earnings vs Industry: ECH had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Real Estate industry average (-1.4%).


Return on Equity

High ROE: ECH's Return on Equity (16.1%) is considered low.


Return on Assets

ROA vs Industry: ECH has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: ECH is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Echo Investment's financial position?


Financial Position Analysis

Short Term Liabilities: ECH's short term assets (PLN2.1B) exceeds its short term liabilities (PLN1.1B)

Long Term Liabilities: ECH's short term assets (2.1B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: ECH's debt to equity ratio (96.9%) is considered high

Reducing Debt: ECH's debt to equity ratio has increased from 87.5% to 96.9% over the past 5 years.

Debt Coverage: ECH's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: Insufficient data to determine if ECH's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: ECH has a high level of physical assets or inventory.

Debt Coverage by Assets: ECH's debt is covered by short term assets (assets are 1.423930x debt).


Next Steps

Dividend

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

9.34%

Expected Dividend Yield


Dividend Yield vs Market

company11.2%marketbottom25%2.6%markettop25%7.3%industryaverage4.0%forecastin3Years9.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ECH's dividend (11.17%) is higher than the bottom 25% of dividend payers in the Polish market (2.64%).

High Dividend: ECH's dividend (11.17%) is in the top 25% of dividend payers in the Polish market (7.33%)

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

Growing Dividend: ECH has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.6%), ECH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECH's dividends in 3 years are forecast to be covered by earnings (66.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Nicklas Lindberg 0

3.5yrs

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

Compensation vs. Market: Nicklas's total compensation ($USD0.00) is too low to compare against companies of similar size in the Polish market ($USD0.00).

Compensation vs Earnings: Nicklas's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: ECH's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: ECH's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Artur Langner

    Vice President of the Management Board

    • Tenure: 11.3yrs
    • Compensation: zł360.00k
  • Piotr Gromniak

    Vice-President of the Management Board & COO

    • Tenure: 3.5yrs
    • Compensation: zł337.00k
  • Nicklas Lindberg

    President of the Management Board & CEO

    • Tenure: 3.5yrs
    • Compensation: zł5.09m
  • Maciej Drozd (57yo)

    Vice President of the Management Board & CFO

    • Tenure: 4.3yrs
    • Compensation: zł3.11m
  • Marcin Materny

    Head of Shopping Center Department and Member of Management Board

    • Tenure: 3.1yrs
    • Compensation: zł323.00k
  • Andrzej Zalucki

    Head of Marketing Department

    • Tenure: 0yrs
  • Rafal Mazurczak

    Head of Office & Hotel Department and Member of Management Board

    • Tenure: 3.1yrs
    • Compensation: zł233.62k
  • Wojciech Gepner

    Head of Public Relations Department

    • Tenure: 0yrs
  • Anna Gabryszewska-Wybraniec

    Chief Accountant

    • Tenure: 0yrs
  • Waldemar Olbryk

    Member of Management Board

    • Tenure: 2yrs
    • Compensation: zł158.52k

Board Members

  • Laurent Luccioni (47yo)

    Vice-President of the Supervisory Board

    • Tenure: 4.3yrs
  • Mark Abramson

    Independent Member of the Supervisory Board

    • Tenure: 2yrs
  • Nebil Senman (47yo)

    Member of Supervisory Board

    • Tenure: 4.3yrs
  • Sebastian Zilles

    Member of Supervisory Board

    • Tenure: 4yrs
  • Karim Khairallah

    Chairman of the Supervisory Board

    • Tenure: 4.3yrs
  • Maciej Dyjas

    Member of Supervisory Board

    • Tenure: 4.3yrs
  • Stefan Kawalec

    Independent Member of Supervisory Board

    • Tenure: 4.3yrs

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: zł1.847b
  • 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 Analysis2019/10/13 21:23
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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