Ege Seramik Sanayi ve Ticaret (IBSE:EGSER) - Share price, News & Analysis

Q: What is the Fair Price of EGSER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EGSER (TRY33.72) is trading below our estimate of [[fair value]] (TRY38.11)

EGSER fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

EGSER Stock Overview

Ege Seramik Sanayi ve Ticaret A.S. produces and sells ceramic floor and wall tiles in Turkey and internationally.

Rewards

Trading at 11.5% below our estimate of its fair value

Earnings have grown 51.2% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Dividend of 6.7% is not well covered by earnings

Ege Seramik Sanayi ve Ticaret Competitors

Ege Profil Ticaret ve Sanayi Anonim Sirketi

IBSE:EGPRO

₺3.0b

Cuhadaroglu Metal Sanayi ve Pazarlama

IBSE:CUSAN

₺793.7m

Usak Seramik Sanayi

IBSE:USAK

₺730.1m

QUA Granite Hayal Yapi ve Ürünleri Sanayi Ticaret

IBSE:QUAGR

₺7.6b

Price History & Performance

Summary of all time highs, changes and price drops for Ege Seramik Sanayi ve Ticaret
Historical stock prices
Current Share Price	₺33.72
52 Week High	₺33.34
52 Week Low	₺12.18
Beta	0.93
1 Month Change	25.35%
3 Month Change	37.19%
1 Year Change	137.47%
3 Year Change	1,104.29%
5 Year Change	598.14%
Change since IPO	34,903.58%

Shareholder Returns

	EGSER	TR Building	TR Market
7D	11.4%	2.9%	2.9%
1Y	137.5%	95.3%	76.8%

Return vs Industry: EGSER exceeded the TR Building industry which returned 95.3% over the past year.

Return vs Market: EGSER exceeded the TR Market which returned 76.8% over the past year.

Price Volatility

Is EGSER's price volatile compared to industry and market?
EGSER volatility
EGSER Average Weekly Movement	6.7%
Building Industry Average Movement	5.8%
Market Average Movement	5.9%
10% most volatile stocks in TR Market	8.9%
10% least volatile stocks in TR Market	4.1%

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

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

About the Company

Founded	Employees	CEO	Website
1972	1,164	Goksen Yediguller	https://www.egeseramik.com

Ege Seramik Sanayi ve Ticaret A.S. produces and sells ceramic floor and wall tiles in Turkey and internationally. The company also provides glazed porcelain. Its products are used in domestic spaces, home outdoors, and commercial/heavy use applications.

Ege Seramik Sanayi ve Ticaret Fundamentals Summary

How do Ege Seramik Sanayi ve Ticaret's earnings and revenue compare to its market cap?
EGSER fundamental statistics
Market Cap	₺2.39b
Earnings (TTM)	₺448.43m
Revenue (TTM)	₺1.75b

5.6x

P/E Ratio

1.4x

P/S Ratio

Is EGSER overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGSER income statement (TTM)
Revenue	₺1.75b
Cost of Revenue	₺1.14b
Gross Profit	₺611.53m
Other Expenses	₺163.10m
Earnings	₺448.43m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.98
Gross Margin	34.95%
Net Profit Margin	25.63%
Debt/Equity Ratio	19.7%

How did EGSER perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EGSER undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EGSER?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EGSER. This is calculated by dividing EGSER's market cap by their current preferred multiple.
What is EGSER's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₺2.39b

EGSER key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	4.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does EGSER's PE Ratio compare to its peers?

EGSER PE Ratio vs Peers

The above table shows the PE ratio for EGSER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.4x
EGPRO Ege Profil Ticaret ve Sanayi Anonim Sirketi	8.4x	n/a	₺3.0b
CUSAN Cuhadaroglu Metal Sanayi ve Pazarlama	6.6x	n/a	₺793.7m
USAK Usak Seramik Sanayi	8.4x	n/a	₺730.1m
QUAGR QUA Granite Hayal Yapi ve Ürünleri Sanayi Ticaret	10.3x	n/a	₺7.6b
EGSER Ege Seramik Sanayi ve Ticaret	5.6x	n/a	₺2.4b

Price-To-Earnings vs Peers: EGSER is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

How does EGSER's PE Ratio compare vs other companies in the Asian Building Industry?

Price-To-Earnings vs Industry: EGSER is good value based on its Price-To-Earnings Ratio (5.6x) compared to the TR Building industry average (8.4x)

Price to Earnings Ratio vs Fair Ratio

What is EGSER's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EGSER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EGSER's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of EGSER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EGSER (TRY33.72) is trading below our estimate of fair value (TRY38.11)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Ege Seramik Sanayi ve Ticaret forecast to perform in the next 1 to 3 years based on estimates from 0 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

15.3%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ege Seramik Sanayi ve Ticaret has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Ege Seramik Sanayi ve Ticaret is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Ege Seramik Sanayi ve Ticaret performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

51.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EGSER has a high level of non-cash earnings.

Growing Profit Margin: EGSER's current net profit margins (25.6%) are higher than last year (21.1%).

Past Earnings Growth Analysis

Earnings Trend: EGSER's earnings have grown significantly by 51.2% per year over the past 5 years.

Accelerating Growth: EGSER's earnings growth over the past year (167.3%) exceeds its 5-year average (51.2% per year).

Earnings vs Industry: EGSER earnings growth over the past year (167.3%) underperformed the Building industry 214.2%.

Return on Equity

High ROE: EGSER's Return on Equity (64.7%) is considered outstanding.

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Financial Health

How is Ege Seramik Sanayi ve Ticaret's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: EGSER's short term assets (TRY1.3B) exceed its short term liabilities (TRY800.6M).

Long Term Liabilities: EGSER's short term assets (TRY1.3B) exceed its long term liabilities (TRY73.8M).

Debt to Equity History and Analysis

Debt Level: EGSER has more cash than its total debt.

Reducing Debt: EGSER's debt to equity ratio has increased from 4% to 19.7% over the past 5 years.

Debt Coverage: EGSER's debt is well covered by operating cash flow (200.9%).

Interest Coverage: EGSER's interest payments on its debt are well covered by EBIT (54.5x coverage).

Balance Sheet

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Dividend

What is Ege Seramik Sanayi ve Ticaret current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EGSER's dividend (6.7%) is higher than the bottom 25% of dividend payers in the TR market (0.68%).

High Dividend: EGSER's dividend (6.7%) is in the top 25% of dividend payers in the TR market (3.27%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether EGSER's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EGSER's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.8%), EGSER's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (101.7%), EGSER's dividend payments are not well covered by cash flows.

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Management

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

11.5yrs

Average management tenure

CEO

Goksen Yediguller (59 yo)

12.5yrs

Tenure

Mr. Goksen Yediguller serves as Deputy Chairman of the Board at Ege Seramik Sanayi ve Ticaret A.S. since 2022. He serves as Director at Ege Seramik Sanayi ve Ticaret A.S. since June 2020. He has been a Gen...

Leadership Team

Experienced Management: EGSER's management team is seasoned and experienced (11.5 years average tenure).

Board Members

Experienced Board: EGSER's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

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	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31