OTCPK:EGRN.Y

Stock Analysis Report

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Executive Summary

China Evergrande Group, an investment holding company, primarily engages in the property development business in the People’s Republic of China.


Snowflake Analysis

Undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has China Evergrande Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGRN.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

EGRN.Y

6.2%

US Real Estate

2.8%

US Market


1 Year Return

-33.7%

EGRN.Y

-18.6%

US Real Estate

9.3%

US Market

Return vs Industry: EGRN.Y underperformed the US Real Estate industry which returned -18% over the past year.

Return vs Market: EGRN.Y underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

EGRN.YIndustryMarket
7 Day0%6.2%2.8%
30 Day0%7.9%8.9%
90 Dayn/a-28.5%-0.5%
1 Year-28.8%-33.7%-18.0%-18.6%11.8%9.3%
3 Year-7.4%-17.9%-21.0%-22.8%31.4%22.7%
5 Year272.6%163.1%-26.3%-28.5%58.7%40.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Evergrande Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGRN.Y ($42.73) is trading below our estimate of fair value ($269.91)

Significantly Below Fair Value: EGRN.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EGRN.Y is good value based on its PE Ratio (11.4x) compared to the Real Estate industry average (14.8x).

PE vs Market: EGRN.Y is good value based on its PE Ratio (11.4x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: EGRN.Y is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EGRN.Y is overvalued based on its PB Ratio (1.4x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is China Evergrande Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGRN.Y's forecast earnings growth (25.9% per year) is above the savings rate (2.2%).

Earnings vs Market: EGRN.Y's earnings (25.9% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EGRN.Y's revenue (11.5% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: EGRN.Y's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGRN.Y's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has China Evergrande Group performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGRN.Y has high quality earnings.

Growing Profit Margin: EGRN.Y's current net profit margins (3.6%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: EGRN.Y's earnings have grown significantly by 24.2% per year over the past 5 years.

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

Earnings vs Industry: EGRN.Y had negative earnings growth (-53.8%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: EGRN.Y's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is China Evergrande Group's financial position?


Financial Position Analysis

Short Term Liabilities: EGRN.Y's short term assets (CN¥1,846.8B) exceed its short term liabilities (CN¥1,350.0B).

Long Term Liabilities: EGRN.Y's short term assets (CN¥1,846.8B) exceed its long term liabilities (CN¥498.0B).


Debt to Equity History and Analysis

Debt Level: EGRN.Y's debt to equity ratio (228.4%) is considered high.

Reducing Debt: EGRN.Y's debt to equity ratio has increased from 144% to 228.4% over the past 5 years.

Debt Coverage: EGRN.Y's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: EGRN.Y's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

What is China Evergrande Group's current dividend yield, its reliability and sustainability?

4.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGRN.Y's dividend (4.37%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: EGRN.Y's dividend (4.37%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: EGRN.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: EGRN.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.6%), EGRN.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGRN.Y's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

James Xia (55yo)

13yrs

Tenure

CN¥154,083,000

Compensation

Dr. Haijun Xia, also known as James, has been the Chief Executive Officer at China Evergrande Group since June 2007 and also serves as its President and Vice Chairman. Dr. Xia has been an Executive Directo ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD21.59M) is above average for companies of similar size in the US market ($USD11.60M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ka Yan Hui
Chairman of the Board24.42yrsCN¥252.00k77.35% CN¥21.3b
Haijun Xia
Vice Chairman13yrsCN¥154.08mno data
Darong Pan
CFO, GM of Financial Planning Center & Executive Director3.83yrsCN¥16.64mno data
Xiangui Huang
Executive Director6.33yrsCN¥9.81mno data
Miaoling He
VP & Executive Director6.08yrsCN¥21.90mno data
Junping Shi
Executive Director & Chairman of Evergrande Bao Group3.17yrsCN¥15.25mno data
Dongfeng Chen
Head of Information3.58yrsno datano data
Chen Fen
Investor relations Officerno datano datano data
En Xiao
President of Evergrande Automotive Group1.08yrsno datano data
Yujun Guo
Chief Planner Officerno datano datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: EGRN.Y's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ka Yan Hui
Chairman of the Board24.42yrsCN¥252.00k77.35% CN¥21.3b
Haijun Xia
Vice Chairman13yrsCN¥154.08mno data
Darong Pan
CFO, GM of Financial Planning Center & Executive Director3.83yrsCN¥16.64mno data
Xiangui Huang
Executive Director6.33yrsCN¥9.81mno data
Miaoling He
VP & Executive Director6.08yrsCN¥21.90mno data
Junping Shi
Executive Director & Chairman of Evergrande Bao Group3.17yrsCN¥15.25mno data
Shouming Shi
Chairman of Evergrande Health Industry Group2.42yrsno datano data
Liyong Qin
Chairman of Grain and Oil Groupno datano datano data
Yongzhuo Liu
Chairman of New Energy Technology Groupno datano datano data
Dalong Jiang
Vice Chairman1.08yrsno datano data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Board: EGRN.Y's board of directors are considered experienced (3.8 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

China Evergrande Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Evergrande Group
  • Ticker: EGRN.Y
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$213.361b
  • Listing Market Cap: HK$27.523b
  • Shares outstanding: 13.14b
  • Website: https://www.evergrande.com

Number of Employees


Location

  • China Evergrande Group
  • No.1126 Haide 3rd Road
  • Nanshan District
  • Shenzhen
  • Guangdong Province
  • 518054
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3333SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
EGRN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
EV1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
3333SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
3333SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
EGRN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDFeb 2014

Biography

China Evergrande Group, an investment holding company, primarily engages in the property development business in the People’s Republic of China. It operates through four segments: Property Development, Property Investment, Property Management, and Other Businesses. It is involved in the development of residential properties, as well as other businesses, including property investment, property management, property construction, new energy vehicle, hotel operation, finance, Internet, tourism, and health businesses. The company was formerly known as Evergrande Real Estate Group Limited and changed its name to China Evergrande Group in July 2016. China Evergrande Group was incorporated in 2006 and is headquartered in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 04:55
End of Day Share Price2020/03/17 00:00
Earnings2019/12/31
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.