OTCPK:ERDL.F

Stock Analysis Report

Executive Summary

EROAD Limited provides electronic on-board units and software as a service to the heavy and light vehicle transport sectors in New Zealand and internationally.

Rewards

Earnings are forecast to grow 114.01% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ERDL.F

-2.3%

US Electronic

0.06%

US Market


1 Year Return

n/a

ERDL.F

7.7%

US Electronic

19.4%

US Market

Return vs Industry: Insufficient data to determine how ERDL.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how ERDL.F performed against the US Market.


Shareholder returns

ERDL.FIndustryMarket
7 Day0%-2.3%0.06%
30 Day0%-6.2%1.1%
90 Dayn/a1.1%8.9%
1 Yearn/a8.8%7.7%21.9%19.4%
3 Yearn/a34.4%30.8%48.9%39.3%
5 Yearn/a66.6%58.5%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is EROAD undervalued compared to its fair value and its price relative to the market?

4.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ERDL.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ERDL.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ERDL.F is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: ERDL.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ERDL.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ERDL.F is overvalued based on its PB Ratio (4.1x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

114.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERDL.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ERDL.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ERDL.F's is expected to become profitable in the next 3 years.

Revenue vs Market: ERDL.F's revenue (15.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ERDL.F's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ERDL.F's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has EROAD performed over the past 5 years?

-34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERDL.F is currently unprofitable.

Growing Profit Margin: ERDL.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ERDL.F is unprofitable, and losses have increased over the past 5 years at a rate of -34.9% per year.

Accelerating Growth: Unable to compare ERDL.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ERDL.F is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: ERDL.F has a negative Return on Equity (-3.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EROAD's financial position?


Financial Position Analysis

Short Term Liabilities: ERDL.F's short term assets (NZ$43.2M) do not cover its short term liabilities (NZ$51.7M).

Long Term Liabilities: ERDL.F's short term assets (NZ$43.2M) exceed its long term liabilities (NZ$28.4M).


Debt to Equity History and Analysis

Debt Level: ERDL.F's debt to equity ratio (73%) is considered high.

Reducing Debt: Insufficient data to determine if ERDL.F's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ERDL.F's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ERDL.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ERDL.F has less than a year of cash runway if free cash flow continues to reduce at historical rates of -9.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ERDL.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ERDL.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ERDL.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ERDL.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ERDL.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Steven Newman 0

13.1yrs

Tenure

NZ$555,859

Compensation

Mr. Steven Newman has been the Chief Executive Officer at EROAD Limited since 2007. Mr. Newman has a wealth of experience to EROAD after a long and successful association with Navman, which he Co-Founded.  ...


CEO Compensation Analysis

Compensation vs Market: Steven's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD519.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Newman
CEO & Executive Director13.1yrsNZ$555.86k0.19% NZ$249.7k
Alex Ball
Chief Financial Officer1yrsno data0.0052% NZ$6.9k
Jarred Clayton
Chief Operating Officer3.6yrsno data0.72% NZ$963.4k
Mark Heine
Executive VP0yrsno datano data
Genevieve Tearle
Chief Marketing Officer1.3yrsno datano data
Mike Sweet
Chief People Officer1.1yrsno datano data
Pip Gilbert
Executive Vice President of Strategy0yrsno datano data
Matthew Dalton
Executive Vice President of Operations0.9yrsno datano data
Norman Ellis
President of North America3.1yrsno datano data

1.3yrs

Average Tenure

Experienced Management: ERDL.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Newman
CEO & Executive Director13.1yrsNZ$555.86k0.19% NZ$249.7k
Susan Paterson
Independent Director0.9yrsno datano data
Michael Bushby
Independent Director7.8yrsNZ$85.09k0.20% NZ$271.9k
Graham Stuart
Independent Chairman of the Board1.5yrsNZ$18.75k0.059% NZ$79.0k
Anthony Gibson
Independent Director10.3yrsNZ$54.55k0.84% NZ$1.1m
Candace Kinser
Independent Director5.8yrsNZ$50.55kno data

6.8yrs

Average Tenure

Experienced Board: ERDL.F's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ERDL.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

EROAD Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EROAD Limited
  • Ticker: ERDL.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: NZ$208.198m
  • Listing Market Cap: NZ$133.060m
  • Shares outstanding: 67.38m
  • Website: https://www.eroad.co.nz

Number of Employees


Location

  • EROAD Limited
  • 260 Oteha Valley Road
  • Albany
  • Auckland
  • 632
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERDNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDAug 2014
ERDL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2014

Biography

EROAD Limited provides electronic on-board units and software as a service to the heavy and light vehicle transport sectors in New Zealand and internationally. It offers products to reduce the time and money spend on road user charges compliance; and manage obligations and risks associated with the Health and Safety at Work Act, as well as fleet management products. The company was founded in 2000 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:41
End of Day Share Price2019/12/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.