ELCOM Technology Communications (HOSE:ELC) - Share price, News & Analysis

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

ELC (₫17450) is trading below our estimate of [[fair value]] (₫41988.77)

ELC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

ELC Stock Overview

ELCOM Technology Communications Corporation provides software and system integration products for telecommunications, national security, transportation, e-government, and agriculture worldwide.

Rewards

Trading at 58.4% below our estimate of its fair value

Earnings grew by 32.5% over the past year

Risk Analysis

Dividend of 3.44% is not well covered by earnings

Does not have a meaningful market cap (₫887B)

ELCOM Technology Communications Competitors

CMC

HOSE:CMG

₫7.0t

One Communication Technology

HNX:ONE

₫60.8b

FPT

HOSE:FPT

₫94.9t

Data Applications Company

TSE:3848

JP¥4.9b

Price History & Performance

Summary of all time highs, changes and price drops for ELCOM Technology Communications
Historical stock prices
Current Share Price	₫17,450.00
52 Week High	₫30,850.00
52 Week Low	₫12,700.00
Beta	0.88
1 Month Change	7.06%
3 Month Change	5.76%
1 Year Change	0.29%
3 Year Change	168.46%
5 Year Change	-11.93%
Change since IPO	-49.59%

Shareholder Returns

	ELC	VN IT	VN Market
7D	1.2%	0.9%	0.9%
1Y	0.3%	11.6%	-8.0%

Return vs Industry: ELC underperformed the VN IT industry which returned 11.6% over the past year.

Return vs Market: ELC exceeded the VN Market which returned -8% over the past year.

Price Volatility

Is ELC's price volatile compared to industry and market?
ELC volatility
ELC Average Weekly Movement	7.1%
IT Industry Average Movement	5.6%
Market Average Movement	7.1%
10% most volatile stocks in VN Market	9.6%
10% least volatile stocks in VN Market	3.8%

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

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

About the Company

Founded	Employees	CEO	Website
1995	223	Thang Pham	https://www.elcom.com.vn

ELCOM Technology Communications Corporation provides software and system integration products for telecommunications, national security, transportation, e-government, and agriculture worldwide. The company offers TeleVital, a connection platform of vital signs monitoring devices; DeepVision, a video analysis system; intelligent transportation services; solutions for defense department; and telecommunication services and solutions for telecom billings and operation support systems, wired and wireless transmissions, IT core and adaptation solutions, telecom/IT infrastructure solutions, and value-added services. It also engages in the greenhouses and supplies, high-tech farm management and investment, microbiological soil and plant nutrient solutions, and probiotic animal nutrition businesses.

ELCOM Technology Communications Fundamentals Summary

How do ELCOM Technology Communications's earnings and revenue compare to its market cap?
ELC fundamental statistics
Market Cap	₫886.79b
Earnings (TTM)	₫48.07b
Revenue (TTM)	₫738.69b

18.4x

P/E Ratio

1.2x

P/S Ratio

Is ELC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELC income statement (TTM)
Revenue	₫738.69b
Cost of Revenue	₫610.48b
Gross Profit	₫128.21b
Other Expenses	₫80.14b
Earnings	₫48.07b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	945.85
Gross Margin	17.36%
Net Profit Margin	6.51%
Debt/Equity Ratio	0.3%

How did ELC perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

0%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ELC 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 ELC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ELC. This is calculated by dividing ELC's market cap by their current preferred multiple.
What is ELC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₫886.79b

ELC 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	1x
Enterprise Value/EBITDA	17.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

ELC PE Ratio vs Peers

The above table shows the PE ratio for ELC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.4x
CMG CMC	25.9x	n/a	₫7.0t
ONE One Communication Technology	7.8x	n/a	₫60.8b
FPT FPT	21x	22.0%	₫94.9t
3848 Data Applications Company	15.1x	n/a	JP¥4.9b
ELC ELCOM Technology Communications	18.4x	n/a	₫886.8b

Price-To-Earnings vs Peers: ELC is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does ELC's PE Ratio compare vs other companies in the Asian IT Industry?

Price-To-Earnings vs Industry: ELC is good value based on its Price-To-Earnings Ratio (18.4x) compared to the Asian IT industry average (21.9x)

Price to Earnings Ratio vs Fair Ratio

What is ELC'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.

ELC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.4x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: ELC (₫17450) is trading below our estimate of fair value (₫41988.77)

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

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 ELCOM Technology Communications forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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

13.7%

Forecasted Software 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 ELCOM Technology Communications 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 ELCOM Technology Communications 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 ELCOM Technology Communications performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

2.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELC has high quality earnings.

Growing Profit Margin: ELC's current net profit margins (6.5%) are higher than last year (4.8%).

Past Earnings Growth Analysis

Earnings Trend: ELC's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: ELC's earnings growth over the past year (32.5%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: ELC earnings growth over the past year (32.5%) exceeded the IT industry 18.3%.

Return on Equity

High ROE: ELC's Return on Equity (6.2%) is considered low.

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Financial Health

How is ELCOM Technology Communications's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: ELC's short term assets (₫777.7B) exceed its short term liabilities (₫194.4B).

Long Term Liabilities: ELC's short term assets (₫777.7B) exceed its long term liabilities (₫6.5B).

Debt to Equity History and Analysis

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

Reducing Debt: ELC's debt to equity ratio has reduced from 18.1% to 0.3% over the past 5 years.

Debt Coverage: ELC's debt is well covered by operating cash flow (1403.7%).

Interest Coverage: ELC earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is ELCOM Technology Communications's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

3.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELC's dividend (3.44%) is higher than the bottom 25% of dividend payers in the VN market (2.78%).

High Dividend: ELC's dividend (3.44%) is low compared to the top 25% of dividend payers in the VN market (7.33%).

Stability and Growth of Payments

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

Growing Dividend: ELC's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: Unable to calculate sustainability of dividends as ELC has not reported any payouts.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (75.1%), ELC's dividend payments are covered by cash flows.

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Management

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

2.3yrs

Average management tenure

CEO

Thang Pham

2.25yrs

Tenure

Mr. Thang Minh Pham has been General Director at Electronics CommunicationS Technology Investment Development Joint Stock Company since May 1, 2020 and also serves as its Member of Management Board. Mr. Ph...

Leadership Team

Experienced Management: ELC's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: ELC's board of directors are considered experienced (4.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31