Binh Duong Water - Environment (HOSE:BWE) - Share price, News & Analysis

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

BWE (₫49400) is trading below our estimate of [[fair value]] (₫70053.23)

BWE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	1/6

BWE Stock Overview

Binh Duong Water - Environment Joint Stock Company engages in the water supply, sewerage, and waste and waste water treatment activities in Vietnam.

Rewards

Trading at 29.5% below our estimate of its fair value

Earnings are forecast to grow 31.35% per year

Earnings grew by 22% over the past year

Risk Analysis

Has a high level of debt

Binh Duong Water - Environment Competitors

Thu Dau Mot Water

HOSE:TDM

₫4.1t

Nha Be Water Supply

HNX:NBW

₫219.1b

Gia Lai Electricity

HOSE:GEG

₫7.2t

PetroVietnam Power Nhon Trach 2

HOSE:NT2

₫7.6t

Price History & Performance

Summary of all time highs, changes and price drops for Binh Duong Water - Environment
Historical stock prices
Current Share Price	₫49,400.00
52 Week High	₫62,000.00
52 Week Low	₫37,000.00
Beta	0.83
1 Month Change	0%
3 Month Change	4.88%
1 Year Change	29.15%
3 Year Change	85.02%
5 Year Change	82.96%
Change since IPO	188.05%

Shareholder Returns

	BWE	VN Water Utilities	VN Market
7D	3.6%	3.0%	3.7%
1Y	29.2%	24.0%	-7.0%

Return vs Industry: BWE exceeded the VN Water Utilities industry which returned 24% over the past year.

Return vs Market: BWE exceeded the VN Market which returned -7% over the past year.

Price Volatility

Is BWE's price volatile compared to industry and market?
BWE volatility
BWE Average Weekly Movement	5.9%
Water Utilities Industry Average Movement	4.7%
Market Average Movement	7.4%
10% most volatile stocks in VN Market	10.0%
10% least volatile stocks in VN Market	4.2%

Stable Share Price: BWE is not significantly more volatile than the rest of VN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BWE's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1975	1,114	n/a	https://www.biwase.com.vn

Binh Duong Water - Environment Joint Stock Company engages in the water supply, sewerage, and waste and waste water treatment activities in Vietnam. The company is involved in the investment, exploitation, treatment, and supply of treated water for household and production use; development and management of drainage system and irrigation works; collection and treatment of domestic, hazardous, and industrial waste for composting production. It also provides civil engineering and prepare services for water supply, drainage system, irrigation works, class III or smaller size civil house, middle or low voltage electric wire, 35KVA transformer, public lighting system, and class III or smaller size communication route.

Binh Duong Water - Environment Fundamentals Summary

How do Binh Duong Water - Environment's earnings and revenue compare to its market cap?
BWE fundamental statistics
Market Cap	₫9.53t
Earnings (TTM)	₫658.70b
Revenue (TTM)	₫3.25t

14.5x

P/E Ratio

2.9x

P/S Ratio

Is BWE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BWE income statement (TTM)
Revenue	₫3.25t
Cost of Revenue	₫1.83t
Gross Profit	₫1.42t
Other Expenses	₫764.99b
Earnings	₫658.70b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.41k
Gross Margin	43.82%
Net Profit Margin	20.27%
Debt/Equity Ratio	83.8%

How did BWE perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

0%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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 BWE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BWE. This is calculated by dividing BWE's market cap by their current preferred multiple.
What is BWE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₫9.53t

BWE 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	3.9x
Enterprise Value/EBITDA	9x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

BWE PE Ratio vs Peers

The above table shows the PE ratio for BWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.2x
TDM Thu Dau Mot Water	17.5x	n/a	₫4.1t
NBW Nha Be Water Supply	11.8x	n/a	₫219.1b
GEG Gia Lai Electricity	23x	25.7%	₫7.2t
NT2 PetroVietnam Power Nhon Trach 2	8.4x	9.2%	₫7.6t
BWE Binh Duong Water - Environment	14.5x	31.4%	₫9.5t

Price-To-Earnings vs Peers: BWE is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

How does BWE's PE Ratio compare vs other companies in the Asian Water Utilities Industry?

Price-To-Earnings vs Industry: BWE is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the Asian Water Utilities industry average (13.7x)

Price to Earnings Ratio vs Fair Ratio

What is BWE'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.

BWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.5x
Fair PE Ratio	22.7x

Price-To-Earnings vs Fair Ratio: BWE is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).

Share Price vs Fair Value

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

Below Fair Value: BWE (₫49400) is trading below our estimate of fair value (₫70053.23)

Significantly Below Fair Value: BWE 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 Binh Duong Water - Environment forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

31.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWE's forecast earnings growth (31.4% per year) is above the savings rate (3.7%).

Earnings vs Market: BWE's earnings (31.4% per year) are forecast to grow faster than the VN market (19.3% per year).

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

Revenue vs Market: BWE's revenue (13.1% per year) is forecast to grow slower than the VN market (17.1% per year).

High Growth Revenue: BWE's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BWE's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Binh Duong Water - Environment 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

29.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWE has high quality earnings.

Growing Profit Margin: BWE's current net profit margins (20.3%) are higher than last year (17.7%).

Past Earnings Growth Analysis

Earnings Trend: BWE's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: BWE's earnings growth over the past year (22%) is below its 5-year average (29.2% per year).

Earnings vs Industry: BWE earnings growth over the past year (22%) exceeded the Water Utilities industry 2.2%.

Return on Equity

High ROE: BWE's Return on Equity (19.1%) is considered low.

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Financial Health

How is Binh Duong Water - Environment's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: BWE's short term assets (₫2,153.2B) exceed its short term liabilities (₫1,887.4B).

Long Term Liabilities: BWE's short term assets (₫2,153.2B) do not cover its long term liabilities (₫3,033.6B).

Debt to Equity History and Analysis

Debt Level: BWE's net debt to equity ratio (70.6%) is considered high.

Reducing Debt: BWE's debt to equity ratio has increased from 75.6% to 83.8% over the past 5 years.

Debt Coverage: BWE's debt is well covered by operating cash flow (34.5%).

Interest Coverage: BWE's interest payments on its debt are well covered by EBIT (10.8x coverage).

Balance Sheet

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Dividend

What is Binh Duong Water - Environment current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

2.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BWE's dividend (2.43%) isn’t notable compared to the bottom 25% of dividend payers in the VN market (2.8%).

High Dividend: BWE's dividend (2.43%) is low compared to the top 25% of dividend payers in the VN market (7.47%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BWE has been paying a dividend for less than 10 years.

Growing Dividend: BWE's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61%), BWE'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 board tenure

CEO

Binh Duong Water - Environment has no CEO, or we have no data on them.

Board Members

Experienced Board: BWE's board of directors are not considered experienced ( 2.3 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	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31