| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
ETO Overview
Etion Limited provides original design manufacturing, safety and productivity, digital network, and cyber security solutions in South Africa, the rest of Africa, the Middle East, and internationally.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | R0.65 |
| 52 Week High | R0.10 |
| 52 Week Low | R0.72 |
| Beta | 0.66 |
| 1 Month Change | 12.07% |
| 3 Month Change | 54.76% |
| 1 Year Change | 490.91% |
| 3 Year Change | 35.42% |
| 5 Year Change | -31.58% |
| Change since IPO | -54.55% |
Recent News & Updates
Etion (JSE:ETO) Seems To Use Debt Quite Sensibly
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Does Etion (JSE:ETO) Have A Healthy Balance Sheet?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Shareholder Returns
| ETO | ZA Communications | ZA Market | |
|---|---|---|---|
| 7D | -4.4% | 0.8% | 1.6% |
| 1Y | 490.9% | 17.2% | 21.3% |
Return vs Industry: ETO exceeded the ZA Communications industry which returned 17.1% over the past year.
Return vs Market: ETO exceeded the ZA Market which returned 21.3% over the past year.
Price Volatility
| ETO volatility | |
|---|---|
| ETO Beta | 0.66 |
| Industry Beta | 0.86 |
| Market Beta | 1 |
Stable Share Price: ETO is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: ETO's weekly volatility has decreased from 16% to 8% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | 281 | Richard Willis | https://www.etion.co.za |
Etion Limited provides original design manufacturing, safety and productivity, digital network, and cyber security solutions in South Africa, the rest of Africa, the Middle East, and internationally. The company designs, develops, and manufactures various electronic and digital technologies for external customers; and develops customized electronic subsystems and products for customers in the aerospace and defense, cyber security, mining, rail, industrial, and IoT sectors. It also provides digital safety and productivity systems that include IoT devices and custom software for rail transport sectors; and offers asset management, and support and maintenance services.
Etion Fundamentals Summary
| ETO fundamental statistics | |
|---|---|
| Market Cap | R366.87m |
| Earnings (TTM) | -R3.66m |
| Revenue (TTM) | R419.27m |
0.9x
P/S Ratio-100.2x
P/E RatioIs ETO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ETO income statement (TTM) | |
|---|---|
| Revenue | R419.27m |
| Cost of Revenue | R333.67m |
| Gross Profit | R85.60m |
| Expenses | R89.26m |
| Earnings | -R3.66m |
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.0065 |
| Gross Margin | 20.42% |
| Net Profit Margin | -0.87% |
| Debt/Equity Ratio | 15.0% |
How did ETO perform over the long term?
See historical performance and comparisonValuation
Is Etion undervalued compared to its fair value and its price relative to the market?
37.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ETO (ZAR0.65) is trading below our estimate of fair value (ZAR1.05)
Significantly Below Fair Value: ETO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ETO is unprofitable, so we can't compare its PE Ratio to the Global Communications industry average.
PE vs Market: ETO is unprofitable, so we can't compare its PE Ratio to the ZA market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ETO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ETO is good value based on its PB Ratio (1x) compared to the XX Communications industry average (2.1x).
Future Growth
How is Etion forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
15.9%
Forecasted Tech 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 Etion 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.
Past Performance
How has Etion performed over the past 5 years?
-73.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ETO is currently unprofitable.
Growing Profit Margin: ETO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ETO is unprofitable, and losses have increased over the past 5 years at a rate of 73.6% per year.
Accelerating Growth: Unable to compare ETO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ETO is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).
Return on Equity
High ROE: ETO has a negative Return on Equity (-1.01%), as it is currently unprofitable.
Financial Health
How is Etion's financial position?
Financial Position Analysis
Short Term Liabilities: ETO's short term assets (ZAR437.1M) exceed its short term liabilities (ZAR183.0M).
Long Term Liabilities: ETO's short term assets (ZAR437.1M) exceed its long term liabilities (ZAR74.9M).
Debt to Equity History and Analysis
Debt Level: ETO's debt to equity ratio (15%) is considered satisfactory.
Reducing Debt: ETO's debt to equity ratio has reduced from 26.3% to 15% over the past 5 years.
Debt Coverage: ETO's debt is well covered by operating cash flow (127.6%).
Interest Coverage: Insufficient data to determine if ETO's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Etion current dividend yield, its reliability and sustainability?
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ETO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ETO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ETO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ETO'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 ETO's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Richard Willis (51 yo)
0.33
Tenure
R249,000
Compensation
Mr. Richard Charles Willis, CA (SA) serves as the Chief Operating Officer of Clive Douglas Investments (Pty) Limited (also known as Clive Douglas Investments Proprietary Limited). Mr. Willis has been a Non...
Leadership Team
Experienced Management: ETO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: ETO's board of directors are not considered experienced ( 0.8 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.
Top Shareholders
Company Information
Etion Limited's employee growth, exchange listings and data sources
Key Information
- Name: Etion Limited
- Ticker: ETO
- Exchange: JSE
- Founded: 1987
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: R366.867m
- Shares outstanding: 564.41m
- Website: https://www.etion.co.za
Number of Employees
Location
- Etion Limited
- 85 Regency Drive
- Route 21 Corporate Park
- Centurion
- Gauteng
- 157
- South Africa
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/17 17:04 |
| End of Day Share Price | 2021/10/15 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.