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ETO

EtionJSE:ETO Stock Report

Market Cap

R366.9m

7D

-4.4%

1Y

490.9%

Updated

17 Oct, 2021

Data

Company Financials
ETO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Etion
Historical stock prices
Current Share PriceR0.65
52 Week HighR0.10
52 Week LowR0.72
Beta0.66
1 Month Change12.07%
3 Month Change54.76%
1 Year Change490.91%
3 Year Change35.42%
5 Year Change-31.58%
Change since IPO-54.55%

Recent News & Updates

Jul 05
Etion (JSE:ETO) Seems To Use Debt Quite Sensibly

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...

Mar 17
Does Etion (JSE:ETO) Have A Healthy Balance Sheet?

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

ETOZA CommunicationsZA Market
7D-4.4%0.8%1.6%
1Y490.9%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

Is ETO's price volatile compared to industry and market?
ETO volatility
ETO Beta0.66
Industry Beta0.86
Market Beta1

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

FoundedEmployeesCEOWebsite
1987281Richard Willishttps://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

How do Etion's earnings and revenue compare to its market cap?
ETO fundamental statistics
Market CapR366.87m
Earnings (TTM)-R3.66m
Revenue (TTM)R419.27m

0.9x

P/S Ratio

-100.2x

P/E Ratio

Valuation

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

TodayOct 18 2021Ex Dividend DateOct 27 2021Dividend Pay DateNov 02 20216 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:04
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.