D-MARKET ELECTRONIC SERV-ADR (HEPS) Stock Fundamental Analysis
NASDAQ:HEPS - Nasdaq - US23292B1044 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to HEPS. HEPS was compared to 28 industry peers in the Broadline Retail industry. HEPS has a bad profitability rating. Also its financial health evaluation is rather negative. HEPS is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year HEPS has reported negative net income.
In the past year HEPS had a positive cash flow from operations.
In the past 5 years HEPS reported 4 times negative net income.
Of the past 5 years HEPS 4 years had a positive operating cash flow.
1.2 Ratios
HEPS has a Return On Assets of -7.43%. This is in the lower half of the industry: HEPS underperforms 75.00% of its industry peers.
HEPS's Return On Equity of -58.62% is on the low side compared to the rest of the industry. HEPS is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | -58.62% | ||
| ROIC | N/A |
ROA(3y)-8.33%
ROA(5y)-12.85%
ROE(3y)-47%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of HEPS has declined.
With a Gross Margin value of 37.39%, HEPS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HEPS has grown nicely.
The Profit Margin and Operating Margin are not available for HEPS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.39% |
OM growth 3YN/A
OM growth 5Y-32.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y20.18%
GM growth 5Y5.22%
2. Health
2.1 Basic Checks
HEPS does not have a ROIC to compare to the WACC, probably because it is not profitable.
HEPS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HEPS remains at a similar level compared to 5 years ago.
HEPS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.48 indicates that HEPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HEPS (2.48) is comparable to the rest of the industry.
The Debt to FCF ratio of HEPS is 1.59, which is an excellent value as it means it would take HEPS, only 1.59 years of fcf income to pay off all of its debts.
HEPS has a better Debt to FCF ratio (1.59) than 71.43% of its industry peers.
HEPS has a Debt/Equity ratio of 0.67. This is a neutral value indicating HEPS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, HEPS is doing worse than 71.43% of the companies in the same industry.
Although HEPS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 2.48 |
ROIC/WACCN/A
WACC217.13%
2.3 Liquidity
HEPS has a Current Ratio of 0.94. This is a bad value and indicates that HEPS is not financially healthy enough and could expect problems in meeting its short term obligations.
HEPS has a worse Current ratio (0.94) than 89.29% of its industry peers.
A Quick Ratio of 0.62 indicates that HEPS may have some problems paying its short term obligations.
The Quick ratio of HEPS (0.62) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
HEPS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -4539.89%.
The Revenue has grown by 77.81% in the past year. This is a very strong growth!
The Revenue has been growing by 85.40% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4539.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-148.87%
Revenue 1Y (TTM)77.81%
Revenue growth 3Y55.93%
Revenue growth 5Y85.4%
Sales Q2Q%21.85%
3.2 Future
The Earnings Per Share is expected to grow by 41.78% on average over the next years. This is a very strong growth
Based on estimates for the next years, HEPS will show a very strong growth in Revenue. The Revenue will grow by 30.62% on average per year.
EPS Next Y125.4%
EPS Next 2Y69.99%
EPS Next 3Y41.78%
EPS Next 5YN/A
Revenue Next Year38.12%
Revenue Next 2Y31.62%
Revenue Next 3Y30.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HEPS. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 25.51, HEPS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEPS is on the same level as its industry peers.
HEPS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
HEPS's Enterprise Value to EBITDA is on the same level as the industry average.
HEPS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEPS is cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 17.79 |
4.3 Compensation for Growth
HEPS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HEPS's earnings are expected to grow with 41.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y69.99%
EPS Next 3Y41.78%
5. Dividend
5.1 Amount
No dividends for HEPS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.88
-0.06 (-2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners16.17%
Inst Owner Change25.11%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap938.88M
Analysts82.22
Price Target4.13 (43.4%)
Short Float %1.84%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.41%
PT rev (3m)-2.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-58.58%
EPS NY rev (3m)-58.58%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.51 | ||
| P/S | 0.52 | ||
| P/FCF | 21.57 | ||
| P/OCF | 9.54 | ||
| P/B | 11.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.79 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.11
Fwd EY3.92%
FCF(TTM)0.13
FCFY4.64%
OCF(TTM)0.3
OCFY10.48%
SpS5.52
BVpS0.26
TBVpS-0.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | -58.62% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.39% | ||
| FCFM | 2.42% |
ROA(3y)-8.33%
ROA(5y)-12.85%
ROE(3y)-47%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-32.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y20.18%
GM growth 5Y5.22%
F-Score4
Asset Turnover2.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 93.93% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 218.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.48 |
F-Score4
WACC217.13%
ROIC/WACCN/A
Cap/Depr(3y)120.44%
Cap/Depr(5y)114%
Cap/Sales(3y)4.01%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4539.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-148.87%
EPS Next Y125.4%
EPS Next 2Y69.99%
EPS Next 3Y41.78%
EPS Next 5YN/A
Revenue 1Y (TTM)77.81%
Revenue growth 3Y55.93%
Revenue growth 5Y85.4%
Sales Q2Q%21.85%
Revenue Next Year38.12%
Revenue Next 2Y31.62%
Revenue Next 3Y30.62%
Revenue Next 5YN/A
EBIT growth 1Y-71.55%
EBIT growth 3YN/A
EBIT growth 5Y25.95%
EBIT Next Year95.51%
EBIT Next 3Y56.53%
EBIT Next 5YN/A
FCF growth 1Y-1.33%
FCF growth 3YN/A
FCF growth 5Y64.06%
OCF growth 1Y47.12%
OCF growth 3YN/A
OCF growth 5Y73.37%