Echo Investment S.A. (ECH) AI Stock Analysis

• Market Cap: zł2.06B
• Dividend Yield: 17.09%
• Average Volume (3M): 143.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -34.22%
• EPS Growth: -410.61%
• Country: PL
• Employees: 626
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.14
• Shares Outstanding: 412,690,580
• 10 Day Avg. Volume: 79,120
• 30 Day Avg. Volume: 143,359
• PEG Ratio: 1.12
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.78
• P/FCF Ratio: -10.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: zł5.50 ▼(-1.43% Downside)

Echo Investment S.A. faces significant financial challenges, primarily due to declining revenues and profitability issues. The technical analysis provides a slightly positive outlook with mild bullish momentum, but the valuation remains unattractive due to a negative P/E ratio. Overall, the stock score reflects the need for financial improvement despite some operational efficiencies.

Positive Factors

Operational Efficiency

A strong EBIT margin indicates Echo Investment's ability to manage operational costs effectively, which can support profitability improvements over time.

Revenue Streams

Diversified revenue streams from residential sales and commercial leasing provide a stable income base, supporting long-term financial resilience.

Equity Ratio

A solid equity ratio provides a buffer against financial volatility, enhancing the company's stability and ability to withstand economic downturns.

Negative Factors

Revenue Decline

A substantial revenue decline impacts the company's ability to generate cash flow and invest in future growth, posing long-term challenges.

High Leverage

High leverage increases financial risk, potentially limiting the company's flexibility to invest in new projects or weather economic downturns.

Negative Cash Flows

Negative cash flows indicate challenges in covering operational expenses and funding growth, which could hinder long-term financial health.

Echo Investment S.A. Business Overview & Revenue Model

Company Description

Echo Investment S.A. is a leading real estate development company in Poland, specializing in the construction and management of residential, commercial, and mixed-use properties. The company focuses on urban development projects, providing innovative and sustainable solutions that cater to modern living and working environments. Echo Investment operates primarily in the real estate sector, encompassing residential buildings, office spaces, retail centers, and hotels, with a commitment to quality and design excellence.

How the Company Makes Money

Echo Investment generates revenue through several key streams, primarily focusing on the sale and leasing of developed properties. The company earns income from residential sales, where completed apartments and housing units are sold to individual buyers or investors. Additionally, Echo Investment profits from commercial real estate by leasing office spaces and retail units to businesses, which provides a stable and recurring income stream. The firm also engages in property management services for its developed assets, further contributing to its revenue. Significant partnerships with financial institutions and local governments facilitate funding for projects and enhance the company's ability to execute large-scale developments, which is crucial for sustaining its growth and profitability.

Echo Investment S.A. Financial Statement Overview

Summary

Echo Investment S.A. is facing financial challenges, with declining revenues and profitability issues. The high leverage and negative cash flows add to the financial risks. While there are operational efficiencies, as seen in the EBIT margin, the company needs to address its cash flow and profitability to improve its financial health.

Income Statement

Echo Investment S.A. has experienced a significant decline in revenue, with a negative growth rate of -37.8% in the latest year. The gross profit margin remains relatively stable at 33.7%, but the company is facing challenges with profitability, as indicated by a negative net profit margin of -1.3%. The EBIT margin is healthy at 29.1%, suggesting operational efficiency, but the negative net income highlights underlying profitability issues.

Balance Sheet

The company's debt-to-equity ratio is high at 1.94, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the recent net losses. However, the equity ratio stands at 24.7%, showing a reasonable level of equity relative to total assets, which provides some stability.

Cash Flow

Echo Investment S.A. has negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.08B	1.57B	1.40B	1.53B	1.21B
Gross Profit	525.89M	365.24M	487.46M	502.19M	400.08M	1.20B
EBITDA	165.72M	330.90M	383.26M	308.79M	198.64M	245.47M
Net Income	-158.85M	-14.18M	67.43M	127.15M	188.92M	122.09M
Balance Sheet
Total Assets	7.11B	6.77B	5.96B	6.09B	6.43B	5.63B
Cash, Cash Equivalents and Short-Term Investments	443.67M	366.20M	813.84M	942.00M	683.88M	327.10M
Total Debt	3.22B	3.25B	2.88B	2.65B	3.12B	2.94B
Total Liabilities	5.24B	4.76B	3.93B	4.28B	4.57B	3.95B
Stockholders Equity	1.54B	1.68B	1.69B	1.64B	1.68B	1.68B
Cash Flow
Free Cash Flow	215.03M	-186.41M	-282.82M	164.00K	112.59M	-80.43M
Operating Cash Flow	273.33M	-163.91M	-274.78M	9.18M	119.17M	-70.74M
Investing Cash Flow	-111.17M	-363.05M	-106.95M	584.84M	604.01M	-752.89M
Financing Cash Flow	-473.28M	79.33M	253.57M	-240.70M	-461.60M	658.43M

Echo Investment S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:ECH, the sentiment is Positive. The current price of 5.58 is above the 20-day moving average (MA) of 4.85, above the 50-day MA of 4.94, and above the 200-day MA of 4.60, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:ECH.

Echo Investment S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVL	70 Outperform	zł4.02B	8.45	28.43%	6.94%	2.65%	15.35%
DOM	70 Outperform	zł6.86B	10.60	37.36%	5.46%	16.90%	24.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GTC	58 Neutral	zł1.76B	-22.15	-1.68%	6.96%	3.31%	-63.79%
ECH	51 Neutral	zł2.06B	-12.99	-9.92%	17.09%	-34.22%	-410.61%