Bran Capital analysts said E-House's robust growth profile offers an attractive valuation, citing the company's recent earnings beat. Brean also noted E-House's raised guidance, geopgraphic expansion plans, and continued strong momentum in the e-commerce segment.
The firm set a price target of $20 for the company with a "buy" rating.
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TheStreet Ratings team rates E-HOUSE CHINA HOLDINGS -ADR as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate E-HOUSE CHINA HOLDINGS -ADR (EJ) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EJ's very impressive revenue growth greatly exceeded the industry average of 36.4%. Since the same quarter one year prior, revenues leaped by 67.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EJ's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, EJ has a quick ratio of 2.17, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for E-HOUSE CHINA HOLDINGS -ADR is rather high; currently it is at 67.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.43% is above that of the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Real Estate Management & Development industry and the overall market, E-HOUSE CHINA HOLDINGS -ADR's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: EJ Ratings Report