Buy Or Sell Opportunity • May 12
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to Ft2,340. The fair value is estimated to be Ft1,946, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Reported Earnings • May 05
Full year 2025 earnings released: EPS: Ft121 (vs Ft93.16 in FY 2024) Full year 2025 results: EPS: Ft121 (up from Ft93.16 in FY 2024). Revenue: Ft8.75b (up 7.5% from FY 2024). Net income: Ft1.71b (up 22% from FY 2024). Profit margin: 20% (up from 17% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. New Risk • Apr 07
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (74% net debt to equity). Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Market cap is less than US$100m (Ft27.5b market cap, or US$83.2m). Board Change • Nov 15
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. Independent Director Gabor Briglovics was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 28
Full year 2024 earnings released: EPS: Ft93.00 (vs Ft112 in FY 2023) Full year 2024 results: EPS: Ft93.00 (down from Ft112 in FY 2023). Revenue: Ft8.14b (down 16% from FY 2023). Net income: Ft1.41b (down 18% from FY 2023). Profit margin: 17% (in line with FY 2023). Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 12% per year. New Risk • Apr 08
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (66% net debt to equity). Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Market cap is less than US$100m (Ft19.0b market cap, or US$50.8m). Reported Earnings • Sep 25
First half 2024 earnings released: EPS: Ft46.00 (vs Ft74.00 in 1H 2023) First half 2024 results: EPS: Ft46.00 (down from Ft74.00 in 1H 2023). Revenue: Ft4.13b (down 32% from 1H 2023). Net income: Ft698.0m (down 40% from 1H 2023). Profit margin: 17% (down from 19% in 1H 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 02
Full year 2023 earnings released: EPS: Ft112 (vs Ft82.09 in FY 2022) Full year 2023 results: EPS: Ft112 (up from Ft82.09 in FY 2022). Revenue: Ft9.67b (up 35% from FY 2022). Net income: Ft1.72b (up 31% from FY 2022). Profit margin: 18% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. Independent Director Gabor Briglovics was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 07
Full year 2023 earnings released: EPS: Ft112 (vs Ft82.09 in FY 2022) Full year 2023 results: EPS: Ft112 (up from Ft82.09 in FY 2022). Revenue: Ft9.39b (up 31% from FY 2022). Net income: Ft1.72b (up 31% from FY 2022). Profit margin: 18% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. New Risk • Apr 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (66% net debt to equity). Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Market cap is less than US$100m (Ft22.4b market cap, or US$61.0m). Reported Earnings • Sep 17
First half 2023 earnings released: EPS: Ft74.00 (vs Ft45.00 in 1H 2022) First half 2023 results: EPS: Ft74.00 (up from Ft45.00 in 1H 2022). Revenue: Ft6.05b (up 64% from 1H 2022). Net income: Ft1.16b (up 58% from 1H 2022). Profit margin: 19% (in line with 1H 2022). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. New Risk • Aug 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risks Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (Ft20.0b market cap, or US$56.2m). Reported Earnings • May 01
Full year 2022 earnings released: EPS: Ft8.68 (vs Ft54.71 in FY 2021) Full year 2022 results: EPS: Ft8.68 (down from Ft54.71 in FY 2021). Net income: Ft146.6m (down 84% from FY 2021). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Sep 02
First half 2022 earnings released: EPS: Ft45.10 (vs Ft37.17 in 1H 2021) First half 2022 results: EPS: Ft45.10 (up from Ft37.17 in 1H 2021). Revenue: Ft3.69b (up 7.0% from 1H 2021). Net income: Ft732.0m (up 10% from 1H 2021). Profit margin: 20% (in line with 1H 2021). Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 13% per year. Upcoming Dividend • Jun 22
Upcoming dividend of Ft18.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 14 July 2022. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Hungarian dividend payers (5.9%). Lower than average of industry peers (3.2%). Reported Earnings • May 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: Ft54.71 (up from Ft14.01 in FY 2020). Revenue: Ft6.44b (up 8.7% from FY 2020). Net income: Ft897.0m (up 280% from FY 2020). Profit margin: 14% (up from 4.0% in FY 2020). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 91%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 7 non-independent directors. Director Gabor Briglovics was the last director to join the board, commencing their role in 2021. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improved over the past week After last week's 16% share price gain to Ft1,075, the stock trades at a trailing P/E ratio of 22.1x. Average trailing P/E is 29x in the Renewable Energy industry in Europe. Total returns to shareholders of 64% over the past three years. Reported Earnings • Sep 08
First half 2021 earnings released: EPS Ft37.17 (vs Ft5.01 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: Ft3.44b (up 7.7% from 1H 2020). Net income: Ft664.0m (up Ft574.0m from 1H 2020). Profit margin: 19% (up from 2.8% in 1H 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 10% per year. Reported Earnings • Apr 18
Full year 2020 earnings released: EPS Ft14.01 (vs Ft40.77 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: Ft5.92b (up 4.9% from FY 2019). Net income: Ft236.3m (down 68% from FY 2019). Profit margin: 4.0% (down from 13% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 3% per year. Is New 90 Day High Low • Jan 13
New 90-day high: Ft780 The company is up 13% from its price of Ft690 on 15 October 2020. The Hungarian market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Renewable Energy industry, which is up 25% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: Ft758 The company is up 11% from its price of Ft680 on 15 September 2020. The Hungarian market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Renewable Energy industry, which is up 15% over the same period. Is New 90 Day High Low • Nov 16
New 90-day high: Ft730 The company is up 11% from its price of Ft660 on 18 August 2020. The Hungarian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Renewable Energy industry, which is up 10.0% over the same period. Is New 90 Day High Low • Oct 19
New 90-day high: Ft718 The company is up 17% from its price of Ft612 on 21 July 2020. The Hungarian market is down 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Renewable Energy industry, which is up 9.0% over the same period.