Executive Summary
VERBUND AG, together with its subsidiaries, generates, trades, and sells electricity to energy exchanges, traders, energy utilities and industrial companies, and households and commercial customers in Austria and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet.
Similar Companies
Share Price & News
How has VERBUND's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VER's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.0%
VER
4.3%
AT Electric Utilities
8.9%
AT Market
1 Year Return
-12.3%
VER
2.5%
AT Electric Utilities
-26.8%
AT Market
Return vs Industry: VER underperformed the Austrian Electric Utilities industry which returned -0.1% over the past year.
Return vs Market: VER exceeded the Austrian Market which returned -27.5% over the past year.
Shareholder returns
| VER | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.0% | 4.3% | 8.9% |
| 30 Day | 4.6% | -4.7% | -3.4% |
| 90 Day | -11.4% | -8.9% | -27.0% |
| 1 Year | -11.5%-12.3% | 6.1%2.5% | -24.2%-26.8% |
| 3 Year | 155.2%148.6% | 43.0%26.2% | -8.2%-16.2% |
| 5 Year | 169.3%145.3% | 30.5%1.6% | 8.2%-6.8% |
Price Volatility Vs. Market
How volatile is VERBUND's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
VERBUND AG (VIE:VER): Has Recent Earnings Growth Beaten Long-Term Trend?2 weeks ago | Simply Wall St
Revenue Beat: VERBUND AG Exceeded Revenue Forecasts By 13% And Analysts Are Updating Their Estimates3 weeks ago | Simply Wall St
VERBUND AG (VIE:VER) Delivered A Better ROE Than Its IndustryValuation
Is VERBUND undervalued compared to its fair value and its price relative to the market?
40.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VER (€38.64) is trading below our estimate of fair value (€66.02)
Significantly Below Fair Value: VER is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VER is poor value based on its PE Ratio (24.2x) compared to the Electric Utilities industry average (10.6x).
PE vs Market: VER is poor value based on its PE Ratio (24.2x) compared to the Austrian market (11.4x).
Price to Earnings Growth Ratio
PEG Ratio: VER is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: VER is overvalued based on its PB Ratio (2.3x) compared to the XE Electric Utilities industry average (0.8x).
Next Steps
Future Growth
How is VERBUND forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VER's forecast earnings growth (9.6% per year) is above the savings rate (-0.1%).
Earnings vs Market: VER's earnings (9.6% per year) are forecast to grow slower than the Austrian market (11.7% per year).
High Growth Earnings: VER's earnings are forecast to grow, but not significantly.
Revenue vs Market: VER's revenue (3.9% per year) is forecast to grow faster than the Austrian market (2% per year).
High Growth Revenue: VER's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VER's Return on Equity is forecast to be low in 3 years time (9.6%).
Next Steps
Past Performance
How has VERBUND performed over the past 5 years?
23.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VER has high quality earnings.
Growing Profit Margin: VER's current net profit margins (14.2%) are lower than last year (16.2%).
Past Earnings Growth Analysis
Earnings Trend: VER's earnings have grown significantly by 23.2% per year over the past 5 years.
Accelerating Growth: VER's earnings growth over the past year (28.1%) exceeds its 5-year average (23.2% per year).
Earnings vs Industry: VER earnings growth over the past year (28.1%) exceeded the Electric Utilities industry 12.9%.
Return on Equity
High ROE: VER's Return on Equity (9.8%) is considered low.
Next Steps
Financial Health
How is VERBUND's financial position?
Financial Position Analysis
Short Term Liabilities: VER's short term assets (€776.7M) do not cover its short term liabilities (€1.2B).
Long Term Liabilities: VER's short term assets (€776.7M) do not cover its long term liabilities (€4.1B).
Debt to Equity History and Analysis
Debt Level: VER's debt to equity ratio (17.2%) is considered satisfactory.
Reducing Debt: VER's debt to equity ratio has reduced from 62.9% to 17.2% over the past 5 years.
Debt Coverage: VER's debt is well covered by operating cash flow (106.7%).
Interest Coverage: VER's interest payments on its debt are well covered by EBIT (24.4x coverage).
Balance Sheet
Next Steps
Dividend
What is VERBUND's current dividend yield, its reliability and sustainability?
1.77%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: VER's dividend (1.79%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.87%).
High Dividend: VER's dividend (1.79%) is low compared to the top 25% of dividend payers in the Austrian market (5.96%).
Stability and Growth of Payments
Stable Dividend: VER's dividend payments have been volatile in the past 10 years.
Growing Dividend: VER's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.2%), VER's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VER's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Wolfgang Anzengruber (63yo)
11.83s
Tenure
€1,327,594
Compensation
General Wolfgang Anzengruber has been the Chief Executive Officer of Verbund AG since June 2008 and has been its Chairman of Executive Board since 2009 and has been Member of Executive Board since January ...
CEO Compensation Analysis
Compensation vs Market: Wolfgang's total compensation ($USD1.44M) is below average for companies of similar size in the Austrian market ($USD3.87M).
Compensation vs Earnings: Wolfgang's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Executive Board & CEO | 11.83yrs | €1.33m | no data | |
| Deputy CEO & Vice Chairman of the Board | 1.25yrs | €685.00k | no data | |
| CFO & Member of the Executive Board | 6.25yrs | €1.01m | no data | |
| Member of Executive Board | 1.25yrs | €475.00k | no data | |
| Head of Group Finance | no data | no data | no data | |
| Head of Group Communications | no data | no data | no data |
3.8yrs
Average Tenure
56.5yo
Average Age
Experienced Management: VER's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Member of Supervisory Board | 5yrs | €24.00k | no data | |
| Employee representative Member of Supervisory Board | 16.08yrs | €4.00k | no data | |
| 1st Deputy Chair of Supervisory Board | 1yr | €22.50k | no data | |
| 2nd Vice-Chairwoman of Supervisory Board | 5yrs | €55.00k | no data | |
| Member of Supervisory Board | 10yrs | €24.00k | no data | |
| Member of Supervisory Board | 10yrs | €16.33k | no data | |
| Employee representative Member of Supervisory Board | 6.42yrs | €3.50k | no data | |
| Member of Supervisory Board | 5yrs | €12.00k | no data | |
| Member of Supervisory Board | 5yrs | €20.17k | no data | |
| Chairman of Supervisory Board | 1yr | €47.33k | no data |
5.0yrs
Average Tenure
54yo
Average Age
Experienced Board: VER's board of directors are considered experienced (5 years average tenure).
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
VERBUND AG's company bio, employee growth, exchange listings and data sources
Key Information
- Name: VERBUND AG
- Ticker: VER
- Exchange: WBAG
- Founded: 1947
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: €13.563b
- Shares outstanding: 347.42m
- Website: https://www.verbund.com
Number of Employees
Location
- VERBUND AG
- Am Hof 6a
- Vienna
- Vienna
- 1010
- Austria
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VER | WBAG (Wiener Boerse AG) | Yes | Category A Bearer Shares | AT | EUR | Mar 1990 |
| OEWA | DB (Deutsche Boerse AG) | Yes | Category A Bearer Shares | DE | EUR | Mar 1990 |
| 0NR1 | LSE (London Stock Exchange) | Yes | Category A Bearer Shares | GB | EUR | Mar 1990 |
| OEZV.F | OTCPK (Pink Sheets LLC) | Yes | Category A Bearer Shares | US | USD | Mar 1990 |
| OEWA | XTRA (XETRA Trading Platform) | Yes | Category A Bearer Shares | DE | EUR | Mar 1990 |
| VERV | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Category A Bearer Shares | GB | EUR | Mar 1990 |
| VER | SWX (SIX Swiss Exchange) | Yes | Category A Bearer Shares | CH | CHF | Mar 1990 |
| VER | SEP (The Stock Exchange Prague Co. Ltd.) | Yes | Category A Bearer Shares | CZ | CZK | Mar 1990 |
| OEWA | ETLX (Eurotlx) | Yes | Category A Bearer Shares | IT | EUR | Mar 1990 |
| OEZV.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Dec 1999 |
Biography
VERBUND AG, together with its subsidiaries, generates, trades, and sells electricity to energy exchanges, traders, energy utilities and industrial companies, and households and commercial customers in Austria and internationally. The company operates through Renewable Generation, Sales, Grid, and All Other segments. As of December 31, 2019, it operated hydropower plants with a capacity of 8,222 megawatts (MW); wind farms with a capacity of 418 MW; and thermal power plants with an electrical capacity of 1,094 MW. The company also owns and operates a transmission grid in Austria; and trades and sells gas, as well as provides energy-related services. The company was formerly known as Österreichische Elektrizitätswirtschafts- Aktiengesellschaft and changed its name to VERBUND AG in 2010. VERBUND AG was founded in 1947 and is headquartered in Vienna, Austria.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/10 01:54 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.