WBAG:VER

Stock Analysis Report

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.


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

VERIndustryMarket
7 Day7.0%4.3%8.9%
30 Day4.6%-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 Year155.2%148.6%43.0%26.2%-8.2%-16.2%
5 Year169.3%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

Valuation

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

NamePositionTenureCompensationOwnership
Wolfgang Anzengruber
Chairman of Executive Board & CEO11.83yrs€1.33mno data
Michael Strugl
Deputy CEO & Vice Chairman of the Board1.25yrs€685.00kno data
Peter Kollmann
CFO & Member of the Executive Board6.25yrs€1.01mno data
Achim Kaspar
Member of Executive Board1.25yrs€475.00kno data
Andreas Wollein
Head of Group Financeno datano datano data
Beate McGinn
Head of Group Communicationsno datano datano 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

NamePositionTenureCompensationOwnership
Werner Muhm
Member of Supervisory Board5yrs€24.00kno data
Kurt Christof
Employee representative Member of Supervisory Board16.08yrs€4.00kno data
Martin Ohneberg
1st Deputy Chair of Supervisory Board1yr€22.50kno data
Elisabeth Engelbrechtsmüller-Strauß
2nd Vice-Chairwoman of Supervisory Board5yrs€55.00kno data
Harald Kaszanits
Member of Supervisory Board10yrs€24.00kno data
Christa Wagner
Member of Supervisory Board10yrs€16.33kno data
Wolfgang Liebscher
Employee representative Member of Supervisory Board6.42yrs€3.50kno data
Susanne Riess
Member of Supervisory Board5yrs€12.00kno data
Jürgen Roth
Member of Supervisory Board5yrs€20.17kno data
Thomas Schmid
Chairman of Supervisory Board1yr€47.33kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VERWBAG (Wiener Boerse AG)YesCategory A Bearer SharesATEURMar 1990
OEWADB (Deutsche Boerse AG)YesCategory A Bearer SharesDEEURMar 1990
0NR1LSE (London Stock Exchange)YesCategory A Bearer SharesGBEURMar 1990
OEZV.FOTCPK (Pink Sheets LLC)YesCategory A Bearer SharesUSUSDMar 1990
OEWAXTRA (XETRA Trading Platform)YesCategory A Bearer SharesDEEURMar 1990
VERVBATS-CHIXE (BATS 'Chi-X Europe')YesCategory A Bearer SharesGBEURMar 1990
VERSWX (SIX Swiss Exchange)YesCategory A Bearer SharesCHCHFMar 1990
VERSEP (The Stock Exchange Prague Co. Ltd.)YesCategory A Bearer SharesCZCZKMar 1990
OEWAETLX (Eurotlx)YesCategory A Bearer SharesITEURMar 1990
OEZV.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 01:54
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.