ASX:IFN

Stock Analysis Report

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Executive Summary

Infigen Energy Limited develops, owns, and operates renewable energy generation assets in Australia.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Infigen Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

35.8%

IFN

16.9%

AU Renewable Energy

2.7%

AU Market


1 Year Return

73.4%

IFN

45.4%

AU Renewable Energy

-6.6%

AU Market

Return vs Industry: IFN exceeded the Australian Renewable Energy industry which returned 45.4% over the past year.

Return vs Market: IFN exceeded the Australian Market which returned -6.6% over the past year.


Shareholder returns

IFNIndustryMarket
7 Day35.8%16.9%2.7%
30 Day56.7%23.1%12.2%
90 Day30.4%22.4%-2.8%
1 Year79.9%73.4%48.2%45.4%-2.7%-6.6%
3 Year3.1%-0.6%-50.9%-51.5%18.2%2.6%
5 Year199.4%181.0%-59.9%-60.3%33.2%4.4%

Price Volatility Vs. Market

How volatile is Infigen Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Infigen Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IFN (A$0.82) is trading below our estimate of fair value (A$3.23)

Significantly Below Fair Value: IFN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IFN is good value based on its PE Ratio (17x) compared to the Renewable Energy industry average (18.5x).

PE vs Market: IFN is poor value based on its PE Ratio (17x) compared to the Australian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: IFN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IFN is overvalued based on its PB Ratio (1.3x) compared to the AU Renewable Energy industry average (1.3x).


Next Steps

Future Growth

How is Infigen Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-32.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFN's earnings are forecast to decline over the next 3 years (-32.6% per year).

Earnings vs Market: IFN's earnings are forecast to decline over the next 3 years (-32.6% per year).

High Growth Earnings: IFN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IFN's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: IFN's revenue is forecast to decline over the next 3 years (-5.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IFN's Return on Equity is forecast to be low in 3 years time (3.6%).


Next Steps

Past Performance

How has Infigen Energy performed over the past 5 years?

48.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFN has high quality earnings.

Growing Profit Margin: IFN's current net profit margins (15.9%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: IFN has become profitable over the past 5 years, growing earnings by 48.9% per year.

Accelerating Growth: IFN's earnings growth over the past year (15%) is below its 5-year average (48.9% per year).

Earnings vs Industry: IFN earnings growth over the past year (15%) underperformed the Renewable Energy industry 80.8%.


Return on Equity

High ROE: IFN's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Infigen Energy's financial position?


Financial Position Analysis

Short Term Liabilities: IFN's short term assets (A$195.6M) exceed its short term liabilities (A$97.3M).

Long Term Liabilities: IFN's short term assets (A$195.6M) do not cover its long term liabilities (A$621.0M).


Debt to Equity History and Analysis

Debt Level: IFN's debt to equity ratio (103.2%) is considered high.

Reducing Debt: IFN's debt to equity ratio has reduced from 245% to 103.2% over the past 5 years.

Debt Coverage: IFN's debt is well covered by operating cash flow (24.5%).

Interest Coverage: IFN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Infigen Energy's current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IFN's dividend (2.45%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: IFN's dividend (2.45%) is low compared to the top 25% of dividend payers in the Australian market (6.54%).


Stability and Growth of Payments

Stable Dividend: IFN's dividend payments have been volatile in the past 10 years.

Growing Dividend: IFN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), IFN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IFN's dividends in 3 years are not forecast to be well covered by earnings (92% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Ross Rolfe

3.58yrs

Tenure

AU$1,852,228

Compensation

Mr. Ross Kenneth Rolfe, AO has been the Chief Executive Officer, Managing Director and Executive Director of Infigen Energy Limited since November 17, 2016. Mr. Rolfe initiated the transition of the busine ...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD1.29M) is above average for companies of similar size in the Australian market ($USD764.04K).

Compensation vs Earnings: Ross's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ross Rolfe
CEO, MD & Executive Director3.58yrsAU$1.85m0.013% A$106.0k
Sylvia Wiggins
Executive Director of Finance & Commercial and Executive Director4.17yrsAU$1.32m0.0013% A$9.8k
Tony Clark
Executive General Manager of Operations & Projects3.33yrsAU$673.26k0.0063% A$49.3k
Paul Simshauser
Executive General Manager of Energy Markets0.92yrAU$836.35kno data
Peter Campbell
General Manager of Investor Relationsno datano datano data
David Richardson
GM of Corporate Governance & Company Secretary14.67yrsAU$431.35kno data
Miles George
Strategic Advisorno dataAU$2.50mno data
Marju Tonisson
Manager of ESG & Investor Relationsno datano datano data

3.3yrs

Average Tenure

Experienced Management: IFN's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross Rolfe
CEO, MD & Executive Director3.58yrsAU$1.85m0.013% A$106.0k
Sylvia Wiggins
Executive Director of Finance & Commercial and Executive Director4.17yrsAU$1.32m0.0013% A$9.8k
Philip Green
Non-Executive Director9.58yrsno datano data
Mark Chellew
Independent Non-Executive Director2.75yrsAU$157.00kno data
Emma Stein
Independent Non Executive Director2.75yrsAU$159.00kno data
Leonard Gill
Independent Non-Executive Chairman2.5yrsAU$250.00k0.0069% A$54.0k
Karen Smith-Pomeroy
Independent Non-Executive Director1.5yrsAU$75.88kno data

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: IFN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Infigen Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infigen Energy Limited
  • Ticker: IFN
  • Exchange: ASX
  • Founded: 2003
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: AU$786.265m
  • Shares outstanding: 970.70m
  • Website: https://www.infigenenergy.com

Number of Employees


Location

  • Infigen Energy Limited
  • 56 Pitt Street
  • Level 17
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFNASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDOct 2005
B4UDB (Deutsche Boerse AG)YesStapled SecuritiesDEEUROct 2005
IFGN.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDOct 2005
IFNCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDOct 2005

Biography

Infigen Energy Limited develops, owns, and operates renewable energy generation assets in Australia. It has 557 megawatts of installed generation capacity in New South Wales, South Australia, and Western Australia. The company’s development pipeline comprises approximately 1,100 megawatts of wind and solar projects in Australia. Infigen Energy Limited was founded in 2003 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 10:39
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.