SWX:BKW

Stock Analysis Report

Executive Summary

BKW AG designs, builds, and operates infrastructure to produce and supply energy for businesses, households, and the public sector in Switzerland, Germany, Italy, France, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

BKW

-0.3%

CH Electric Utilities

1.7%

CH Market


1 Year Return

24.9%

BKW

21.4%

CH Electric Utilities

11.8%

CH Market

Return vs Industry: BKW exceeded the Swiss Electric Utilities industry which returned 21.4% over the past year.

Return vs Market: BKW exceeded the Swiss Market which returned 11.8% over the past year.


Share holder returns

BKWIndustryMarket
7 Day-0.3%-0.3%1.7%
30 Day2.4%-0.7%-0.3%
90 Day9.5%2.4%2.8%
1 Year28.3%24.9%26.2%21.4%17.8%11.8%
3 Year74.9%61.1%58.7%38.3%34.1%20.7%
5 Year203.7%157.2%52.4%13.7%43.5%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BKW undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: BKW (CHF73.7) is trading below our estimate of fair value (CHF152.77)

Significantly Undervalued: BKW is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: BKW is poor value based on its PE Ratio (15x) compared to the Electric Utilities industry average (11.8x).

PE vs Market: BKW is good value based on its PE Ratio (15x) compared to the Swiss market (18.7x).


Price Based on Expected Growth

Low PEG Ratio: BKW is poor value based on its PEG Ratio (4x)


Price Based on Value of Assets

PB vs Industry: BKW is overvalued based on its PB Ratio (1.2x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is BKW expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BKW's forecast earnings growth (3.7% per year) is above the savings rate (3.3%).

Earnings vs Market: BKW's earnings (3.7% per year) are forecast to grow slower than the Swiss market (10.4% per year).

High Growth Earnings: BKW's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKW's revenue (6.2% per year) is forecast to grow faster than the Swiss market (3.6% per year).

High Growth Revenue: BKW's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BKW's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has BKW performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKW has become profitable over the past 5 years, growing earnings by 9.6% per year.

Accelerating Growth: BKW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BKW had negative earnings growth (-2.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (2.3%).


Return on Equity

High ROE: BKW's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: BKW's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: BKW has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BKW's financial position?


Financial Position Analysis

Short Term Liabilities: BKW's short term assets (CHF2.1B) exceeds its short term liabilities (CHF1.5B)

Long Term Liabilities: BKW's short term assets (2.1B) do not cover its long term liabilities (4.1B)


Debt to Equity History and Analysis

Debt Level: BKW's debt to equity ratio (42.8%) is considered high

Reducing Debt: BKW's debt to equity ratio has reduced from 62.8% to 42.8% over the past 5 years.

Debt Coverage: BKW's debt is well covered by operating cash flow (26.3%).

Interest Coverage: BKW's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: BKW has a high level of physical assets or inventory.

Debt Coverage by Assets: BKW's debt is covered by short term assets (assets are 1.398700x debt).


Next Steps

Dividend

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

2.59%

Expected Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.9%markettop25%3.7%industryaverage4.7%forecastin3Years2.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BKW's dividend (2.44%) is higher than the bottom 25% of dividend payers in the Swiss market (1.93%).

High Dividend: BKW's dividend (2.44%) is low compared to the top 25% of dividend payers in the Swiss market (3.69%).

Stable Dividend: Whilst dividend payments have been stable, BKW has been paying a dividend for less than 10 years.

Growing Dividend: BKW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.6%), BKW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKW's dividends in 3 years are forecast to be well covered by earnings (42.9% payout ratio).


Next Steps

Management

What is the CEO of BKW's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Suzanne Thoma (57yo)

6.8yrs

Tenure

CHF2,031,000

Compensation

Dr. Suzanne Thoma, Ph.D., Chemical Engineer ETH, has been the Chief Executive Officer of BKW Energie AG since 2013, Head of Group Management since 2010 and serves as its Member of Executive Board. Dr. Thom ...


CEO Compensation Analysis

Compensation vs. Market: Suzanne's total compensation ($USD2.04M) is about average for companies of similar size in the Swiss market ($USD1.65M).

Compensation vs Earnings: Suzanne's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BKW's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: BKW's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hermann Ineichen (62yo)

    Head of Production

    • Tenure: 19.8yrs
  • Roland Küpfer (61yo)

    Head of Networks & Member of Group Executive Board

    • Tenure: 0yrs
  • Ronald Trächsel (60yo)

    CFO & Member of the Group Executive Board

    • Tenure: 5.2yrs
  • Mathias Prüssing (52yo)

    Head of the Building Solutions Division & Member of the Executive Board

    • Tenure: 0yrs
  • Suzanne Thoma (57yo)

    CEO & Member of the Group Executive Board

    • Tenure: 6.8yrs
    • Compensation: CHF2.03m
  • Rahel Parnitzki

    Head of Business Operations

    • Tenure: 0yrs
  • Antje Kanngiesser (45yo)

    Head of the Group Markets & Services division and Member of Executive Board

    • Tenure: 2.8yrs
  • Martin Schweikert (52yo)

    Head of Corporate Communications & Member of the Executive Board

    • Tenure: 0yrs
  • Werner Sturm (55yo)

    Head of Infra Services Division & Member of the Executive Board

    • Tenure: 0yrs
  • Michael Schüepp (57yo)

    Head of Engineering Division & Member of the Executive Board

    • Tenure: 0yrs

Board Members

  • Kurt Schär (54yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: CHF79.00k
  • Roger Baillod (61yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: CHF91.00k
  • Urs Gasche (64yo)

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: CHF387.00k
  • Carole Ackermann (49yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: CHF51.00k
  • Hartmut Geldmacher (64yo)

    • Tenure: 1.8yrs
    • Compensation: CHF132.00k
  • Rebecca Flückiger (47yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: CHF43.00k
  • Andreas Rickenbacher (51yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CHF54.00k

Company Information

BKW AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BKW AG
  • Ticker: BKW
  • Exchange: SWX
  • Founded: 1898
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CHF3.886b
  • Shares outstanding: 52.73m
  • Website: https://www.bkw.ch

Number of Employees


Location

  • BKW AG
  • Viktoriaplatz 2
  • Bern
  • Bern
  • 3013
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKWSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFDec 2011
B9WDB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 2011
0QQ0LSE (London Stock Exchange)YesRegistered SharesGBCHFDec 2011

Biography

BKW AG designs, builds, and operates infrastructure to produce and supply energy for businesses, households, and the public sector in Switzerland, Germany, Italy, France, and internationally. It operates t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:12
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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