SWX:HREN

Stock Analysis Report

Romande Energie Holding

Executive Summary

Romande Energie Holding SA engages in the generation, distribution, and marketing of electricity in Switzerland.

Rewards

Trading at 30.5% below its fair value

Earnings are forecast to grow 25% per year

Pays a reliable dividend of 3.08%

Risk Analysis

Profit margins (8.2%) are lower than last year (19.3%)

Latest financial reports are more than 6 months old



Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.

Share Price & News

How has Romande Energie Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HREN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

HREN

1.8%

CH Electric Utilities

0.6%

CH Market


1 Year Return

0%

HREN

16.8%

CH Electric Utilities

15.4%

CH Market

Return vs Industry: HREN underperformed the Swiss Electric Utilities industry which returned 16.8% over the past year.

Return vs Market: HREN underperformed the Swiss Market which returned 15.4% over the past year.


Shareholder returns

HRENIndustryMarket
7 Day-0.8%1.8%0.6%
30 Day-1.7%1.9%0.9%
90 Day-3.3%1.0%2.9%
1 Year3.0%0%21.5%16.8%21.0%15.4%
3 Year-0.5%-8.9%58.1%37.4%38.5%20.4%
5 Year29.9%12.1%56.3%21.5%39.6%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Romande Energie Holding undervalued compared to its fair value and its price relative to the market?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HREN (CHF1170) is trading below our estimate of fair value (CHF1684.12)

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


Price To Earnings Ratio

PE vs Industry: HREN is poor value based on its PE Ratio (24.6x) compared to the Electric Utilities industry average (13.5x).

PE vs Market: HREN is poor value based on its PE Ratio (24.6x) compared to the Swiss market (20x).


Price to Earnings Growth Ratio

PEG Ratio: HREN is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HREN is good value based on its PB Ratio (0.7x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Romande Energie Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HREN's forecast earnings growth (25% per year) is above the savings rate (-0.6%).

Earnings vs Market: HREN's earnings (25% per year) are forecast to grow faster than the Swiss market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HREN's revenue (3.1% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: HREN's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HREN's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Romande Energie Holding performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HREN has high quality earnings.

Growing Profit Margin: HREN's current net profit margins (8.2%) are lower than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: HREN has become profitable over the past 5 years, growing earnings by 36.7% per year.

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

Earnings vs Industry: HREN had negative earnings growth (-55.6%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.4%).


Return on Equity

High ROE: HREN's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Romande Energie Holding's financial position?


Financial Position Analysis

Short Term Liabilities: HREN's short term assets (CHF483.3M) exceed its short term liabilities (CHF124.8M).

Long Term Liabilities: HREN's short term assets (CHF483.3M) exceed its long term liabilities (CHF240.7M).


Debt to Equity History and Analysis

Debt Level: HREN's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: HREN's debt to equity ratio has increased from 5.8% to 6.1% over the past 5 years.

Debt Coverage: HREN's debt is well covered by operating cash flow (89.2%).

Interest Coverage: HREN's interest payments on its debt are well covered by EBIT (42.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: HREN's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Romande Energie Holding's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.7%markettop25%3.6%industryaverage4.0%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: HREN's dividend (3.08%) is higher than the bottom 25% of dividend payers in the Swiss market (1.75%).

High Dividend: HREN's dividend (3.08%) is low compared to the top 25% of dividend payers in the Swiss market (3.56%).


Stability and Growth of Payments

Stable Dividend: HREN's dividends per share have been stable in the past 10 years.

Growing Dividend: HREN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), HREN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Pierre-Alain Urech (64yo)

15.4yrs

Tenure

CHF885,383

Compensation

Mr. Pierre-Alain Urech serves as Vice Chairman of the Board at Swiss Federal Railways since 2019. He has been the Chief Executive Officer and Member of Executive Board of Romande Energie Holding SA since J ...


CEO Compensation Analysis

Compensation vs Market: Pierre-Alain's total compensation ($USD0.00) is below average for companies of similar size in the Swiss market ($USD1.20M).

Compensation vs Earnings: Pierre-Alain's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: HREN's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

11.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HREN's board of directors are seasoned and experienced ( 11.9 years average tenure).


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

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


Management Team

  • Pierre-Alain Urech (64yo)

    CEO & Member of Executive Board

    • Tenure: 15.4yrs
    • Compensation: CHF885.38k
  • Denis Matthey (61yo)

    CFO, Deputy CEO & Member of Executive Board

    • Tenure: 0yrs
  • René Lauckner

    Treasurer

    • Tenure: 0yrs
  • Philippe Durr (55yo)

    Head of Romande Energie Commerce SA & Member of Executive Board

    • Tenure: 6.9yrs
  • Christian Frère (60yo)

    Head of Energy Business Unit & Member of Executive Board

    • Tenure: 7.9yrs
  • Patrick Bertschy (51yo)

    Head of Networks business unit & Member of Executive Board

    • Tenure: 5.9yrs
  • Jean-Daniel Habegger (54yo)

    Head of Human Resources & Member of Executive Board

    • Tenure: 8yrs
  • Daniel Hammer (49yo)

    Corporate Secretary

    • Tenure: 2.5yrs
  • Michèle Cassani

    Head of Corporate Communications

    • Tenure: 2.3yrs
  • Oliviero Iubatti (47yo)

    Head of Romande Energie Services SA & Member of Executive Board

    • Tenure: 3.9yrs

Board Members

  • Guy Mustaki (59yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CHF132.66k
  • Jean-Jacques Miauton (68yo)

    Director

    • Tenure: 22.9yrs
    • Compensation: CHF65.26k
  • Jean-Yves Pidoux (63yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: CHF42.60k
  • Grobéty Bernard (69yo)

    Director

    • Tenure: 17.9yrs
    • Compensation: CHF62.14k
  • Paola Ghillani (56yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: CHF51.13k
  • Wolfgang Martz (65yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CHF60.32k
  • Budry Christian (62yo)

    Director

    • Tenure: 16.9yrs
    • Compensation: CHF54.86k
  • Veuthey Alphonse-Marie (54yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: CHF86.07k
  • Balsiger Laurent (49yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: CHF43.80k
  • Elina Leimgruber (51yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: CHF24.41k

Company Information

Romande Energie Holding SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Romande Energie Holding SA
  • Ticker: HREN
  • Exchange: SWX
  • Founded: 1901
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: CHF1.186b
  • Shares outstanding: 1.03m
  • Website: https://www.romande-energie.ch

Number of Employees


Location

  • Romande Energie Holding SA
  • Rue de Lausanne 53
  • Morges
  • Vaud
  • 1110
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRENSWX (SIX Swiss Exchange)YesBearer SharesCHCHFSep 1992
CVNADB (Deutsche Boerse AG)YesBearer SharesDEEURSep 1992
0QQGLSE (London Stock Exchange)YesBearer SharesGBCHFSep 1992

Biography

Romande Energie Holding SA engages in the generation, distribution, and marketing of electricity in Switzerland. It operates through Marketing, Networks, Energy, and Energy Services segments. The company g ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:51
End of Day Share Price2019/12/10 00:00
Earnings2018/12/31
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.