New Risk • May 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.0% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.0% per year for the foreseeable future. Minor Risks High level of debt (58% net debt to equity). Dividend is not well covered by cash flows (221% cash payout ratio). Announcement • May 07
CEZ, a. s. to Report Q1, 2026 Results on May 14, 2026 CEZ, a. s. announced that they will report Q1, 2026 results at 7:00 AM, Central European Standard Time on May 14, 2026 Announcement • Apr 29
CEZ, a. s., Annual General Meeting, Jun 01, 2026 CEZ, a. s., Annual General Meeting, Jun 01, 2026. Reported Earnings • Apr 29
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: Kč52.36 (down from Kč54.33 in FY 2024). Revenue: Kč330.7b (down 2.9% from FY 2024). Net income: Kč28.1b (down 3.6% from FY 2024). Profit margin: 8.5% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is expected to decline by 2.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.6%. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Mar 15
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: Kč52.36 (down from Kč55.76 in FY 2024). Revenue: Kč330.7b (down 2.9% from FY 2024). Net income: Kč28.1b (down 6.1% from FY 2024). Profit margin: 8.5% (down from 8.8% in FY 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.8%. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Feb 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Czech stocks, typically moving 4.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (85% net debt to equity). Dividend is not well covered by cash flows (146% cash payout ratio). Share price has been volatile over the past 3 months (4.2% average weekly change). Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to Kč1,135, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Electric Utilities industry in Europe. Total returns to shareholders of 73% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kč1,805 per share. Reported Earnings • Nov 12
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: Kč10.30 (up from Kč4.40 in 3Q 2024). Revenue: Kč72.9b (down 12% from 3Q 2024). Net income: Kč5.51b (up 135% from 3Q 2024). Profit margin: 7.6% (up from 2.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is expected to decline by 5.8% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.8%. Over the last 3 years on average, earnings per share has increased by 20% per year whereas the company’s share price has increased by 16% per year. Buy Or Sell Opportunity • Sep 02
Now 20% undervalued Over the last 90 days, the stock has risen 8.2% to Kč1,301. The fair value is estimated to be Kč1,629, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has declined by 49%. Revenue is forecast to decline by 15% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Reported Earnings • Aug 10
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: Kč7.40 (down from Kč14.03 in 2Q 2024). Revenue: Kč74.2b (up 3.4% from 2Q 2024). Net income: Kč3.99b (down 47% from 2Q 2024). Profit margin: 5.4% (down from 11% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is expected to decline by 5.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.9%. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Aug 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks High level of debt (68% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Jun 25
CEZ, a. s. announces Annual dividend, payable on August 01, 2025 CEZ, a. s. announced Annual dividend of CZK 47.0000 per share payable on August 01, 2025, ex-date on June 26, 2025 and record date on June 27, 2025. Announcement • May 23
CEZ, a. s., Annual General Meeting, Jun 23, 2025 CEZ, a. s., Annual General Meeting, Jun 23, 2025, at 09:00 Central European Standard Time. Reported Earnings • May 02
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: Kč55.76 (up from Kč55.00 in FY 2023). Revenue: Kč340.5b (up 1.1% from FY 2023). Net income: Kč29.9b (up 1.4% from FY 2023). Profit margin: 8.8% (in line with FY 2023). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.7%. Revenue is expected to decline by 4.2% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.1%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Apr 18
Veolia Environnement SA (ENXTPA:VIE) completed the acquisition of an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ). Veolia Environnement SA (ENXTPA:VIE) concluded an agreement to acquire an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ) on February 4, 2025. The settlement of the transaction is subject to assessment by the Ministry of Industry and Trade of the Czech Republic and is expected in April or May this year.
Veolia Environnement SA (ENXTPA:VIE) completed the acquisition of an additional 15% stake in Veolia Energie CR, a.s. from CEZ, a. s. (SEP:CEZ) on April 17, 2025. The transaction has approved by the Ministry of Industry and Trade of the Czech Republic. Reported Earnings • Mar 13
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: Kč55.80 (up from Kč55.00 in FY 2023). Revenue: Kč344.7b (up 2.4% from FY 2023). Net income: Kč29.9b (up 1.4% from FY 2023). Profit margin: 8.7% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 2.7%. Revenue is expected to decline by 4.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 3.0%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Feb 18
CEZ, a. s. (SEP:CEZ) acquired Kabelová Televize Cz s.r.o. for approximately CZK 180 million. CEZ, a. s. (SEP:CEZ) acquired Kabelová Televize Cz s.r.o. for approximately CZK 180 million on May 31, 2022. A cash consideration of CZK 176 million will be paid by CEZ, a. s. As part of consideration, CZK 176 million is paid towards common equity of Kabelová Televize Cz s.r.o.
CEZ, a. s. (SEP:CEZ) completed the acquisition of Kabelová Televize Cz s.r.o. for approximately CZK 180 million on May 31, 2022. Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: Kč4.40 (vs Kč14.00 in 3Q 2023) Third quarter 2024 results: EPS: Kč4.40 (down from Kč14.00 in 3Q 2023). Revenue: Kč82.4b (up 7.4% from 3Q 2023). Net income: Kč2.34b (down 69% from 3Q 2023). Profit margin: 2.8% (down from 9.8% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 5.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.2%. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 7% per year. Announcement • Oct 08
CEZ, a. s. (SEP:CEZ) acquired unknown minority stake in Rolls-Royce SMR Ltd. CEZ, a. s. (SEP:CEZ) acquired unknown minority stake in Rolls-Royce SMR Ltd on October 7, 2024.
CEZ, a. s. (SEP:CEZ) completed the acquisition of unknown minority stake in Rolls-Royce SMR Ltd on October 7, 2024. Announcement • Aug 29
CEZ, a. s. (SEP:CEZ) completed the acquisition of 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for €846.5 million on March 20, 2024.The purchase price will be financed with a bridge loan underwritten by a syndicate of commercial banks, with a subsequent refinancing facilitated via the bond market. A loan agreement of €840 million has been signed by CEZ with seven banks including Barclays Bank; CaixaBank, Polish Branch; Citibank, London Branch; Commerzbank Aktiengesellschaft, Intesa Sanpaolo IMI-CIB, Komercni banka, and SMBC Bank EU. The completion of the transaction is subject to approvals by the European Commission and the Czech Ministry of Industry and Trade. The transaction is expected to reach financial close in Q3 2024. Morgan Stanley Australia Securities Limited acted as financial advisor to Macquarie Asset Management Inc. Jan Skuhravy of Allen & Overy acted as legal advisor to Macquarie Asset Management. Roman Janecek, Jiri Kindl, and Pavel Grim of Skils acted as legal advisor to CEZ.
CEZ, a. s. (SEP:CEZ) completed the acquisition of 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. on August 29, 2024. The transaction has already been approved by the Czech Ministry of Industry and Trade and the European Commission. New Risk • Aug 10
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 98% Cash payout ratio: 116% Minor Risks High level of debt (47% net debt to equity). Profit margins are more than 30% lower than last year (8.6% net profit margin). Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: Kč14.10 (vs Kč21.31 in 2Q 2023) Second quarter 2024 results: EPS: Kč14.10 (down from Kč21.31 in 2Q 2023). Revenue: Kč74.3b (down 2.0% from 2Q 2023). Net income: Kč7.56b (down 34% from 2Q 2023). Profit margin: 10% (down from 15% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 3.0% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 1.2%. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • May 26
CEZ, a. s., Annual General Meeting, Jun 24, 2024 CEZ, a. s., Annual General Meeting, Jun 24, 2024, at 09:00 Central European Standard Time. New Risk • May 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 48% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Cash payout ratio: 145% Earnings are forecast to decline by an average of 1.4% per year for the foreseeable future. Minor Risks High level of debt (48% net debt to equity). Profit margins are more than 30% lower than last year (9.8% net profit margin). Reported Earnings • May 15
First quarter 2024 earnings released: EPS: Kč25.20 (vs Kč20.10 in 1Q 2023) First quarter 2024 results: EPS: Kč25.20 (up from Kč20.10 in 1Q 2023). Revenue: Kč87.4b (down 3.9% from 1Q 2023). Net income: Kč13.5b (up 26% from 1Q 2023). Profit margin: 16% (up from 12% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to decline by 3.4% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 24
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: Kč55.00 (down from Kč151 in FY 2022). Revenue: Kč336.8b (up 18% from FY 2022). Net income: Kč29.5b (down 64% from FY 2022). Profit margin: 8.8% (down from 28% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.4%. Earnings per share (EPS) missed analyst estimates by 16%. Revenue is forecast to decline by 4.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Mar 21
CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for an enterprise value of €4 billion. CEZ, a. s. (SEP:CEZ) agreed to acquire 55.21% stake in Czech Grid Holding, a.s. from Macquarie Asset Management Inc. for an enterprise value of €4 billion on March 20, 2024. The transaction is expected to reach financial close in Q3 2024. Buying Opportunity • Jan 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 7.1%. The fair value is estimated to be Kč1,181, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 82%. For the next 3 years, revenue is forecast to grow by 0.3% per annum. Earnings is forecast to decline by 6.6% per annum over the same time period. New Risk • Nov 10
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 62% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Minor Risks High level of debt (62% net debt to equity). Dividend is not well covered by earnings (134% payout ratio). Announcement • Oct 25
CEZ, a. s. to Report Q3, 2023 Results on Nov 09, 2023 CEZ, a. s. announced that they will report Q3, 2023 results at 7:00 AM, Central European Standard Time on Nov 09, 2023 Reported Earnings • Aug 13
Second quarter 2023 earnings released: EPS: Kč21.30 (vs Kč12.90 in 2Q 2022) Second quarter 2023 results: EPS: Kč21.30 (up from Kč12.90 in 2Q 2022). Revenue: Kč76.3b (up 40% from 2Q 2022). Net income: Kč11.5b (up 66% from 2Q 2022). Profit margin: 15% (up from 13% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 3.9% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Announcement • Aug 03
CEZ, a. s. to Report Q2, 2023 Results on Aug 10, 2023 CEZ, a. s. announced that they will report Q2, 2023 results at 7:00 AM, Central European Standard Time on Aug 10, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of Kč117 per share at 11% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 01 August 2023. Payout ratio is on the higher end at 97%, and the cash payout ratio is above 100%. Trailing yield: 11%. Within top quartile of Czech dividend payers (9.0%). Higher than average of industry peers (4.9%). Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to Kč1,041, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Electric Utilities industry in Europe. Total returns to shareholders of 167% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Kč1,106 per share. Announcement • May 12
CEZ, a. s., Annual General Meeting, Jun 26, 2023 CEZ, a. s., Annual General Meeting, Jun 26, 2023. Reported Earnings • May 12
First quarter 2023 earnings released: EPS: Kč20.10 (vs Kč49.83 in 1Q 2022) First quarter 2023 results: EPS: Kč20.10 (down from Kč49.83 in 1Q 2022). Revenue: Kč93.4b (up 25% from 1Q 2022). Net income: Kč10.8b (down 60% from 1Q 2022). Profit margin: 12% (down from 36% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 3.2% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • May 10
CEZ, a. s. to Report Q1, 2023 Results on May 11, 2023 CEZ, a. s. announced that they will report Q1, 2023 results at 7:00 AM, Central European Standard Time on May 11, 2023 Major Estimate Revision • Apr 14
Consensus revenue estimates decrease by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from Kč340.0b to Kč303.4b. EPS estimate unchanged from Kč65.45 per share at last update. Electric Utilities industry in Czech Republic expected to see average net income growth of 5.0% next year. Consensus price target broadly unchanged at Kč967. Share price rose 5.9% to Kč1,202 over the past week. Reported Earnings • Mar 24
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: Kč151 (up from Kč18.26 in FY 2021). Revenue: Kč285.5b (up 27% from FY 2021). Net income: Kč80.8b (up Kč71.0b from FY 2021). Profit margin: 28% (up from 4.4% in FY 2021). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 22%. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 3.7% decline forecast for the Electric Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Price Target Changed • Dec 27
Price target decreased to Kč1,007 Down from Kč1,101, the current price target is an average from 11 analysts. New target price is 31% above last closing price of Kč767. Stock is down 7.5% over the past year. The company is forecast to post earnings per share of Kč122 for next year compared to Kč18.26 last year. Major Estimate Revision • Nov 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from Kč309.9b to Kč294.0b. EPS estimate rose from Kč112 to Kč125. Net income forecast to grow 5.1% next year vs 1.6% growth forecast for Electric Utilities industry in Czech Republic. Consensus price target broadly unchanged at Kč1,120. Share price was steady at Kč820 over the past week. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: Kč34.80 (vs Kč9.60 in 3Q 2021) Third quarter 2022 results: EPS: Kč34.80 (up from Kč9.60 in 3Q 2021). Revenue: Kč79.9b (up 71% from 3Q 2021). Net income: Kč18.7b (up 265% from 3Q 2021). Profit margin: 23% (up from 11% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth.