XTRA:2GB

Stock Analysis Report

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Executive Summary

2G Energy AG, together with its subsidiaries, develops, manufactures, and installs combined heat and power (CHP) systems, and other systems for the recovery of electrical energy in Germany and internationally. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has 2G Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2GB is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2GB's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

-3.0%

2GB

-1.7%

DE Electrical

0.7%

DE Market


1 Year Return

93.9%

2GB

49.6%

DE Electrical

3.6%

DE Market

Return vs Industry: 2GB exceeded the German Electrical industry which returned 49.6% over the past year.

Return vs Market: 2GB exceeded the German Market which returned 3.6% over the past year.


Shareholder returns

2GBIndustryMarket
7 Day-3.0%-1.7%0.7%
30 Day12.8%12.8%5.5%
90 Day51.4%43.9%12.4%
1 Year95.2%93.9%49.8%49.6%6.9%3.6%
3 Year421.2%402.1%39.0%34.9%5.4%-3.9%
5 Year425.4%386.7%35.0%27.7%41.6%21.8%

Long-Term Price Volatility Vs. Market

How volatile is 2G Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 2G Energy undervalued compared to its fair value and its price relative to the market?

41.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2GB (€95.4) is trading above our estimate of fair value (€75.4)

Significantly Below Fair Value: 2GB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2GB is poor value based on its PE Ratio (41.3x) compared to the DE Electrical industry average (39.9x).

PE vs Market: 2GB is poor value based on its PE Ratio (41.3x) compared to the German market (24.4x).


Price to Earnings Growth Ratio

PEG Ratio: 2GB is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 2GB is overvalued based on its PB Ratio (6.2x) compared to the DE Electrical industry average (4.7x).


Next Steps

Future Growth

How is 2G Energy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2GB's forecast earnings growth (18.3% per year) is above the savings rate (0.07%).

Earnings vs Market: 2GB's earnings (18.3% per year) are forecast to grow slower than the German market (25% per year).

High Growth Earnings: 2GB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2GB's revenue (9.7% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: 2GB's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2GB's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has 2G Energy performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2GB has high quality earnings.

Growing Profit Margin: 2GB's current net profit margins (4.5%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 2GB's earnings have grown significantly by 28.3% per year over the past 5 years.

Accelerating Growth: 2GB's earnings growth over the past year (21%) is below its 5-year average (28.3% per year).

Earnings vs Industry: 2GB earnings growth over the past year (21%) exceeded the Electrical industry 20.1%.


Return on Equity

High ROE: 2GB's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is 2G Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 2GB's short term assets (€123.9M) exceed its short term liabilities (€78.5M).

Long Term Liabilities: 2GB's short term assets (€123.9M) exceed its long term liabilities (€8.0M).


Debt to Equity History and Analysis

Debt Level: 2GB's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: 2GB's debt to equity ratio has increased from 13.1% to 15.2% over the past 5 years.

Debt Coverage: 2GB's debt is well covered by operating cash flow (86.7%).

Interest Coverage: 2GB's interest payments on its debt are well covered by EBIT (43x coverage).


Balance Sheet


Next Steps

Dividend

What is 2G Energy current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2GB's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the German market (0.97%).

High Dividend: 2GB's dividend (0.47%) is low compared to the top 25% of dividend payers in the German market (3.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2GB has been paying a dividend for less than 10 years.

Growing Dividend: 2GB's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.5%), 2GB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2GB's dividends in 3 years are forecast to be well covered by earnings (16.6% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Christian Grotholt (52 yo)

13.58yrs

Tenure

Mr. Christian Grotholt has been the Chief Executive Officer of 2G energy AG (2G Bio-Energietechnik AG) since June 2007 and has been its Chairman of Management Board since July 17, 2007 & served as its Inte...


Leadership Team

NamePositionTenureCompensationOwnership
Christian Grotholt
Chairman of Management Board & CEO13.58yrsno data30%
€ 126.9m
Friedrich Pehle
CFO & Member of Management Board3.08yrsno datano data
Ludger Holtkamp
COO & Member of Management Board13.5yrsno datano data
Frank Grewe
CTO & Member of the Management Board0.50yrno datano data

8.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 2GB's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lukas Lenz
Chairman of Supervisory Board13.5yrsno datano data
Wiebe Hofstra
Member of Supervisory Board13.5yrsno datano data
Heinrich Bertling
Deputy Chairman of Supervisory Board8.42yrsno datano data

13.5yrs

Average Tenure

76yo

Average Age

Experienced Board: 2GB's board of directors are seasoned and experienced ( 13.5 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

2G Energy AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 2G Energy AG
  • Ticker: 2GB
  • Exchange: XTRA
  • Founded: 1995
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: €423.065m
  • Shares outstanding: 4.43m
  • Website: https://www.2-g.com

Number of Employees


Location

  • 2G Energy AG
  • Benzstrasse 3
  • Heek
  • North Rhine-Westphalia
  • 48619
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2GBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007
2GBXTRA (XETRA Trading Platform)YesCommon StockDEEURJul 2007
ZGBE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2007
2GBDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJul 2007

Biography

2G Energy AG, together with its subsidiaries, develops, manufactures, and installs combined heat and power (CHP) systems, and other systems for the recovery of electrical energy in Germany and internationa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 19:34
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
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.