PNE (XTRA:PNE3) - Share price, News & Analysis

PNE3 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

PNE3 Stock Overview

PNE AG engages in the development, planning, realization, financing, operation, and sales of wind and photovoltaic (PV) farms and transformer stations in Germany and internationally.

Rewards

Trading at 5.4% below our estimate of its fair value

Earnings are forecast to grow 31.06% per year

Earnings grew by 1267.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

PNE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PNE
Historical stock prices
Current Share Price	€13.00
52 Week High	€13.66
52 Week Low	€6.58
Beta	0.69
1 Month Change	-1.52%
3 Month Change	40.09%
1 Year Change	73.80%
3 Year Change	422.09%
5 Year Change	411.01%
Change since IPO	-68.11%

Shareholder Returns

	PNE3	DE Electrical	DE Market
7D	-3.6%	-0.4%	-0.1%
1Y	73.8%	-34.6%	-22.0%

Return vs Industry: PNE3 exceeded the German Electrical industry which returned -35.9% over the past year.

Return vs Market: PNE3 exceeded the German Market which returned -23% over the past year.

Price Volatility

Is PNE3's price volatile compared to industry and market?
PNE3 volatility
PNE3 Average Weekly Movement	4.5%
Electrical Industry Average Movement	6.4%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.0%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: PNE3 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PNE3's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	495	Markus Lesser	https://www.pne-ag.com

PNE AG engages in the development, planning, realization, financing, operation, and sales of wind and photovoltaic (PV) farms and transformer stations in Germany and internationally. The company develops, constructs, and sells onshore and offshore wind farms under the PNE and WKN brand names, as well as PVs; provides technical and commercial operations management services for wind farms, PV plants, and transformer stations; and generates electricity from wind and biomass power plant. It is also involved in the development photovoltaics and hybrid solutions.

PNE Fundamentals Summary

How do PNE's earnings and revenue compare to its market cap?
PNE3 fundamental statistics
Market Cap	€992.37m
Earnings (TTM)	€34.09m
Revenue (TTM)	€131.14m

29.1x

P/E Ratio

7.6x

P/S Ratio

Is PNE3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PNE3 income statement (TTM)
Revenue	€131.14m
Cost of Revenue	€39.47m
Gross Profit	€91.67m
Other Expenses	€57.59m
Earnings	€34.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	0.45
Gross Margin	69.90%
Net Profit Margin	25.99%
Debt/Equity Ratio	181.6%

How did PNE3 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PNE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PNE3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PNE3. This is calculated by dividing PNE3's market cap by their current preferred multiple.
What is PNE3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€992.37m

PNE3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.3x
Enterprise Value/EBITDA	41.4x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does PNE3's PE Ratio compare to its peers?

PNE3 PE Ratio vs Peers

The above table shows the PE ratio for PNE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	3047.5x

Forward PE

Price-To-Earnings vs Peers: PNE3 is good value based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (3047.5x).

Price to Earnings Ratio vs Industry

How does PNE3's PE Ratio compare vs other companies in the Electrical Industry?

Price-To-Earnings vs Industry: PNE3 is good value based on its Price-To-Earnings Ratio (29.1x) compared to the German Electrical industry average (30.1x)

Price to Earnings Ratio vs Fair Ratio

What is PNE3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PNE3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.1x
Fair PE Ratio	29.4x

Price-To-Earnings vs Fair Ratio: PNE3 is good value based on its Price-To-Earnings Ratio (29.1x) compared to the estimated Fair Price-To-Earnings Ratio (29.4x).

Share Price vs Fair Value

What is the Fair Price of PNE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PNE3 (€13) is trading below our estimate of fair value (€13.74)

Significantly Below Fair Value: PNE3 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: PNE3 is good value based on its PEG Ratio (0.9x)

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Future Growth

How is PNE forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

31.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNE3's forecast earnings growth (31.1% per year) is above the savings rate (-0.05%).

Earnings vs Market: PNE3's earnings (31.1% per year) are forecast to grow faster than the German market (8.3% per year).

High Growth Earnings: PNE3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PNE3's revenue (20.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: PNE3's revenue (20.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PNE3's Return on Equity is forecast to be low in 3 years time (1.8%).

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Past Performance

How has PNE performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-49.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PNE3 has a high level of non-cash earnings.

Growing Profit Margin: PNE3's current net profit margins (26%) are higher than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: PNE3's earnings have declined by 49.3% per year over the past 5 years.

Accelerating Growth: PNE3's earnings growth over the past year (1267.3%) exceeds its 5-year average (-49.3% per year).

Earnings vs Industry: PNE3 earnings growth over the past year (1267.3%) exceeded the Electrical industry 77.3%.

Return on Equity

High ROE: PNE3's Return on Equity (14.5%) is considered low.

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Financial Health

How is PNE's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PNE3's short term assets (€401.3M) exceed its short term liabilities (€109.8M).

Long Term Liabilities: PNE3's short term assets (€401.3M) do not cover its long term liabilities (€514.3M).

Debt to Equity History and Analysis

Debt Level: PNE3's net debt to equity ratio (109.2%) is considered high.

Reducing Debt: PNE3's debt to equity ratio has increased from 52.7% to 181.6% over the past 5 years.

Debt Coverage: PNE3's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: PNE3's interest payments on its debt are well covered by EBIT (3.5x coverage).

Balance Sheet

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Dividend

What is PNE current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.31%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PNE3's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: PNE3's dividend (0.31%) is low compared to the top 25% of dividend payers in the German market (4.57%).

Stability and Growth of Payments

Stable Dividend: PNE3 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: PNE3 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: PNE3 is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: PNE3 is paying a dividend but the company has no free cash flows.

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Management

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

2.6yrs

Average board tenure

CEO

Markus Lesser (57 yo)

11.17yrs

Tenure

€1,054,000

Compensation

Mr. Markus Lesser has been the Chief Executive Officer of PNE AG (Formally known as PNE Wind AG) since May 26, 2016 and as its Member of Management Board since April 01, 2011. Mr. Lesser serves as the Chai...

CEO Compensation Analysis

Compensation vs Market: Markus's total compensation ($USD1.11M) is about average for companies of similar size in the German market ($USD1.34M).

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

Board Members

Experienced Board: PNE3's board of directors are not considered experienced ( 2.6 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31