DB:2IE

Stock Analysis Report

Infraestructura Energética Nova. de

Executive Summary

Infraestructura Energética Nova, S.A.B. de C.V.


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Infraestructura Energética Nova. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2IE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

2IE

-6.2%

DE Gas Utilities

-5.7%

DE Market


1 Year Return

24.9%

2IE

0.8%

DE Gas Utilities

6.1%

DE Market

Return vs Industry: 2IE exceeded the German Gas Utilities industry which returned 0.8% over the past year.

Return vs Market: 2IE exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

2IEIndustryMarket
7 Day-3.7%-6.2%-5.7%
30 Day0.5%-2.9%-5.7%
90 Day13.4%0.7%-3.6%
1 Year29.1%24.9%5.6%0.8%9.3%6.1%
3 Year13.8%4.2%41.8%22.7%8.9%-0.7%
5 Year7.9%-7.3%46.7%9.7%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Infraestructura Energética Nova. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Infraestructura Energética Nova. de undervalued compared to its fair value and its price relative to the market?

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2IE (€4.22) is trading below our estimate of fair value (€6.02)

Significantly Below Fair Value: 2IE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2IE is good value based on its PE Ratio (14.8x) compared to the Gas Utilities industry average (16.5x).

PE vs Market: 2IE is good value based on its PE Ratio (14.8x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2IE is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: 2IE is overvalued based on its PB Ratio (1.4x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is Infraestructura Energética Nova. de forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2IE's forecast earnings growth (4.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2IE's earnings (4.4% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: 2IE's revenue (6.1% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 2IE's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2IE's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Infraestructura Energética Nova. de performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2IE has high quality earnings.

Growing Profit Margin: 2IE's current net profit margins (33.9%) are higher than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: 2IE's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: 2IE's earnings growth over the past year (8.7%) is below its 5-year average (14% per year).

Earnings vs Industry: 2IE earnings growth over the past year (8.7%) underperformed the Gas Utilities industry 10.6%.


Return on Equity

High ROE: 2IE's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Infraestructura Energética Nova. de's financial position?


Financial Position Analysis

Short Term Liabilities: 2IE's short term assets ($465.6M) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: 2IE's short term assets ($465.6M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: 2IE's debt to equity ratio (66.3%) is considered high.

Reducing Debt: 2IE's debt to equity ratio has increased from 26% to 66.3% over the past 5 years.

Debt Coverage: 2IE's debt is well covered by operating cash flow (21.5%).

Interest Coverage: 2IE's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: 2IE has a high level of physical assets or inventory.

Debt Coverage by Assets: 2IE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Infraestructura Energética Nova. de's current dividend yield, its reliability and sustainability?

3.09%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.8%industryaverage5.2%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: 2IE's dividend (3.09%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: 2IE's dividend (3.09%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: 2IE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2IE has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.7%), 2IE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2IE's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Tania Ortíz Mena López Negrete (48yo)

1.4yrs

Tenure

0

Ms. Tania Ortíz Mena López Negrete has been Chief Executive Officer of Infraestructura Energética Nova, S.A.B. de C.V. since September 1, 2018 and Director since January 2019. She served as Director of Inf ...


Leadership Team

NamePositionTenureCompensationOwnership
Carlos Ruiz Sacristán
Chairman of the Board of Directors & Executive Chairman7.6yrsno datano data
Tania Ortíz Mena López Negrete
CEO & Director1.4yrsno datano data
Manuela Molina Peralta
Chief Financial Officer2.6yrsno datano data
Susan Bradham
Director of Investor Relations3.7yrsno datano data
René Buentello Carbonell
General Counsel3.8yrsno datano data
Carlos Barajas Sandoval
Chief Power & Storage Operating Officer2.1yrsno datano data
Jesús Córdoba Domínguez
Chief Engineering & Construction Officer3.7yrsno datano data
Juan Rodriguez Castañeda
Chief Natural Gas Operating Officer2.1yrsno datano data
Juancho Eekhout Smith
Chief Development Officer2.1yrsno datano data
Abraham Zamora Torres
Chief Corporate & Public Affairs Officer1.2yrsno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: 2IE's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carlos Ruiz Sacristán
Chairman of the Board of Directors & Executive Chairman7.6yrsno datano data
Tania Ortíz Mena López Negrete
CEO & Director1.4yrsno datano data
Dennis Arriola
Director2.8yrsno datano data
Aarón Dychter Poltolarek
Independent Director6.9yrsno datano data
Justin Bird
Director1.3yrsno datano data
Peter Wall
Director1.8yrsno datano data
José Julián Sidaoui Dib
Independent Director3yrsno datano data
Alberto Mulás Alonso
Independent Director2.8yrsno datano data
Faisel Khan
Director1.8yrsno datano data
Erle Nye
Director1.1yrsno datano data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 2IE's board of directors are not considered experienced ( 2.3 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.


Top Shareholders

Company Information

Infraestructura Energética Nova, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infraestructura Energética Nova, S.A.B. de C.V.
  • Ticker: 2IE
  • Exchange: DB
  • Founded: 1996
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: Mex$132.813b
  • Listing Market Cap: Mex$6.399b
  • Shares outstanding: 1.53b
  • Website: https://www.ienova.com.mx

Number of Employees


Location

  • Infraestructura Energética Nova, S.A.B. de C.V.
  • Torre New York Life
  • Piso 24
  • Mexico City
  • Mexico State
  • 6600
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IENOVA *BMV (Bolsa Mexicana de Valores)YesVariable SharesMXMXNMar 2013
IENV.FOTCPK (Pink Sheets LLC)YesVariable SharesUSUSDMar 2013
2IEDB (Deutsche Boerse AG)YesVariable SharesDEEURMar 2013

Biography

Infraestructura Energética Nova, S.A.B. de C.V. develops, builds, and operates energy infrastructure projects in Mexico. It operates through two segments, Gas and Power. The company develops and operates various systems for receiving, transporting, compressing, storing, and delivering natural gas, ethane, and liquefied petroleum gas (LPG) in the states of Baja California, Chiapas, Chihuahua, Jalisco, Nuevo León, Sinaloa, Sonora, San Luis Potosí, Tabasco, Tamaulipas, and Veracruz. It owns and operates approximately 2,900 kilometers (km) of natural gas pipelines with an aggregate design capacity of approximately 16,501 million cubic feet per day; 12 compression stations with an aggregate of approximately 588,810 horsepower; 190 km of pipelines with a design capacity of approximately 34,000 barrels per day for the transportation of LPG; 224 km of pipelines for transportation of ethane; and an LPG terminal in Guadalajara with a total storage capacity of 80,000 barrels. The company also operates a LPG terminal with a storage capacity of 320,000 cubic meters in 2 tanks of 160,000-cubic meters each. In addition, the company owns and operates the ECOGAS natural gas distribution utility, which includes approximately 3,950 km of pipeline; and serves approximately 122,000 industrial, commercial, and residential customers. In addition, it develops systems for the receipt and storage of petroleum products and other liquids. Further, it owns and operates a 625 MW natural-gas-fired, combined-cycle power generation facility, 4 wind power generation facilities, and 3 solar parks under construction and 1 in operation. The company was formerly known as Sempra México, S. de R.L. de C.V. and changed its name to Infraestructura Energética Nova, S.A.B. de C.V. in March 2013. The company was founded in 1996 and is headquartered in Mexico City, Mexico. Infraestructura Energética Nova, S.A.B. de C.V. is a subsidiary of Sempra Energy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:28
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
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.