DB:5NG

Stock Analysis Report

Executive Summary

Valener Inc., through its subsidiaries, engages in the natural gas business in Canada and the United States.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Valener's share price performed over time and what events caused price changes?


Latest Share Price and Events

Information is not available.


Market Performance


7 Day Return

1.6%

5NG

-0.6%

DE Gas Utilities

0.1%

DE Market


1 Year Return

39.6%

5NG

9.6%

DE Gas Utilities

8.8%

DE Market

Return vs Industry: 5NG exceeded the German Gas Utilities industry which returned 9.6% over the past year.

Return vs Market: 5NG exceeded the German Market which returned 8.8% over the past year.


Shareholder returns

5NGIndustryMarket
7 Day1.6%-0.6%0.1%
30 Day2.5%1.8%5.9%
90 Day3.4%5.1%15.0%
1 Year47.1%39.6%15.5%9.6%12.2%8.8%
3 Yearn/a57.9%37.3%25.5%14.5%
5 Yearn/a50.2%12.4%40.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Valener undervalued compared to its fair value and its price relative to the market?

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5NG (€18) is trading below our estimate of fair value (€25.15)

Significantly Below Fair Value: 5NG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 5NG is poor value based on its PE Ratio (17.7x) compared to the Gas Utilities industry average (17.1x).

PE vs Market: 5NG is good value based on its PE Ratio (17.7x) compared to the German market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5NG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 5NG is overvalued based on its PB Ratio (1.5x) compared to the XE Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Valener forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5NG's forecast earnings growth (7.7% per year) is above the savings rate (0.2%).

Earnings vs Market: 5NG's earnings (7.7% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 5NG's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 5NG's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 5NG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 5NG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Valener performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Information is not available.

Information is not available.


Past Earnings Growth Analysis

Earnings Trend: 5NG's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: 5NG's earnings growth over the past year (29.6%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: 5NG earnings growth over the past year (29.6%) exceeded the Gas Utilities industry 10.8%.


Return on Equity

High ROE: 5NG's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Valener's financial position?


Financial Position Analysis

Short Term Liabilities: 5NG's short term assets (CA$16.3M) do not cover its short term liabilities (CA$17.4M)

Long Term Liabilities: 5NG's short term assets (16.3M) do not cover its long term liabilities (140.9M)


Debt to Equity History and Analysis

Debt Level: 5NG's debt to equity ratio (9.8%) is considered satisfactory

Reducing Debt: 5NG's debt to equity ratio has increased from 9.6% to 9.8% over the past 5 years.

Debt Coverage: 5NG's debt is well covered by operating cash flow (80.4%).

Interest Coverage: 5NG's interest payments on its debt are well covered by EBIT (31.5x coverage).


Balance Sheet

Inventory Level: 5NG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5NG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Valener's current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 5NG's dividend (4.62%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 5NG's dividend (4.62%) is in the top 25% of dividend payers in the German market (3.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 5NG has been paying a dividend for less than 10 years.

Growing Dividend: 5NG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.2%), 5NG'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 Valener's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Sophie Brochu (55yo)

12.7yrs

Tenure

CA$2,652,501

Compensation

Ms. Sophie Brochu, C.M., has been the Chief Executive Officer and President of Énergir Inc. at Valener Inc. She has been the Chief Executive Officer and President of Gaz Métro Inc., the General Partner of  ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Sophie's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: 5NG's board of directors are considered experienced (5.8 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

Information is not available.


Management Team

  • Mary Powell (59yo)

    CEO & President of Green Mountain

    • Tenure: 0yrs
    • Compensation: CA$2.04m
  • Sophie Brochu (55yo)

    President & CEO of Énergir Inc.

    • Tenure: 12.7yrs
    • Compensation: CA$2.65m
  • Martin Imbleau

    Senior Vice President of Development

    • Tenure: 0yrs
    • Compensation: CA$904.77k
  • Luc Génier

    Vice President of Sales and Market Development - Gaz Métro Inc

    • Tenure: 0yrs
    • Compensation: CA$616.07k
  • Stéphanie Trudeau

    Senior Vice President of Customers & Operations of Énergir Inc.

    • Tenure: 0yrs
    • Compensation: CA$880.94k
  • Eric Lachance

    Senior VP of Regulatory Affairs

    • Tenure: 1.8yrs
    • Compensation: CA$608.10k
  • Nathalie Longval

    Corporate Secretary of Énergir Inc.

    • Tenure: 0yrs
  • Mariem Elsayed

    Investor Relations

    • Tenure: 0yrs
  • Mathieu Lepage

    Director of Finance and Treasurer

    • Tenure: 0yrs

Board Members

  • Pierre Monahan (72yo)

    Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: CA$60.50k
  • François Gervais (66yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: CA$50.50k
  • Serge Régnier (64yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: CA$70.00k
  • Mary-Ann Bell (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$35.50k
  • Gwen Klees (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: CA$68.00k

Company Information

Valener Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valener Inc
  • Ticker: 5NG
  • Exchange: DB
  • Founded: 2010
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: CA$1.023b
  • Listing Market Cap: CA$702.313m
  • Shares outstanding: 39.35m
  • Website: https://www.valener.com

Location

  • Valener Inc
  • 1717, rue du Havre Street
  • Montreal
  • Quebec
  • H2K 2X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNRTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 2010
5NGDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2010

Biography

Valener Inc., through its subsidiaries, engages in the natural gas business in Canada and the United States. Its Energy Distribution segment engages in the natural gas distribution activities in Quebec and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/02 22:16
End of Day Share Price2019/10/01 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.