DB:E4S

Stock Analysis Report

Elia System Operator

Executive Summary

Elia System Operator SA operates a transmission system for the very-high-voltage and high-voltage electricity network, and for the offshore grid in Belgium and Germany.

Snowflake

Fundamentals

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Elia System Operator's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

DB:E4S

2.7%

DE Electric Utilities

2.6%

DE Market


1 Year Return

39.0%

DB:E4S

18.0%

DE Electric Utilities

-9.6%

DE Market

E4S outperformed the Electric Utilities industry which returned 17.2% over the past year.

E4S outperformed the Market in Germany which returned -10.8% over the past year.


Share holder returns

E4SIndustryMarket
7 Day-0.9%2.7%2.6%
30 Day5.6%1.6%-3.0%
90 Day17.4%6.3%-1.4%
1 Year43.5%39.0%22.7%18.0%-6.8%-9.6%
3 Year67.3%55.3%58.4%37.5%11.0%1.5%
5 Year124.3%97.0%41.3%5.4%25.6%8.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Elia System Operator undervalued based on future cash flows and its price relative to the stock market?

17.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Elia System Operator's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Elia System Operator's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Elia System Operator is overvalued based on earnings compared to the Europe Electric Utilities industry average.

Elia System Operator is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Elia System Operator is poor value based on expected growth next year.


Price Based on Value of Assets

Elia System Operator is overvalued based on assets compared to the Europe Electric Utilities industry average.


Next Steps

Future Growth

How is Elia System Operator expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Elia System Operator's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Elia System Operator's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

Elia System Operator's revenue growth is positive but not above the Germany market average.

Elia System Operator's earnings growth is positive but not above the Germany market average.

Elia System Operator's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Elia System Operator will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Elia System Operator performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Elia System Operator's year on year earnings growth rate has been positive over the past 5 years.

Elia System Operator's 1-year earnings growth is less than its 5-year average (4.4% vs 8.8%)

Elia System Operator's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (4.4% vs -8.2%).


Return on Equity

Elia System Operator has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Elia System Operator used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Elia System Operator has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Elia System Operator's financial position?


Financial Position Analysis

Elia System Operator's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Elia System Operator's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Elia System Operator's level of debt (151.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (122% vs 151.2% today).

Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is Elia System Operator's current dividend yield, its reliability and sustainability?

2.41%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Elia System Operator's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.55%).

Elia System Operator's dividend is below the markets top 25% of dividend payers in Germany (4.22%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Elia System Operator's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Chris Peeters 0

4.1yrs

Tenure

€182,648

Compensation

Mr. Chris Peeters has been the Chief Executive Officer of Elia System Operator SA since July 6, 2015. Mr. Peeters holds a M.Sc. in Engineering from Catholic University of Leuven in 1989. 


CEO Compensation Analysis

Chris's remuneration is lower than average for companies of similar size in Germany.

Insufficient data for Chris to compare compensation growth.


Management Age and Tenure

3.4yrs

Average Tenure

The tenure for the Elia System Operator management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

63yo

Average Age

The tenure for the Elia System Operator board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mark Berger (56yo)

    Chief Infrastructure Officer

    • Tenure: 0.0yrs
  • Catherine Vandenborre (48yo)

    Chief Financial Officer

    • Tenure: 5.9yrs
  • Frederic Dunon

    Chief Assets Officer

    • Tenure: 3.4yrs
  • Ilse Tant

    Chief Community Relations Officer

    • Tenure: 5.6yrs
  • Chris Peeters

    Chief Executive Officer

    • Tenure: 4.1yrs
    • Compensation: €182.65k
  • Pascale Fonck

    Chief Officer of External Relations

    • Tenure: 3.1yrs
  • Peter Michiels

    Chief Human Resources & Internal Communication Officer

    • Tenure: 2.6yrs
  • Patrick Leener

    Chief of Customers

    • Tenure: 2.5yrs
  • Menno Janssens

    Head of Innovation

    • Tenure: 0.0yrs
  • Yannick Dekoninck

    Investor Relations Officer

    • Tenure: 0.0yrs

Board Members

  • Rudy Provoost (60yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Luc Hujoel (68yo)

    Director

    • Tenure: 5.3yrs
  • Claude Grégoire (65yo)

    Vice-Chairman of the Board of Directors

    • Tenure: 1.3yrs
  • Geert Versnick (63yo)

    Vice-Chairman of the Board of Directors

    • Tenure: 1.3yrs
  • Ronnie Belmans

    Honorary Chairman

    • Tenure: 9.3yrs
    • Compensation: €21.91k
  • Dominique Offergeld (56yo)

    Non-Independent Director

    • Tenure: 9.3yrs
  • Michel Allé (69yo)

    Independent Director

    • Tenure: 3.2yrs
  • Bernard Gustin

    Chairman

    • Tenure: 1.7yrs
  • Jane Murphy (52yo)

    Independent Director

    • Tenure: 9.3yrs
  • Luc De Temmerman

    Independent Director

    • Tenure: 5.3yrs

Company Information

Elia System Operator SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elia System Operator SA
  • Ticker: E4S
  • Exchange: DB
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €5.019b
  • Shares outstanding: 68.65m
  • Website: https://www.elia.be

Number of Employees


Location

  • Elia System Operator SA
  • Boulevard de l'Empereur, 20
  • Brussels
  • Brussels
  • 1000
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELIENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJun 2005
E4SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2005
0NTULSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2005
ELIBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2005

Biography

Elia System Operator SA operates a transmission system for the very-high-voltage and high-voltage electricity network, and for the offshore grid in Belgium and Germany. It provides electricity transmission ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 20:52
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.