DB:ECEA

Stock Analysis Report

Societatea Energetica Electrica

Executive Summary

Societatea Energetica Electrica S.A., together with its subsidiaries, engages in the electricity distribution and supply business in Romania.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Societatea Energetica Electrica's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECEA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

ECEA

7.9%

DE Electric Utilities

9.9%

DE Market


1 Year Return

-21.5%

ECEA

-1.3%

DE Electric Utilities

-17.5%

DE Market

Return vs Industry: ECEA underperformed the German Electric Utilities industry which returned -1.3% over the past year.

Return vs Market: ECEA underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

ECEAIndustryMarket
7 Day-0.7%7.9%9.9%
30 Day-11.8%-16.2%-16.6%
90 Day-20.7%-12.7%-24.8%
1 Year-16.2%-21.5%2.6%-1.3%-15.0%-17.5%
3 Year-31.1%-42.7%38.2%21.0%-17.4%-24.5%
5 Year-13.0%-36.7%27.3%-1.3%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Societatea Energetica Electrica undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ECEA (€7.1) is trading below our estimate of fair value (€14.35)

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


Price To Earnings Ratio

PE vs Industry: ECEA is poor value based on its PE Ratio (15.4x) compared to the Electric Utilities industry average (10.2x).

PE vs Market: ECEA is good value based on its PE Ratio (15.4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: ECEA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ECEA is good value based on its PB Ratio (0.6x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Societatea Energetica Electrica forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECEA's forecast earnings growth (13.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: ECEA's earnings (13.9% per year) are forecast to grow slower than the German market (14.4% per year).

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

Revenue vs Market: ECEA's revenue (2.6% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: ECEA's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECEA's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Societatea Energetica Electrica performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECEA has high quality earnings.

Growing Profit Margin: ECEA's current net profit margins (3.3%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: ECEA's earnings have declined by -18.1% per year over the past 5 years.

Accelerating Growth: ECEA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ECEA had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (7.2%).


Return on Equity

High ROE: ECEA's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Societatea Energetica Electrica's financial position?


Financial Position Analysis

Short Term Liabilities: ECEA's short term assets (RON1.7B) exceed its short term liabilities (RON1.5B).

Long Term Liabilities: ECEA's short term assets (RON1.7B) exceed its long term liabilities (RON773.7M).


Debt to Equity History and Analysis

Debt Level: ECEA's debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: ECEA's debt to equity ratio has increased from 4.7% to 14.2% over the past 5 years.

Debt Coverage: ECEA's debt is well covered by operating cash flow (60.5%).

Interest Coverage: ECEA's interest payments on its debt are well covered by EBIT (28.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ECEA's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Societatea Energetica Electrica's current dividend yield, its reliability and sustainability?

7.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECEA's dividend (7.69%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: ECEA's dividend (7.69%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.7%), ECEA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECEA's dividends in 3 years are not forecast to be well covered by earnings (92% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Georgeta-Corina Popescu (51yo)

1.17s

Tenure

Ms. Georgeta-Corina Popescu has been Chief Executive Officer of Societatea Energetica Electrica S.A. since February 1, 2019 and served as it’s Director. Ms. Popescu had served as the Chief Executive Office ...


Leadership Team

NamePositionTenureCompensationOwnership
Georgeta-Corina Popescu
Chief Executive Officer1.17yrsno datano data
Mihai Darie
Chief Financial Officer2.17yrsno datano data
Dumbrava Ioan
Manager of Operationsno datano datano data
Mircea-Toma Modran
Chief Information Officer0.75yrno datano data
Catalina Popa
Chief Sales Executive Officer2.25yrsno datano data
Bibiana Constantin
Chief Human Resources Officer1yrno datano data
Oana Galinschi
Head of International Cooperation Officeno datano datano data
Livioara Sujdea
Chief Distribution Officer & Executive Manager3yrsno datano data
Acristini-Georgescu Dana
Chief Strategy Officer2.83yrsno datano data

2.2yrs

Average Tenure

50yo

Average Age

Experienced Management: ECEA's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bogdan Iliescu
Non-Executive Independent Director4.25yrsno datano data
Radu Florescu
Independent Non-Executive Director1yrno datano data
Gicu Iorga
Non-Executive Director2.83yrsno datano data
Dragos Andrei
Non-Executive Director1.25yrsno datano data
Valentin Radu
Independent Chairman of the Board1.25yrsno datano data
Ramona Ungur
Non-Executive Independent Director1.92yrsno datano data

1.6yrs

Average Tenure

46yo

Average Age

Experienced Board: ECEA's board of directors are not considered experienced ( 1.6 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.


Top Shareholders

Company Information

Societatea Energetica Electrica S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Societatea Energetica Electrica S.A.
  • Ticker: ECEA
  • Exchange: DB
  • Founded: 1898
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: RON3.199b
  • Listing Market Cap: RON660.547m
  • Shares outstanding: 339.55m
  • Website: https://www.electrica.ro

Number of Employees


Location

  • Societatea Energetica Electrica S.A.
  • 9 Grigore Alexandrescu Street
  • 1st District
  • Bucharest
  • Romania

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELSTLSE (London Stock Exchange)GDR (EACH REPR 4 ORD) (REG S) (TEMP)GBUSDNo data
ELSALSE (London Stock Exchange)GDR EACH REPR 4 SHS REG SGBUSDJul 2014
51FLLSE (London Stock Exchange)GDR (EACH REPR 4ORD) (144A)GBUSDJul 2014
ECEADB (Deutsche Boerse AG)GDR EACH REPR 4 SHS REG SDEEURJul 2014
ELBVB (Bucharest Stock Exchange)YesOrdinary SharesRORONJul 2014
0QVZLSE (London Stock Exchange)YesOrdinary SharesGBRONJul 2014

Biography

Societatea Energetica Electrica S.A., together with its subsidiaries, engages in the electricity distribution and supply business in Romania. It operates through Electricity and Gas Supply, Electricity Distribution, and External Electricity Network Maintenance segments. The company provides electricity distribution services to electricity suppliers; and supplies electricity to consumers in North Transylvania, South Transylvania, and North Muntenia. It also offers construction, repair, maintenance, and other services for the energy sector. The company was formerly known as Societatea de Distributie si Furnizare a Energiei Electrice Electrica S.A. and changed its name to Societatea Energetica Electrica S.A. in April 2016. Societatea Energetica Electrica S.A. was founded in 1898 and is headquartered in Bucharest, Romania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:07
End of Day Share Price2020/03/30 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.