DB:EN2

Stock Analysis Report

Executive Summary

Energa SA, together with its subsidiaries, generates, distributes, and sells electricity, gas, and heat in Poland.


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EN2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

EN2

7.9%

DE Electric Utilities

9.9%

DE Market


1 Year Return

-25.8%

EN2

-1.3%

DE Electric Utilities

-17.5%

DE Market

Return vs Industry: EN2 underperformed the German Electric Utilities industry which returned -1.3% over the past year.

Return vs Market: EN2 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

EN2IndustryMarket
7 Day4.6%7.9%9.9%
30 Day-9.1%-16.2%-16.6%
90 Day-10.6%-12.7%-24.8%
1 Year-25.8%-25.8%2.6%-1.3%-15.0%-17.5%
3 Year-38.5%-39.4%38.2%21.0%-17.4%-24.5%
5 Year-71.9%-75.3%27.3%-1.3%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EN2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EN2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EN2 is good value based on its PE Ratio (6.4x) compared to the Electric Utilities industry average (10.2x).

PE vs Market: EN2 is good value based on its PE Ratio (6.4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: EN2 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: EN2 is good value based on its PB Ratio (0.3x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EN2's forecast earnings growth (4.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: EN2's earnings (4.4% per year) are forecast to grow slower than the German market (14.4% per year).

High Growth Earnings: EN2's earnings are forecast to grow, but not significantly.

Revenue vs Market: EN2's revenue (3.2% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: EN2's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EN2's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has Energa performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EN2 has a large one-off gain of PLN242.0M impacting its September 30 2019 financial results.

Growing Profit Margin: EN2's current net profit margins (3.9%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: EN2's earnings have declined by -7.7% per year over the past 5 years.

Accelerating Growth: EN2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EN2 had negative earnings growth (-51.1%) over the past year, making it difficult to compare to the Electric Utilities industry average (7.2%).


Return on Equity

High ROE: EN2's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Energa's financial position?


Financial Position Analysis

Short Term Liabilities: EN2's short term assets (PLN5.2B) exceed its short term liabilities (PLN4.6B).

Long Term Liabilities: EN2's short term assets (PLN5.2B) do not cover its long term liabilities (PLN6.5B).


Debt to Equity History and Analysis

Debt Level: EN2's debt to equity ratio (66.6%) is considered high.

Reducing Debt: EN2's debt to equity ratio has reduced from 71% to 66.6% over the past 5 years.

Debt Coverage: EN2's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: EN2's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: EN2 has a high level of physical assets or inventory.

Debt Coverage by Assets: EN2's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EN2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EN2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EN2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EN2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EN2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EN2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.2yrs

Average board tenure


CEO

Jacek Golinski

0.25

Tenure

Mr. Jacek Golinski serves as Chief Executive Officer and Member of the Management Board at Energa SA since December 2019. He is President of Management Board at Energa SA since January 2020. He was most re ...


Board Members

NamePositionTenureCompensationOwnership
Agnieszka Terlikowska-Kulesza
Member of Supervisory Board & Secretary of Supervisory Board2.75yrszł79.00kno data
Zbigniew Wtulich
Deputy Chairman of Supervisory Board4.67yrszł79.00kno data
Paula Ziemiecka-Ksiezak
Chairwoman of Supervisory Board4.33yrszł90.00kno data
Marek Szczepaniec
Member of Supervisory Board4.17yrszł79.00kno data
Andrzej Powalowski
Member of Supervisory Board4.17yrszł79.00kno data

4.2yrs

Average Tenure

Experienced Board: EN2's board of directors are considered experienced (4.2 years average tenure).


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

Energa SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energa SA
  • Ticker: EN2
  • Exchange: DB
  • Founded: 2006
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: zł2.795b
  • Listing Market Cap: zł614.323m
  • Shares outstanding: 414.07m
  • Website: https://www.energa.pl

Number of Employees


Location

  • Energa SA
  • al. Grunwaldzka 472
  • Gdansk
  • 80-309
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENGWSE (Warsaw Stock Exchange)YesBearer SharesPLPLNDec 2013
EN2DB (Deutsche Boerse AG)YesBearer SharesDEEURDec 2013
0QX7LSE (London Stock Exchange)YesBearer SharesGBPLNDec 2013
EN2BRSE (Berne Stock Exchange)YesBearer SharesCHCHFDec 2013
ENGWBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBPLNDec 2013

Biography

Energa SA, together with its subsidiaries, generates, distributes, and sells electricity, gas, and heat in Poland. The company operates through Distribution, Generation, and Sales segments. It operates coal, hydropower, wind, biomass, and photovoltaic power plants with a total installed generation capacity of approximately 1.3 gigawatt of electrical power; and supplies electricity to approximately 3.1 million customers. As of December 31, 2018, the company had 188 thousand kilometers of the power lines. It also provides technical customer, contracting and design, lighting, financing, repair and maintenance, logistics and supply, and property management services, as well as accounting, payroll, administrative, and security services; and information and communication technologies. The company was founded in 2006 and is based in Gdansk, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:32
End of Day Share Price2020/03/30 00:00
Earnings2019/09/30
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.