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innogy

DB:IGY
Snowflake Description

Slightly overvalued with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IGY
DB
€24B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

innogy SE operates as an energy company in Europe. The last earnings update was 62 days ago. More info.


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IGY Share Price and Events
7 Day Returns
0.4%
DB:IGY
-0.7%
DE Integrated Utilities
-1.8%
DE Market
1 Year Returns
16.8%
DB:IGY
6.9%
DE Integrated Utilities
-6.7%
DE Market
IGY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
innogy (IGY) 0.4% 3% 2.8% 16.8% - -
DE Integrated Utilities -0.7% -0.3% -0.8% 6.9% 15.1% -26.1%
DE Market -1.8% 1.6% -1.6% -6.7% 10.1% 11%
1 Year Return vs Industry and Market
  • IGY outperformed the Integrated Utilities industry which returned 6.9% over the past year.
  • IGY outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
IGY
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of innogy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for innogy.

DB:IGY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:IGY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Integrated Utilities Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.282 (1 + (1- 30%) (82.29%))
0.628
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:IGY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for innogy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:IGY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 5%)
2020 828.30 Analyst x5 788.89
2021 1,214.70 Analyst x5 1,101.85
2022 1,810.00 Analyst x2 1,563.72
2023 4,435.00 Analyst x1 3,649.24
2024 6,149.55 Est @ 38.66% 4,819.25
2025 7,817.93 Est @ 27.13% 5,835.19
2026 9,307.99 Est @ 19.06% 6,616.78
2027 10,556.19 Est @ 13.41% 7,147.02
2028 11,554.32 Est @ 9.46% 7,450.57
2029 12,326.98 Est @ 6.69% 7,570.58
Present value of next 10 years cash flows €46,543.10
DB:IGY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €12,326.98 × (1 + 0.23%) ÷ (5% – 0.23%)
€259,125.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €259,125.16 ÷ (1 + 5%)10
€159,140.99
DB:IGY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €46,543.10 + €159,140.99
€205,684.09
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €205,684.09 / 555.56
€370.23
DB:IGY Discount to Share Price
Calculation Result
Value per share (EUR) From above. €370.23
Current discount Discount to share price of €42.71
= -1 x (€42.71 - €370.23) / €370.23
88.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price innogy is available for.
Intrinsic value
>50%
Share price is €42.71 vs Future cash flow value of €370.23
Current Discount Checks
For innogy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • innogy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • innogy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for innogy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are innogy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:IGY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €-1.14
DB:IGY Share Price ** DB (2019-07-15) in EUR €42.71
Europe Integrated Utilities Industry PE Ratio Median Figure of 15 Publicly-Listed Integrated Utilities Companies 18.94x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of innogy.

DB:IGY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:IGY Share Price ÷ EPS (both in EUR)

= 42.71 ÷ -1.14

-37.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • innogy is loss making, we can't compare its value to the Europe Integrated Utilities industry average.
  • innogy is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does innogy's expected growth come at a high price?
Raw Data
DB:IGY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -37.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
14.4%per year
Europe Integrated Utilities Industry PEG Ratio Median Figure of 11 Publicly-Listed Integrated Utilities Companies 2.68x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for innogy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on innogy's assets?
Raw Data
DB:IGY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €15.19
DB:IGY Share Price * DB (2019-07-15) in EUR €42.71
Germany Integrated Utilities Industry PB Ratio Median Figure of 6 Publicly-Listed Integrated Utilities Companies 2.36x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.74x
DB:IGY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:IGY Share Price ÷ Book Value per Share (both in EUR)

= 42.71 ÷ 15.19

2.81x

* Primary Listing of innogy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • innogy is overvalued based on assets compared to the DE Integrated Utilities industry average.
X
Value checks
We assess innogy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Integrated Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Integrated Utilities industry average (and greater than 0)? (1 check)
  5. innogy has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is innogy expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is innogy expected to grow at an attractive rate?
  • innogy's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • innogy's earnings growth is expected to exceed the Germany market average.
  • innogy's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:IGY Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:IGY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 14.4%
DB:IGY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 0.1%
Germany Integrated Utilities Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Europe Integrated Utilities Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:IGY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:IGY Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 36,215 3,472 1,360 2
2022-12-31 36,219 3,282 1,319 4
2021-12-31 35,861 2,904 1,146 8
2020-12-31 35,527 2,775 1,017 10
2019-12-31 36,434 2,500 955 7
DB:IGY Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 35,246 2,298 -633
2018-12-31 35,375 2,565 -653
2018-09-30 38,980 2,684 526
2018-06-30 40,310 2,432 620
2018-03-31 40,241 2,437 788
2017-12-31 41,383 2,654 778
2017-09-30 36,504 2,537 1,555
2017-06-30 37,347 2,506 1,361
2017-03-31 40,916 2,617 1,339
2016-12-31 41,748 2,674 1,513
2016-09-30 42,006 2,429 1,183
2016-06-30 43,040 2,529 1,469

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • innogy's earnings are expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).
  • innogy's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:IGY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from innogy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IGY Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.56 2.82 2.09 3.00
2022-12-31 2.48 2.71 2.02 4.00
2021-12-31 2.07 2.58 1.78 11.00
2020-12-31 1.81 2.08 1.57 13.00
2019-12-31 1.68 2.10 1.52 13.00
DB:IGY Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 -1.14
2018-12-31 -1.18
2018-09-30 0.95
2018-06-30 1.12
2018-03-31 1.42
2017-12-31 1.40
2017-09-30 2.80
2017-06-30 2.52
2017-03-31 2.42
2016-12-31 4.15
2016-09-30 2.37
2016-06-30 2.94

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • innogy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess innogy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
innogy has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has innogy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare innogy's growth in the last year to its industry (Integrated Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • innogy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare innogy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare innogy's 1-year growth to the Europe Integrated Utilities industry average as it is not currently profitable.
Earnings and Revenue History
innogy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from innogy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:IGY Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 35,246.00 -633.00 3,506.00
2018-12-31 35,375.00 -653.00 3,471.00
2018-09-30 38,980.00 526.00 3,534.00
2018-06-30 40,310.00 620.00 3,517.00
2018-03-31 40,241.00 788.00 3,476.00
2017-12-31 41,383.00 778.00 3,439.00
2017-09-30 36,504.00 1,555.00 3,150.00
2017-06-30 37,347.00 1,361.00 3,194.00
2017-03-31 40,916.00 1,339.00 3,274.00
2016-12-31 41,748.00 1,513.00 3,312.00
2016-09-30 42,006.00 1,183.00 3,298.00
2016-06-30 43,040.00 1,469.00 3,251.00
2016-03-31 45,015.00 1,807.00 3,242.00
2015-12-31 43,691.00 1,613.00 3,151.00
2014-12-31 43,638.00 1,467.00 3,215.00
2013-12-31 46,138.00 664.00 3,351.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if innogy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if innogy has efficiently used its assets last year compared to the Europe Integrated Utilities industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if innogy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess innogy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Integrated Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
innogy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is innogy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up innogy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • innogy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • innogy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of innogy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from innogy Company Filings, last reported 3 months ago.

DB:IGY Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 10,066.00 19,566.00 3,686.00
2018-12-31 9,914.00 18,705.00 4,376.00
2018-09-30 11,197.00 18,648.00 4,557.00
2018-06-30 11,055.00 19,238.00 3,464.00
2018-03-31 11,968.00 18,341.00 3,137.00
2017-12-31 11,252.00 17,256.00 3,324.00
2017-09-30 10,679.00 17,382.00 3,551.00
2017-06-30 10,916.00 17,925.00 3,169.00
2017-03-31 11,549.00 18,307.00 4,153.00
2016-12-31 10,667.00 17,221.00 4,067.00
2016-09-30 7,480.00 17,165.00 2,481.00
2016-06-30 6,004.00 21,515.00 2,472.00
2016-03-31 18,460.00 18,975.00 2,444.00
2015-12-31 18,460.00 18,975.00 2,444.00
2014-12-31 18,398.00 16,473.00 2,388.00
2013-12-31 16,989.00 16,505.00 2,526.00
  • innogy's level of debt (194.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (95.1% vs 194.4% today).
  • Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).
  • Unable to confirm if the interest payments on innogy's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess innogy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. innogy has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.28%
Current annual income from innogy dividends. Estimated to be 3.24% next year.
If you bought €2,000 of innogy shares you are expected to receive €66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • innogy's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).
  • innogy's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:IGY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Germany Integrated Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:IGY Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.93 3.00
2022-12-31 1.67 5.00
2021-12-31 1.43 13.00
2020-12-31 1.30 16.00
2019-12-31 1.22 14.00
DB:IGY Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-13 1.400 3.402
2018-03-12 1.600 4.167
2017-03-13 1.600 4.502

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, innogy has been paying a dividend for less than 10 years.
  • innogy has only been paying a dividend for 2 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of innogy's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess innogy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can innogy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. innogy has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Uwe Tigges
COMPENSATION €3,370,000
AGE 59
TENURE AS CEO 1.6 years
CEO Bio

Mr. Uwe Tigges has been Chairman of Management Board and Chief Executive Officer of innogy SE since December 19, 2017. Mr. Tigges has been Member of Management Board at innogy SE (alternate name :RWE International SE) since April 01, 2016 and was its Chief Human Resources Officer and Labour Director until April 30, 2018. Mr. Tigges serves as Member of Executive Board at Conjoule GmbH. He served as the Chief Human Resource Officer at RWE Aktiengesellschaft since January 2013 until April 30, 2017 and served as its Labour Director since April 1, 2013 until April 30, 2017. Mr. Tigges served as a Member of Executive Board of RWE Aktiengesellschaft since January 1, 2013 until April 30, 2017. He served as Member of supervisory Board of RWE Aktiengesellschaft since December 1, 2003 until June 30, 2012. He serves as the Chairman of the General Works Council of RWE Westfalen-Weser-Ems, AG. He is the Chairman of RWE Pensionsfonds AG and works at VfL Bochum 1848 Fußballgemeinschaft e. V.

CEO Compensation
  • Uwe's compensation has increased whilst company is loss making.
  • Uwe's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the innogy management team in years:

3.2
Average Tenure
53
Average Age
  • The tenure for the innogy management team is about average.
Management Team

Uwe Tigges

TITLE
Chairman of Management Board & CEO
COMPENSATION
€3M
AGE
59
TENURE
1.6 yrs

Essen Günther

TITLE
CFO & Member of Management Board
COMPENSATION
€3M
AGE
52
TENURE
3.3 yrs

Hans Bünting

TITLE
Member of Management Board & Coo - Renewables
COMPENSATION
€2M
AGE
55
TENURE
3.3 yrs

Martin Herrmann

TITLE
Member of Management Board & COO - Retail
COMPENSATION
€2M
AGE
52
TENURE
3.3 yrs

Hildegard Müller

TITLE
Member of Management Board and COO of Grid & Infrastructure
COMPENSATION
€2M
AGE
52
TENURE
3.2 yrs

Arno Hahn

TITLE
Chief Human Resources Officer & Labour Director
COMPENSATION
€2M
AGE
57
TENURE
1.2 yrs

Meike Neuhaus

TITLE
Head of Events & Sponsoring and Member of Supervisory Board
COMPENSATION
€100K
AGE
53

Verena Nicolaus-Kronenberg

TITLE
Head of Investor Relations

Claudia Mayfeld

TITLE
General Counsel & Head of Legal & Compliance
Board of Directors Tenure

Average tenure and age of the innogy board of directors in years:

2.8
Average Tenure
61
Average Age
  • The average tenure for the innogy board of directors is less than 3 years, this suggests a new board.
Board of Directors

Erhard Schipporeit

TITLE
Chairman of Supervisory Board
COMPENSATION
€300K
AGE
70
TENURE
1.5 yrs

Frank Bsirske

TITLE
Deputy Chairman of Supervisory Board
COMPENSATION
€200K
AGE
67

Meike Neuhaus

TITLE
Head of Events & Sponsoring and Member of Supervisory Board
COMPENSATION
€100K
AGE
53
TENURE
2.8 yrs

Rolf Pohlig

TITLE
Member of Supervisory Board
COMPENSATION
€180K
AGE
67
TENURE
2.8 yrs

Ulrich Grillo

TITLE
Member of Supervisory Board
COMPENSATION
€120K
AGE
60
TENURE
2.8 yrs

Maria van der Hoeven

TITLE
Member of Supervisory Board
COMPENSATION
€100K
AGE
70
TENURE
2.8 yrs

Michael Kleinemeier

TITLE
Member of Supervisory Board
COMPENSATION
€120K
AGE
62
TENURE
2.8 yrs

Martina Koederitz

TITLE
Member of Supervisory Board
COMPENSATION
€120K
AGE
55
TENURE
2.8 yrs

Markus Krebber

TITLE
Member of Supervisory Board
COMPENSATION
€140K
AGE
46
TENURE
2.8 yrs

Robert Leyland

TITLE
Member of Supervisory Board
COMPENSATION
€120K
AGE
57
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess innogy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. innogy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Do innogy SE’s (FRA:IGY) Returns On Capital Compare To Peers?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Taking A Look At innogy SE's (FRA:IGY) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every €1 worth of shareholders' equity, it generated €0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About innogy SE's (FRA:IGY) Return On Capital?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand innogy’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

innogy SE (FRA:IGY): What We Can Expect From This Growth Stock

Looking at innogy SE's (FRA:IGY) earnings update in March 2018, … analyst consensus outlook appear vastly optimistic, … with profits predicted to ramp up by an impressive 57.55% next year,

Simply Wall St -

Does innogy SE's (FRA:IGY) PE Ratio Signal A Selling Opportunity?

and want to better understand how you can grow your money by investing in innogy SE (FRA:IGY). … innogy SE (FRA:IGY) is trading with a trailing P/E of 25.9x, which is higher than the industry average of 16.3x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Where innogy SE's (FRA:IGY) Earnings Growth Stands Against Its Industry

After reading innogy SE's (DB:IGY) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Check out our latest analysis for innogy Despite a decline, did IGY underperform the long-term trend and the industry? … I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.

Simply Wall St -

Is innogy SE (FRA:IGY) Expensive For A Reason? A Look At The Intrinsic Value

Today, I will calculate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (€, Millions) €677.89 €567.84 €1,018.68 €1,576.00 €1,283.50 Source Analyst x9 Analyst x9 Analyst x4 Analyst x1 Analyst x2 Present Value Discounted @ 8.54% €624.55 €482.00 €796.64 €1,135.51 €852.00 Present Value of 5-year Cash Flow (PVCF)= €3,891 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = €1,284 × (1 + 0.7%) ÷ (8.5% – 0.7%) = €16,417 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = €16,417 / ( 1 + 8.5%)5 = €10,898 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is €14,788.

Simply Wall St -

Is innogy SE's (FRA:IGY) Balance Sheet Strong Enough To Weather A Storm?

View our latest analysis for innogy How does IGY’s operating cash flow stack up against its debt? … On top of this, IGY has generated €2.65B in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 15.38%, meaning that IGY’s operating cash is not sufficient to cover its debt. … Furthermore, its cash flow coverage of less than a quarter of debt means that operating efficiency could also be an issue.

Simply Wall St -

What Do Analysts Think About the future of innogy SE's (FRA:IGY)?

To get some insight, I will try to evaluate innogy's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for IGY Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 778.00 Million ÷ 41.38 Billion = 1.88% There has been an expansion in innogy's margin over the past five years, with revenue decling at -3.07% on average, which was faster than the average fall in net income of -0.90%, meaning that earnings makes up a larger portion of revenue because of the top line’s sharper decline. … Using innogy's margin expectations as a way to understand projections for the future Based on future expectations, IGY's profit margin will transition into expansion, with annual revenue growth tipped at 1.00% and annual net income growth forecasted at 11.19%.

Simply Wall St -

What You Must Know About innogy SE's (FRA:IGY) ROE

View our latest analysis for innogy Breaking down Return on Equity Return on Equity (ROE) weighs innogy’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of innogy’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity DB:IGY Last Perf Apr 11th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Company Info

Description

innogy SE operates as an energy company in Europe. The company operates through three divisions: Renewables, Grid & Infrastructure, and Retail. The Renewables division generates electricity through onshore and offshore wind power, as well as hydroelectric power primarily in Germany, the United Kingdom, the Netherlands, Poland, Spain, and Italy. The Grid & Infrastructure division is involved in the operation of gas distribution network in the Czech Republic and Croatia, as well as electricity distribution network in Poland, Hungary, and Slovakia; gas storage operations in the Czech Republic; and water business. The Retail division sells electricity and gas. The company serves residential, commercial, industrial, and corporate customers, as well as distributors. It has electricity generation assets with a total net installed capacity of 4,336 megawatts. The company was formerly known as RWE International SE and changed its name to innogy SE in September 2016. innogy SE was founded in 2015 and is headquartered in Essen, Germany. innogy SE is a subsidiary of RWE Aktiengesellschaft.

Details
Name: innogy SE
IGY
Exchange: DB
Founded: 2015
€23,777,754,000
555,555,000
Website: http://www.innogy.com
Address: innogy SE
Opernplatz 1,
Essen,
North Rhine-Westphalia, 45128,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB IGY Ordinary Bearer Shares Deutsche Boerse AG DE EUR 07. Oct 2016
XTRA IGY Ordinary Bearer Shares XETRA Trading Platform DE EUR 07. Oct 2016
LSE 0RJH Ordinary Bearer Shares London Stock Exchange GB EUR 07. Oct 2016
SWX INNOG Ordinary Bearer Shares SIX Swiss Exchange CH CHF 07. Oct 2016
WBAG IGY Ordinary Bearer Shares Wiener Boerse AG AT EUR 07. Oct 2016
BATS-CHIXE IGYD Ordinary Bearer Shares BATS 'Chi-X Europe' GB EUR 07. Oct 2016
DB IGYB NPV (ASD 06/07/18 EON CSH) Deutsche Boerse AG DE EUR 03. May 2018
OTCPK INNY.Y UNSPONSORE ADR Pink Sheets LLC US USD 17. Mar 2017
XTRA IGYB NPV (ASD 06/07/18 EON CSH) XETRA Trading Platform DE EUR 03. May 2018
Number of employees
Current staff
Staff numbers
40,882
innogy employees.
Industry
Multi-Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 22:16
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.