DB:IGY

Stock Analysis Report

Executive Summary

innogy SE operates as an energy company in Europe.

Rewards

Trading at 55.5% below its fair value

Earnings are forecast to grow 14.28% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.21% is not well covered by earnings



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

IGY

3.3%

DE Integrated Utilities

2.0%

DE Market


1 Year Return

7.2%

IGY

21.9%

DE Integrated Utilities

15.1%

DE Market

Return vs Industry: IGY underperformed the German Integrated Utilities industry which returned 20.8% over the past year.

Return vs Market: IGY underperformed the German Market which returned 15% over the past year.


Shareholder returns

IGYIndustryMarket
7 Day-0.2%3.3%2.0%
30 Day-0.1%6.5%1.0%
90 Day-2.0%14.6%3.8%
1 Year11.0%7.2%26.5%21.9%18.6%15.1%
3 Year46.4%29.4%77.6%59.2%16.8%6.6%
5 Yearn/a28.4%7.2%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is innogy 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: IGY (€43.59) is trading below our estimate of fair value (€97.99)

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


Price To Earnings Ratio

PE vs Industry: IGY is unprofitable, so we can't compare its PE Ratio to the Integrated Utilities industry average.

PE vs Market: IGY is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IGY is overvalued based on its PB Ratio (3.4x) compared to the DE Integrated Utilities industry average (2.7x).


Next Steps

Future Growth

How is innogy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: IGY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IGY's is expected to become profitable in the next 3 years.

Revenue vs Market: IGY's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: IGY's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGY's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has innogy performed over the past 5 years?

-55.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGY is currently unprofitable.

Growing Profit Margin: IGY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IGY is unprofitable, and losses have increased over the past 5 years at a rate of -55.3% per year.

Accelerating Growth: Unable to compare IGY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IGY is unprofitable, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (-3.6%).


Return on Equity

High ROE: IGY has a negative Return on Equity (-0.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is innogy's financial position?


Financial Position Analysis

Short Term Liabilities: IGY's short term assets (€19.8B) exceed its short term liabilities (€14.4B).

Long Term Liabilities: IGY's short term assets (€19.8B) do not cover its long term liabilities (€23.7B).


Debt to Equity History and Analysis

Debt Level: IGY's debt to equity ratio (210.7%) is considered high.

Reducing Debt: IGY's debt to equity ratio has increased from 91.3% to 210.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IGY's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IGY has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: IGY has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

3.22%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.3%markettop25%3.6%industryaverage3.1%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: IGY's dividend (3.21%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: IGY's dividend (3.21%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

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

Growing Dividend: IGY has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: IGY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: IGY's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Leonhard Birnbaum 0

1.1yrs

Tenure

0

Dr.-Ing. Leonhard Birnbaum is the Chief Executive Officer and Member of Management Board at innogy SE since 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Bernhard Günther
CFO, Head of Human Resources Officer & Member of Management Board3.8yrs€2.77mno data
Meike Neuhaus
Head of Events & Sponsoring and Member of Supervisory Board3.4yrs€100.00kno data
Leonhard Birnbaum
CEO & Member of Management Board1.1yrsno datano data
Christoph Radke
COO of Renewables1.1yrsno datano data
Verena Nicolaus-Kronenberg
Head of Investor Relations0yrsno datano data

1.1yrs

Average Tenure

Experienced Management: IGY's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Meike Neuhaus
Head of Events & Sponsoring and Member of Supervisory Board3.4yrs€100.00kno data
Johannes Teyssen
Chairman of Supervisory Board0.3yrsno datano data
Frank Bsirske
Deputy Chairman of Supervisory Board0yrs€200.00kno data
Jan Konerding
Member of Supervisory Board0.3yrsno datano data
Šárka Vojíková
Member of Supervisory Board3.4yrs€120.00kno data
Gabriele Sassenberg
Member of Supervisory Board3.4yrs€140.00kno data
Monika Krebber
Member of Supervisory Board2.7yrs€120.00kno data
Robert Leyland
Member of Supervisory Board3.4yrs€120.00kno data
René Pöhls
Member of Supervisory Board3.4yrs€157.00kno data
Pascal van Rijsewijk
Member of Supervisory Board3.4yrs€140.00kno data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Board: IGY's board of directors are considered experienced (3.4 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

innogy SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: innogy SE
  • Ticker: IGY
  • Exchange: DB
  • Founded: 2015
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €24.178b
  • Shares outstanding: 555.56m
  • Website: https://www.innogy.com

Number of Employees


Location

  • innogy SE
  • Opernplatz 1
  • Essen
  • North Rhine-Westphalia
  • 45128
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGYDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEUROct 2016
0RJHLSE (London Stock Exchange)YesOrdinary Bearer SharesGBEUROct 2016
IGYXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEUROct 2016
IGYDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBEUROct 2016
INNOGSWX (SIX Swiss Exchange)YesOrdinary Bearer SharesCHCHFOct 2016
IGYWBAG (Wiener Boerse AG)YesOrdinary Bearer SharesATEUROct 2016
IGYETLX (Eurotlx)YesOrdinary Bearer SharesITEUROct 2016
INNY.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDMar 2017
IGYBXTRA (XETRA Trading Platform)NPV (ASD 06/07/18 EON CSH)DEEURMay 2018
0A25LSE (London Stock Exchange)NPV (ASD 06/07/18 EON CSH)GBEURMay 2018

Biography

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 operates as a subsidiary of E.ON Verwaltungs SE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:58
End of Day Share Price2020/02/18 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.