DB:LEC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Lechwerke AG, together with its subsidiaries, operates as an energy supplier in Germany. More Details


Snowflake Analysis

Average dividend payer with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LEC is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LEC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

LEC

1.0%

DE Electric Utilities

1.3%

DE Market


1 Year Return

1.0%

LEC

19.9%

DE Electric Utilities

1.1%

DE Market

Return vs Industry: LEC underperformed the German Electric Utilities industry which returned 20.1% over the past year.

Return vs Market: LEC matched the German Market which returned 0.4% over the past year.


Shareholder returns

LECIndustryMarket
7 Day0.5%1.0%1.3%
30 Day0%6.8%4.5%
90 Day-3.8%8.8%1.0%
1 Year3.9%1.0%24.3%19.9%4.3%1.1%
3 Year30.9%20.2%65.6%47.0%4.3%-4.8%
5 Year67.8%42.9%83.3%45.0%21.2%4.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEC (€100) is trading above our estimate of fair value (€58.24)

Significantly Below Fair Value: LEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEC is poor value based on its PE Ratio (25.3x) compared to the XE Electric Utilities industry average (10.2x).

PE vs Market: LEC is poor value based on its PE Ratio (25.3x) compared to the German market (22.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LEC is overvalued based on its PB Ratio (6.5x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Lechwerke forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.6%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lechwerke has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lechwerke performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEC has high quality earnings.

Growing Profit Margin: LEC's current net profit margins (5.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: LEC's earnings have declined by 2.7% per year over the past 5 years.

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

Earnings vs Industry: LEC had negative earnings growth (-31.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (-3.5%).


Return on Equity

High ROE: LEC's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Lechwerke's financial position?


Financial Position Analysis

Short Term Liabilities: LEC's short term assets (€145.5M) do not cover its short term liabilities (€175.9M).

Long Term Liabilities: LEC's short term assets (€145.5M) do not cover its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: LEC is debt free.

Reducing Debt: LEC has no debt compared to 5 years ago when its debt to equity ratio was 1.2%.

Debt Coverage: LEC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LEC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Lechwerke current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEC's dividend (2.8%) is higher than the bottom 25% of dividend payers in the German market (1.12%).

High Dividend: LEC's dividend (2.8%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: LEC's dividends per share have been stable in the past 10 years.

Growing Dividend: LEC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.9%), LEC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Lechwerke has no CEO, or we have no data on them.


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

Lechwerke AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lechwerke AG
  • Ticker: LEC
  • Exchange: DB
  • Founded: 1898
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €3.580b
  • Shares outstanding: 35.44m
  • Website: https://www.lew.de

Number of Employees


Location

  • Lechwerke AG
  • Schaezlerstrasse 3
  • Augsburg
  • Bavaria
  • 86150
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LECDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Lechwerke AG, together with its subsidiaries, operates as an energy supplier in Germany. It supplies electricity and gas to private, commercial, and business customers, as well as municipalities; and offer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:56
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
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.