DB:S6N

Stock Analysis Report

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Executive Summary

AusNet Services Ltd owns and operates an electricity transmission network in Australia.


Snowflake Analysis

Proven track record second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: S6N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

S6N

3.6%

DE Electric Utilities

2.7%

DE Market


1 Year Return

n/a

S6N

10.9%

DE Electric Utilities

0.2%

DE Market

Return vs Industry: Insufficient data to determine how S6N performed against the German Electric Utilities industry.

Return vs Market: Insufficient data to determine how S6N performed against the German Market.


Shareholder returns

S6NIndustryMarket
7 Day0%3.6%2.7%
30 Day-3.8%4.4%3.7%
90 Day9.7%20.2%28.3%
1 Yearn/a14.9%10.9%2.3%0.2%
3 Year8.5%-8.3%62.3%44.1%4.0%-4.5%
5 Year47.6%11.1%60.7%26.3%14.9%-0.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: S6N (€1.02) is trading below our estimate of fair value (€1.05)

Significantly Below Fair Value: S6N is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: S6N is poor value based on its PE Ratio (21.5x) compared to the Electric Utilities industry average (11.1x).

PE vs Market: S6N is poor value based on its PE Ratio (21.5x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: S6N's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: S6N is overvalued based on its PB Ratio (2.1x) compared to the XE Electric Utilities industry average (0.7x).


Next Steps

Future Growth

How is AusNet Services forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S6N's earnings are forecast to decline over the next 3 years (-3.7% per year).

Earnings vs Market: S6N's earnings are forecast to decline over the next 3 years (-3.7% per year).

High Growth Earnings: S6N's earnings are forecast to decline over the next 3 years.

Revenue vs Market: S6N's revenue (1.3% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: S6N's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S6N's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has AusNet Services performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: S6N has high quality earnings.

Growing Profit Margin: S6N's current net profit margins (14.7%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: S6N's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: S6N's earnings growth over the past year (14.5%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: S6N earnings growth over the past year (14.5%) exceeded the Electric Utilities industry 6.1%.


Return on Equity

High ROE: S6N's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is AusNet Services's financial position?


Financial Position Analysis

Short Term Liabilities: S6N's short term assets (A$893.6M) do not cover its short term liabilities (A$1.4B).

Long Term Liabilities: S6N's short term assets (A$893.6M) do not cover its long term liabilities (A$9.9B).


Debt to Equity History and Analysis

Debt Level: S6N's debt to equity ratio (334.8%) is considered high.

Reducing Debt: S6N's debt to equity ratio has increased from 229.2% to 334.8% over the past 5 years.

Debt Coverage: S6N's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: S6N's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: S6N's dividend (6.02%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: S6N's dividend (6.02%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

Stable Dividend: S6N's dividend payments have been volatile in the past 10 years.

Growing Dividend: S6N's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (129.4%), S6N's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: S6N's dividends in 3 years are not forecast to be well covered by earnings (145.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Tony Narvaez

0.67

Tenure

AU$1,335,711

Compensation

Mr. Tony Narvaez serves as a Managing Director and Director of AusNet Services Ltd and AusNet Services Holdings Pty Ltd since November 01, 2019. Mr. Narvaez had been Chief Executive Officer at Endeavour En ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD923.86K) is below average for companies of similar size in the German market ($USD2.58M).

Compensation vs Earnings: Insufficient data to compare Tony's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Tony Narvaez
MD & Director0.67yrAU$1.34mno data
Mark Ellul
Chief Financial Officer0.58yrAU$413.99kno data
Chad Hymas
Executive General Manager of Mondo4yrsAU$895.99k0.0056% A$217.8k
Alistair Parker
Executive General Manager of Regulated Energy Services7.25yrsAU$916.13k0.0096% A$376.1k
Prue Crawford-Flett
Executive General Manager of Operations & Services1.25yrsno datano data
John Nicolopoulos
Head of Tax & Investor Relationsno datano datano data
Geraldine Leslie
Executive General Manager of People & Safety3.75yrsno datano data
Keith Hopkins
Acting Chief Digital Officer0.083yrno datano data
Paul Lynch
Company Secretary1yrno datano data

1.1yrs

Average Tenure

Experienced Management: S6N's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tony Narvaez
MD & Director0.67yrAU$1.34mno data
Peter Edward Mason
Independent Chairman4.17yrsAU$451.67k0.0027% A$104.4k
Heng Loon Chan
Non-Executive Director2.17yrsAU$188.17k0.0015% A$58.6k
Nora Scheinkestel
Independent Non-Executive Director3.67yrsAU$230.09k0.0020% A$77.4k
Ralph Craven
Non-Executive Director6.5yrsAU$189.33k0.0013% A$52.0k
Sally Farrier
Independent Non-Executive Director6.5yrsAU$227.00k0.0032% A$127.1k
Chee Meng Tan
Non-Executive Director4.17yrsAU$189.33k0.0013% A$52.0k
Robert Milliner
Lead Independent Director0.33yrAU$235.84kno data
Lequan Li
Non-Executive Director1.75yrsAU$188.17kno data

3.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: S6N's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AusNet Services Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AusNet Services Ltd
  • Ticker: S6N
  • Exchange: DB
  • Founded: 2014
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: AU$6.355b
  • Listing Market Cap: AU$3.910b
  • Shares outstanding: 3.75b
  • Website: https://www.ausnetservices.com.au

Number of Employees


Location

  • AusNet Services Ltd
  • 2 Southbank Boulevard
  • Level 31
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASTASX (Australian Securities Exchange)YesNew Common StockAUAUDDec 2005
SAUN.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDDec 2005
S6NDB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2005
ASTCHIA (Chi-X Australia)YesNew Common StockAUAUDDec 2005

Biography

AusNet Services Ltd owns and operates an electricity transmission network in Australia. It operates through Electricity Distribution, Gas Distribution, Electricity Transmission, and Mondo segments. The Electricity Distribution segment carries electricity from the high voltage transmission network to end users, including metering. The Gas Distribution segment carries natural gas to commercial and residential end users, including metering in central and western Victoria. The Electricity Transmission segment owns and manages an electricity transmission network, including transmission lines and towers, which carry electricity at high voltages from power generators to electricity distributors in Victoria. The Mondo segment provides contracted infrastructure asset services and specialized technology solutions to enable energy data and asset intelligence services. This segment serves customers operating in utility, renewables, and infrastructure sectors of electricity, water, gas, and rail. The company operates through an electricity transmission network of approximately 6,836 kilometers of high voltage transmission powerlines, 59 terminal stations, and 13,153 transmission towers; electricity distribution network of approximately 750,000 customers, 76 zone substations, 407,354 power poles, and approximately 61,994 kilometer of powerlines. It also operates a gas distribution network of 730,000 customers and 11,893 kilometers of underground gas pipelines. The company was formerly known as SP AusNet Ltd. and changed its name to AusNet Services Ltd in August 2014. AusNet Services Ltd was incorporated in 2014 and is headquartered in Southbank, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 22:00
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.