DB:UMA

Stock Analysis Report

AS Latvijas Gaze

Executive Summary

AS Latvijas Gaze engages in the purchase, trading, distribution, and sale of natural gas in Latvia, Lithuania, and Estonia.

Rewards

Trading at 95.2% below its fair value

Risk Analysis

Earnings have declined by -12.82% per year over past 5 years

Dividend of 5.73% is not well covered by earnings

Profit margins (2.7%) are lower than last year (8.4%)

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has AS Latvijas Gaze's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

UMA

-0.2%

DE Gas Utilities

1.0%

DE Market


1 Year Return

-8.8%

UMA

5.2%

DE Gas Utilities

16.4%

DE Market

Return vs Industry: UMA underperformed the German Gas Utilities industry which returned 5.2% over the past year.

Return vs Market: UMA underperformed the German Market which returned 16.4% over the past year.


Shareholder returns

UMAIndustryMarket
7 Day-1.6%-0.2%1.0%
30 Day-2.6%-5.1%-0.4%
90 Day-3.1%-0.5%6.5%
1 Year-3.5%-8.8%10.2%5.2%20.0%16.4%
3 Year68.1%12.0%43.9%25.1%19.9%9.3%
5 Year83.8%5.0%55.8%16.6%40.8%21.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AS Latvijas Gaze 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: UMA (€9.3) is trading below our estimate of fair value (€192.76)

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


Price To Earnings Ratio

PE vs Industry: UMA is poor value based on its PE Ratio (41.2x) compared to the Gas Utilities industry average (15.6x).

PE vs Market: UMA is poor value based on its PE Ratio (41.2x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UMA is good value based on its PB Ratio (1.3x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

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

4.5%

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 AS Latvijas Gaze 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 AS Latvijas Gaze performed over the past 5 years?

-12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UMA has high quality earnings.

Growing Profit Margin: UMA's current net profit margins (2.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: UMA's earnings have declined by -12.8% per year over the past 5 years.

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

Earnings vs Industry: UMA had negative earnings growth (-65%) over the past year, making it difficult to compare to the Gas Utilities industry average (11.9%).


Return on Equity

High ROE: UMA's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AS Latvijas Gaze's financial position?


Financial Position Analysis

Short Term Liabilities: UMA's short term assets (€132.6M) exceed its short term liabilities (€39.0M).

Long Term Liabilities: UMA's short term assets (€132.6M) exceed its long term liabilities (€46.9M).


Debt to Equity History and Analysis

Debt Level: UMA's debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if UMA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: UMA's debt is well covered by operating cash flow (217.9%).

Interest Coverage: UMA's interest payments on its debt are well covered by EBIT (26x coverage).


Balance Sheet

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

Debt Coverage by Assets: UMA's debt is covered by short term assets (assets are 4x debt).


Next Steps

Dividend

What is AS Latvijas Gaze's current dividend yield, its reliability and sustainability?

5.73%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.4%markettop25%3.6%industryaverage5.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: UMA's dividend (5.73%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: UMA's dividend (5.73%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (180.4%), UMA's dividend payments are not well 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

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

3.9yrs

Average board tenure


CEO

AS Latvijas Gaze has no CEO, or we have no data on them.


Board Age and Tenure

3.9yrs

Average Tenure

50.5yo

Average Age

Experienced Board: UMA's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Elita Dreimane (51yo)

    Member of Management Board

    • Tenure: 2yrs
  • Madara Pundure

    Head of Finance & Accounting Division

    • Tenure: 0yrs

Board Members

  • Juris Savickis (73yo)

    Vice-Chairman of the Council

    • Tenure: 0yrs
  • Kirill Seleznev (45yo)

    Chairman of the Council

    • Tenure: 16.8yrs
  • Aigars Kalvitis (53yo)

    Chairman

    • Tenure: 4.3yrs
  • Nicolás Cook (56yo)

    Member of the Council

    • Tenure: 3.8yrs
  • Matthias Kohlenbach (50yo)

    Member of the Council

    • Tenure: 3.9yrs
  • Mikhaylova Nazarov (42yo)

    Member of the Council

    • Tenure: 6.4yrs
  • Oliver Giese (52yo)

    Deputy Chairman of the Council

    • Tenure: 4.4yrs
  • Sebastian Gröblinghoff (40yo)

    Deputy Chairman of the Board

    • Tenure: 3.3yrs
  • Elita Dreimane (51yo)

    Member of Management Board

    • Tenure: 2yrs
  • Denis Emelyanov (40yo)

    Second Vice-Chairman of the Board

    • Tenure: 1.3yrs

Company Information

AS Latvijas Gaze's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AS Latvijas Gaze
  • Ticker: UMA
  • Exchange: DB
  • Founded:
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: €383.040m
  • Shares outstanding: 39.90m
  • Website: https://lg.lv

Number of Employees


Location

  • AS Latvijas Gaze
  • 6 Aristida Briana Street
  • Riga
  • 1001
  • Latvia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GZE1RRISE (OMX Nordic Exchange Riga)YesPublic Bearer SharesLVEURApr 1999
0J4RLSE (London Stock Exchange)YesPublic Bearer SharesGBEURApr 1999
UMADB (Deutsche Boerse AG)YesPublic Bearer SharesDEEURApr 1999

Biography

AS Latvijas Gaze engages in the purchase, trading, distribution, and sale of natural gas in Latvia, Lithuania, and Estonia. It operates through natural gas sales & trading, and natural gas distribution seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 21:32
End of Day Share Price2019/12/09 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.