DB:WWG

Stock Analysis Report

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Executive Summary

Gelsenwasser AG supplies gas, electricity, and water to people and businesses in Germany. More Details

Rewards

Earnings have grown 4.3% per year over the past 5 years

Pays a reliable dividend of 1.45%

Risk Analysis

No risks detected for WWG from our risk checks.


Snowflake Analysis

Average dividend payer with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WWG is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WWG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

WWG

-0.9%

DE Integrated Utilities

1.3%

DE Market


1 Year Return

40.4%

WWG

11.7%

DE Integrated Utilities

1.1%

DE Market

Return vs Industry: WWG exceeded the German Integrated Utilities industry which returned 12.9% over the past year.

Return vs Market: WWG exceeded the German Market which returned 0.4% over the past year.


Shareholder returns

WWGIndustryMarket
7 Day-3.3%-0.9%1.3%
30 Day-11.0%-2.6%4.5%
90 Day-13.6%-5.7%1.0%
1 Year42.5%40.4%15.7%11.7%4.3%1.1%
3 Year72.4%61.7%38.5%22.9%4.3%-4.8%
5 Year160.5%131.0%78.6%49.1%21.2%4.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WWG (€1460) is trading above our estimate of fair value (€1416.26)

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


Price To Earnings Ratio

PE vs Industry: WWG is poor value based on its PE Ratio (43.8x) compared to the DE Integrated Utilities industry average (29x).

PE vs Market: WWG is poor value based on its PE Ratio (43.8x) compared to the German market (22.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WWG is overvalued based on its PB Ratio (6.1x) compared to the DE Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

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

13.6%

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 Gelsenwasser 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 Gelsenwasser performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWG has high quality earnings.

Growing Profit Margin: WWG's current net profit margins (7%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: WWG's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: WWG's earnings growth over the past year (3.1%) is below its 5-year average (4.3% per year).

Earnings vs Industry: WWG earnings growth over the past year (3.1%) underperformed the Integrated Utilities industry 4%.


Return on Equity

High ROE: WWG's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Gelsenwasser's financial position?


Financial Position Analysis

Short Term Liabilities: WWG's short term assets (€709.1M) do not cover its short term liabilities (€711.9M).

Long Term Liabilities: WWG's short term assets (€709.1M) do not cover its long term liabilities (€925.4M).


Debt to Equity History and Analysis

Debt Level: WWG is debt free.

Reducing Debt: WWG has no debt compared to 5 years ago when its debt to equity ratio was 8.6%.

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

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


Balance Sheet


Next Steps

Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WWG's dividend (1.45%) is higher than the bottom 25% of dividend payers in the German market (1.12%).

High Dividend: WWG's dividend (1.45%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.5%), WWG'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?

7.9yrs

Average board tenure


CEO

Henning Deters (52 yo)

9.83yrs

Tenure

€1,184,105

Compensation

Mr. Henning R. Deters has been the Chairman of Management Board and Member of Management Board at Gelsenwasser AG since 2011. Mr. Deters serves as Head of the Commercial Division and Head of The Department...


CEO Compensation Analysis

Compensation vs Market: Henning's total compensation ($USD1.41M) is below average for companies of similar size in the German market ($USD3.85M).

Compensation vs Earnings: Henning's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Thomas Kaminski
Employee Representative Member of Supervisory Boardno data€30.00kno data
Guntram Pehlke
Chairman of Supervisory Board6.33yrs€59.70kno data
Rainer Althans
Employee Representative Vice Chairman of Supervisory Board9.42yrs€44.70kno data
Frank Baranowski
Member of Supervisory Board15.58yrs€29.90kno data
Klaus Franz
Member of Supervisory Boardno data€29.90kno data
Jorg Studemann
Member of Supervisory Boardno data€29.90kno data
Christiane Holz
Member of Supervisory Boardno data€30.20kno data
Stefan Kurpanek
Employee Representative Member of Supervisory Boardno data€30.10kno data
Andreas Sticklies
Employee Representative Member of Supervisory Boardno data€30.00kno data
Frank Thiel
Deputy Chairman of Supervisory Boardno data€45.00kno data
Sebastian Kopietz
Member of Supervisory Boardno data€30.00kno data
Jorg Jacoby
Member of Supervisory Board0.83yrno datano data

7.9yrs

Average Tenure

Experienced Board: WWG's board of directors are considered experienced (7.9 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

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


Key Information

  • Name: Gelsenwasser AG
  • Ticker: WWG
  • Exchange: DB
  • Founded: 1887
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €5.088b
  • Shares outstanding: 3.44m
  • Website: https://www.gelsenwasser.de

Number of Employees


Location

  • Gelsenwasser AG
  • Willy-Brandt-Allee 26
  • Gelsenkirchen
  • 45891
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWGDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
0ORLLSE (London Stock Exchange)YesCommon StockGBEURJan 1992

Biography

Gelsenwasser AG supplies gas, electricity, and water to people and businesses in Germany. It also provides various water supply services for municipalities, sanitation companies, and industry and commerce ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:30
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.