Neoenergia S.A.

BME:XNEO Stock Report

Market Cap: €3.5b

Neoenergia Valuation

Is XNEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of XNEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€19.53
Fair Value
85.0% undervalued intrinsic discount
12
Number of Analysts

Below Fair Value: XNEO (€2.92) is trading below our estimate of fair value (€19.53)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for XNEO?

Key metric: As XNEO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for XNEO. This is calculated by dividing XNEO's market cap by their current earnings.
What is XNEO's PE Ratio?
PE Ratio5.9x
EarningsR$3.76b
Market CapR$22.23b

Price to Earnings Ratio vs Peers

How does XNEO's PE Ratio compare to its peers?

The above table shows the PE ratio for XNEO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
RED Redeia Corporación
15.4x7.3%€8.6b
ANA Acciona
31.9x4.9%€6.1b
ELE Endesa
20.7x8.8%€22.4b
IBE Iberdrola
12.8x0.4%€81.8b
XNEO Neoenergia
5.9x-3.7%€22.2b

Price-To-Earnings vs Peers: XNEO is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (20.2x).

Price to Earnings Ratio vs Industry

How does XNEO's PE Ratio compare vs other companies in the European Electric Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
XNEO 5.9xIndustry Avg. 12.3xNo. of Companies11PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: XNEO is good value based on its Price-To-Earnings Ratio (5.9x) compared to the European Electric Utilities industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is XNEO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

XNEO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: XNEO is good value based on its Price-To-Earnings Ratio (5.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst XNEO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.92
€4.62
+58.2%
17.4%€6.01€3.20n/a12
Jan ’26€3.00
€4.52
+50.7%
17.0%€5.85€3.12n/a12
Dec ’25€3.08
€4.65
+51.1%
17.2%€6.12€3.26n/a11
Nov ’25€3.02
€4.65
+54.1%
17.2%€6.12€3.26n/a11
Oct ’25€3.20
€4.72
+47.5%
17.2%€6.21€3.30n/a11
Sep ’25€3.24
€4.57
+41.1%
17.5%€6.06€3.22n/a11
Aug ’25€3.04
€4.65
+52.8%
16.7%€6.13€3.26n/a12
Jul ’25€3.16
€4.82
+52.5%
16.8%€6.38€3.39n/a12
Jun ’25€3.38
€5.10
+51.0%
17.0%€6.78€3.61n/a12
May ’25€3.42
€5.01
+46.4%
14.5%€6.63€3.61n/a11
Apr ’25€3.76
€5.19
+38.1%
14.3%€6.81€3.71n/a10
Mar ’25€3.96
€5.20
+31.3%
14.3%€6.81€3.71n/a10
Feb ’25€3.74
€4.88
+30.6%
9.3%€5.59€3.73n/a12
Jan ’25€3.76
€4.82
+28.2%
8.8%€5.59€3.73€3.0012
Dec ’24€3.68
€4.82
+31.0%
8.8%€5.59€3.73€3.0812
Nov ’24€3.30
€4.93
+49.3%
8.6%€5.69€3.80€3.0212
Oct ’24€3.46
€4.93
+42.6%
10.0%€5.78€3.85€3.2010
Sep ’24€3.42
€4.76
+39.2%
11.5%€5.64€3.74€3.2412
Aug ’24€3.76
€4.74
+26.1%
11.5%€5.37€3.83€3.0412
Jul ’24€3.94
€4.61
+17.0%
12.4%€5.36€3.82€3.1611
Jun ’24€3.00
€4.43
+47.8%
12.4%€5.16€3.68€3.3811
May ’24€2.76
€4.28
+55.1%
11.6%€5.00€3.57€3.4212
Apr ’24€2.76
€4.49
+62.7%
12.0%€5.30€3.64€3.7612
Mar ’24€2.54
€4.49
+76.8%
12.0%€5.30€3.64€3.9612
Feb ’24€2.76
€4.33
+57.0%
14.0%€5.22€3.51€3.7413
Jan ’24€2.78
€4.30
+54.6%
12.6%€5.15€3.46€3.7613
Analyst Price Target
Consensus Narrative from 12 Analysts
€4.60
Fair Value
36.5% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/20 20:08
End of Day Share Price 2025/01/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Neoenergia S.A. is covered by 20 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Rafael Bezerra DiasBB Banco de Investimento S.A.
Gustavo FariaBofA Global Research
Arthur PereiraBofA Global Research