LSE:GLO

Stock Analysis Report

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Executive Summary

ContourGlobal plc, together with its subsidiaries, acquires, owns, develops, and operates wholesale power generation businesses in Europe, Latin America, and Africa. More Details


Snowflake Analysis

Solid track record and good value.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-4.3%

GLO

-5.4%

GB Renewable Energy

0.7%

GB Market


1 Year Return

19.0%

GLO

38.4%

GB Renewable Energy

13.7%

GB Market

Return vs Industry: GLO underperformed the UK Renewable Energy industry which returned 32.1% over the past year.

Return vs Market: GLO exceeded the UK Market which returned 4.6% over the past year.


Shareholder returns

GLOIndustryMarket
7 Day-4.3%-5.4%0.7%
30 Day-4.8%-6.9%1.7%
90 Day-5.7%4.5%3.6%
1 Year27.1%19.0%47.5%38.4%20.3%13.7%
3 Year-15.7%-28.8%-0.2%-13.2%9.7%-3.5%
5 Yearn/a170.0%141.1%40.2%13.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ContourGlobal 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: GLO (£1.97) is trading below our estimate of fair value (£7.56)

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


Price To Earnings Ratio

PE vs Industry: GLO is good value based on its PE Ratio (20.8x) compared to the XE Renewable Energy industry average (29.1x).

PE vs Market: GLO is good value based on its PE Ratio (20.8x) compared to the UK market (24.1x).


Price to Earnings Growth Ratio

PEG Ratio: GLO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: GLO is overvalued based on its PB Ratio (6x) compared to the GB Renewable Energy industry average (1.1x).


Next Steps

Future Growth

How is ContourGlobal forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLO's forecast earnings growth (9.1% per year) is above the savings rate (1%).

Earnings vs Market: GLO's earnings (9.1% per year) are forecast to grow slower than the UK market (22.6% per year).

High Growth Earnings: GLO's earnings are forecast to grow, but not significantly.

Revenue vs Market: GLO's revenue (5.8% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: GLO's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLO's Return on Equity is forecast to be high in 3 years time (31.8%)


Next Steps

Past Performance

How has ContourGlobal performed over the past 5 years?

58.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLO has high quality earnings.

Growing Profit Margin: GLO's current net profit margins (6.1%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: GLO has become profitable over the past 5 years, growing earnings by 58.2% per year.

Accelerating Growth: GLO's earnings growth over the past year (232.9%) exceeds its 5-year average (58.2% per year).

Earnings vs Industry: GLO earnings growth over the past year (232.9%) exceeded the Renewable Energy industry 12.5%.


Return on Equity

High ROE: Whilst GLO's Return on Equity (21.36%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is ContourGlobal's financial position?


Financial Position Analysis

Short Term Liabilities: GLO's short term assets ($971.1M) exceed its short term liabilities ($715.8M).

Long Term Liabilities: GLO's short term assets ($971.1M) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: GLO's debt to equity ratio (924.2%) is considered high.

Reducing Debt: GLO's debt to equity ratio has increased from 449.7% to 924.2% over the past 5 years.

Debt Coverage: GLO's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: GLO's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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

5.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLO's dividend (5.92%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: GLO's dividend (5.92%) is in the top 25% of dividend payers in the UK market (4.49%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GLO has been paying a dividend for less than 10 years.

Growing Dividend: GLO's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.4%), GLO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLO's dividends in 3 years are not forecast to be well covered by earnings (117.8% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Joe Brandt (54 yo)

16.17yrs

Tenure

US$1,944,000

Compensation

Mr. Joseph C. Brandt, also known as Joe, has been Chief Executive Officer and President of ContourGlobal LP (formerly known as ContourGlobal plc) since 2005. He serves as Chief Executive Officer and Presid...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD1.94M) is about average for companies of similar size in the UK market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Brandt
President16.17yrsUS$1.94m0.27%
$ 3.6m
Stefan Schellinger
EVP, Global CFO & Director1.92yrsUS$737.79kno data
Karl Schnadt
Executive VP & COO of Contour Global GP Ltd9.33yrsno datano data
Michael Kuperman
Global Chief Information Officer & COO of Renewables Divisionno datano datano data
John Smelt
Senior Vice President of Investor Relations1.25yrsno datano data
Amanda Schreiber
Executive VP & General Counsel7.25yrsno datano data
Garry Levesley
Executive VP of Eastern Europe & CEO of Kosovo Development Project - Contour Global GP Ltd no datano datano data
Jean-Christophe Juillard
Executive VP & CFO of Contour Global GP Ltd8.17yrsno datano data
Cheick-Oumar Sylla
Executive Vice President of Business Development for Africa - Contour Global GP Ltdno datano datano data
Quinto Di Ferdinando
Chief Operating Officer of Thermal Division - Contour Global GP Ltd6.5yrsno datano data
James Karp
Executive VP & Head of Finance5.92yrsno datano data
Christopher Mayer
Executive VP & General Counsel of Contour Global GP Ltd5.75yrsno datano data

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: GLO's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Brandt
President16.17yrsUS$1.94m0.27%
$ 3.6m
Stefan Schellinger
EVP, Global CFO & Director1.92yrsUS$737.79kno data
Alan Gillespie
Senior Independent Directorno dataUS$98.00k0.030%
$ 396.8k
Craig Huff
Chairman15.17yrsUS$320.00kno data
Daniel Camus
Independent Non-Executive Director4.92yrsUS$87.00k0.0053%
$ 69.5k
Alejandro Dávila
Non-Executive Director3.42yrsUS$70.00kno data
Mariana Gheorghe
Independent Non-Executive Director1.75yrsUS$35.00kno data
Ronald Trächsel
Independent Non-Executive Director5.83yrsUS$87.00k0.0037%
$ 47.6k
Gregg Zeitlin
Non-Executive Director13.17yrsUS$70.00kno data

4.9yrs

Average Tenure

58yo

Average Age

Experienced Board: GLO's board of directors are considered experienced (4.9 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

ContourGlobal plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ContourGlobal plc
  • Ticker: GLO
  • Exchange: LSE
  • Founded: 2005
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: UK£1.301b
  • Shares outstanding: 655.71m
  • Website: https://www.contourglobal.com

Number of Employees


Location

  • ContourGlobal plc
  • Park House
  • 7th Floor
  • London
  • Greater London
  • W1K 6SS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLOLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2017
C94BST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2017
GLOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2017
C94DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2017

Biography

ContourGlobal plc, together with its subsidiaries, acquires, owns, develops, and operates wholesale power generation businesses in Europe, Latin America, and Africa. The company operates in Thermal Energy ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 19:33
End of Day Share Price2021/03/08 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.