LSE:GLO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

LSE:GLO

6.8%

GB Renewable Energy

1.4%

GB Market


1 Year Return

-22.1%

LSE:GLO

-28.9%

GB Renewable Energy

-5.7%

GB Market

GLO outperformed the Renewable Energy industry which returned -28.9% over the past year.

GLO underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

GLOIndustryMarket
7 Day2.2%6.8%1.4%
30 Day-1.1%-0.7%-4.8%
90 Day-9.0%-9.3%-1.9%
1 Year-16.7%-22.1%-25.4%-28.9%-1.3%-5.7%
3 Yearn/a-12.2%-18.5%17.6%3.6%
5 Yearn/a-50.8%-56.7%24.6%-2.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ContourGlobal's share price is below the future cash flow value, and at a moderate discount (> 20%).

ContourGlobal's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

ContourGlobal is overvalued based on earnings compared to the Europe Renewable Energy industry average.

ContourGlobal is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

ContourGlobal is poor value based on expected growth next year.


Price Based on Value of Assets

ContourGlobal is overvalued based on assets compared to the GB Renewable Energy industry average.


Next Steps

Future Growth

How is ContourGlobal expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ContourGlobal's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

ContourGlobal's earnings are expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

ContourGlobal's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

ContourGlobal's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

ContourGlobal's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

ContourGlobal is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has ContourGlobal performed over the past 5 years?

62.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ContourGlobal has delivered over 20% year on year earnings growth in the past 5 years.

ContourGlobal's 1-year earnings growth is negative, it can't be compared to the 5-year average.

ContourGlobal's 1-year earnings growth is negative, it can't be compared to the Europe Renewable Energy industry average.


Return on Equity

ContourGlobal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ContourGlobal used its assets more efficiently than the Europe Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

ContourGlobal has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ContourGlobal's financial position?


Financial Position Analysis

ContourGlobal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ContourGlobal's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

ContourGlobal's level of debt (604.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (437.8% vs 604.7% today).

Debt is not well covered by operating cash flow (16.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

7.50%

Expected Dividend Yield


Dividend Yield and Payments Analysis

ContourGlobal's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.06%).

ContourGlobal's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.62%).

It is too early to tell whether ContourGlobal has stable dividend payments.

ContourGlobal only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Joe Brandt (53yo)

14.6yrs

Tenure

US$1,854,000

Compensation

Mr. Joseph C. Brandt, also known as Joe, has been Chief Executive Officer and President of Contour Global GP Ltd - General Partner of Contour Global Bonaire since 2005. He serves as Chief Executive Officer ...


CEO Compensation Analysis

Joe's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Joe's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.6yrs

Average Tenure

53yo

Average Age

The average tenure for the ContourGlobal management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

The tenure for the ContourGlobal board of directors is about average.


Insider Trading

More shares have been bought than sold by ContourGlobal individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$78,41112 Aug 19
Joseph Brandt
EntityIndividual
Role
Chief Executive Officer
President
Shares47,400
Max PriceUS$1.66
BuyUS$35,61318 Jun 19
Joseph Brandt
EntityIndividual
Role
Chief Executive Officer
President
Shares18,185
Max PriceUS$1.97
BuyUS$20,61122 May 19
Joseph Brandt
EntityIndividual
Role
Chief Executive Officer
President
Shares10,085
Max PriceUS$2.06
BuyUS$12,64011 Apr 19
Joseph Brandt
EntityIndividual
Role
Chief Executive Officer
President
Shares6,200
Max PriceUS$2.05
BuyUS$1,17010 Apr 19
Joseph Brandt
EntityIndividual
Role
Chief Executive Officer
President
Shares605
Max PriceUS$1.94

Ownership Breakdown


Management Team

  • Joe Brandt (53yo)

    President

    • Tenure: 14.6yrs
    • Compensation: US$1.85m
  • Karl Schnadt (63yo)

    Executive VP & COO of Contour Global GP Ltd

    • Tenure: 7.8yrs
  • Garry Levesley (57yo)

    Executive VP of Eastern Europe & CEO of Kosovo Development Project - Contour Global GP Ltd

    • Tenure: 0.0yrs
  • Sarah Flanigan

    Executive Vice President of Global Human Resources

    • Tenure: 0.0yrs
  • Jean-Christophe Juillard (50yo)

    Executive VP & CFO of Contour Global GP Ltd

    • Tenure: 6.6yrs
  • Alessandra Marinheiro (44yo)

    Executive VP of Business Dev. & CEO of Latin America São Paulo – Brazil of ContourGlobal GP Ltd

    • Tenure: 0.0yrs
  • Stefan Schellinger

    EVP, Global CFO & Director of Contour Global GP Ltd

    • Tenure: 0.6yrs
  • Amanda Schreiber (45yo)

    Executive VP

    • Tenure: 5.7yrs
  • Cheick-Oumar Sylla (58yo)

    Executive Vice President of Business Development for Africa - Contour Global GP Ltd

    • Tenure: 0.0yrs
  • Michael Kuperman

    Global Chief Information Officer & COO of Renewables Division

    • Tenure: 0.0yrs

Board Members

  • Alan Gillespie (69yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$100.00k
  • Craig Huff (54yo)

    Chairman of Contour Global GP Ltd

    • Tenure: 13.6yrs
    • Compensation: US$333.00k
  • Joe Brandt (53yo)

    President

    • Tenure: 14.6yrs
    • Compensation: US$1.85m
  • Daniel Camus (67yo)

    Director of Contour Global GP Ltd

    • Tenure: 3.3yrs
    • Compensation: US$89.00k
  • Ronald Trächsel (60yo)

    Director of Contour Global GP Ltd

    • Tenure: 4.3yrs
    • Compensation: US$89.00k
  • Gregg Zeitlin (50yo)

    Director of Contour Global GP Ltd

    • Tenure: 11.6yrs
    • Compensation: US$73.00k
  • Linda Cairnie (65yo)

    Independent Non- Executive Director

    • Tenure: 1.6yrs
    • Compensation: US$73.00k
  • Stefan Schellinger

    EVP, Global CFO & Director of Contour Global GP Ltd

    • Tenure: 0.6yrs
  • Erik Akhund (62yo)

    Director of Contour Global GP Ltd

    • Tenure: 9.6yrs
  • Eric Engler (36yo)

    Director of Contour Global GP Ltd

    • Tenure: 5.6yrs

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£1.184b
  • Shares outstanding: 670.71m
  • Website: https://www.contourglobal.com

Number of Employees


Location

  • ContourGlobal plc
  • 116 Park Street
  • Park House
  • 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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 22:46
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.