ContourGlobal (LSE:GLO) - Share price, News & Analysis

GLO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	0/6
Dividends	3/6

GLO Stock Overview

ContourGlobal plc acquires, develops, and operates wholesale power generation businesses.

Rewards

Trading at 70.9% below our estimate of its fair value

Earnings grew by 389.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 10.4% per year for the next 3 years

Interest payments are not well covered by earnings

Dividend of 5.33% is not well covered by earnings

Volatile share price over the past 3 months

ContourGlobal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ContourGlobal
Historical stock prices
Current Share Price	UK£2.53
52 Week High	UK£2.60
52 Week Low	UK£1.72
Beta	0.82
1 Month Change	32.20%
3 Month Change	37.98%
1 Year Change	31.10%
3 Year Change	32.48%
5 Year Change	n/a
Change since IPO	1.00%

Shareholder Returns

	GLO	GB Renewable Energy	GB Market
7D	-1.2%	-10.7%	1.0%
1Y	31.1%	55.7%	-2.8%

Return vs Industry: GLO underperformed the UK Renewable Energy industry which returned 55.7% over the past year.

Return vs Market: GLO exceeded the UK Market which returned -2.8% over the past year.

Price Volatility

Is GLO's price volatile compared to industry and market?
GLO volatility
GLO Average Weekly Movement	10.0%
Renewable Energy Industry Average Movement	6.6%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.4%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: GLO is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GLO's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2005	1,518	Joe Brandt	https://www.contourglobal.com

ContourGlobal plc acquires, develops, and operates wholesale power generation businesses. The company generates 1,808 MW of renewable electricity from hydro, solar, wind, and biogas; and 2,509 MW of thermal electricity from gas, coal, and oil. It operates a portfolio of 138 thermal and renewable power plants.

ContourGlobal Fundamentals Summary

How do ContourGlobal's earnings and revenue compare to its market cap?
GLO fundamental statistics
Market Cap	US$2.11b
Earnings (TTM)	US$78.30m
Revenue (TTM)	US$2.15b

26.6x

P/E Ratio

1.0x

P/S Ratio

Is GLO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GLO income statement (TTM)
Revenue	US$2.15b
Cost of Revenue	US$1.73b
Gross Profit	US$421.40m
Other Expenses	US$343.10m
Earnings	US$78.30m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	0.12
Gross Margin	19.58%
Net Profit Margin	3.64%
Debt/Equity Ratio	1,144.3%

How did GLO perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

150%

Payout Ratio

Does GLO pay a reliable dividends?

See GLO dividend history and benchmarks

When do you need to buy GLO by to receive an upcoming dividend?
ContourGlobal dividend dates
Ex Dividend Date	May 26 2022
Dividend Pay Date	Jun 10 2022
Days until Ex dividend	1 day
Days until Dividend pay date	14 days

Does GLO pay a reliable dividends?

See GLO dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GLO (£2.53) is trading below our estimate of fair value (£8.69)

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 Price-To-Earnings Ratio (26.6x) compared to the European Renewable Energy industry average (28.8x).

PE vs Market: GLO is poor value based on its Price-To-Earnings Ratio (26.6x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: GLO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: GLO is overvalued based on its Price-To-Book Ratio (10x) compared to the GB Renewable Energy industry average (0.8x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-10.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLO's earnings are forecast to decline over the next 3 years (-10.4% per year).

Earnings vs Market: GLO's earnings are forecast to decline over the next 3 years (-10.4% per year).

High Growth Earnings: GLO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GLO's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: GLO's revenue is forecast to decline over the next 3 years (-0.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GLO's Return on Equity is forecast to be very high in 3 years time (56%).

Past Performance

How has ContourGlobal performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GLO has high quality earnings.

Growing Profit Margin: GLO's current net profit margins (3.6%) are higher than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: GLO's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: GLO's earnings growth over the past year (389.4%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: GLO earnings growth over the past year (389.4%) exceeded the Renewable Energy industry 36.9%.

Return on Equity

High ROE: Whilst GLO's Return on Equity (21.51%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is ContourGlobal's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GLO's short term assets ($1.3B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: GLO's short term assets ($1.3B) do not cover its long term liabilities ($4.5B).

Debt to Equity History and Analysis

Debt Level: GLO's net debt to equity ratio (1044.6%) is considered high.

Reducing Debt: GLO's debt to equity ratio has increased from 582.2% to 1144.3% over the past 5 years.

Debt Coverage: GLO's debt is not well covered by operating cash flow (19.1%).

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

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GLO's dividend (5.33%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: GLO's dividend (5.33%) is in the top 25% of dividend payers in the UK market (4.78%)

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 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (149.7%), GLO's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.1%), GLO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

8.4yrs

Average management tenure

CEO

Joe Brandt (55 yo)

17.33yrs

Tenure

US$1,886,000

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 ($USD1.89M) is about average for companies of similar size in the UK market ($USD1.86M).

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

Leadership Team

Experienced Management: GLO's management team is seasoned and experienced (8.4 years average tenure).

Board Members

Experienced Board: GLO's board of directors are considered experienced (5.3 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31