LSE:JEL

Stock Analysis Report

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Executive Summary

Jersey Electricity plc, together with its subsidiaries, engages in the supply, generation, transmission, and distribution of electricity in Jersey, the Channel Islands. More Details

Rewards

Trading at 23.9% below our estimate of its fair value

Earnings grew by 5.5% over the past year

Pays a reliable dividend of 3.94%

Risk Analysis

No risks detected for JEL from our risk checks.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JEL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

JEL

-0.8%

GB Electric Utilities

-1.0%

GB Market


1 Year Return

8.0%

JEL

13.7%

GB Electric Utilities

-14.8%

GB Market

Return vs Industry: JEL underperformed the UK Electric Utilities industry which returned 14.1% over the past year.

Return vs Market: JEL exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

JELIndustryMarket
7 Day1.2%-0.8%-1.0%
30 Day4.8%5.9%-1.6%
90 Day6.0%-0.2%-3.6%
1 Year11.8%8.0%18.0%13.7%-11.6%-14.8%
3 Year21.2%10.1%55.7%38.0%-8.9%-20.2%
5 Year34.2%14.7%68.5%32.0%16.2%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JEL (£4.98) is trading below our estimate of fair value (£6.55)

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


Price To Earnings Ratio

PE vs Industry: JEL is poor value based on its PE Ratio (12.3x) compared to the XE Electric Utilities industry average (11.8x).

PE vs Market: JEL is good value based on its PE Ratio (12.3x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: JEL's PB Ratio (0.7x) is in line with the XE Electric Utilities industry average.


Next Steps

Future Growth

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

7.3%

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 Jersey Electricity 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 Jersey Electricity performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JEL has high quality earnings.

Growing Profit Margin: JEL's current net profit margins (10.8%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: JEL's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: JEL's earnings growth over the past year (5.5%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: JEL earnings growth over the past year (5.5%) exceeded the Electric Utilities industry -4.3%.


Return on Equity

High ROE: JEL's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Jersey Electricity's financial position?


Financial Position Analysis

Short Term Liabilities: JEL's short term assets (£55.4M) exceed its short term liabilities (£20.3M).

Long Term Liabilities: JEL's short term assets (£55.4M) do not cover its long term liabilities (£83.5M).


Debt to Equity History and Analysis

Debt Level: JEL's debt to equity ratio (14.5%) is considered satisfactory.

Reducing Debt: JEL's debt to equity ratio has reduced from 20.6% to 14.5% over the past 5 years.

Debt Coverage: JEL's debt is well covered by operating cash flow (87.9%).

Interest Coverage: JEL's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Jersey Electricity current dividend yield, its reliability and sustainability?

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JEL's dividend (3.94%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: JEL's dividend (3.94%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), JEL's dividend payments are well 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?

5.7yrs

Average management tenure


CEO

Chris Ambler (50 yo)

12yrs

Tenure

UK£351,742

Compensation

Mr. Christopher John Ambler, also known as Chris, BA, MEng, CDipAF, CEng, MIMechE, MBA, has been the Chief Executive Officer of Jersey Electricity plc since October 1, 2008. Mr. Ambler has wide internation ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD455.84K) is below average for companies of similar size in the UK market ($USD686.96K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Ambler
CEO & Executive Director12yrsUK£351.74k0.025%
£ 38.5k
Martin Magee
Finance Director & Executive Director18.42yrsUK£265.65k0.045%
£ 69.2k
Mark Preece
Operations Director3.58yrsno datano data
Andrew Welsby
Director of Human Resources3.08yrsno datano data
John Duquemin
Chief Engineerno datano datano data
Gregor Wake
Financial Controller7.75yrsno datano data
Lisa Floris
Company Secretary0.25yrno datano data

5.7yrs

Average Tenure

Experienced Management: JEL's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Ambler
CEO & Executive Director12yrsUK£351.74k0.025%
£ 38.5k
Martin Magee
Finance Director & Executive Director18.42yrsUK£265.65k0.045%
£ 69.2k
Alan Bryce
Independent Non-Executive Director4.83yrsUK£31.75k0.015%
£ 22.4k
Philip Austin
Independent Chairman of the Board1.67yrsUK£37.35k0.016%
£ 24.9k
Wendy Dorman
Independent Non-Executive Director4.25yrsUK£28.50k0.011%
£ 17.4k
Aaron Le Cornu
Senior Independent Directorno dataUK£29.16kno data
Amanda Astall
Non-Executive Director0.33yrno datano data
A. H. Taylor
Independent Non-Executive Director3.08yrsUK£24.75k0.016%
£ 24.9k
Peter Simon
Independent Non-Executive Director1.67yrsUK£16.36k0.0072%
£ 11.0k

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: JEL's board of directors are considered experienced (3.7 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

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


Key Information

  • Name: Jersey Electricity plc
  • Ticker: JEL
  • Exchange: LSE
  • Founded: 1924
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: UK£152.587m
  • Shares outstanding: 30.64m
  • Website: https://www.jec.co.uk

Number of Employees


Location

  • Jersey Electricity plc
  • The Powerhouse
  • PO Box 45
  • Saint Helier
  • JE4 8NY
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JELLSE (London Stock Exchange)YesA Ordinary SharesGBGBPFeb 1994

Biography

Jersey Electricity plc, together with its subsidiaries, engages in the supply, generation, transmission, and distribution of electricity in Jersey, the Channel Islands. The company offers energy solutions ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:47
End of Day Share Price2020/10/20 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.