LSE:JEL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 52.4% below its fair value

Pays a reliable dividend of 4.35%

Risk Analysis

No risks detected for JEL from our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet 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

-2.8%

JEL

-6.0%

GB Electric Utilities

-8.6%

GB Market


1 Year Return

-4.0%

JEL

24.8%

GB Electric Utilities

-1.3%

GB Market

Return vs Industry: JEL underperformed the UK Electric Utilities industry which returned 24.8% over the past year.

Return vs Market: JEL underperformed the UK Market which returned -1.3% over the past year.


Shareholder returns

JELIndustryMarket
7 Day-2.8%-6.0%-8.6%
30 Day-3.4%0.4%-8.4%
90 Day-5.3%11.7%-5.3%
1 Year-0.7%-4.0%29.7%24.8%4.0%-1.3%
3 Year14.1%3.7%72.2%50.0%7.6%-6.1%
5 Year32.1%13.2%60.2%24.1%23.4%-4.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JEL (£4.51) is trading below our estimate of fair value (£9.48)

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


Price To Earnings Ratio

PE vs Industry: JEL is good value based on its PE Ratio (11.7x) compared to the Electric Utilities industry average (12x).

PE vs Market: JEL is good value based on its PE Ratio (11.7x) compared to the UK market (16.8x).


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 is good value based on its PB Ratio (0.7x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

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

6.8%

Forecasted Utilities industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if JEL's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if JEL's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if JEL's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if JEL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JEL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jersey Electricity performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JEL has high quality earnings.

Growing Profit Margin: JEL's current net profit margins (10.7%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: JEL's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: JEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JEL had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (6%).


Return on Equity

High ROE: JEL's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jersey Electricity's financial position?


Financial Position Analysis

Short Term Liabilities: JEL's short term assets (£49.1M) exceed its short term liabilities (£20.3M).

Long Term Liabilities: JEL's short term assets (£49.1M) do not cover its long term liabilities (£79.2M).


Debt to Equity History and Analysis

Debt Level: JEL's debt to equity ratio (15.2%) is considered satisfactory.

Reducing Debt: JEL's debt to equity ratio has reduced from 20.7% to 15.2% over the past 5 years.

Debt Coverage: JEL's debt is well covered by operating cash flow (91.8%).

Interest Coverage: JEL's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet

Inventory Level: JEL has a high level of physical assets or inventory.

Debt Coverage by Assets: JEL's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.9%markettop25%5.4%industryaverage3.8%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: JEL's dividend (4.35%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: JEL's dividend (4.35%) is low compared to the top 25% of dividend payers in the UK market (5.4%).


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 reasonable payout ratio (51.1%), JEL's dividend payments are 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?

11.3yrs

Average management tenure


CEO

Chris Ambler (49yo)

11.3yrs

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 ($USD452.85K) is below average for companies of similar size in the UK market ($USD663.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Ambler
CEO & Executive Director11.3yrsUK£351.74k0.025% £34.8k
Martin Magee
Finance Director & Executive Director17.8yrsUK£265.65k0.045% £62.7k
Mark Preece
Operations Director2.9yrsno datano data
Andrew Welsby
Director of Human Resource0yrsno datano data
John Duquemin
Chief Engineer0yrsno datano data
Peter Routier
Company Secretary24.1yrsno datano data
Gregor Wake
Financial Controller7.1yrsno datano data

11.3yrs

Average Tenure

Experienced Management: JEL's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Ambler
CEO & Executive Director11.3yrsUK£351.74k0.025% £34.8k
Martin Magee
Finance Director & Executive Director17.8yrsUK£265.65k0.045% £62.7k
Alan Bryce
Non-Executive Director4.2yrsUK£31.75k0.015% £20.3k
Philip Austin
Independent Chairman of the Board1yrsUK£37.35k0.016% £22.6k
Wendy Dorman
Non-Executive Director3.6yrsUK£28.50k0.011% £15.8k
Aaron Le Cornu
Senior Independent Director0yrsUK£29.16kno data
A. H. Taylor
Non-Executive Director2.4yrsUK£24.75k0.016% £22.6k
Peter Simon
Non-Executive Director1yrsUK£16.36k0.0072% £10.0k

3.6yrs

Average Tenure

58yo

Average Age

Experienced Board: JEL's board of directors are considered experienced (3.6 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£138.186m
  • 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 and services for enterprises to switch their heating and cooling systems from fossil-based fuels to electric; and building services, including design, installation, and maintenance services, which cover heating systems, electric works, plumbing services, air conditioning, low energy and LED lighting, renewable systems, commercial refrigeration, and maintenance services. It also provides mechanical and electrical building consultancy services for various project, such as serviced houses, hotels, leisure centers, office developments, schools, social housing estates, computer data centers, and retail outlets; designs, maintains, and sells refrigeration and catering equipment; and operates and leases Powerhouse retail park to retailers. In addition, the company offers various electrical appliances, such as cookers, washing machines, dishwashers, fridges, and freezers; small appliances comprising vacuum cleaners, kettles, coffee makers, toasters, blenders, and food processors; TVs, computers, mobile devices, digital cameras, and game consoles; and cooking equipment and accessories through retail shop, as well as online store, powerhouse.je. Further, it engages in the provision of Jenworks, a multi-utility billing engine; and property management business, as well as other businesses, which comprise software development and consulting. The company was founded in 1924 and is headquartered in St Helier, Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 20:48
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
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.