LSE:UKW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Greencoat UK Wind PLC specializes in renewables infrastructure investments in energy, wind generation assets and onshore and offshore wind farm projects with a capacity of over 10 megawatt.

Rewards


Snowflake Analysis

Share Price & News

How has Greencoat UK Wind's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UKW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

UKW

9.8%

GB Renewable Energy

2.8%

GB Market


1 Year Return

4.4%

UKW

-12.3%

GB Renewable Energy

-11.0%

GB Market

Return vs Industry: UKW exceeded the UK Renewable Energy industry which returned -17.3% over the past year.

Return vs Market: UKW exceeded the UK Market which returned -12.8% over the past year.


Shareholder returns

UKWIndustryMarket
7 Day-2.1%9.8%2.8%
30 Day3.4%18.6%8.4%
90 Day-1.8%-1.6%-7.9%
1 Year9.7%4.4%-7.3%-12.3%-6.7%-11.0%
3 Year32.8%13.7%-33.4%-41.2%-3.7%-15.4%
5 Year63.8%25.3%89.3%66.7%15.4%-10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Greencoat UK Wind undervalued compared to its fair value and its price relative to the market?

46.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UKW (£1.41) is trading below our estimate of fair value (£2.64)

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


Price To Earnings Ratio

PE vs Industry: UKW is poor value based on its PE Ratio (44.9x) compared to the Renewable Energy industry average (28.2x).

PE vs Market: UKW is poor value based on its PE Ratio (44.9x) compared to the UK market (14.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UKW is overvalued based on its PB Ratio (1.2x) compared to the GB Renewable Energy industry average (0.9x).

Future Growth

How is Greencoat UK Wind forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.0%

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 Greencoat UK Wind 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.

Past Performance

How has Greencoat UK Wind performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UKW has high quality earnings.

Growing Profit Margin: UKW's current net profit margins (48.5%) are lower than last year (87.1%).


Past Earnings Growth Analysis

Earnings Trend: UKW's earnings have grown significantly by 32.9% per year over the past 5 years.

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

Earnings vs Industry: UKW had negative earnings growth (-78.6%) over the past year, making it difficult to compare to the Renewable Energy industry average (25.4%).


Return on Equity

High ROE: UKW's Return on Equity (2.3%) is considered low.

Financial Health

How is Greencoat UK Wind's financial position?


Financial Position Analysis

Short Term Liabilities: UKW's short term assets (£25.3M) exceed its short term liabilities (£5.8M).

Long Term Liabilities: UKW's short term assets (£25.3M) do not cover its long term liabilities (£600.0M).


Debt to Equity History and Analysis

Debt Level: UKW's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: UKW's debt to equity ratio has increased from 21.6% to 32.6% over the past 5 years.

Debt Coverage: UKW's debt is well covered by operating cash flow (22.6%).

Interest Coverage: UKW's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Dividend

What is Greencoat UK Wind's current dividend yield, its reliability and sustainability?

5.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UKW's dividend (5.04%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: UKW's dividend (5.04%) is low compared to the top 25% of dividend payers in the UK market (5.69%).


Stability and Growth of Payments

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

Growing Dividend: UKW's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (221.2%), UKW's dividend payments are not 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.

Management

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

7.2yrs

Average board tenure


CEO

Tim Ingram (72yo)

no data

Tenure

Mr. Timothy Charles William Ingram, also known as Tim, MA, MBA, FCIB, has been the Chairman of the Board of QBE European Operations plc since March 1, 2016, QBE Re (Europe) Ltd. and QBE Insurance (Europe)  ...


Board Members

NamePositionTenureCompensationOwnership
Timothy Charles Ingram
Independent Non-Executive Chairman and Chief Executive Officerno datano data0.032% £684.6k
William Rickett
Senior Independent Directorno datano data0.0025% £52.9k
Martin McAdam
Non-Executive Director and Board Member5.25yrsno data0.0062% £132.1k
Shonaid Christina Jemmett-Page
Independent Non-Executive Director7.5yrsno data0.0066% £142.4k
Dan Badger
Independent Non-Executive Director6.92yrsno datano data

7.2yrs

Average Tenure

66yo

Average Age

Experienced Board: UKW's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UKW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.9%.


Top Shareholders

Company Information

Greencoat UK Wind PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greencoat UK Wind PLC
  • Ticker: UKW
  • Exchange: LSE
  • Founded: 2012
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: UK£2.141b
  • Shares outstanding: 1.52b
  • Website: https://www.greencoat-ukwind.com

Location

  • Greencoat UK Wind PLC
  • The Peak
  • 5 Wilton Road
  • London
  • Greater London
  • SW1V 1AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UKWLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2013
3GCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2013
UKWlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2013

Biography

Greencoat UK Wind PLC specializes in renewables infrastructure investments in energy, wind generation assets and onshore and offshore wind farm projects with a capacity of over 10 megawatt. For offshore wind farms, the fund seeks to invest 40% of the Gross Asset Value at acquisition and where a utility company retains an equity interest for a lock-up period. The fund ensures that the total of short-term acquisition financing and long-term debt is between zero and 40% of Gross Asset Value at any time, with average total debt being between 20% and 30% in the longer term. It prefers to invest in projects and assets based in the United Kingdom. The fund seeks to acquire 100%, majority, or minority interests in individual wind farms. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 23:45
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
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.