company background image
KEGN

Kenya Electricity GeneratingNASE:KEGN Stock Report

Market Cap

KSh31.4b

7D

3.3%

1Y

-7.8%

Updated

22 Oct, 2021

Data

Company Financials +
KEGN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

KEGN Overview

Kenya Electricity Generating Company PLC generates and sells electricity in Kenya and East Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Kenya Electricity Generating
Historical stock prices
Current Share PriceKSh4.72
52 Week HighKSh3.90
52 Week LowKSh5.50
Beta0.18
1 Month Change-0.63%
3 Month Change9.26%
1 Year Change-7.81%
3 Year Change-36.64%
5 Year Change-19.32%
Change since IPO-88.20%

Recent News & Updates

Shareholder Returns

KEGNKE Renewable EnergyKE Market
7D3.3%-1.0%0.1%
1Y-7.8%14.0%28.0%

Return vs Industry: KEGN underperformed the KE Renewable Energy industry which returned 14% over the past year.

Return vs Market: KEGN underperformed the KE Market which returned 28% over the past year.

Price Volatility

Is KEGN's price volatile compared to industry and market?
KEGN volatility
KEGN Beta0.18
Industry Beta0.62
Market Beta1

Stable Share Price: KEGN is not significantly more volatile than the rest of KE stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KEGN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19542,362Rebecca Mianohttps://www.kengen.co.ke

Kenya Electricity Generating Company PLC generates and sells electricity in Kenya and East Africa. The company develops, manages, and operates hydro, thermal, geothermal, and wind power generation plants with a combined installed capacity of 1,817.82 megawatts. It also provides geothermal consultancy services.

Kenya Electricity Generating Fundamentals Summary

How do Kenya Electricity Generating's earnings and revenue compare to its market cap?
KEGN fundamental statistics
Market CapKSh31.39b
Earnings (TTM)KSh15.26b
Revenue (TTM)KSh43.55b

2.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KEGN income statement (TTM)
RevenueKSh43.55b
Cost of RevenueKSh6.61b
Gross ProfitKSh36.95b
ExpensesKSh21.68b
EarningsKSh15.26b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)2.31
Gross Margin84.83%
Net Profit Margin35.04%
Debt/Equity Ratio0.0%

How did KEGN perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

13%

Payout Ratio

Valuation

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

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEGN (KES4.72) is trading below our estimate of fair value (KES7.11)

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


Price To Earnings Ratio

PE vs Industry: KEGN is good value based on its PE Ratio (2x) compared to the Global Renewable Energy industry average (17.5x).

PE vs Market: KEGN is good value based on its PE Ratio (2x) compared to the KE market (6.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KEGN is good value based on its PB Ratio (0.1x) compared to the XF Renewable Energy industry average (0.6x).


Future Growth

How is Kenya Electricity Generating forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KEGN's forecast earnings growth is above the savings rate (12.6%).

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

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

Revenue vs Market: KEGN's revenue (4.9% per year) is forecast to grow slower than the KE market (9.5% per year).

High Growth Revenue: KEGN's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEGN's Return on Equity is forecast to be low in 3 years time (7.1%).


Past Performance

How has Kenya Electricity Generating performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEGN has high quality earnings.

Growing Profit Margin: KEGN's current net profit margins (35%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: KEGN's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: KEGN's earnings growth over the past year (27.5%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: KEGN earnings growth over the past year (27.5%) exceeded the Renewable Energy industry 14.4%.


Return on Equity

High ROE: KEGN's Return on Equity (7.1%) is considered low.


Financial Health

How is Kenya Electricity Generating's financial position?


Financial Position Analysis

Short Term Liabilities: KEGN's short term assets (KES41.5B) exceed its short term liabilities (KES28.1B).

Long Term Liabilities: KEGN's short term assets (KES41.5B) do not cover its long term liabilities (KES182.6B).


Debt to Equity History and Analysis

Debt Level: KEGN is debt free.

Reducing Debt: KEGN has no debt compared to 5 years ago when its debt to equity ratio was 127.6%.

Debt Coverage: KEGN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KEGN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

6.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KEGN's dividend (6.36%) is higher than the bottom 25% of dividend payers in the KE market (4.16%).

High Dividend: KEGN's dividend (6.36%) is low compared to the top 25% of dividend payers in the KE market (7.93%).


Stability and Growth of Payments

Stable Dividend: KEGN's dividend payments have been volatile in the past 10 years.

Growing Dividend: KEGN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.9%), KEGN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEGN's dividends in 3 years are forecast to be well covered by earnings (15.9% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Utilities industry.

Management

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

5.2yrs

Average management tenure


CEO

Rebecca Miano (55 yo)

4.17yrs

Tenure

KSh19,801,000

Compensation

Mrs. Rebecca Miano, MBS, has been Managing Director and Chief Executive Officer at Kenya Electricity Generating Company PLC since October 30, 2017. Mrs. Miano served as Acting Managing Director of Kenya El...


CEO Compensation Analysis

Compensation vs Market: Rebecca's total compensation ($USD178.31K) is below average for companies of similar size in the KE market ($USD542.33K).

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


Leadership Team

Experienced Management: KEGN's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: KEGN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

Kenya Electricity Generating Company PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Kenya Electricity Generating Company PLC
  • Ticker: KEGN
  • Exchange: NASE
  • Founded: 1954
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: KSh31.390b
  • Shares outstanding: 6.59b
  • Website: https://www.kengen.co.ke

Number of Employees


Location

  • Kenya Electricity Generating Company PLC
  • KenGen Pension Plaza 2
  • Kolobot Road
  • Nairobi
  • 100
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:39
End of Day Share Price2021/10/22 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.