Announcement • Jun 13
Umeme Limited to Report First Half, 2026 Results on Aug 31, 2026 Umeme Limited announced that they will report first half, 2026 results on Aug 31, 2026 New Risk • Apr 03
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 69% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (KSh3.66b market cap, or US$28.1m). New Risk • Feb 18
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: KSh12.9b (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 180% Earnings have declined by 69% per year over the past 5 years. Minor Risk Market cap is less than US$100m (KSh12.9b market cap, or US$99.7m). New Risk • Nov 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 180% Earnings have declined by 69% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Market cap is less than US$100m (KSh8.20b market cap, or US$63.4m). New Risk • Oct 04
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 180% Dividend yield: 55% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 180% Earnings have declined by 69% per year over the past 5 years. Reported Earnings • Sep 18
First half 2025 earnings released: USh103 loss per share (vs USh8.00 profit in 1H 2024) First half 2025 results: USh103 loss per share (down from USh8.00 profit in 1H 2024). Revenue: USh503.5b (down 56% from 1H 2024). Net loss: USh166.7b (down USh179.7b from profit in 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 134 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jul 08
Upcoming dividend of USh222 per share Eligible shareholders must have bought the stock before 15 July 2025. Payment date: 31 July 2025. The company last paid an ordinary dividend in March 2015. The average dividend yield among industry peers is 2.3%. Reported Earnings • Jun 15
Full year 2024 earnings released: USh314 loss per share (vs USh7.06 profit in FY 2023) Full year 2024 results: USh314 loss per share (down from USh7.06 profit in FY 2023). Revenue: USh2.31t (up 5.4% from FY 2023). Net loss: USh510.6b (down USh522.0b from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 137 percentage points per year, which is a significant difference in performance. Board Change • Jun 13
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 6 highly experienced directors. 2 independent directors (7 non-independent directors). Independent & Non-Executive Director Gerald Ssendaula was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 03
Umeme Limited, Annual General Meeting, May 22, 2025 Umeme Limited, Annual General Meeting, May 22, 2025. New Risk • Mar 07
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 11x earnings per share. Cash payout ratio: 92% Earnings have declined by 14% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Upcoming Dividend • Oct 04
Upcoming dividend of USh26.00 per share Eligible shareholders must have bought the stock before 11 October 2024. Payment date: 31 October 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 25%. Within top quartile of Kenyan dividend payers (12%). Higher than average of industry peers (3.3%). Reported Earnings • Aug 24
First half 2024 earnings released: EPS: USh8.00 (vs USh8.12 in 1H 2023) First half 2024 results: EPS: USh8.00 (down from USh8.12 in 1H 2023). Revenue: USh1.15t (up 7.1% from 1H 2023). Net income: USh13.0b (down 1.5% from 1H 2023). Profit margin: 1.1% (down from 1.2% in 1H 2023). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. New Risk • Apr 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 108% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (dividend per share is over 11x earnings per share). Share price has been volatile over the past 3 months (6.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). New Risk • Apr 08
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 108% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (dividend per share is over 11x earnings per share). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Reported Earnings • Mar 27
Full year 2023 earnings released: EPS: USh7.10 (vs USh91.27 in FY 2022) Full year 2023 results: EPS: USh7.10 (down from USh91.27 in FY 2022). Revenue: USh2.20t (up 16% from FY 2022). Net income: USh11.5b (down 92% from FY 2022). Profit margin: 0.5% (down from 7.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 48% p.a. on average during the next 2 years, while revenues in the Global Electric Utilities industry are expected to grow by 2.4%. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. New Risk • Mar 09
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 108% per year for the foreseeable future. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Dividend is not well covered by earnings (147% payout ratio). Profit margins are more than 30% lower than last year (4.7% net profit margin). Upcoming Dividend • Feb 05
Upcoming dividend of USh24.00 per share at 12% yield Eligible shareholders must have bought the stock before 12 February 2024. Payment date: 29 February 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 12%. Within top quartile of Kenyan dividend payers (11%). Higher than average of industry peers (5.0%). New Risk • Jan 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 108% per year for the foreseeable future. Minor Risks Dividend is not well covered by earnings (147% payout ratio). Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (4.7% net profit margin). Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to KSh14.95, the stock trades at a forward P/E ratio of 68x. Average forward P/E is 13x in the Electric Utilities industry globally. Total returns to shareholders of 231% over the past three years. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to KSh13.45, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 15x in the Electric Utilities industry globally. Total returns to shareholders of 232% over the past three years. New Risk • Jul 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 24% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.8% average weekly change). Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to KSh14.55, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 15x in the Electric Utilities industry globally. Total returns to shareholders of 290% over the past three years. Upcoming Dividend • Jun 21
Upcoming dividend of USh63.90 per share at 14% yield Eligible shareholders must have bought the stock before 28 June 2023. Payment date: 20 July 2023. Trailing yield: 14%. Within top quartile of Kenyan dividend payers (11%). Higher than average of industry peers (6.2%). Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to KSh15.05, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 16x in the Electric Utilities industry globally. Total returns to shareholders of 247% over the past three years. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to KSh11.25, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 15x in the Electric Utilities industry globally. Total returns to shareholders of 189% over the past three years. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 7 experienced directors. 2 highly experienced directors. 2 independent directors (8 non-independent directors). Independent & Non-Executive Director Gerald Ssendaula was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 26
First half 2022 earnings released: EPS: USh0 (vs USh29.71 in 1H 2021) First half 2022 results: EPS: USh0. Revenue: USh897.0b (down 3.3% from 1H 2021). Net income: USh64.4b (up 33% from 1H 2021). Profit margin: 7.2% (up from 5.2% in 1H 2021). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorated over the past week After last week's 18% share price decline to KSh6.58, the stock trades at a trailing P/E ratio of 2.8x. Average trailing P/E is 13x in the Electric Utilities industry globally. Total returns to shareholders of 26% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of USh54.10 per share Eligible shareholders must have bought the stock before 27 June 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 23%. Within top quartile of Kenyan dividend payers (9.9%). Higher than average of industry peers (4.1%). Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 8 experienced directors. 2 highly experienced directors. 1 independent director (10 non-independent directors). Independent & Non-Executive Director Gerald Ssendaula was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 04
Full year 2021 earnings released: EPS: USh85.70 (vs USh26.53 in FY 2020) Full year 2021 results: EPS: USh85.70 (up from USh26.53 in FY 2020). Revenue: USh1.89t (up 14% from FY 2020). Net income: USh139.1b (up 223% from FY 2020). Profit margin: 7.4% (up from 2.6% in FY 2020). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 2.5% compared to a 2.0% growth forecast for the industry in Kenya. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment improved over the past week After last week's 22% share price gain to KSh6.70, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 15x in the Electric Utilities industry globally. Total returns to shareholders of 71% over the past three years. Reported Earnings • Aug 29
First half 2021 earnings released: EPS USh29.71 (vs USh13.40 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: USh927.9b (up 9.3% from 1H 2020). Net income: USh48.2b (up 122% from 1H 2020). Profit margin: 5.2% (up from 2.6% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 21
Upcoming dividend of USh12.20 per share Eligible shareholders must have bought the stock before 28 June 2021. Payment date: 19 July 2021. Trailing yield: 5.6%. Lower than top quartile of Kenyan dividend payers (8.2%). Higher than average of industry peers (3.7%). Reported Earnings • Mar 27
Full year 2020 earnings released: EPS USh26.53 (vs USh85.69 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: USh1.66t (down 6.5% from FY 2019). Net income: USh43.1b (down 69% from FY 2019). Profit margin: 2.6% (down from 7.8% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Jan 26
New 90-day high: KSh7.40 The company is up 3.0% from its price of KSh7.20 on 27 October 2020. The Kenyan market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electric Utilities industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is KSh14.29 per share. Is New 90 Day High Low • Oct 16
New 90-day low: KSh6.48 The company is down 14% from its price of KSh7.56 on 17 July 2020. The Kenyan market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electric Utilities industry, which is down 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is KSh11.86 per share.