AB Ignitis grupe (NSEL:IGN1L) - Share price, News & Analysis

IGN1L fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	2/6
Financial Health	2/6
Dividends	3/6

IGN1L Stock Overview

AB Ignitis grupe, together with its subsidiaries, generates, distributes, trades, and supplies electricity and heat.

Rewards

Trading at 39.6% below our estimate of its fair value

Earnings are forecast to grow 9.88% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 6.52% is not well covered by earnings

Profit margins (6.4%) are lower than last year (14.6%)

AB Ignitis grupe Competitors

Fortum Oyj

HLSE:FORTUM

€15.7b

Polski Koncern Naftowy ORLEN Spólka Akcyjna

WSE:PKN

zł30.0b

PGE Polska Grupa Energetyczna

WSE:PGE

zł18.1b

Inter RAO UES

MISX:IRAO

₽211.9b

Price History & Performance

Summary of all time highs, changes and price drops for AB Ignitis grupe
Historical stock prices
Current Share Price	€18.40
52 Week High	€25.60
52 Week Low	€17.24
Beta	0
1 Month Change	-1.29%
3 Month Change	-8.23%
1 Year Change	-8.00%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-17.49%

Shareholder Returns

	IGN1L	LT Electric Utilities	LT Market
7D	2.5%	4.1%	1.4%
1Y	-8.0%	-5.0%	-2.0%

Return vs Industry: IGN1L underperformed the LT Electric Utilities industry which returned -5% over the past year.

Return vs Market: IGN1L underperformed the LT Market which returned -2% over the past year.

Price Volatility

Is IGN1L's price volatile compared to industry and market?
IGN1L volatility
IGN1L Average Weekly Movement	4.1%
Electric Utilities Industry Average Movement	8.9%
Market Average Movement	5.2%
10% most volatile stocks in LT Market	8.2%
10% least volatile stocks in LT Market	3.5%

Stable Share Price: IGN1L is not significantly more volatile than the rest of LT stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IGN1L's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	3,884	Darius Maikštenas	https://ignitisgrupe.lt

AB Ignitis grupe, together with its subsidiaries, generates, distributes, trades, and supplies electricity and heat. It also produces renewable electricity; supplies liquefied natural gas; trades and distributes natural gas; and constructs, repairs, maintains electricity networks and related equipment, as well as connects customers to electricity networks. In addition, the company provides information technology, telecommunications, and other services; public procurement, accounting, and legal personnel administration services; and payment collection services.

AB Ignitis grupe Fundamentals Summary

How do AB Ignitis grupe's earnings and revenue compare to its market cap?
IGN1L fundamental statistics
Market Cap	€1.34b
Earnings (TTM)	€158.56m
Revenue (TTM)	€2.47b

8.5x

P/E Ratio

0.5x

P/S Ratio

Is IGN1L overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IGN1L income statement (TTM)
Revenue	€2.47b
Cost of Revenue	€1.95b
Gross Profit	€518.15m
Other Expenses	€359.58m
Earnings	€158.56m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 23, 2022

Earnings per share (EPS)	2.17
Gross Margin	21.01%
Net Profit Margin	6.43%
Debt/Equity Ratio	71.3%

How did IGN1L perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

55%

Payout Ratio

Valuation

Is AB Ignitis grupe undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IGN1L (€18.4) is trading below our estimate of fair value (€30.47)

Significantly Below Fair Value: IGN1L is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: IGN1L is good value based on its PE Ratio (8.5x) compared to the European Electric Utilities industry average (10.6x).

PE vs Market: IGN1L is good value based on its PE Ratio (8.5x) compared to the LT market (9x).

Price to Earnings Growth Ratio

PEG Ratio: IGN1L is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: IGN1L is good value based on its PB Ratio (0.7x) compared to the XE Electric Utilities industry average (1x).

Future Growth

How is AB Ignitis grupe forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGN1L's forecast earnings growth (9.9% per year) is above the savings rate (0.6%).

Earnings vs Market: IGN1L's earnings (9.9% per year) are forecast to grow faster than the LT market (9% per year).

High Growth Earnings: IGN1L's earnings are forecast to grow, but not significantly.

Revenue vs Market: IGN1L's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: IGN1L's revenue is forecast to decline over the next 3 years (-7.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: IGN1L's Return on Equity is forecast to be low in 3 years time (8.4%).

Past Performance

How has AB Ignitis grupe performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IGN1L has high quality earnings.

Growing Profit Margin: IGN1L's current net profit margins (6.4%) are lower than last year (14.6%).

Past Earnings Growth Analysis

Earnings Trend: IGN1L's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: IGN1L's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IGN1L had negative earnings growth (-14.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (10.4%).

Return on Equity

High ROE: IGN1L's Return on Equity (7.9%) is considered low.

Financial Health

How is AB Ignitis grupe's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IGN1L's short term assets (€1.5B) exceed its short term liabilities (€849.2M).

Long Term Liabilities: IGN1L's short term assets (€1.5B) do not cover its long term liabilities (€1.8B).

Debt to Equity History and Analysis

Debt Level: IGN1L's net debt to equity ratio (47.4%) is considered high.

Reducing Debt: IGN1L's debt to equity ratio has increased from 37.5% to 71.3% over the past 5 years.

Debt Coverage: IGN1L's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: IGN1L's interest payments on its debt are well covered by EBIT (9x coverage).

Balance Sheet

Dividend

What is AB Ignitis grupe current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IGN1L's dividend (6.52%) is higher than the bottom 25% of dividend payers in the LT market (3.68%).

High Dividend: IGN1L's dividend (6.52%) is in the top 25% of dividend payers in the LT market (6.23%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether IGN1L's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if IGN1L's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (55.4%), IGN1L's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: IGN1L is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Darius Maikštenas (51 yo)

4.25yrs

Tenure

€181,183

Compensation

Mr. Darius Maikštenas has been Chairman of the Management Board of UAB Ignitis Grupe since February 1, 2018 and as its CEO since February 12, 2018. During his tenure, structural reforms were implemented by...

CEO Compensation Analysis

Compensation vs Market: Darius's total compensation ($USD191.14K) is below average for companies of similar size in the LT market ($USD1.31M).

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

Leadership Team

Experienced Management: IGN1L's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: IGN1L's board of directors are not considered experienced ( 1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31