Empresa Regional de Servicio Público de Electricidad Electro Norte Medio (BVL:HIDRA2C1) - Share price, News & Analysis

Q: What is the Fair Price of HIDRA2C1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HIDRA2C1 (PEN1.35) is trading below our estimate of [[fair value]] (PEN1.41)

HIDRA2C1 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	2/6

HIDRA2C1 Stock Overview

Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A.

Rewards

Trading at 4.2% below our estimate of its fair value

Risk Analysis

Dividend of 10.23% is not well covered by earnings or forecast to be in the next 3 years

Empresa Regional de Servicio Público de Electricidad Electro Norte Medio Competitors

Enel Distribución PerúA

BVL:ENDISPC1

S/2.6b

Electro Sur EsteA

BVL:ESUREBC1

S/368.8m

Luz del SurA

BVL:LUSURC1

S/7.7b

Electro DunasA

BVL:EDUNASC1

S/114.1m

Price History & Performance

Summary of all time highs, changes and price drops for Empresa Regional de Servicio Público de Electricidad Electro Norte Medio
Historical stock prices
Current Share Price	S/1.35
52 Week High	S/1.60
52 Week Low	S/1.11
Beta	0.19
1 Month Change	0%
3 Month Change	3.85%
1 Year Change	20.54%
3 Year Change	-6.90%
5 Year Change	31.07%
Change since IPO	219.27%

Shareholder Returns

	HIDRA2C1	PE Electric Utilities	PE Market
7D	0%	-0.08%	1.1%
1Y	20.5%	34.6%	20.5%

Return vs Industry: HIDRA2C1 underperformed the PE Electric Utilities industry which returned 34.6% over the past year.

Return vs Market: HIDRA2C1 matched the PE Market which returned 20.5% over the past year.

Price Volatility

Is HIDRA2C1's price volatile compared to industry and market?
HIDRA2C1 volatility
HIDRA2C1 Average Weekly Movement	2.7%
Electric Utilities Industry Average Movement	4.8%
Market Average Movement	4.2%
10% most volatile stocks in PE Market	9.1%
10% least volatile stocks in PE Market	1.8%

Stable Share Price: HIDRA2C1 is less volatile than 75% of PE stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HIDRA2C1's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	n/a	Javier Alexander Rosado	https://www.distriluz.com.pe/hidrandina/

Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. engages in the distribution and commercialization of electric power. It serves approximately 946,804 users through a concession area of 2,666.25 square kilometers. The company serves departments of Ancash and La Libertad; and provinces of Contumaza, Cajamarca, San Pablo, CelendÃn, San Marcos, San Miguel, and Cajabamba within the Cajamarca Region.

Empresa Regional de Servicio Público de Electricidad Electro Norte Medio Fundamentals Summary

How do Empresa Regional de Servicio Público de Electricidad Electro Norte Medio's earnings and revenue compare to its market cap?
HIDRA2C1 fundamental statistics
Market Cap	S/1.01b
Earnings (TTM)	S/114.37m
Revenue (TTM)	S/1.15b

8.8x

P/E Ratio

0.9x

P/S Ratio

Is HIDRA2C1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIDRA2C1 income statement (TTM)
Revenue	S/1.15b
Cost of Revenue	S/923.38m
Gross Profit	S/224.95m
Other Expenses	S/110.58m
Earnings	S/114.37m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.15
Gross Margin	19.59%
Net Profit Margin	9.96%
Debt/Equity Ratio	25.6%

How did HIDRA2C1 perform over the long term?

See historical performance and comparison

Dividends

10.2%

Current Dividend Yield

90%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HIDRA2C1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HIDRA2C1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HIDRA2C1. This is calculated by dividing HIDRA2C1's market cap by their current preferred multiple.
What is HIDRA2C1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/1.01b

HIDRA2C1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	4.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HIDRA2C1's PE Ratio compare to its peers?

HIDRA2C1 PE Ratio vs Peers

The above table shows the PE ratio for HIDRA2C1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.4x
ENDISPC1 Enel Distribución PerúA	6.5x	n/a	S/2.6b
ESUREBC1 Electro Sur EsteA	3.7x	n/a	S/368.8m
LUSURC1 Luz del SurA	13x	n/a	S/7.7b
EDUNASC1 Electro DunasA	2.3x	n/a	S/114.1m
HIDRA2C1 Empresa Regional de Servicio Público de Electricidad Electro Norte Medio	8.8x	n/a	S/1.0b

Price-To-Earnings vs Peers: HIDRA2C1 is expensive based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (6.4x).

Price to Earnings Ratio vs Industry

How does HIDRA2C1's PE Ratio compare vs other companies in the South American Electric Utilities Industry?

Price-To-Earnings vs Industry: HIDRA2C1 is expensive based on its Price-To-Earnings Ratio (8.8x) compared to the PE Electric Utilities industry average (6.5x)

Price to Earnings Ratio vs Fair Ratio

What is HIDRA2C1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HIDRA2C1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HIDRA2C1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of HIDRA2C1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HIDRA2C1 (PEN1.35) is trading below our estimate of fair value (PEN1.41)

Significantly Below Fair Value: HIDRA2C1 is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Empresa Regional de Servicio Público de Electricidad Electro Norte Medio forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

14.3%

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 Empresa Regional de Servicio Público de Electricidad Electro Norte Medio 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.

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Take a look at our analysis of HIDRA2C1’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Empresa Regional de Servicio Público de Electricidad Electro Norte Medio 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

3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIDRA2C1 has high quality earnings.

Growing Profit Margin: HIDRA2C1's current net profit margins (10%) are lower than last year (11.4%).

Past Earnings Growth Analysis

Earnings Trend: HIDRA2C1's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: HIDRA2C1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIDRA2C1 had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Electric Utilities industry average (32.7%).

Return on Equity

High ROE: HIDRA2C1's Return on Equity (12.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Empresa Regional de Servicio Público de Electricidad Electro Norte Medio's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: HIDRA2C1's short term assets (PEN302.1M) do not cover its short term liabilities (PEN505.9M).

Long Term Liabilities: HIDRA2C1's short term assets (PEN302.1M) do not cover its long term liabilities (PEN424.0M).

Debt to Equity History and Analysis

Debt Level: HIDRA2C1's net debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: HIDRA2C1's debt to equity ratio has increased from 13.4% to 25.6% over the past 5 years.

Debt Coverage: HIDRA2C1's debt is well covered by operating cash flow (69.6%).

Interest Coverage: HIDRA2C1 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Empresa Regional de Servicio Público de Electricidad Electro Norte Medio current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

10.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HIDRA2C1's dividend (10.23%) is higher than the bottom 25% of dividend payers in the PE market (6.44%).

High Dividend: HIDRA2C1's dividend (10.23%) is low compared to the top 25% of dividend payers in the PE market (26.67%).

Stability and Growth of Payments

Stable Dividend: HIDRA2C1's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIDRA2C1's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (90.5%), HIDRA2C1's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (121.3%), HIDRA2C1's dividend payments are not well covered by cash flows.

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Management

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

4.1yrs

Average management tenure

CEO

Javier Alexander Rosado

4.08yrs

Tenure

Mr. Javier Alexander Muro Rosado has been General Manager at Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. since July 12, 2018. He had been Corporate Commercial Officer at E...

Leadership Team

Experienced Management: HIDRA2C1's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: HIDRA2C1's board of directors are not considered experienced ( 2.2 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	2022/08/10 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31