New Risk • May 06
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% 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 have declined by 15% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.6% net profit margin). Upcoming Dividend • Apr 14
Upcoming dividend of S/0.031 per share Eligible shareholders must have bought the stock before 21 April 2026. Payment date: 24 April 2026. Payout ratio is a comfortable 63% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of Peruvian dividend payers (12%). Lower than average of industry peers (4.6%). Declared Dividend • Apr 14
Dividend of S/0.031 announced Shareholders will receive a dividend of S/0.031. Ex-date: 21st April 2026 Payment date: 24th April 2026 Dividend yield will be 2.3%, which is lower than the industry average of 4.4%. Payout Ratios Payout ratio: 63%. Cash payout ratio: 103%. Announcement • Apr 08
Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. announces Annual dividend, payable on April 24, 2026 Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. announced Annual dividend of PEN 0.0311 per share payable on April 24, 2026, ex-date on April 21, 2026 and record date on April 22, 2026. New Risk • Mar 20
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 Peruvian stocks, typically moving 5.6% 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. Payout ratio: 134% Dividend per share is over 5x cash flows per share. Earnings have declined by 11% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.8% net profit margin). New Risk • Feb 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Dividend per share is over 5x cash flows per share. Earnings have declined by 11% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to S/1.41, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 11x in the Electric Utilities industry in Peru. Total returns to shareholders of 20% over the past three years. New Risk • Nov 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Dividend per share is over 24x cash flows per share. Earnings have declined by 7.2% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.8% net profit margin). Reported Earnings • Nov 05
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: S/338.3m (up 7.7% from 3Q 2024). Net income: S/6.12m (down 63% from 3Q 2024). Profit margin: 1.8% (down from 5.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. New Risk • Oct 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 Peruvian stocks, typically moving 4.3% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Paying a dividend despite having no free cash flows. Earnings have declined by 4.4% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.6% net profit margin). Announcement • Apr 06
Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. announces Annual dividend, payable on April 25, 2025 Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A. announced Annual dividend of PEN 0.0712 per share payable on April 25, 2025, ex-date on April 22, 2025 and record date on April 23, 2025. Announcement • Mar 14
Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A., Annual General Meeting, Mar 27, 2025 Empresa Regional de Servicio Público de Electricidad Electro Norte Medio S.A., Annual General Meeting, Mar 27, 2025, at 17:00 SA Pacific Standard Time. Location: held remotely, Peru New Risk • Mar 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 134% Dividend per share is over 12x cash flows per share. Earnings have declined by 0.7% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.3% net profit margin). New Risk • Mar 07
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 Peruvian stocks, typically moving 4.1% 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. Payout ratio: 134% Dividend per share is over 12x cash flows per share. Earnings have declined by 0.7% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.1% average weekly change). Profit margins are more than 30% lower than last year (6.3% net profit margin). Reported Earnings • Feb 21
Full year 2024 earnings released: EPS: S/0.11 (vs S/0.19 in FY 2023) Full year 2024 results: EPS: S/0.11 (down from S/0.19 in FY 2023). Revenue: S/1.37b (up 2.3% from FY 2023). Net income: S/87.1m (down 38% from FY 2023). Profit margin: 6.3% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Nov 06
Third quarter 2024 earnings released: EPS: S/0.021 (vs S/0.038 in 3Q 2023) Third quarter 2024 results: EPS: S/0.021 (down from S/0.038 in 3Q 2023). Revenue: S/314.1m (down 2.7% from 3Q 2023). Net income: S/16.3m (down 43% from 3Q 2023). Profit margin: 5.2% (down from 8.9% in 3Q 2023). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Aug 04
Second quarter 2024 earnings released: EPS: S/0.026 (vs S/0.048 in 2Q 2023) Second quarter 2024 results: EPS: S/0.026 (down from S/0.048 in 2Q 2023). Revenue: S/319.6m (down 7.3% from 2Q 2023). Net income: S/20.0m (down 45% from 2Q 2023). Profit margin: 6.3% (down from 10% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Apr 15
Upcoming dividend of S/0.16 per share Eligible shareholders must have bought the stock before 22 April 2024. Payment date: 25 April 2024. Payout ratio and cash payout ratio are on the higher end at 83% and 92% respectively. Trailing yield: 8.7%. Lower than top quartile of Peruvian dividend payers (12%). Higher than average of industry peers (4.3%). New Risk • Feb 26
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (95% cash payout ratio). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). New Risk • Nov 15
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 Peruvian stocks, typically moving 4.2% 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: Minor Risks Dividend is not well covered by cash flows (103% cash payout ratio). Share price has been volatile over the past 3 months (4.2% average weekly change). Buying Opportunity • Nov 10
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be S/2.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 10%. Reported Earnings • Nov 04
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: S/322.9m (up 4.1% from 3Q 2022). Net income: S/28.8m (down 18% from 3Q 2022). Profit margin: 8.9% (down from 11% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Aug 06
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: S/344.9m (up 17% from 2Q 2022). Net income: S/36.0m (up 53% from 2Q 2022). Profit margin: 10% (up from 8.0% in 2Q 2022). The increase in margin was driven by higher revenue. Upcoming Dividend • Apr 18
Upcoming dividend of S/0.16 per share at 9.8% yield Eligible shareholders must have bought the stock before 25 April 2023. Payment date: 28 April 2023. Payout ratio is on the higher end at 90%, and the cash payout ratio is above 100%. Trailing yield: 9.8%. Lower than top quartile of Peruvian dividend payers (15%). Higher than average of industry peers (5.9%). Board Change • Nov 16
No independent directors There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). Director Primitivo Beltran is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of experienced directors. Reported Earnings • Aug 05
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: S/295.9m (up 12% from 2Q 2021). Net income: S/23.6m (down 16% from 2Q 2021). Profit margin: 8.0% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Board Change • Apr 27
No independent directors There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). Director Primitivo Beltran is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of experienced directors. Upcoming Dividend • Apr 19
Upcoming dividend of S/0.14 per share Eligible shareholders must have bought the stock before 26 April 2022. Payment date: 29 April 2022. Payout ratio is on the higher end at 87%, however this is supported by cash flows. Trailing yield: 8.9%. Lower than top quartile of Peruvian dividend payers (19%). Higher than average of industry peers (7.3%). Reported Earnings • Feb 19
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: S/0.15 (up from S/0.15 in FY 2020). Revenue: S/1.09b (up 11% from FY 2020). Net income: S/112.1m (up 1.4% from FY 2020). Profit margin: 10% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 1% per year. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improved over the past week After last week's 18% share price gain to S/1.35, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 8x in the Electric Utilities industry in Peru. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorated over the past week After last week's 30% share price decline to S/1.15, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 8x in the Electric Utilities industry in Peru. Total returns to shareholders of 26% over the past three years. Upcoming Dividend • Apr 16
Upcoming dividend of S/0.13 per share Eligible shareholders must have bought the stock before 23 April 2021. Payment date: 28 April 2021. Trailing yield: 7.9%. Lower than top quartile of Peruvian dividend payers (14%). Higher than average of industry peers (5.2%). Reported Earnings • Apr 01
Full year 2020 earnings released The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: S/979.8m (flat on FY 2019). Net income: S/110.6m (down 13% from FY 2019). Profit margin: 11% (down from 13% in FY 2019). Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 11% per year. Is New 90 Day High Low • Feb 21
New 90-day high: S/1.51 The company is up 1.0% from its price of S/1.50 on 20 November 2020. The Peruvian market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electric Utilities industry, which is down 3.0% over the same period. 
