K-Electric (KASE:KEL) - Share price, News & Analysis

KEL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	1/6
Dividends	0/6

KEL Stock Overview

K-Electric Limited engages in the generation, transmission, and distribution of electric energy in Pakistan.

Rewards

PE ratio (8.2x) is below the Electric Utilities industry average (17.8x)

Earnings grew by 655% over the past year

Risk Analysis

Earnings have declined by 19.1% per year over past 5 years

Interest payments are not well covered by earnings

K-Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for K-Electric
Historical stock prices
Current Share Price	PK₨2.50
52 Week High	PK₨4.88
52 Week Low	PK₨2.49
Beta	0.67
1 Month Change	-14.97%
3 Month Change	-23.08%
1 Year Change	-39.76%
3 Year Change	-39.17%
5 Year Change	-67.91%
Change since IPO	-92.59%

Shareholder Returns

	KEL	PK Electric Utilities	PK Market
7D	-1.6%	-1.3%	-0.5%
1Y	-39.8%	-37.8%	-13.6%

Return vs Industry: KEL underperformed the PK Electric Utilities industry which returned -37% over the past year.

Return vs Market: KEL underperformed the PK Market which returned -12.1% over the past year.

Price Volatility

Is KEL's price volatile compared to industry and market?
KEL volatility
KEL Average Weekly Movement	4.5%
Electric Utilities Industry Average Movement	5.0%
Market Average Movement	5.7%
10% most volatile stocks in PK Market	8.9%
10% least volatile stocks in PK Market	3.4%

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

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

About the Company

Founded	Employees	CEO	Website
1913	10,274	Syed Moonis Alvi	https://www.ke.com.pk

K-Electric Limited engages in the generation, transmission, and distribution of electric energy in Pakistan. It supplies electricity to industrial, commercial, and residential consumers located primarily in Karachi, as well as in the Hub, Uthal, Vinder, and Bela in Baluchistan. The company has an installed generation capacity of approximately 1,057 MW.

K-Electric Fundamentals Summary

How do K-Electric's earnings and revenue compare to its market cap?
KEL fundamental statistics
Market Cap	PK₨69.04b
Earnings (TTM)	PK₨8.44b
Revenue (TTM)	PK₨389.05b

8.2x

P/E Ratio

0.2x

P/S Ratio

Is KEL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KEL income statement (TTM)
Revenue	PK₨389.05b
Cost of Revenue	PK₨326.92b
Gross Profit	PK₨62.12b
Other Expenses	PK₨53.68b
Earnings	PK₨8.44b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.31
Gross Margin	15.97%
Net Profit Margin	2.17%
Debt/Equity Ratio	91.7%

How did KEL perform over the long term?

See historical performance and comparison

Valuation

Is K-Electric undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

8.18x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KEL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate KEL's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: KEL is good value based on its PE Ratio (8.2x) compared to the Asian Electric Utilities industry average (17.8x).

PE vs Market: KEL is poor value based on its PE Ratio (8.2x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: KEL's PB Ratio (0.3x) is in line with the PK Electric Utilities industry average.

Future Growth

How is K-Electric 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

16.9%

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 K-Electric 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.

Past Performance

How has K-Electric performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KEL has high quality earnings.

Growing Profit Margin: KEL's current net profit margins (2.2%) are higher than last year (0.4%).

Past Earnings Growth Analysis

Earnings Trend: KEL's earnings have declined by 19.1% per year over the past 5 years.

Accelerating Growth: KEL's earnings growth over the past year (655%) exceeds its 5-year average (-19.1% per year).

Earnings vs Industry: KEL earnings growth over the past year (655%) exceeded the Electric Utilities industry 2%.

Return on Equity

High ROE: KEL's Return on Equity (3.7%) is considered low.

Financial Health

How is K-Electric's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: KEL's short term assets (PKR460.0B) do not cover its short term liabilities (PKR535.3B).

Long Term Liabilities: KEL's short term assets (PKR460.0B) exceed its long term liabilities (PKR140.4B).

Debt to Equity History and Analysis

Debt Level: KEL's net debt to equity ratio (88.7%) is considered high.

Reducing Debt: KEL's debt to equity ratio has increased from 28.3% to 91.7% over the past 5 years.

Debt Coverage: KEL's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: KEL's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

Dividend

What is K-Electric current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate KEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KEL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KEL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KEL has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure

CEO

Syed Moonis Alvi

3.92yrs

Tenure

Mr. Syed Moonis Abdullah Alvi has been Chief Executive Officer at K-Electric Limited (formerly, Karachi Electricity Supply Corporation) since June 07, 2018 and was the Chief Financial Officer until Novembe...

Leadership Team

Experienced Management: KEL's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: KEL's board of directors are not considered experienced ( 3 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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30