WSE:IRL

Stock Analysis Report

AB Inter RAO Lietuva

Executive Summary

AB INTER RAO Lietuva, together with its subsidiaries, supplies electricity in Lithuania, Latvia, Estonia, the Russian Federation, Belarus, and Poland.

Rewards

Trading at 34% below its fair value

Earnings grew by 64.9% over the past year

Risk Analysis

Earnings have declined by -2.19% per year over past 5 years

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

PGE Polska Grupa Energetyczna

WSE:PGE

Share Price & News

How has AB Inter RAO Lietuva's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.8%

IRL

-0.4%

PL Electric Utilities

0.8%

PL Market


1 Year Return

80.9%

IRL

-24.0%

PL Electric Utilities

-5.7%

PL Market

Return vs Industry: IRL exceeded the Polish Electric Utilities industry which returned -23.6% over the past year.

Return vs Market: IRL exceeded the Polish Market which returned -4.3% over the past year.


Shareholder returns

IRLIndustryMarket
7 Day19.8%-0.4%0.8%
30 Day45.8%-2.2%3.6%
90 Day59.7%-2.9%3.6%
1 Year122.7%80.9%-23.9%-24.0%-2.8%-5.7%
3 Year139.5%45.8%-24.7%-25.5%5.8%-1.9%
5 Year167.2%16.8%-57.6%-61.2%7.4%-6.2%

Price Volatility Vs. Market

How volatile is AB Inter RAO Lietuva's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AB Inter RAO Lietuva undervalued compared to its fair value and its price relative to the market?

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRL (PLN18) is trading below our estimate of fair value (PLN27.28)

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


Price To Earnings Ratio

PE vs Industry: IRL is good value based on its PE Ratio (4.8x) compared to the Electric Utilities industry average (7x).

PE vs Market: IRL is good value based on its PE Ratio (4.8x) compared to the Polish market (11.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IRL is overvalued based on its PB Ratio (3.4x) compared to the PL Electric Utilities industry average (0.3x).


Next Steps

Future Growth

How is AB Inter RAO Lietuva forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.7%

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 AB Inter RAO Lietuva 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.


Next Steps

Past Performance

How has AB Inter RAO Lietuva performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRL has a high level of non-cash earnings.

Growing Profit Margin: IRL's current net profit margins (4.5%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: IRL's earnings have declined by -2.2% per year over the past 5 years.

Accelerating Growth: IRL's earnings growth over the past year (64.9%) exceeds its 5-year average (-2.2% per year).

Earnings vs Industry: IRL earnings growth over the past year (64.9%) exceeded the Electric Utilities industry 14.4%.


Return on Equity

High ROE: IRL's Return on Equity (71%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AB Inter RAO Lietuva's financial position?


Financial Position Analysis

Short Term Liabilities: IRL's short term assets (€35.1M) exceed its short term liabilities (€28.6M).

Long Term Liabilities: IRL's short term assets (€35.1M) exceed its long term liabilities (€2.4M).


Debt to Equity History and Analysis

Debt Level: IRL's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: IRL's debt to equity ratio has reduced from 181.1% to 18.7% over the past 5 years.

Debt Coverage: IRL's debt is well covered by operating cash flow (295.5%).

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


Balance Sheet

Inventory Level: IRL has a high level of physical assets or inventory.

Debt Coverage by Assets: IRL's debt is covered by short term assets (assets are 7.5x debt).


Next Steps

Dividend

What is AB Inter RAO Lietuva's current dividend yield, its reliability and sustainability?

7.00%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%2.3%markettop25%7.0%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: IRL's dividend (8.44%) is higher than the bottom 25% of dividend payers in the Polish market (2.4%).

High Dividend: IRL's dividend (7%) is low compared to the top 25% of dividend payers in the Polish market (7.09%).


Stability and Growth of Payments

Stable Dividend: IRL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IRL has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.6%), IRL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of AB Inter RAO Lietuva's salary, the management and board of directors tenure and is there insider trading?

12.5yrs

Average management tenure


CEO

Giedrius Balciunas 0

16.7yrs

Tenure

€570,000

Compensation

Mr. Giedrius Balciunas has been the Chief Executive Officer and Member of the Management Board at AB Inter RAO Lietuva since 2003 and since July 20, 2012 respectively. Mr. Balciunas has been Director Gener ...


Management Age and Tenure

12.5yrs

Average Tenure

Experienced Management: IRL's management team is seasoned and experienced (12.5 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

Experienced Board: IRL's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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.


Management Team

  • Jonas Garbaravicius

    Counsellor of CEO & Member of Supervisory Council

    • Tenure: 7.3yrs
    • Compensation: €470.00k
  • Evgeniy Miroshnichenko (39yo)

    Member of The Board

    • Tenure: 4yrs
  • Vidas Cebatariunas

    Director of Commerce & Member of the Management Board

    • Tenure: 12.8yrs
    • Compensation: €550.00k
  • Nerijus Veiksa

    Director of Legal Department

    • Tenure: 12.8yrs
    • Compensation: €140.00k
  • Paulius Vazniokas

    Economic Director

    • Tenure: 12.3yrs
    • Compensation: €530.00k
  • Giedrius Balciunas

    CEO, Director General & Member of the Board

    • Tenure: 16.7yrs
    • Compensation: €570.00k
  • Aiste Vaitaityte

    Deputy Chief Executive Officer

    • Tenure: 14.6yrs
    • Compensation: €120.00k
  • Edita Vagoniene

    Chief Accountant

    • Tenure: 7.3yrs
  • Evgeny Sarymsakov

    Member of the Management Board

    • Alexandra Panina

      Chairman of the Board

      • Tenure: 1.5yrs

    Board Members

    • Jonas Garbaravicius

      Counsellor of CEO & Member of Supervisory Council

      • Tenure: 7.3yrs
      • Compensation: €470.00k
    • Danielis Klicmanas

      Member of the Supervisory Council

      • Tenure: 3.8yrs
    • Rytis Davidovicius

      Member of the Supervisory Council

      • Tenure: 3.8yrs
    • Vasily Kulikov

      Member of the Supervisory Council

      • Tenure: 3.8yrs
    • Evgeniya Popova

      Chairwomen of the Supervisory Council

      • Tenure: 3yrs
    • Victor Kolotievskiy

      Member of the Supervisory Council

      • Tenure: 3.8yrs
    • Valerian Goncharov

      Member of the Supervisory Board

      • Tenure: 0.8yrs

    Company Information

    AB Inter RAO Lietuva's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: AB Inter RAO Lietuva
    • Ticker: IRL
    • Exchange: WSE
    • Founded: 2002
    • Industry: Electric Utilities
    • Sector: Utilities
    • Market Cap: zł436.000m
    • Shares outstanding: 20.00m
    • Website: https://www.interrao.lt

    Number of Employees


    Location

    • AB Inter RAO Lietuva
    • A. Tumeno str. 4
    • Block B
    • Vilnius
    • 1109
    • Lithuania

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    IRLWSE (Warsaw Stock Exchange)YesOrdinary Registered SharesPLPLNDec 2012
    0QCSLSE (London Stock Exchange)YesOrdinary Registered SharesGBPLNDec 2012

    Biography

    AB INTER RAO Lietuva, together with its subsidiaries, supplies electricity in Lithuania, Latvia, Estonia, the Russian Federation, Belarus, and Poland. The company engages in various forms of electricity trading, including the purchase and sale of electricity under bilateral contracts with other electricity suppliers, as well as on the power exchange; and supply of electricity to end users. It is also involved in the provision of balancing services for end-users and other wholesalers of electricity; sale and purchase of regulating and balancing electricity for the transmission system operators; and cross-border electricity trading. In addition, the company generates and supplies wind energy through a wind farm in Western Lithuania. The company was founded in 2002 and is based in Vilnius, Lithuania. AB INTER RAO Lietuva is a subsidiary of RAO Nordic Oy. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 21:22
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.