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EL

Societatea Energetica Electrica BVB:EL Stock Report

Last Price

RON8.81

Market Cap

RON3.0b

7D

1.5%

1Y

-29.3%

Updated

15 Aug, 2022

Data

Company Financials +
EL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends1/6

EL Stock Overview

Societatea Energetica Electrica S.A., together with its subsidiaries, distributes and supplies electricity in Romania.

Societatea Energetica Electrica Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Societatea Energetica Electrica
Historical stock prices
Current Share PriceRON8.81
52 Week HighRON12.80
52 Week LowRON8.14
Beta0.33
1 Month Change2.68%
3 Month Change1.26%
1 Year Change-29.29%
3 Year Change-21.69%
5 Year Change-32.65%
Change since IPO-20.49%

Recent News & Updates

May 18
Societatea Energetica Electrica's (BVB:EL) Dividend Is Being Reduced To RON0.45

Societatea Energetica Electrica's (BVB:EL) Dividend Is Being Reduced To RON0.45

Societatea Energetica Electrica S.A. ( BVB:EL ) has announced it will be reducing its dividend payable on the 17th of...

May 04
Societatea Energetica Electrica (BVB:EL) Will Pay A Smaller Dividend Than Last Year

Societatea Energetica Electrica (BVB:EL) Will Pay A Smaller Dividend Than Last Year

Societatea Energetica Electrica S.A. ( BVB:EL ) has announced it will be reducing its dividend payable on the 17th of...

Shareholder Returns

ELRO Electric UtilitiesRO Market
7D1.5%0.6%0.4%
1Y-29.3%-3.7%7.1%

Return vs Industry: EL underperformed the RO Electric Utilities industry which returned -3.7% over the past year.

Return vs Market: EL underperformed the RO Market which returned 7.1% over the past year.

Price Volatility

Is EL's price volatile compared to industry and market?
EL volatility
EL Average Weekly Movement3.2%
Electric Utilities Industry Average Movement5.1%
Market Average Movement3.8%
10% most volatile stocks in RO Market6.4%
10% least volatile stocks in RO Market2.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
18987,990Chirita Alexandru-Aurelianhttps://www.electrica.ro

Societatea Energetica Electrica S.A., together with its subsidiaries, distributes and supplies electricity in Romania. It operates through Electricity and Natural Gas Supply, Electricity Distribution, Electricity Generation, and External Electricity Network Maintenance segments. The company provides electricity distribution services to electricity suppliers; supplies electricity to consumers in North Transylvania, South Transylvania, and North Muntenia; and supplies natural gas.

Societatea Energetica Electrica Fundamentals Summary

How do Societatea Energetica Electrica's earnings and revenue compare to its market cap?
EL fundamental statistics
Market CapRON2.99b
Earnings (TTM)-RON768.55m
Revenue (TTM)RON8.06b

0.4x

P/S Ratio

-3.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EL income statement (TTM)
RevenueRON8.06b
Cost of RevenueRON8.04b
Gross ProfitRON18.54m
Other ExpensesRON787.09m
Earnings-RON768.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)-2.26
Gross Margin0.23%
Net Profit Margin-9.53%
Debt/Equity Ratio48.6%

How did EL perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

-20%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 EL?

Other financial metrics that can be useful for relative valuation.

EL 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/Revenue0.7x
Enterprise Value/EBITDA-12.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EL's PS Ratio compare to its peers?

EL PS Ratio vs Peers
The above table shows the PS ratio for EL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
TEL CNTEE Transelectrica
0.4x2.1%RON1.4b
SNN S.N. Nuclearelectrica
4.7x4.9%RON14.8b
ENDISPC1 Enel Distribución PerúA
0.7xn/aS/2.6b
600979 Sichuan Guangan AaapublicLtd
1.9xn/aCN¥4.7b
EL Societatea Energetica Electrica
0.4x2.6%RON3.0b

Price-To-Sales vs Peers: EL is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does EL's PE Ratio compare vs other companies in the European Electric Utilities Industry?

Price-To-Sales vs Industry: EL is expensive based on its Price-To-Sales Ratio (0.4x) compared to the European Electric Utilities industry average (0.4x)


Price to Sales Ratio vs Fair Ratio

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

EL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: EL is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

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

Below Fair Value: EL (RON8.81) is trading below our estimate of fair value (RON43.92)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Societatea Energetica Electrica forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


70.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: EL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EL is expected to become profitable in the next 3 years.

Revenue vs Market: EL's revenue (2.6% per year) is forecast to grow slower than the RO market (3.4% per year).

High Growth Revenue: EL's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EL's Return on Equity is forecast to be low in 3 years time (8.5%).


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Past Performance

How has Societatea Energetica Electrica performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EL is currently unprofitable.

Growing Profit Margin: EL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EL is unprofitable, and losses have increased over the past 5 years at a rate of 23.8% per year.

Accelerating Growth: Unable to compare EL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EL is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (5.8%).


Return on Equity

High ROE: EL has a negative Return on Equity (-16.03%), as it is currently unprofitable.


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Financial Health

How is Societatea Energetica Electrica'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: EL's short term assets (RON3.0B) do not cover its short term liabilities (RON3.7B).

Long Term Liabilities: EL's short term assets (RON3.0B) exceed its long term liabilities (RON608.1M).


Debt to Equity History and Analysis

Debt Level: EL's net debt to equity ratio (46.7%) is considered high.

Reducing Debt: EL's debt to equity ratio has increased from 8.6% to 48.6% over the past 5 years.

Debt Coverage: EL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if EL's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Societatea Energetica Electrica current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EL's dividend (5.11%) is higher than the bottom 25% of dividend payers in the RO market (2.88%).

High Dividend: EL's dividend (5.11%) is low compared to the top 25% of dividend payers in the RO market (7.14%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EL has been paying a dividend for less than 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: EL is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

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


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Management

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

1.3yrs

Average board tenure


CEO

Chirita Alexandru-Aurelian

0.25

Tenure

Mr. Chirita Alexandru-Aurelian is Interim Chief Executive Officer of Societatea Energetica Electrica S.A. from May 17, 2022.


Board Members

Experienced Board: EL's board of directors are not considered experienced ( 1.3 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.


Top Shareholders

Company Information

Societatea Energetica Electrica S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Societatea Energetica Electrica S.A.
  • Ticker: EL
  • Exchange: BVB
  • Founded: 1898
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: RON2.991b
  • Shares outstanding: 339.55m
  • Website: https://www.electrica.ro

Number of Employees


Location

  • Societatea Energetica Electrica S.A.
  • No. 9, Grigore Alexandrescu Street
  • District 1
  • Bucharest
  • Romania

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.