Umeme Limited distributes and supplies electricity in Uganda.
Price History & Performance
|Historical stock prices|
|Current Share Price||USh198.00|
|52 Week High||USh185.00|
|52 Week Low||USh900.00|
|1 Month Change||-5.26%|
|3 Month Change||-7.91%|
|1 Year Change||-13.91%|
|3 Year Change||-42.94%|
|5 Year Change||-62.57%|
|Change since IPO||-34.00%|
Recent News & Updates
|UMEM||UG Electric Utilities||UG Market|
Return vs Industry: UMEM underperformed the UG Electric Utilities industry which returned 25% over the past year.
Return vs Market: UMEM underperformed the UG Market which returned 0.4% over the past year.
Stable Share Price: UMEM is more volatile than 90% of UG stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: UMEM's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of UG stocks.
About the Company
Umeme Limited distributes and supplies electricity in Uganda. It operates through a distribution network of approximately 37,352 kilometers of low voltage, 11 kilovolts (kV), and 33kV network lines. The company has a customer base of 1,506,920 customers, including domestic, commercial, medium and large industrial, and street lighting customers.
Umeme Fundamentals Summary
|UMEM fundamental statistics|
Is UMEM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|UMEM income statement (TTM)|
|Cost of Revenue||USh1.25t|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||42.83|
|Net Profit Margin||4.00%|
How did UMEM perform over the long term?See historical performance and comparison
6.2%Current Dividend Yield
Is Umeme undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UMEM (UGX198) is trading below our estimate of fair value (UGX1845.83)
Significantly Below Fair Value: UMEM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UMEM is good value based on its PE Ratio (4.6x) compared to the Global Electric Utilities industry average (14.5x).
PE vs Market: UMEM is good value based on its PE Ratio (4.6x) compared to the UG market (4.9x).
Price to Earnings Growth Ratio
PEG Ratio: UMEM is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: UMEM is good value based on its PB Ratio (0.4x) compared to the XF Electric Utilities industry average (0.6x).
How is Umeme forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UMEM's forecast earnings growth (12.1% per year) is above the savings rate (9.1%).
Earnings vs Market: UMEM's earnings (12.1% per year) are forecast to grow slower than the UG market (12.9% per year).
High Growth Earnings: UMEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: UMEM's revenue (6.7% per year) is forecast to grow slower than the UG market (7.1% per year).
High Growth Revenue: UMEM's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UMEM's Return on Equity is forecast to be low in 3 years time (11.7%).
How has Umeme performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UMEM has high quality earnings.
Growing Profit Margin: UMEM's current net profit margins (4%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: UMEM's earnings have declined by 1.8% per year over the past 5 years.
Accelerating Growth: UMEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UMEM had negative earnings growth (-30.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (8.9%).
Return on Equity
High ROE: UMEM's Return on Equity (8.6%) is considered low.
How is Umeme's financial position?
Financial Position Analysis
Short Term Liabilities: UMEM's short term assets (UGX450.3B) do not cover its short term liabilities (UGX906.1B).
Long Term Liabilities: UMEM's short term assets (UGX450.3B) do not cover its long term liabilities (UGX800.4B).
Debt to Equity History and Analysis
Debt Level: UMEM's debt to equity ratio (61.3%) is considered high.
Reducing Debt: UMEM's debt to equity ratio has reduced from 117.9% to 61.3% over the past 5 years.
Debt Coverage: UMEM's debt is well covered by operating cash flow (82.3%).
Interest Coverage: UMEM's interest payments on its debt are well covered by EBIT (7x coverage).
What is Umeme current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UMEM's dividend (6.16%) is higher than the bottom 25% of dividend payers in the UG market (4.53%).
High Dividend: UMEM's dividend (6.16%) is low compared to the top 25% of dividend payers in the UG market (8.34%).
Stability and Growth of Payments
Stable Dividend: UMEM has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: UMEM has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.5%), UMEM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UMEM's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Selestino Babungi has been Managing Director of Umeme Ltd. since April 1, 2015. Mr. Babungi served as the Chief Financial Officer at Umeme Ltd.since January 2011. Mr. Babungi is an accountant with ove...
Experienced Management: UMEM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: UMEM's board of directors are considered experienced (4.9 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Umeme Limited's employee growth, exchange listings and data sources
- Name: Umeme Limited
- Ticker: UMEM
- Exchange: UGSE
- Founded: 2004
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: USh324.776b
- Shares outstanding: 1.62b
- Website: https://www.umeme.co.ug
Number of Employees
- Umeme Limited
- Rwenzori House
- Plot 1
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 16:00|
|End of Day Share Price||2021/10/22 00:00|
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.