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UMEM

UmemeUGSE:UMEM Stock Report

Market Cap

USh324.8b

7D

-1.0%

1Y

-13.9%

Updated

22 Oct, 2021

Data

Company Financials +
UMEM fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance1/6
Financial Health3/6
Dividends3/6

UMEM Overview

Umeme Limited distributes and supplies electricity in Uganda.

Price History & Performance

Summary of all time highs, changes and price drops for Umeme
Historical stock prices
Current Share PriceUSh198.00
52 Week HighUSh185.00
52 Week LowUSh900.00
Beta-0.090
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

Shareholder Returns

UMEMUG Electric UtilitiesUG Market
7D-1.0%-2.0%-0.5%
1Y-13.9%25.0%0.4%

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.

Price Volatility

Is UMEM's price volatile compared to industry and market?
UMEM volatility
UMEM Beta-0.090
Industry Beta0.55
Market Beta1

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

FoundedEmployeesCEOWebsite
20041,619Selestino Babungihttps://www.umeme.co.ug

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

How do Umeme's earnings and revenue compare to its market cap?
UMEM fundamental statistics
Market CapUSh324.78b
Earnings (TTM)USh69.56b
Revenue (TTM)USh1.74t

4.6x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UMEM income statement (TTM)
RevenueUSh1.74t
Cost of RevenueUSh1.25t
Gross ProfitUSh492.10b
ExpensesUSh422.55b
EarningsUSh69.56b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)42.83
Gross Margin28.28%
Net Profit Margin4.00%
Debt/Equity Ratio61.3%

How did UMEM perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Umeme undervalued compared to its fair value and its price relative to the market?

>50%

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).


Future Growth

How is Umeme forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.1%

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%).


Past Performance

How has Umeme performed over the past 5 years?

-1.8%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Umeme current dividend yield, its reliability and sustainability?

6.16%

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).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Selestino Babungi

6.5yrs

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...


Leadership Team

Experienced Management: UMEM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: UMEM's board of directors are considered experienced (4.9 years average tenure).


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

Umeme Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Umeme Limited
  • Rwenzori House
  • Plot 1
  • Kampala
  • Uganda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 16:00
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.