Atlantica Sustainable Infrastructure (NasdaqGS:AY) - Share price, News & Analysis

AY fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	3/6
Dividends	3/6

AY Stock Overview

Rewards

Trading at 66.9% below our estimate of its fair value

Earnings are forecast to grow 45.63% per year

Risk Analysis

Dividend of 5.33% is not well covered by earnings

Shareholders have been diluted in the past year

Atlantica Sustainable Infrastructure Competitors

NextEra Energy Partners

NYSE:NEP

US$5.5b

Ellomay Capital

NYSEAM:ELLO

US$306.7m

Etrion

OTCPK:ETRX.F

US$4.4m

Brookfield Renewable Partners

TSX:BEP.UN

CA$21.5b

Price History & Performance

Summary of all time highs, changes and price drops for Atlantica Sustainable Infrastructure
Historical stock prices
Current Share Price	US$33.02
52 Week High	US$41.32
52 Week Low	US$28.82
Beta	0.74
1 Month Change	4.46%
3 Month Change	4.10%
1 Year Change	-10.59%
3 Year Change	51.75%
5 Year Change	60.92%
Change since IPO	-10.76%

Recent News & Updates

May 19

Atlantica Sustainable Infrastructure: My Long-Term Bet On The Energy Transition

Trillions of dollars are pouring into the clean energy transition, growing the total addressable market for Atlantica Sustainable Infrastructure. Atlantica’s Q2 2022 year-over-year renewable energy growth was 28%. Their cash grew to $739 Million from $622.7 Million while their liabilities decreased from $824.4 Million to $582 Million. Cash available for distribution (CAFD) grew at 6.3% year over year with CAFD growth targets of 5-8% through 2025. As the 10-year treasury’s yield of 3% continues to rise, investors might flee from lower-yielding stocks and flock to Atlantica’s nearly 6% dividend.

Shareholder Returns

	AY	US Renewable Energy	US Market
7D	7.8%	4.5%	-2.7%
1Y	-10.6%	-4.7%	-12.9%

Return vs Industry: AY underperformed the US Renewable Energy industry which returned -4.7% over the past year.

Return vs Market: AY exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is AY's price volatile compared to industry and market?
AY volatility
AY Average Weekly Movement	4.8%
Renewable Energy Industry Average Movement	9.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: AY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AY's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	658	Santiago Seage Medela	https://www.atlantica.com

Atlantica Sustainable Infrastructure plc owns, manages, and invests in renewable energy, storage, natural gas and heat, electric transmission lines, and water assets in the United States, Canada, Mexico, Peru, Chile, Colombia, Uruguay, Spain, Italy, Algeria, and South Africa. It owns 39 assets comprising 2,044 megawatts (MW) of aggregate renewable energy installed generation capacity; 343 MW of natural gas-fired power generation capacity; 55 thermal megawatts of district heating capacity; 1,229 miles of electric transmission lines; and 17.5 million cubic feet per day of water desalination assets. The company was formerly known as Atlantica Yield plc and changed its name to Atlantica Sustainable Infrastructure plc in May 2020.

Atlantica Sustainable Infrastructure Fundamentals Summary

How do Atlantica Sustainable Infrastructure's earnings and revenue compare to its market cap?
AY fundamental statistics
Market Cap	US$3.77b
Earnings (TTM)	-US$22.95m
Revenue (TTM)	US$1.19b

3.2x

P/S Ratio

-164.2x

P/E Ratio

Is AY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AY income statement (TTM)
Revenue	US$1.19b
Cost of Revenue	US$0
Gross Profit	US$1.19b
Other Expenses	US$1.21b
Earnings	-US$22.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.20
Gross Margin	100.00%
Net Profit Margin	-1.93%
Debt/Equity Ratio	346.5%

How did AY perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

-849%

Payout Ratio

Does AY pay a reliable dividends?

See AY dividend history and benchmarks

When do you need to buy AY by to receive an upcoming dividend?
Atlantica Sustainable Infrastructure dividend dates
Ex Dividend Date	May 27 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	4 days
Days until Dividend pay date	23 days

Does AY pay a reliable dividends?

See AY dividend history and benchmarks

Valuation

Is Atlantica Sustainable Infrastructure undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AY ($33.02) is trading below our estimate of fair value ($99.72)

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

Price To Earnings Ratio

PE vs Industry: AY is unprofitable, so we can't compare its PE Ratio to the US Renewable Energy industry average.

PE vs Market: AY is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: AY's PB Ratio (2.4x) is in line with the US Renewable Energy industry average.

Future Growth

How is Atlantica Sustainable Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

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

45.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: AY's is expected to become profitable in the next 3 years.

Revenue vs Market: AY's revenue (4.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: AY's revenue (4.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AY's Return on Equity is forecast to be low in 3 years time (9.8%).

Past Performance

How has Atlantica Sustainable Infrastructure 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

11.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AY is currently unprofitable.

Growing Profit Margin: AY is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: AY is unprofitable, but has reduced losses over the past 5 years at a rate of 11.9% per year.

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

Earnings vs Industry: AY is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-12.6%).

Return on Equity

High ROE: AY has a negative Return on Equity (-0.54%), as it is currently unprofitable.

Financial Health

How is Atlantica Sustainable Infrastructure's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AY's short term assets ($1.3B) exceed its short term liabilities ($582.0M).

Long Term Liabilities: AY's short term assets ($1.3B) do not cover its long term liabilities ($7.4B).

Debt to Equity History and Analysis

Debt Level: AY's net debt to equity ratio (295.3%) is considered high.

Reducing Debt: AY's debt to equity ratio has increased from 330.9% to 346.5% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.6% per year.

Dividend

What is Atlantica Sustainable Infrastructure current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

5.33%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: AY's dividend (5.33%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: AY's dividend (5.33%) is in the top 25% of dividend payers in the US market (4.11%)

Stability and Growth of Payments

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

Growing Dividend: AY's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.5%), AY's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

7.1yrs

Average management tenure

CEO

Santiago Seage Medela (52 yo)

6yrs

Tenure

US$3,752,700

Compensation

Mr. Santiago Seage Medela serves as the Chairman and Chief Executive Officer of Abengoa Solar Australia Pty Limited and Abengoa Solar, S.A. since 2006. Mr. Medela has been the Chief Executive Officer of At...

CEO Compensation Analysis

Compensation vs Market: Santiago's total compensation ($USD3.75M) is below average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Santiago's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: AY's management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: AY's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31