NasdaqGS:AY

Stock Analysis Report

Executive Summary

Atlantica Yield plc acquires, owns, and manages renewable energy, natural gas power, electric transmission lines, and water assets in the United States, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and South Africa.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Atlantica Yield's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

AY

2.9%

US Renewable Energy

0.07%

US Market


1 Year Return

24.3%

AY

22.9%

US Renewable Energy

8.9%

US Market

Return vs Industry: AY exceeded the US Renewable Energy industry which returned 22.9% over the past year.

Return vs Market: AY exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

AYIndustryMarket
7 Day0.1%2.9%0.07%
30 Day0.8%2.1%-0.3%
90 Day5.2%11.3%-1.6%
1 Year33.6%24.3%27.1%22.9%11.3%8.9%
3 Year65.6%36.9%69.6%45.2%46.3%36.8%
5 Year-2.4%-26.1%30.3%0.4%62.1%44.3%

Price Volatility Vs. Market

How volatile is Atlantica Yield's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AY ($24.36) is trading below our estimate of fair value ($39.29)

Significantly Below Fair Value: AY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AY is unprofitable, so we can't compare its PE Ratio to the 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 is overvalued based on its PB Ratio (1.6x) compared to the US Renewable Energy industry average (1.4x).


Next Steps

Future Growth

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

31.5%

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 (2.7%).

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 (8.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AY's revenue (8.4% 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 (9.2%).


Next Steps

Past Performance

How has Atlantica Yield performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AY is unprofitable, but has reduced losses over the past 5 years at a rate of 13.1% 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 (33.9%).


Return on Equity

High ROE: AY has a negative Return on Equity (0.28%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Atlantica Yield's financial position?


Financial Position Analysis

Short Term Liabilities: AY's short term assets ($1.1B) exceeds its short term liabilities ($986.2M)

Long Term Liabilities: AY's short term assets (1.1B) do not cover its long term liabilities (7.1B)


Debt to Equity History and Analysis

Debt Level: AY's debt to equity ratio (347.1%) is considered high

Reducing Debt: AY's debt to equity ratio has increased from 139.3% to 347.1% over the past 5 years.


Balance Sheet

Inventory Level: AY has a low level of unsold assets or inventory.

Debt Coverage by Assets: AY's debt is not covered by short term assets (assets are 0.2x debt).


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 12.8% per year.


Next Steps

Dividend

What is Atlantica Yield's current dividend yield, its reliability and sustainability?

6.57%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years7.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AY's dividend (6.57%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AY's dividend (6.57%) is in the top 25% of dividend payers in the US market (3.68%)

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 5 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: AY's dividends in 3 years are not forecast to be well covered by earnings (135.7% payout ratio).


Next Steps

Management

What is the CEO of Atlantica Yield's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Santiago Seage Medela (50yo)

3.4yrs

Tenure

US$2,511,100

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Santiago's total compensation ($USD2.51M) is below average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: AY's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: AY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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


Management Team

  • Santiago Seage Medela (50yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: US$2.51m
  • Marta Jorge

    Director of Strategic Projects

    • Tenure: 0yrs
  • Irene Hernandez (39yo)

    Chief of Compliance

    • Tenure: 0yrs
  • Francisco Martinez-Davis (56yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$84.92k
  • Stevens Moore (46yo)

    Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Leire Pérez

    Director

    • Tenure: 5.3yrs

Board Members

  • Jack Robinson (77yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$118.30k
  • Chris Jarratt (61yo)

    Director

    • Tenure: 1.6yrs
  • Ian Robertson (60yo)

    Director

    • Tenure: 1.6yrs
  • Andrea Brentan (70yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$114.20k
  • Daniel Villalba (72yo)

    Independent Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$160.00k
  • Santiago Seage Medela (50yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: US$2.51m
  • Robert Dove (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$118.30k
  • Francisco Martinez (61yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$120.40k

Company Information

Atlantica Yield plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atlantica Yield plc
  • Ticker: AY
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: US$2.475b
  • Shares outstanding: 101.60m
  • Website: https://www.atlanticayield.com

Number of Employees


Location

  • Atlantica Yield plc
  • Great West House
  • GW1, 17th Floor
  • Brentford
  • Greater London
  • TW8 9DF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AYNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDJun 2014
AY3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

Biography

Atlantica Yield plc acquires, owns, and manages renewable energy, natural gas power, electric transmission lines, and water assets in the United States, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and So ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:16
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.