Via Renewables (NasdaqGS:VIA) - Share price, News & Analysis

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

VIA ($7.94) is trading below our estimate of [[fair value]] ($15.98)

VIA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	4/6
Dividends	2/6

VIA Stock Overview

Via Renewables, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States.

Rewards

Trading at 50.3% below our estimate of its fair value

Earnings grew by 42.3% over the past year

Risk Analysis

Dividend of 9.13% is not well covered by earnings or forecast to be in the next 3 years

Via Renewables Competitors

Genie Energy

NYSE:GNE

US$235.8m

Alaska Power & Telephone

OTCPK:APTL

US$117.8m

MGE Energy

NasdaqGS:MGEE

US$3.0b

ALLETE

NYSE:ALE

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for Via Renewables
Historical stock prices
Current Share Price	US$7.94
52 Week High	US$12.28
52 Week Low	US$7.10
Beta	0.98
1 Month Change	5.03%
3 Month Change	3.79%
1 Year Change	-28.02%
3 Year Change	-24.88%
5 Year Change	-56.25%
Change since IPO	-11.14%

Recent News & Updates

Jul 21

Via Renewables declares $0.1813 dividend

Via Renewables (NASDAQ:VIA) declares $0.1813/share quarterly dividend, in line with previous. Forward yield 9.8% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See VIA Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 06

Via Renewables announces new $195M credit facility

Via Renewables (NASDAQ:VIA) announced closing of a new three-year $195M senior secured borrowing base credit facility to replace its existing senior secured credit facility. The new facility, which includes a $55M accordion, replaces the current $227.5M credit facility, which was set to mature October 2023. The senior credit facility provides for working capital loans, acquisition loans, swingline loans and letters of credit. "We appreciate Woodforest National Bank and Bank of Texas's leadership in helping us to close this new credit facility," said Mike Barajas, Via Renewables' Chief Financial Officer. "Via Renewables' new facility allows for increased operating flexibility through less restrictive financial covenants and provides us with a very competitive, long-term capital structure to generate value for our shareholders in 2022 and beyond."

Jun 15

A Look At The Intrinsic Value Of Via Renewables, Inc. (NASDAQ:VIA)

In this article we are going to estimate the intrinsic value of Via Renewables, Inc. ( NASDAQ:VIA ) by projecting its...

Shareholder Returns

	VIA	US Electric Utilities	US Market
7D	-2.2%	1.2%	1.0%
1Y	-28.0%	6.7%	-12.9%

Return vs Industry: VIA underperformed the US Electric Utilities industry which returned 6.7% over the past year.

Return vs Market: VIA underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is VIA's price volatile compared to industry and market?
VIA volatility
VIA Average Weekly Movement	4.6%
Electric Utilities Industry Average Movement	3.4%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.2%
10% least volatile stocks in US Market	3.2%

Stable Share Price: VIA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

Founded	Employees	CEO	Website
1999	169	William Maxwell	https://viarenewables.com

Via Renewables, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States. It operates in two segments, Retail Electricity and Retail Natural Gas. The Retail Electricity segment engages in the transmission and sale of electricity to residential and commercial customers.

Via Renewables Fundamentals Summary

How do Via Renewables's earnings and revenue compare to its market cap?
VIA fundamental statistics
Market Cap	US$284.71m
Earnings (TTM)	US$12.38m
Revenue (TTM)	US$422.54m

10.2x

P/E Ratio

0.3x

P/S Ratio

Is VIA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VIA income statement (TTM)
Revenue	US$422.54m
Cost of Revenue	US$290.48m
Gross Profit	US$132.05m
Other Expenses	US$119.67m
Earnings	US$12.38m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.78
Gross Margin	31.25%
Net Profit Margin	2.93%
Debt/Equity Ratio	69.4%

How did VIA perform over the long term?

See historical performance and comparison

Dividends

9.1%

Current Dividend Yield

92%

Payout Ratio

Does VIA pay a reliable dividends?

See VIA dividend history and benchmarks

When do you need to buy VIA by to receive an upcoming dividend?
Via Renewables dividend dates
Ex Dividend Date	Aug 31 2022
Dividend Pay Date	Sep 15 2022
Days until Ex dividend	22 days
Days until Dividend pay date	37 days

Does VIA pay a reliable dividends?

See VIA dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is VIA 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 VIA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VIA. This is calculated by dividing VIA's market cap by their current preferred multiple.
What is VIA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$284.71m

VIA 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/Revenue	0.7x
Enterprise Value/EBITDA	4.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does VIA's PE Ratio compare to its peers?

VIA PE Ratio vs Peers

The above table shows the PE ratio for VIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.3x
GNE Genie Energy	5.6x	n/a	US$235.8m
APTL Alaska Power & Telephone	9.2x	n/a	US$117.8m
MGEE MGE Energy	28.5x	4.9%	US$3.0b
ALE ALLETE	18.1x	8.3%	US$3.5b
VIA Via Renewables	10.2x	n/a	US$284.7m

Price-To-Earnings vs Peers: VIA is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: VIA is good value based on its Price-To-Earnings Ratio (10.2x) compared to the US Electric Utilities industry average (20.9x)

Price to Earnings Ratio vs Fair Ratio

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

VIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VIA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: VIA ($7.94) is trading below our estimate of fair value ($15.98)

Significantly Below Fair Value: VIA 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: Insufficient data to show price forecast.

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Future Growth

How is Via Renewables forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.4%

Forecasted Utilities industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Via Renewables has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Via Renewables is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Via Renewables performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VIA has high quality earnings.

Growing Profit Margin: VIA's current net profit margins (2.9%) are higher than last year (1.9%).

Past Earnings Growth Analysis

Earnings Trend: VIA's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: VIA's earnings growth over the past year (42.3%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: VIA earnings growth over the past year (42.3%) exceeded the Electric Utilities industry 10.1%.

Return on Equity

High ROE: VIA's Return on Equity (25.6%) is considered high.

Discover strong past performing companies

Financial Health

How is Via Renewables's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VIA's short term assets ($198.7M) exceed its short term liabilities ($57.0M).

Long Term Liabilities: VIA's short term assets ($198.7M) exceed its long term liabilities ($126.2M).

Debt to Equity History and Analysis

Debt Level: VIA's net debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: VIA's debt to equity ratio has increased from 61.2% to 69.4% over the past 5 years.

Debt Coverage: VIA's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: VIA's interest payments on its debt are well covered by EBIT (11.7x coverage).

Balance Sheet

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Dividend

What is Via Renewables's 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
Cash Flow Coverage

9.13%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: VIA's dividend (9.13%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: VIA's dividend (9.13%) is in the top 25% of dividend payers in the US market (4.1%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (91.6%), VIA's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (442.8%), VIA's dividend payments are not well covered by cash flows.

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Management

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

1.6yrs

Average management tenure

CEO

William Maxwell (57 yo)

2.42yrs

Tenure

US$2,497,615

Compensation

Mr. William Keith Maxwell, III was Founder and Chief Executive Officer of Spark Energy Gas L.P. since 1999. Mr. Maxwell served as the President at Spark Energy Gas L.P. Mr. Maxwell has been the Executive C...

CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD2.50M) is above average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: William's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: VIA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: VIA's board of directors are considered experienced (7.1 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31