OTCPK:CEZY.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

CEZ, a. s., an electricity generation company, engages in the production, distribution, trade, and sale of electricity and heat in Western, Central, and Southeastern Europe.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has CEZ a. s's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CEZY.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CEZY.Y

0.02%

US Electric Utilities

2.5%

US Market


1 Year Return

n/a

CEZY.Y

-2.5%

US Electric Utilities

15.9%

US Market

Return vs Industry: Insufficient data to determine how CEZY.Y performed against the US Electric Utilities industry.

Return vs Market: Insufficient data to determine how CEZY.Y performed against the US Market.


Shareholder returns

CEZY.YIndustryMarket
7 Day0%0.02%2.5%
30 Day0%4.1%5.8%
90 Dayn/a6.9%18.2%
1 Yearn/a0.6%-2.5%18.4%15.9%
3 Yearn/a3.2%-5.1%39.9%30.9%
5 Yearn/a38.3%18.0%72.9%54.2%

Price Volatility Vs. Market

How volatile is CEZ a. s's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CEZ a. s undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CEZY.Y ($9.9) is trading below our estimate of fair value ($19.31)

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


Price To Earnings Ratio

PE vs Industry: CEZY.Y is good value based on its PE Ratio (13.3x) compared to the US Electric Utilities industry average (19.8x).

PE vs Market: CEZY.Y is good value based on its PE Ratio (13.3x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: CEZY.Y is poor value based on its PEG Ratio (21.7x)


Price to Book Ratio

PB vs Industry: CEZY.Y is good value based on its PB Ratio (0.9x) compared to the US Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is CEZ a. s forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEZY.Y's forecast earnings growth (0.6% per year) is below the savings rate (2.2%).

Earnings vs Market: CEZY.Y's earnings (0.6% per year) are forecast to grow slower than the US market (22.4% per year).

High Growth Earnings: CEZY.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: CEZY.Y's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: CEZY.Y's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEZY.Y's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

  • Explore growth companies in the Utilities industry.

Past Performance

How has CEZ a. s performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEZY.Y has high quality earnings.

Growing Profit Margin: CEZY.Y's current net profit margins (8.9%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: CEZY.Y's earnings have declined by 7.8% per year over the past 5 years.

Accelerating Growth: CEZY.Y's earnings growth over the past year (40.3%) exceeds its 5-year average (-7.8% per year).

Earnings vs Industry: CEZY.Y earnings growth over the past year (40.3%) exceeded the Electric Utilities industry 4.8%.


Return on Equity

High ROE: CEZY.Y's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is CEZ a. s's financial position?


Financial Position Analysis

Short Term Liabilities: CEZY.Y's short term assets (CZK279.3B) exceed its short term liabilities (CZK235.9B).

Long Term Liabilities: CEZY.Y's short term assets (CZK279.3B) exceed its long term liabilities (CZK274.0B).


Debt to Equity History and Analysis

Debt Level: CEZY.Y's debt to equity ratio (67.4%) is considered high.

Reducing Debt: CEZY.Y's debt to equity ratio has increased from 66.4% to 67.4% over the past 5 years.

Debt Coverage: CEZY.Y's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: CEZY.Y's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

What is CEZ a. s's current dividend yield, its reliability and sustainability?

7.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CEZY.Y's dividend (7.45%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CEZY.Y's dividend (7.45%) is in the top 25% of dividend payers in the US market (4.54%)


Stability and Growth of Payments

Stable Dividend: CEZY.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: CEZY.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.2%), CEZY.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CEZY.Y's dividends in 3 years are not forecast to be well covered by earnings (90.4% payout ratio).


Next Steps

Management

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

12.4yrs

Average management tenure


CEO

Daniel Beneš (50 yo)

8.92yrs

Tenure

Engineer Daniel Beneš, MBA, has been the Chairman and Chief Executive Officer of CEZ, a.s. since September 15, 2011. Engineer Beneš served as the Chief Administration Officer of CEZ, a. s. and as its Chief ...


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Beneš
Chairman & CEO8.92yrsno data0.0042%
CZK 461.7k
Pavel Cyrani
Vice Chairman and Deputy CEO of Strategy & Sales0.58yrno data0.00097%
CZK 106.6k
Martin Novák
CFO & Deputy CEO of Operations and Director12.25yrsno data0.0022%
CZK 238.5k
Radim Sladkovský
Director of Accounting Section12.42yrsno datano data
Michaela Chaloupková
Chief Administration Officer & Director8.83yrsno data0.00026%
CZK 28.6k
Barbara Seidlová
Head of Investor Relationsno datano datano data
Juraj Szabó
Director of Legal Section12.58yrsno datano data
Bohdana Horackova
New Communication Director11.08yrsno datano data
Libuse Latalova
Head of Finance Administrationno datano datano data
Tomáš Pleskac
Deputy CEO of Business Development14.58yrsno data0.0011%
CZK 123.1k
Tomáš Žák
Head of Dukovany nuclear power station & Head of Asset Mgmt - Technology Dept13.08yrsno datano data
Ladislav Štepánek
Chief Fossil & Hydro Officer and Director7.17yrsno data0.0032%
CZK 347.4k

12.4yrs

Average Tenure

50yo

Average Age

Experienced Management: CEZY.Y's management team is seasoned and experienced (12.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Beneš
Chairman & CEO8.92yrsno data0.0042%
CZK 461.7k
Pavel Cyrani
Vice Chairman and Deputy CEO of Strategy & Sales0.58yrno data0.00097%
CZK 106.6k
Martin Novák
CFO & Deputy CEO of Operations and Director12.25yrsno data0.0022%
CZK 238.5k
Michaela Chaloupková
Chief Administration Officer & Director8.83yrsno data0.00026%
CZK 28.6k
Tomáš Pleskac
Deputy CEO of Business Development14.58yrsno data0.0011%
CZK 123.1k
Ladislav Štepánek
Chief Fossil & Hydro Officer and Director7.17yrsno data0.0032%
CZK 347.4k
Bohdan Zronek
Chief Nuclear Officer & Director3.25yrsno data0.00054%
CZK 59.4k
Lubomír Klosík
Employee Representative Member of Supervisory Board3.33yrsno datano data
Zdenek Cerný
Vice Chairman of Supervisory Board2yrsno datano data
Jan Vanecek
Supervisory Board Member1.17yrsno datano data
Ondrej Landa
Vice-Chairman of Supervisory Board4.17yrsno datano data
Otakar Hora
Chairman of Supervisory Board2yrsno datano data

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: CEZY.Y's board of directors are considered experienced (3.8 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

CEZ, a. s.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CEZ, a. s.
  • Ticker: CEZY.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: Kč244.428b
  • Listing Market Cap: Kč10.992b
  • Shares outstanding: 535.44m
  • Website: https://www.cez.cz

Number of Employees


Location

  • CEZ, a. s.
  • Duhová 2/1444
  • Praha 4
  • Prague
  • 140 53
  • Czech Republic

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CZAV.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 1993
CEZSEP (The Stock Exchange Prague Co. Ltd.)YesCommon StockCZCZKNov 1993
CEZDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993
CEZWSE (Warsaw Stock Exchange)YesCommon StockPLPLNNov 1993
0NZFLSE (London Stock Exchange)YesCommon StockGBCZKNov 1993
CEZKBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCZKNov 1993
CEZY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDJun 2018

Biography

CEZ, a. s., an electricity generation company, engages in the production, distribution, trade, and sale of electricity and heat in Western, Central, and Southeastern Europe. The company operates through si ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 23:42
End of Day Share Price2020/06/24 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.