We plan to raise our $32 per share fair value estimate for Vistra by about 25% to reflect a rally in Texas power markets during the last quarter and additional synergies from the Energy Harbor acquisition that closed in March. This follows our 23% fair value increase in March to reflect Vistra's higher hedged margin value. We are reaffirming our no-moat and High Uncertainty ratings.
Vistra’s debt reduction in 2019-20 gives it financial flexibility to repurchase stock, raise the dividend, and finance the Energy Harbor acquisition.
Low gas and electricity prices hurt the profitability of Vistra’s coal and nuclear fleet.
|
Metric
|
VST
|
AES
|
NRG
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.29 | 9.47 | 19.40 |
Price/Book Value | 10.24 | 4.75 | 6.43 |
Price/Sales | 2.55 | 1.10 | 0.64 |
Price/Cash Flow | 8.40 | 4.60 | 8.52 |
|
Metric
|
VST
|
AES
|
NRG
|
|---|---|---|---|
Quick Ratio | 0.53 | 0.33 | 0.39 |
Current Ratio | 1.18 | 0.68 | 1.01 |
Interest Coverage | 4.10 | 0.66 | 4.21 |
|
Metric
|
VST
|
AES
|
NRG
|
|---|---|---|---|
Return on Assets (Normalized) | 4.01% | 3.59% | 2.80% |
Return on Equity (Normalized) | 40.47% | 80.05% | 30.02% |
Return on Invested Capital (Normalized) | 8.96% | 6.76% | 8.60% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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HUNGF
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CRPJY
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HGKGF
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HGKGY
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CPYYF
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CPYYY
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DIPGF
| Datang International Power Generation Co Ltd Class H | — | Vtwbq | $6.5 Bil |
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