Verbund AG Class A VER

Morningstar Rating
€73.90 +0.30 (0.41%)
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Company Report

Price vs Fair Value

VER is trading at a 720% premium.
Price
€73.60
Fair Value
€99.00
Uncertainty
High
1-Star Price
€56.40
5-Star Price
€31.10
Economic Moat
Psqb
Capital Allocation
Fpprnzkd

Bulls Say, Bears Say

Bulls

The predominance of hydropower is a key cost advantage in the liberalized European power markets where power prices are driven by CO2 and gas prices.

Bears

Earnings are highly volatile due to the big sensitivity to power prices and hydro conditions.

Trading Information

Previous Close Price
€73.60
Day Range
€73.1074.00
52-Week Range
€62.3089.40
Bid/Ask
€73.85 / €73.95
Market Cap
€25.67 Bil
Volume/Avg
13,031 / 98,482

Key Statistics

Price/Earnings (Normalized)
11.61
Price/Sales
3.34
Dividend Yield (Trailing)
4.62%
Dividend Yield (Forward)
4.62%
Total Yield
4.62%

Company Profile

Founded in 1947 through a nationalization act, Verbund is the leading power producer in Austria. The Austrian state owns 51% of its capital. Hydro accounts for more than 90% of the total power output. Hydro power is generated from reservoirs and pumped storage plants in the Austrian Alps, and run-of-river plants in Austria and southern Germany. Total hydro capacity amounts to 8.4 GW. Verbund also owns the Austrian electricity grid through its fully owned subsidiary AP. In 2021, the firm acquired 51% of Gas Connect Austria, a gas transmission and distribution system operator. The group also owns one CCGT and is involved in trading and development of wind and solar capacity.
Sector
Utilities
Industry
Utilities - Renewable
Stock Style Box
Large Value
Total Number of Employees
4,074

Competitors

Valuation

Metric
VER
ENGI
RWE
Price/Earnings (Normalized)
11.612.5761.72
Price/Book Value
2.751.140.74
Price/Sales
3.340.530.96
Price/Cash Flow
7.793.738.44
Price/Earnings
VER
ENGI
RWE

Financial Strength

Metric
VER
ENGI
RWE
Quick Ratio
0.720.480.76
Current Ratio
1.080.991.74
Interest Coverage
20.562.984.42
Quick Ratio
VER
ENGI
RWE

Profitability

Metric
VER
ENGI
RWE
Return on Assets (Normalized)
11.89%2.67%3.01%
Return on Equity (Normalized)
24.01%17.02%9.82%
Return on Invested Capital (Normalized)
20.70%8.43%5.37%
Return on Assets
VER
ENGI
RWE

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