European utilities have reversed their outperformance in the fourth quarter of 2023 because of a fall in wholesale power prices in the wake of gas prices after a very mild winter, and a pickup in interest rates due to inflation receding more slowly than expected. The former led to some of the companies, most exposed to power prices, cutting their guidance for 2024.
Thanks to its diversified assets, Engie is well positioned to benefit from commodity price volatility and geographical spreads.
French gas infrastructure might become stranded assets in the long run as a result of the energy transition. The allowed returns are unattractive.
|
Metric
|
ENGI
|
IBE
|
RWE
|
|---|---|---|---|
Price/Earnings (Normalized) | 2.61 | 12.32 | 14.06 |
Price/Book Value | 1.29 | 1.35 | 0.75 |
Price/Sales | 0.47 | 1.59 | 0.83 |
Price/Cash Flow | 3.34 | 7.22 | 34.18 |
|
Metric
|
ENGI
|
IBE
|
RWE
|
|---|---|---|---|
Quick Ratio | 0.76 | 0.60 | 0.67 |
Current Ratio | 0.99 | 0.77 | 1.58 |
Interest Coverage | 2.31 | 4.98 | 2.96 |
|
Metric
|
ENGI
|
IBE
|
RWE
|
|---|---|---|---|
Return on Assets (Normalized) | 2.61% | 4.79% | 3.84% |
Return on Equity (Normalized) | 17.34% | 14.40% | 14.38% |
Return on Invested Capital (Normalized) | 8.47% | 7.51% | 7.64% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
IBDSF
| Iberdrola SA | — | Hrz | $77.2 Bil | |
IBDRY
| Iberdrola SA ADR | CY | Ydv | $77.2 Bil | |
ESOCF
| Enel SpA | Hssrnygcz | Mcln | $65.9 Bil | |
ENLAY
| Enel SpA ADR | Pclyvpy | Dcp | $65.9 Bil | |
SRE
| Sempra | Cwrggtvbr | Yxdwv | $45.6 Bil | |
ENGIY
| Engie SA ADR | — | Mhc | $41.7 Bil | |
ENGQF
| Engie SA | — | Thbs | $41.7 Bil | |
ENAKF
| E.ON SE | — | Ydl | $34.8 Bil | |
EONGY
| E.ON SE ADR | Hfclgld | Gwphl | $34.7 Bil | |
AES
| The AES Corp | Wsyylhjj | Kpv | $12.2 Bil |
