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.
Flush with cash, Centrica could continue to increase shareholder returns with more share buybacks.
The return of growth investments after years of downsizing involves execution risk.
|
Metric
|
CNA
|
IBE
|
SSE
|
|---|---|---|---|
Price/Earnings (Normalized) | 3.75 | 15.64 | 10.39 |
Price/Book Value | 1.85 | 1.65 | 2.21 |
Price/Sales | 0.28 | 1.50 | 1.53 |
Price/Cash Flow | 3.33 | 7.21 | 7.54 |
|
Metric
|
CNA
|
IBE
|
SSE
|
|---|---|---|---|
Quick Ratio | 1.07 | 0.49 | 0.74 |
Current Ratio | 1.44 | 0.82 | 0.91 |
Interest Coverage | 21.27 | 4.14 | 2.78 |
|
Metric
|
CNA
|
IBE
|
SSE
|
|---|---|---|---|
Return on Assets (Normalized) | 7.66% | 3.96% | 6.38% |
Return on Equity (Normalized) | 59.36% | 12.48% | 21.19% |
Return on Invested Capital (Normalized) | 24.74% | 6.41% | 9.72% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
VST
| Vistra Corp | Tnrtdcqn | Zjr | $23.3 Bil | |
UNPRF
| Uniper SE | — | Kgjpfv | $22.4 Bil | |
HUNGF
| Huaneng Power International Inc Class H | — | Fwtxv | $17.6 Bil | |
NRG
| NRG Energy Inc | Rjthmlxbr | Chj | $15.0 Bil | |
CRPJY
| China Resources Power Holdings Co Ltd ADR | Rbjnmdvn | Twb | $12.1 Bil | |
HGKGY
| Power Assets Holdings Ltd ADR | — | Sgrgp | $12.0 Bil | |
HGKGF
| Power Assets Holdings Ltd | — | Fgtt | $11.7 Bil | |
CPYYY
| Centrica PLC ADR | Ryfgytj | Kfnc | $8.7 Bil | |
CPYYF
| Centrica PLC | Cmlksclr | Ldb | $8.7 Bil | |
DIPGF
| Datang International Power Generation Co Ltd Class H | — | Yjmd | $6.3 Bil |
