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.
Persisting high inflation will boost earnings and dividends.
Macquarie-led consortium could not exercise its option to buy the remaining 40% of U.K. gas transmission. This would weaken the balance sheet and lead to a derating of the stock.
|
Metric
|
NG.
|
IBE
|
PPL
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.58 | 15.75 | 18.49 |
Price/Book Value | 1.32 | 1.36 | 1.45 |
Price/Sales | 1.88 | 1.60 | 2.43 |
Price/Cash Flow | 8.40 | 7.26 | 10.65 |
|
Metric
|
NG.
|
IBE
|
PPL
|
|---|---|---|---|
Quick Ratio | 0.64 | 0.60 | 0.59 |
Current Ratio | 0.93 | 0.77 | 0.88 |
Interest Coverage | 2.81 | 4.98 | 2.34 |
|
Metric
|
NG.
|
IBE
|
PPL
|
|---|---|---|---|
Return on Assets (Normalized) | 2.34% | 4.79% | 3.08% |
Return on Equity (Normalized) | 7.92% | 14.40% | 8.47% |
Return on Invested Capital (Normalized) | 4.62% | 7.51% | 5.87% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NEE
| NextEra Energy Inc | Vmrkjmplq | Kpwyf | $136.7 Bil | |
SO
| Southern Co | Cysqypcn | Qlnjt | $80.9 Bil | |
DUK
| Duke Energy Corp | Mdtschd | Kyrynm | $76.3 Bil | |
NGG
| National Grid PLC ADR | Vwnygbkb | Hhr | $48.9 Bil | |
AEP
| American Electric Power Co Inc | Lrydhgfzv | Clbyk | $45.5 Bil | |
PCG
| PG&E Corp | Mxdrhfnbx | Qqtfl | $44.3 Bil | |
D
| Dominion Energy Inc | Fhtwqgb | Yyjvmq | $42.9 Bil | |
EXC
| Exelon Corp | Qngzxcbk | Vrpxvp | $37.8 Bil | |
PEG
| Public Service Enterprise Group Inc | Vrwfgcvjn | Kshhyt | $33.5 Bil | |
ED
| Consolidated Edison Inc | Xqzhljc | Scvx | $32.1 Bil |
