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.
Increasing renewable capacity should improve the electricity margins.
The lack of an international footprint implies full exposure to the competitive renewables Spanish market and an adverse regulatory backdrop evidenced by the clawback on low-carbon power generation and the 1.2% levy.
|
Metric
|
ELE
|
IBE
|
EDP
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.83 | 15.75 | 19.30 |
Price/Book Value | 2.59 | 1.36 | 1.29 |
Price/Sales | 0.72 | 1.60 | 0.91 |
Price/Cash Flow | 4.92 | 7.26 | 4.59 |
|
Metric
|
ELE
|
IBE
|
EDP
|
|---|---|---|---|
Quick Ratio | 0.87 | 0.60 | 0.66 |
Current Ratio | 1.10 | 0.77 | 0.91 |
Interest Coverage | 6.61 | 4.98 | 2.30 |
|
Metric
|
ELE
|
IBE
|
EDP
|
|---|---|---|---|
Return on Assets (Normalized) | 4.12% | 4.79% | 2.23% |
Return on Equity (Normalized) | 35.63% | 14.40% | 12.02% |
Return on Invested Capital (Normalized) | 10.95% | 7.51% | 4.92% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NEE
| NextEra Energy Inc | Kbczfybpy | Wdlpc | $136.7 Bil | |
SO
| Southern Co | Nfbkmhbk | Wcnpj | $81.4 Bil | |
DUK
| Duke Energy Corp | Dvfqtkbr | Jlvfj | $76.4 Bil | |
NGG
| National Grid PLC ADR | Szfsfbxcc | Whzh | $48.9 Bil | |
AEP
| American Electric Power Co Inc | Vlhkgbr | Lttynt | $45.5 Bil | |
PCG
| PG&E Corp | Kbnfhtd | Pky | $44.6 Bil | |
D
| Dominion Energy Inc | Jpjjcbhc | Lrwvms | $42.7 Bil | |
EXC
| Exelon Corp | Rrcqzcxvh | Cqfsjf | $37.7 Bil | |
PEG
| Public Service Enterprise Group Inc | Bzzdpvb | Snjmpsb | $33.5 Bil | |
ED
| Consolidated Edison Inc | Bsfclmvhg | Nnn | $32.5 Bil |
