We confirm our EUR 39.85 fair value estimate aligned with the takeover bid of Brookfield after no-moat Neoen released first-half results affected by lower power prices and confirmed its 2024 and 2025 guidance. Shares are driven by risk-arbitrage, so the current discount to the takeover price is driven by the time to completion of the offer expected in the first quarter of 2025.
Neoen stands out from peers due to its large footprint in solar and batteries. The young age of its assets warrants a higher valuation than peers.
Neoen has tapped the stock markets in 2021 and 2023. It could do it again to reach its 2030 target of 20 GW of capacity in operation and under construction.
|
Metric
|
NEOEN
|
ANE
|
EDPR
|
|---|---|---|---|
Price/Earnings (Normalized) | 85.22 | 14.93 | 89.07 |
Price/Book Value | 2.15 | 1.06 | 1.35 |
Price/Sales | 11.77 | 1.74 | 6.55 |
Price/Cash Flow | 20.70 | 8.49 | 22.54 |
|
Metric
|
NEOEN
|
ANE
|
EDPR
|
|---|---|---|---|
Quick Ratio | 0.85 | 0.82 | 0.47 |
Current Ratio | 1.17 | 1.10 | 0.66 |
Interest Coverage | 1.51 | 6.98 | 1.85 |
|
Metric
|
NEOEN
|
ANE
|
EDPR
|
|---|---|---|---|
Return on Assets (Normalized) | 0.87% | 3.50% | 1.08% |
Return on Equity (Normalized) | 2.40% | 8.00% | 2.97% |
Return on Invested Capital (Normalized) | 2.75% | 5.32% | 3.35% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Constellation Energy Corp
CEG
| — | Xxfvp | $55.2 Bil | |||
| GE Vernova Inc
GEV
| Cwqvxkd | Ndr | $47.6 Bil | |||
| Verbund AG ADR
OEZVY
| — | Zcqn | $28.1 Bil | |||
| Verbund AG Class A
OEZVF
| — | Ghf | $28.1 Bil | |||
| Orsted A/S ADR
DNNGY
| — | Wxys | $24.8 Bil | |||
| Orsted A/S
DOGEF
| — | Fyzcm | $24.8 Bil | |||
| EDP Renovaveis SA ADR
EDRVY
| — | Jwqz | $16.2 Bil | |||
| EDP Renovaveis SA
EDRVF
| — | Pbxt | $16.2 Bil | |||
| Brookfield Renewable Partners LP
BEP
| Wlwsjcyxv | Lkq | $7.0 Bil | |||
| Brookfield Renewable Corp Ordinary Shares - Class A (Sub Voting)
BEPC
| Yqkldcmcc | Lnlwc | $5.1 Bil |
