Albioma : Neutral assessment on price but strong on fundamentals

Albioma relative valuation is now NEUTRAL. It was previously rated OVERVALUED, and has a fundamental analysis score of 75.

Our analysis is based on comparing Albioma with the following peers – Futuren SA, Electricite de Strasbourg SA, ENGIE SA, Direct Energie and Electricite de France SA (FTRN-FR, ELEC-FR, ENGI-FR, DIREN-FR and EDF-FR).

Relative Valuation

Albioma is currently neutrally valued, as its previous close of EUR 19.56 lies within the CapitalCube estimate range of EUR 15.81 to EUR 19.56. Over the last 52 week period, Albioma has fluctuated between EUR 13.80 and EUR 20.74.

Relative Valuation

Company Overview

  • Compared to peers, relative underperformance last month is down from a median performance last year.
  • It’s current Price/Book of 1.37 is about median in its peer group.
  • ABIO-FR‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • ABIO-FR‘s relatively high profit margins are burdened by relative asset inefficiency.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • ABIO-FR‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While ABIO-FR‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • ABIO-FR might have enough interest coverage to take-on additional debt prudently.

Investment Outlook

Albioma has a fundamental score of 75 and has a relative valuation of NEUTRAL.

Albioma appears on the top right hand quadrant of CapitalCube’s Value – Price Matrix. We classify this as ‘Safety’. In other words, Albioma has a relatively high Fundamental Analysis score of 75, while being potentially overvalued and trading higher than its CapitalCube Implied Price of 17.69. There might be some safety in this stock where it’s fundamental strength perhaps justifies its relatively higher price.

Fundamentals Vs Relative Valuation

Quadrant label definitions. Hover to know more

Safety, Value Play, Value Trap, Speculative

Drivers of Valuation

The market seems to expect ABIO-FR to maintain its relatively high returns.

ABIO-FR‘s operating performance is higher than the median of its chosen peers (ROE of 8.26% compared to the peer median ROE of 6.68%) but the market does not seem to expect higher growth relative to peers (P/E of 17.25 compared to peer median of 17.25) but simply to maintain its relatively high rates of return.

The company’s current Price/Book of 1.37 is about median in its peer group.

Valuation Drivers

Quadrant label definitions. Hover to know more

Outperforming, Harvesting, Challenged, Turnaround

ABIO-FR has moved to a relatively high ROE from an Harvesting profile at the prior year-end.

ROE % (On Common Equity)
Price To Earnings

Peer Analysis

A complete list of valuation metrics is available on the company page.

Company Profile

Albioma engages in the energy production industry. Its operates through the following segments: Thermal Biomass, Solar Power, Anaerobic Digestion and Holding company. The Thermal Biomass segment comprises of thermal power plants that produce electricity. The Solar Power segment comprises of various photovoltaic panel farms as well as the sale of photovoltaic installations and panels to third parties and joint ventures for the share held by third parties. The Anaerobic Digestion segment covers the activities of methaneo. The Holding company segment consists of Albioma’s functional activities. The company was founded on January 1, 2001 and is headquartered in Paris, France.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.