| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 114.60 | 197 |
| Intrinsic value (DCF) | 21.33 | -45 |
| Graham-Dodd Method | 3.10 | -92 |
| Graham Formula | n/a |
Energiekontor AG is a leading German project developer specializing in renewable energy, with a strong focus on wind farms and solar parks. Headquartered in Bremen, the company operates across key markets including England, Scotland, Portugal, the United States, and France. Since its founding in 1990, Energiekontor has developed, constructed, and now operates 130 wind farms and 12 solar parks, collectively generating approximately 1 gigawatt of clean energy. As part of the Renewable Utilities sector, Energiekontor plays a crucial role in the global transition to sustainable energy solutions. The company’s vertically integrated business model—spanning planning, construction, and long-term operation—ensures steady revenue streams while contributing to decarbonization efforts. With a market capitalization of nearly €592 million, Energiekontor is well-positioned to capitalize on growing demand for renewable energy infrastructure in Europe and beyond.
Energiekontor AG presents a compelling investment opportunity in the renewable energy sector, supported by its diversified portfolio of operational wind and solar assets. The company’s €126.5 million revenue and €22.6 million net income in the latest fiscal year reflect stable cash flows, though negative operating cash flow (-€43.4 million) suggests ongoing project development costs. A beta of 0.953 indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, high total debt (€464.3 million) relative to cash reserves (€92.1 million) raises leverage concerns. The dividend yield (~2.3% based on a €1.20 per share payout) adds income appeal. Investors should weigh Energiekontor’s established market presence against execution risks in expanding its international footprint, particularly in the competitive U.S. and French markets.
Energiekontor AG’s competitive advantage lies in its vertically integrated model, combining project development, construction, and operational expertise under one roof. This allows cost efficiencies and long-term revenue stability from owned assets. The company’s focus on both wind and solar diversifies its exposure to renewable energy trends, mitigating technology-specific risks. Its stronghold in Germany and the UK provides regulatory familiarity, though expansion into the U.S. and France introduces competition with local incumbents. Energiekontor’s mid-market scale (1 GW capacity) limits its ability to compete on megaprojects with utility giants but enables agility in regional developments. Key challenges include reliance on government subsidies and permitting delays, common across the sector. The company’s €464 million debt load could constrain growth if interest rates remain elevated, though its asset-backed financing strategy has proven viable thus far. Compared to pure-play developers, Energiekontor’s operational assets provide recurring income, but its smaller size may limit bargaining power with equipment suppliers like Vestas or First Solar.