| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 17.90 | -37 |
| Intrinsic value (DCF) | 9.28 | -67 |
| Graham-Dodd Method | 28.20 | -1 |
| Graham Formula | n/a |
EVN AG is a leading Austrian utility company providing energy, water, and environmental services to private and business customers, as well as municipalities. Operating through segments such as Generation, Energy, Networks, South East Europe, and Environmental Services, EVN AG generates electricity from both thermal and renewable sources, trades energy on wholesale markets, and supplies heat. The company also manages cable TV and telecommunications networks, alongside constructing critical infrastructure for water supply, wastewater disposal, and waste treatment. Founded in 1922 and headquartered in Maria Enzersdorf, Austria, EVN AG is a subsidiary of NÖ Landes-Beteiligungsholding GmbH. With a strong presence in South East Europe, the company plays a vital role in regional energy security and sustainability, making it a key player in the diversified utilities sector.
EVN AG presents a stable investment opportunity within the utilities sector, supported by its diversified operations in energy, water, and environmental services. The company's solid financials, including a net income of €471.7 million and operating cash flow of €1.17 billion in the latest fiscal year, underscore its profitability and cash generation capabilities. With a beta of 0.705, EVN AG exhibits lower volatility compared to the broader market, appealing to risk-averse investors. However, exposure to regulatory changes in the energy sector and geopolitical risks in South East Europe could pose challenges. The dividend yield, supported by a €0.90 per share payout, adds to its attractiveness for income-focused portfolios.
EVN AG's competitive advantage lies in its integrated utility model, combining energy generation, distribution, and environmental services under one umbrella. This diversification mitigates risks associated with reliance on a single revenue stream. The company's strong foothold in South East Europe provides growth opportunities in emerging markets, though it also exposes it to regional instability. EVN's focus on renewable energy aligns with global sustainability trends, enhancing its long-term viability. However, competition from larger European utilities with greater scale and resources could pressure margins. EVN's regional expertise and municipal partnerships provide a defensive moat, but it must continue investing in infrastructure and innovation to maintain its position against aggressive competitors expanding into renewable energy and smart grid technologies.