| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.20 | 1438 |
| Intrinsic value (DCF) | 9.94 | 657 |
| Graham-Dodd Method | 0.30 | -77 |
| Graham Formula | n/a |
Audax Renovables, S.A. is a leading renewable energy company specializing in the generation and supply of clean electricity and gas across multiple European markets, including Spain, Portugal, Italy, Poland, Germany, the Netherlands, France, and Panama. Headquartered in Badalona, Spain, the company operates a diversified portfolio of wind and solar energy projects, with a current operational capacity of 91 MW. Since its inception in 2000, Audax Renovables has positioned itself as a key player in the renewable utilities sector, contributing to Europe's energy transition. The company's business model focuses on sustainable energy production, leveraging its expertise in wind and solar power to meet growing demand for green energy solutions. With a strong presence in both regulated and deregulated markets, Audax Renovables plays a crucial role in reducing carbon emissions while delivering value to shareholders. Its international footprint and commitment to renewable energy make it a strategic player in the global shift toward sustainability.
Audax Renovables presents an attractive investment opportunity in the renewable utilities sector, supported by its diversified European operations and growing renewable energy portfolio. The company reported €1.98 billion in revenue and €60.6 million in net income for the latest fiscal year, with a diluted EPS of €0.13. Its operating cash flow of €74.2 million and solid cash position (€228.8 million) provide financial stability, though its total debt of €600.1 million warrants monitoring. The company's beta of 1.005 suggests market-aligned volatility, making it a moderate-risk investment. A dividend yield of approximately 0.033 per share adds income potential. However, exposure to regulatory changes in multiple jurisdictions and competition in renewable energy could pose risks. Investors should weigh its growth prospects in Europe's expanding green energy market against these challenges.
Audax Renovables competes in the highly fragmented renewable utilities sector, where scale, geographic diversification, and regulatory expertise are critical. The company's competitive advantage lies in its pan-European presence, allowing it to mitigate regional risks and capitalize on varying subsidy regimes. Its operational focus on wind and solar energy aligns with Europe's decarbonization goals, though its 91 MW capacity is relatively modest compared to larger peers. Audax benefits from vertical integration, handling both generation and supply, which enhances margins and customer retention. However, its smaller scale limits economies of scale in procurement and financing compared to industry giants. The company's strength in Southern Europe (Spain, Portugal, Italy) provides a stable revenue base, but expansion into competitive markets like Germany and the Netherlands requires strategic execution. Its debt levels are manageable but higher than some peers, reflecting aggressive growth investments. Audax's ability to secure new projects in a subsidy-constrained environment will be pivotal to maintaining competitiveness against larger, better-capitalized rivals.