| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.60 | -7 |
| Intrinsic value (DCF) | 26.50 | -38 |
| Graham-Dodd Method | 61.20 | 43 |
| Graham Formula | n/a |
Romande Energie Holding SA is a leading Swiss renewable energy company specializing in the production, distribution, and marketing of electrical and thermal energy. Founded in 1901 and headquartered in Morges, Switzerland, the company operates a diversified portfolio of renewable energy sources, including hydroelectric, solar, wind, and biomass plants. Romande Energie also manages electricity and fiber optic distribution infrastructure, supporting Switzerland's transition to clean energy. The company provides comprehensive energy solutions, including customer services like invoicing and call-center operations, positioning itself as a key player in the Swiss renewable utilities sector. With a strong focus on sustainability and innovation, Romande Energie is well-positioned to capitalize on the growing demand for renewable energy in Switzerland and beyond.
Romande Energie Holding SA presents a stable investment opportunity within the renewable utilities sector, supported by its diversified renewable energy portfolio and strong financial performance. The company reported a robust net income of CHF 212.3 million in FY 2023, with diluted EPS of CHF 8.28 and a dividend payout of CHF 2.88 per share. Its low beta of 0.049 indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, the company's capital expenditures of CHF -185.9 million highlight ongoing investments in infrastructure, which could pressure short-term cash flows. Overall, Romande Energie's strong market position in Switzerland's renewable energy sector and consistent profitability make it an attractive long-term investment, though investors should monitor its debt levels (CHF 194.8 million) and capital spending.
Romande Energie Holding SA holds a competitive advantage in the Swiss renewable utilities market due to its diversified energy portfolio and strong regional presence. The company's focus on hydroelectric power, supplemented by solar, wind, and biomass, provides resilience against fluctuations in any single energy source. Its integrated operations, from generation to distribution and customer service, allow for greater control over the value chain. Romande Energie's commitment to renewable energy aligns with Switzerland's ambitious sustainability goals, enhancing its regulatory and societal support. However, the company faces competition from larger European utilities with greater scale and international reach. Its regional focus, while a strength in Switzerland, may limit growth opportunities compared to global peers. The company's ability to innovate and adapt to emerging technologies, such as energy storage and smart grids, will be critical in maintaining its competitive edge.