Stock Analysis & Valuation Energiekontor AG (EKT.DE)

• Previous Close: €38.35
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	147.10	284
Intrinsic value (DCF)	23.14	-40
Graham-Dodd Method	3.58	-91
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Energiekontor AG is a leading German project developer specializing in renewable energy, with a strong focus on wind farms and solar parks. Founded in 1990 and headquartered in Bremen, the company operates internationally, with projects in England, Scotland, Portugal, the United States, and France. Energiekontor owns and operates 130 wind farms and 12 solar parks, generating a total output of approximately 1 gigawatt. The company plays a pivotal role in the transition to sustainable energy, leveraging its expertise in planning, construction, and operation of renewable energy assets. As part of the Renewable Utilities sector, Energiekontor is well-positioned to capitalize on global demand for clean energy solutions, supported by favorable regulatory environments and increasing investment in green infrastructure. Its diversified geographic presence mitigates regional risks while enhancing growth opportunities in key renewable energy markets.

Investment Summary

Energiekontor AG presents a compelling investment opportunity in the renewable energy sector, supported by its established portfolio of wind and solar assets. The company's diversified geographic footprint reduces exposure to regional regulatory risks while providing multiple growth avenues. However, investors should be mindful of the high debt levels (€464.3M) and negative operating cash flow (-€43.4M), which may constrain short-term financial flexibility. The company's beta of 0.953 suggests moderate volatility relative to the market, making it a relatively stable play within the renewable utilities space. The dividend yield, supported by a €1.20 per share payout, adds income appeal. Long-term growth prospects remain strong, driven by global decarbonization trends, but execution risks in project development and financing must be monitored.

Competitive Analysis

Energiekontor AG competes in the highly fragmented renewable energy project development sector, where scale, geographic diversification, and execution capabilities are critical. The company's key competitive advantages include its long-standing industry experience (since 1990), vertically integrated business model (planning to operation), and a balanced portfolio of wind and solar assets. Unlike pure-play operators, Energiekontor’s development expertise allows it to capture value across the project lifecycle. However, its relatively small market cap (~€600M) limits its ability to compete with larger renewable energy giants in bidding wars for mega-projects. The company’s focus on mid-sized projects in Europe and selective U.S. expansion provides niche opportunities but may lack the scalability of global peers. Its high debt load could also hinder aggressive expansion compared to better-capitalized competitors. Strengths include operational efficiency and local market knowledge in key regions, while reliance on subsidy regimes in some markets remains a vulnerability.

Major Competitors

• Neoen SA (NEOEN.PA): Neoen is a larger independent renewable energy producer with a strong presence in solar, wind, and storage across 15 countries. Its diversified portfolio (over 6 GW in operation or under construction) and backing by institutional investors give it greater financial flexibility than Energiekontor. However, Neoen’s focus on utility-scale projects may expose it to higher development risks in competitive markets.
• Iberdrola SA (IBE.MC): Iberdrola is a global energy giant with a massive renewable portfolio (over 40 GW) and integrated utility operations. Its scale and balance sheet strength dwarf Energiekontor’s capabilities, but its broader focus on conventional energy and grid assets dilutes its renewable specialization. Iberdrola’s dominance in offshore wind contrasts with Energiekontor’s onshore and solar focus.
• Orsted A/S (ORA.PA): Orsted is the world leader in offshore wind energy, with a rapidly expanding solar and onshore wind portfolio. Its technological expertise and global reach (particularly in the U.S. and Asia) outpace Energiekontor’s regional operations. However, Orsted’s recent cost overruns in offshore projects highlight risks Energiekontor avoids by sticking to smaller-scale, onshore developments.
• First Solar Inc. (FSLR): First Solar is a vertically integrated solar developer and panel manufacturer, competing indirectly with Energiekontor’s solar projects. Its thin-film technology and U.S.-centric supply chain offer differentiation, but Energiekontor’s European focus and wind energy mix provide geographic and technological diversification that First Solar lacks.
• EDP Renováveis SA (EDPR.LS): EDPR is a major European renewable player with a strong presence in wind energy (over 14 GW capacity). Its backing by utility EDP provides financial stability, but Energiekontor’s independence allows for more agile project selection. Both companies overlap in key markets like Portugal and the U.S., but EDPR’s larger scale intensifies competition for prime sites.