| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 193.16 | -58 |
| Intrinsic value (DCF) | 176.59 | -62 |
| Graham-Dodd Method | 6.92 | -99 |
| Graham Formula | 6.20 | -99 |
Jersey Electricity plc (JEL.L) is a leading utility company specializing in the generation, transmission, distribution, and supply of electricity in Jersey, Channel Islands. Founded in 1924 and headquartered in St Helier, the company plays a pivotal role in the region's transition to clean, low-carbon energy solutions. Beyond its core electricity operations, Jersey Electricity offers a diverse range of services, including renewable energy solutions, electric vehicle charging, and home energy systems under its Powerhouse brand. The company also provides multi-utility billing software (Jenworks), property management, and consulting services for construction projects. With a strong focus on sustainability and innovation, Jersey Electricity serves both domestic and commercial customers, ensuring reliable energy access while supporting Jersey's decarbonization goals. Its vertically integrated model and strategic investments in infrastructure position it as a key player in the regulated electric utility sector.
Jersey Electricity plc presents a stable investment opportunity with its regulated utility business model, providing predictable cash flows and a solid dividend yield (current dividend per share: 20.4 GBp). The company's low beta (0.145) indicates minimal volatility relative to the broader market, appealing to risk-averse investors. However, its geographic concentration in Jersey limits growth potential compared to larger, diversified utilities. The company's focus on renewable energy and electrification aligns with global decarbonization trends, but its small market cap (£141M) and regional constraints may deter growth-focused investors. Strong operating cash flow (£24.4M) and manageable debt (£34.2M) support financial stability, though capital expenditures (£18M) remain significant for infrastructure maintenance and expansion.
Jersey Electricity plc operates as a vertically integrated monopoly in Jersey's electricity market, giving it a unique competitive advantage with minimal direct competition in its core service area. Its regulatory framework ensures stable returns, while its diversification into renewable energy solutions and electric vehicle infrastructure positions it well for future energy transitions. The company's Powerhouse retail segment differentiates it from traditional utilities by offering integrated home energy solutions. However, its geographic isolation limits economies of scale compared to larger UK and European utilities. The lack of direct competitors in Jersey shields it from price competition but also caps growth opportunities. Its competitive strengths lie in localized infrastructure control, strong community relationships, and government-backed regulatory stability. Weaknesses include dependence on a single jurisdiction and vulnerability to regulatory changes in Jersey's small market. The company's ability to cross-subsidize its commercial ventures with stable utility earnings provides some diversification benefit.