EVN EVN.VI
What does EVN do?
EVN is an Austrian energy and environmental services company based in Lower Austria. The group generates electricity and heat, operates electricity and natural gas distribution networks, and supplies energy to residential, commercial and large customers. It also has activities in energy trading and in telecommunications and internet services.
Besides its home market of Austria, EVN is active in Southeastern Europe, notably in Bulgaria and North Macedonia, where it operates regulated network businesses and energy sales. The environmental business covers drinking water supply, wastewater treatment and thermal waste recovery, partly as project business for international customers. The regulated networks and regional roots give the company a strong position in its supply area. EVN competes with other Austrian regional utilities and international energy groups; its generation relies on renewable energy such as hydropower, wind and photovoltaics as well as on thermal power plants.
Score profile
Rank vs. Utilities (64 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, EVN ranks below average in the group Utilities (3.2/10). On growth, the company ranks below average in the group Utilities (3.9/10). On valuation (higher = cheaper), the stock ranks above average in the group Utilities (7.9/10). On financial strength, EVN ranks among the best in the group Utilities (8.8/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 12.1x | 17.9x | better than 85 % |
| Trailing P/E | 10.8x | 20.9x | better than 91 % |
| PEG ratio | 2.2x | 2.4x | better than 64 % |
| EV/EBITDA | 9.6x | 12.9x | better than 91 % |
| Price/sales | 1.8x | 3.0x | better than 77 % |
| Price/book | 0.8x | 1.9x | better than 99 % |
| Revenue growth | 2.7% | 8.5% | better than 18 % |
| Earnings growth | 15.5% | 11.4% | better than 60 % |
| Gross margin | 40.3% | 46.6% | better than 23 % |
| Operating margin | 5.7% | 25.1% | better than 9 % |
| Net margin | 17.2% | 13.2% | better than 73 % |
| Return on equity | 8.1% | 9.1% | better than 25 % |
| Debt/equity | 17.7% | 150.8% | better than 98 % |
| Current ratio | 1.1x | 0.9x | better than 77 % |
| Free cash flow yield | 0.9% | -6.8% | better than 90 % |
| Dividend yield | 3.0% | 3.2% | – |
| Payout ratio | 31.8% | 61.6% | – |
| Beta | 0.68 | 0.51 | – |
Valuation: what is EVN worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give EVN a model range of 43.20 EUR to 45.11 EUR per share.
4 analysts, average rating “—”, average price target 33.25 EUR (+9.2%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Regulated network tariffs and the approved return on the network asset base determine a large, comparatively stable share of earnings.
- Wholesale prices for electricity and gas as well as weather conditions, such as wind and water flow, influence generation results and sales volumes.
- Investment in network expansion and renewable generation, as well as the development of its Southeastern European markets, drive long-term growth.
Risks
- Regulatory intervention such as price regulation, windfall levies or changes to network tariffs can directly reduce earnings.
- Fluctuating energy prices and procurement costs weigh on margins if they cannot be passed on to end customers in a timely manner.
- Political and regulatory uncertainty in the Southeastern European markets, together with high investment needs, increases the risk of the international strategy.
What to look for with EVN
The ratio of net debt to operating earnings (EBITDA) is informative, as capital-intensive utilities usually finance expansion projects and dividends partly with debt.