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Electrica Stock (BVB: EL)

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electrica stock
Cristian Cochintu
Cristian Cochintu
23 November 2023

Despite the steady downtrend during 2022 and a sideway evolution during 2023, Electrica shares are still popular among Romanian investors and top-performing international funds. While you can buy EL shares directly, sometimes it is worth considering an ETF with EL representation.

Societatea Energetica Electrica S.A., together with its subsidiaries, engages in the operation, construction, and maintenance of electricity distribution networks in Romania. In 2014, 51% of the shares of Electrica SA were double listed on the London Stock Exchange and on the Bucharest Stock Exchange. It was the biggest listing on the capital market in the country. The company collected at the time a record of almost LEI 2 billion (EUR 443 million). 
EL is now one of the top holdings in the largest Frontier and Emerging Markets ETFs (FM).  

Electrica Stocks - Research and Ratings 

  • Is Electrica stock undervalued compared to its fair value, analyst forecasts, and price relative to the market? 
  • What is the analyst's 12-month Electrica stock price forecast? 
  • What are EL’s future growth expectations? 
  • How has Electrica stock performed over the past 5 years? 
  • Should you buy Electrica shares or invest in ETFs with EL representation


Understanding Electrica Stock (BSE: EL): A brief history 

Electrica is the largest investor in Romania in the electricity sector, with a total investment volume of over 5 billion lei in the period after listing from 2014 to 2022.  The company has more than 11,000 shareholders in 30 countries around the world, including the USA, Canada, the UK, Kuwait, Iraq, and Israel.  

Electrica is one of the strongest representatives of the energy industry in Romania, with a permanent presence for over 125 years, and a reliable operator for the Romanian energy market. With a team of over 8000 employees at the end of 2022, the company is the second-largest employer in the energy sector and a major contributor to the state budget. 

Electrica is serving over 3.8 million customers in the entire country. 

The Group's distribution activity is carried out through the three energy distribution companies: "SDEE Transilvania Nord", "SDEE Transilvania Sud", "SDEE Muntenia Nord". Also, the Group provides electricity to more than 3.5 million customers through the trading company Electrica Furnizare SA. The supply activity covers 18.69% (2019) of Romania's energy needs. 

Electrica also has control over the services and maintenance company Electrica Serv which operates in the fields of consulting and design, maintenance, inspections, overhauls, and repairs of energy and measuring equipment. In 2016, Electrica had a network of about 116,500 km of power lines, while in 2020, the company had a network of about 198,988 km of power lines. The company also has in its portfolio the Dimitrie Leonida Technical Museum.  

Electrica's shares are distributed among 3 categories: 

  • Legal Entities – 45,4855% (BERD, Paval Holding, NN Group NV, Allianz SE – between 5 and 10%) 
  • Individuals – 5,7198% 

Electrica Stock - Fundamental Analysis and Financial Ratings 

See the latest Electrica (BVB: EL) stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions. 


Is Electrica stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market? 

  • EL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (9.2x).  
  • EL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the European Electric Utilities industry average (7.7x).  
  • EL is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).  
  • EL (RON 9.5) is trading above estimate of fair value (RON 6.09). 

Future Growth 

Societatea Energetica Electrica's earnings are forecast to decline at 0.2% per annum while its annual revenue is expected to grow at 3.6% per year. EPS is expected to decline by 8.1% per annum. Return on equity is forecast to be 9% in 3 years.

  • EL's earnings are forecast to decline over the next 3 years (-0.2% per year).
  • EL's earnings (-0.2% per year) are forecast to grow faster than the Romanian market (-3.5% per year)
  • EL's revenue (3.6% per year) is forecast to grow faster than the RO market (-0.8% per year).
  • EL's Return on Equity is forecast to be low in 3 years time (9%).

Past Performance 

How has Electrica stock performed over the past 5 years? 
Societatea Energetica Electrica's earnings have been declining at an average annual rate of -7.3%, while the Electric Utilities industry saw earnings growing at 6.9% annually. Revenues have been growing at an average rate of 18.9% per year. Societatea Energetica Electrica's return on equity is 15.5%, and it has net margins of 6.2%. 

  • EL has high quality earnings.
  • EL became profitable in the past.
  • EL's earnings have declined by 7.3% per year over the past 5 years.
  • EL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
  • EL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (24.9%).
  • EL's Return on Equity (15.5%) is considered low.

Financial Health  

How is Societatea Energetica Electrica's financial position?
Societatea Energetica Electrica has a total shareholder equity of RON5.4B and total debt of RON3.9B, which brings its debt-to-equity ratio to 72.5%. Its total assets and total liabilities are RON12.7B and RON7.3B respectively. Societatea Energetica Electrica's EBIT is RON1.2B making its interest coverage ratio 5.2. It has cash and short-term investments of RON147.2M.   

  • EL's short-term assets (RON 5.2B) do not cover its short-term liabilities (RON6.0B).  
  • EL's short-term assets (RON5.2B) exceed its long-term liabilities (RON1.2B).  
  • EL's net debt-to-equity ratio (69.7%) is considered high.  
  • EL's debt-to-equity ratio has increased from8.5% to 72.5% over the past 5 years.  
  • EL's operating cash flow is negative, therefore debt is not well covered.  
  • EL's interest payments on its debt are well covered by EBIT (5.2x coverage).


Societatea Energetica Electrica is a dividend paying company with a current yield of 1.24%.

Electrica Stock Price Forecast 

What is the analyst 12-month EL shares price forecast, and do we have any statistical confidence in the consensus price target from analysts? 

According to, target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.



According to Trading Economics global macro models projections and analysts' expectations, it is forecasted that Societatea Energetica Electrica SA shares to be priced at 9.30 RON by the end of this quarter and at 8.72 RON in one year.  

According to the analyst consensus target price for 2023 related to Societatea Energetica Electrica A is 9.99 RON.

There are no 5-year Electrica stock price forecasts and price predictions. 

Important: When considering Electrica's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose. 

Electrica Stock (BVB: EL) - Technical Analysis  

Electrica shares price is currently consolidating after an aggressive 2021-2022 downtrend. Looking at the daily chart, price seems to have completed an Inverted Head & Shoulders bullish pattern and is currently testing the neckline at 9.70 RON. attempting to start an uptrend after the ascending breakout, above the resistance of the general 2021-mid 2022 downtrend.


A confirmed breakout above it may trigger a mid-term uptrend with an initial price target around 11.50 RON and above 14.00 RON. However, if the 2023 positive evolution proves itself to be only corrective, price may resume its downtrend.


How to Invest in Electrica Stock 

Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started. 

For most people, stock market investing means choosing among these two investment types: 

Individual Electrica shares  

If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research. 

If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day. 

Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets. 


ETFs with Electrica holdings 

Electrica stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies. 

If you want an ETF with Electrica representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management. 

iShares MSCI Frontier and Select EM ETF_20230516165547.png

The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 9 companies listed on the Bucharest Stock Exchange: 

Banca Transilvania (BSE: TLV)
OMV Petrom (BSE: SNP)
Romgaz (BSE: SNG)
Transgaz (BSE: TGN)
Teraplast (BSE: TRP)
MedLife (BSE: M)
Nuclearelectrica (BSE: SNN)
One United Properties (BSE: ONE)


Why invest in Electrica Stock via FM? 

With net assets of almost $1B, The iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities. 

  • Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents 
  • One-click access to a virtually untapped investment portfolio with a Bucharest Stock Exchange and BET index exposure. 
  • Use to seek long-term growth and diversification.

How to Get Started with 

Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like 

  • Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account. 
  • Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity. 
  • Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies. 
  • Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.  


When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.  

However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset. 

With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership. 

Free resources 

Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader. 

Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading. 


Investitori - Electrica 
Societatea Energetica Electrica S.A. (BVB:EL) Stock Valuation - Simply Wall St 
Societatea Energetica Electrica SA (ROEL) Stock Forecast & Price Target - 
Societatea Energetica Electrica SA | EL - Stock Price | Live Quote | Historical Chart ( 
Societatea Energetica Electrica SA Share Price - BSE:EL Stock Research | Stockopedia 







Cristian Cochintu
Cristian Cochintu

Cristian Cochintu writes about trading and investing for Cristian has more than 15 years of brokerage, freelance, and in-house experience writing for financial institutions and coaching financial writers.