Despite a humble performance during the last 12 months, Nuclearelectrica shares remain very popular among Romanian investors and top-performing international funds. While you can buy SNN shares directly, sometimes it is worth considering an ETF with SNN representation.
Societatea Nationala Nuclearelectrica S.A. (BVB: SNN) is the only producer of nuclear energy in Romania and of the fuel related to the technology used, CANDU 6.
Founded in 1998 through the reorganization of RENEL, the company is under the authority of the Ministry of Energy, with Romanian State holding 82.49% of the shares, while other shareholders own 17.50% of the shares after going public in 2013.
Nuclearelectrica Shares - Research and Ratings
- Are SNN stocks undervalued compared to their fair value, analyst forecasts, and its price relative to the market?
- What is the analyst’s 12-month SNN shares price forecast?
- What are Nuclearelectrica’s shares future growth expectations?
- How had SNN stocks performed over the past 5 years?
- Should you buy SNN shares or invest in ETFs with SNN representation?
Understanding Nuclearelectrica Shares: A brief history
The company has two branches:
- Cernavodă CNE Branch, which operates Units 1 and 2 at Cernavodă CNE as well as ancillary services.
- Nuclear Fuel Factory (FCN) Pitesti
Units 1 and 2 of the Cernavoda CNE use CANDU technology.
In 2019, the two units at Cernavoda CNE produced 11,280,166 MWh. Unit 1 recorded a capacity factor of 93.86% and Unit 2 - 89.16%.
With a capacity factor of 91.6% since commissioning, Romania, with two nuclear units in operation, was ranked as 1st in the world.
The production of CANDU nuclear fuel started in 1980, with the commissioning of the pilot station as a fuel section within the Pitesti Nuclear Research Institute (ICN).
In 1994, the Nuclear Fuel Factory (FCN) was licensed by AECL and Zircatec Precision Industries Inc. (Canada) as a CANDU 6 nuclear fuel producer.
Annually, FCN Pitesti produces about 10,800 nuclear fuel bundles.
SNN shares are distributed among 3 categories:
- THE ROMANIAN STATE THROUGH THE MINISTRY OF ENERGY - 82,4981 %
- Legal entities - 12,7521%
- Individuals - 4,7498%
SNN Shares - Fundamental Analysis and Financial Ratings
See the latest Nuclearelectrica SA stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is SNN undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
- SNN (RON48.3) is trading below simplywall.st estimate of fair value (RON57.41).
- SNN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (14.3x).
- SNN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the European Electric Utilities industry average (11.4x).
- SNN is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).
Future Growth
S.N. Nuclearelectrica's revenue and earnings are forecast to decline at 12% and 13.9% per annum respectively. EPS is expected to decline by 13.2% per annum. Return on equity is forecast to be 18.5% in 3 years.
- SNN's earnings are forecast to decline over the next 3 years (-13.9% per year).
- SNN's revenue is expected to decline over the next 3 years (-12% per year).
- SNN's Return on Equity is forecast to be low in 3 year's time (18.5%).
- Analyst coverage is Low.
Past Performance
S.N. Nuclearelectrica has been growing earnings at an average annual rate of 44.8%, while the Electric Utilities industry saw earnings growing at 14.7% annually. Revenues have been growing at an average rate of 27.1% per year. S.N. Nuclearelectrica's return on equity is 26.8%, and it has net margins of 40.5%.
- SNN has high quality earnings.
- SNN's current net profit margins (40.5%) are higher than last year (38.6%).
- SNN's earnings have grown significantly by 44.8% per year over the past 5 years.
- SNN's earnings growth over the past year (51.1%) exceeds its 5-year average (44.8% per year).
- SNN earnings growth over the past year (51.1%) exceeded the Electric Utilities industry 8.1%.
- SNN's Return on Equity (26.8%) is considered high.
Financial Health
S.N. Nuclearelectrica has a total shareholder equity of RON10.5B and total debt of RON98.4M, which brings its debt-to-equity ratio to 0.9%. Its total assets and total liabilities are RON11.8B and RON1.3B respectively. S.N. Nuclearelectrica's EBIT is RON2.9B making its interest coverage ratio -8.1. It has cash and short-term investments of RON4.1B.
- SNN's short term assets (RON5.5B) exceed its short-term liabilities (RON836.1M).
- SNN's short term assets (RON5.5B) exceed its long-term liabilities (RON435.0M).
- SNN has more cash than its total debt.
- SNN's debt to equity ratio has reduced from 13.4% to 0.9% over the past 5 years.
- SNN's debt is well covered by operating cash flow (3138.9%).
- SNN earns more interest than it pays, so coverage of interest payments is not a concern.
Nuclearelectrica Dividend
S.N. Nuclearelectrica is a dividend paying company with a current yield of 7.69% that is well covered by earnings. Next payment date is on 21st June, 2024 with an ex-dividend date of 30th May, 2024.
- Whilst dividend payments have been stable, SNN has been paying a dividend for less than 10 years.
- SNN's dividend payments have increased, but the company has only paid a dividend for 9 years.
- SNN's dividend (7,69%) is higher than the bottom 25% of dividend payers in the RO market (2.4%).
- SNN's dividend (7.69%) is in the top 25% of dividend payers in the RO market (7.06%)
- With its reasonably low payout ratio (45.4%), SNN's dividend payments are well covered by earnings.
SNN Shares Price Forecast
What is the analyst SNN shares price forecast, and do we have any statistical confidence in the consensus price target from analysts?
Source: simplywall.st
According to simplywall.st, Nuclearelectrica`s 12-month shares price target (RON49.03) is 1.5% higher than the current share price (RON48.30).
According to stockopedia.com, the analyst consensus target price for shares in Societatea Nationala Nuclearelectrica SA is RON49.53. That is 2.23% above the last closing price of RON48.45.
As per tradingeconomics.com forecasts Nuclearelectrica’s shares are expected to be priced at RON48.62 lei by the end of this quarter and at RON46.07in one year, according to their global macro models projections and analysts' expectations.
According to Yahoo Finance, analyst price targets are oscillating between RON46.00 (low) and RON52.00 (high), with an average price target of RON49.53.
There are no 5-year SNN shares price forecasts and price predictions.
Important: When considering SNN'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.
Nuclearelectrica Shares (BVB: SNN) - Technical Analysis
Looking at price evolution, Nuclearelectrica shares are being trade within an ascending channel since mid-2021, as seen on the daily SNN chart below, as a part of a general uptrend lasting more than 7 years However, price range seems to be narrowing inside the channel, failing to reach higher highs under a weak momentum.
Source: bvb.ro
Although the uptrend has never been questioned during the mentioned period, this could signal a potential bull` weakness. Near term support levels are 47.30 and below the 25.20 area, while a potential leg up, could find resistance at 50.00 and higher around 52.30.
How to Invest in Nuclearelectrica (BSE: SNN)
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 SNN 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 SNN holdings
Nuclearelectrica shares (or any single stock, for that matter) can be a very unpredictable 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 SNN 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.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 10 companies listed on the Bucharest Stock Exchange:
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Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
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- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
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Sources:
https://bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=SNN
https://simplywall.st/stocks/ro/utilities/bvb-snn/sn-nuclearelectrica-shares
https://www.stockopedia.com/share-prices/societatea-nationala-nuclearelectrica-sa-BSE:SNN/
https://tradingeconomics.com/snn:ro
https://finance.yahoo.com