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Nuclearelectrica Stock (BVB: SNN)

10 minutes
Cristian Cochintu
Cristian Cochintu
30 October 2023

Despite a mixed evolution during the last 2 years, and a roller coaster 2Q23, Nuclearelectrica shares (BVB: SNN) 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?

Still not ready to invest real money? Build your confidence in a risk-free environment by testing on a demo account with $50,000 virtual funds.

Understanding Nuclearelectrica Shares: A brief history 

The company has two branches:

  1. Cernavodă CNE Branch, which operates Units 1 and 2 at Cernavodă CNE as well as ancillary services.
  2. 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 - 13,0394 %
  • Individuals: 4,4625 %

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 shares have a good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (9.6x).
  • SNN is good value based on its Price-To-Earnings Ratio (4.9x) compared to the European Electric Utilities industry average (7.9x).
  • SNN is good value based on its Price-To-Earnings Ratio (4.9x) compared to the estimated Fair Price-To-Earnings Ratio (6.2x).
  • SNN shares (RON44.9) are traded below simplywall.st estimate of fair value (RON91.47).
  • SNN is trading below fair value by more than 20%).

Future Growth 

S.N. Nuclearelectrica's earnings are forecasted to decline at an annual rate of -7% and its revenue is expected to decline at -5.6% annually. EPS is expected to decline by 7%. Return on equity is forecast to be 17% in 3 years. 

  • SNN's earnings vs. savings rate are forecast to decline over the next 3 years (-7% per year).
  • SNN's earnings vs market are forecast to decline over the next 3 years (-7% per year).
  • SNN's high growth earnings are forecast to decline over the next 3 years. 
  • SNN's revenue vs market is expected to decline over the next 3 years (-5.6% per year).
  • SNN's high growth revenue is forecast to decline over the next 3 years (-5.6% per year).
  • SNN's Return on Equity is forecast to be low in 3 years’ time (17%). 

Past Performance 

S.N. Nuclearelectrica has been growing earnings at an average annual rate of 42.4%, while the Electric Utilities industry saw earnings growing at 6.8% annually. Revenues have been growing at an average rate of 22.4% per year. S.N. Nuclearelectrica's return on equity is 26.2%, and it has net margins of 43.4%. 

  • SNN has high quality earnings.
  • SNN's current net profit margins (43.4%) are higher than last year (33.2%).
  • SNN's earnings have grown significantly by 42.4% per year over the past 5 years.
  • SNN's earnings growth over the past year (166.6%) exceeds its 5-year average (42.4% per year).
  • SNN earnings growth over the past year (166.6%) exceeded the Electric Utilities industry 25.3%.
  • SNN's Return on Equity (26.2%) is considered high. 

Financial Health  

S.N. Nuclearelectrica has a total shareholder equity of RON10.5B and total debt of RON130.3M, which brings its debt-to-equity ratio to 1.2%. Its total assets and total liabilities are RON11.8B and RON1.3B respectively. S.N. Nuclearelectrica's EBIT is RON3.0B, making its interest coverage ratio -14. It has cash and short-term investments of RON4.5B.  

  • SNN's short term assets (RON5.8B) exceed its short-term liabilities (RON803.4M).
  • SNN's short term assets (RON5.8B) exceed its long-term liabilities (RON456.8M).
  • SNN has more cash than its total debt.
  • SNN's debt to equity ratio has reduced from 14.7% to 1.2% over the past 5 years.
  • SNN's debt to equity ratio has reduced from 14.7% to 1.2% over the past 5 years.
  • 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 9.47% that is well covered by earnings. Nuclearelectrica is the in top 10 best dividend shares from Romanian stock market. 

  • 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 8 years.
  • SNN's dividend (9.49%) is higher than the bottom 25% of dividend payers in the RO market (2.63%).
  • With its reasonably low payout ratio (46.5%), SNN's dividend payments are well covered by earnings.
  • With its reasonably low cash payout ratio (48.6%), SNN's dividend payments are well covered by cash flows.

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?

According to stockopedia.com, analysts’ consensus target price for shares of Societatea Nationala Nuclearelectrica SA for 2023 is RON50.13.  That is 11.28% above the last closing price of RON45.05.
Analysts covering Societatea Nationala Nuclearelectrica SA currently have a consensus Earnings Per Share (EPS) forecast of RON5.95 for the next financial year.

As per tradingeconomics.com forecasts Nuclearelectrica’s shares are expected to be priced at 43.91 lei by the end of this quarter and at 40.94 in one year, according to their global macro models’ projections and analysts' expectations.

Investing.com analysts' 12-Month Price High Target is 60.00 RON, while the Average and Low-Price targets are 50.13, respectively 35.23.

SNN_Shares_Price_Forecast.png.PNG

Source: investing.com

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. 

SNN_technical_analysis_ daily_chart.png.png

However, prices are getting close to an important support level, around 43.25 RON area. A breakdown below would open the way towards inferior support levels, such as 42.00, and lower near to the inferior line of the ascending channel. 
In contrast, an upside recovery would first find resistance at 46.60 RON and higher at 48.50. From a technical point of view, as long as prices are making higher highs, the ascending trend remains intact.. 

How to Invest in Nuclearelectrica

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 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 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. 

iShares_MSCI Frontier_and_Select_EM_ETF.png.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 SA, OMV Petrom SA, Romgaz SA, BRD Groupe Société Générale, Electrica SA, MedLife, One United Properties SA, TeraPlast SA. 

 

Why invest in TLV Shares 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, including Bucharest Stock Exchange and BET index exposure. 
  • Use to seek long-term growth and diversification.

 

How to Get Started with CAPEX.com 

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

  • 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. 

Sources:  

BVB - Actiuni SNN S.N. NUCLEARELECTRICA S.A.
S.N. Nuclearelectrica (BVB:SNN) - Stock Price, News & Analysis - Simply Wall St
S N Nuclearele Stock Price Today | BX ROSNN Live Ticker - Investing.com
Societatea Nationala Nuclearelectrica SA Share Price - BSE:SNN Stock Research | Stockopedia
Societatea Nationala Nuclearelectrica | SNN - Stock Price | Live Quote | Historical Chart (tradingeconomics.com)
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Cristian Cochintu
Cristian Cochintu
financial_writer

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