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ERM Power

DB:7ER
Snowflake Description

Excellent balance sheet, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
7ER
DB
A$590M
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

ERM Power Limited, a diversified energy company, engages in the generation and sale of electricity in Australia. The last earnings update was 104 days ago. More info.


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7ER Share Price and Events
7 Day Returns
0%
DB:7ER
-1.6%
Europe Electric Utilities
-1.5%
DE Market
1 Year Returns
48.5%
DB:7ER
14.6%
Europe Electric Utilities
7.4%
DE Market
7ER Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ERM Power (7ER) 0% 0.7% -1.2% 48.5% 91.2% 11.9%
Europe Electric Utilities -1.6% -1.2% -2.7% 14.6% 41.6% 10.4%
DE Market -1.5% 0.8% 8.5% 7.4% 12.7% 13.5%
1 Year Return vs Industry and Market
  • 7ER outperformed the Electric Utilities industry which returned 14.6% over the past year.
  • 7ER outperformed the Market in Germany which returned 7.4% over the past year.
Price Volatility
7ER
Industry
5yr Volatility vs Market

7ER Value

 Is ERM Power undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ERM Power to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ERM Power.

DB:7ER Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:7ER
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.326 (1 + (1- 30%) (38.82%))
0.607
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:7ER using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ERM Power is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:7ER DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 5%)
2020 135.81 Est @ 4.5% 129.35
2021 140.18 Est @ 3.22% 127.15
2022 143.43 Est @ 2.32% 123.91
2023 145.85 Est @ 1.69% 120.01
2024 147.68 Est @ 1.25% 115.73
2025 149.08 Est @ 0.95% 111.27
2026 150.16 Est @ 0.73% 106.75
2027 151.03 Est @ 0.58% 102.26
2028 151.75 Est @ 0.47% 97.85
2029 152.36 Est @ 0.4% 93.57
Present value of next 10 years cash flows A$1,127.00
DB:7ER DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$152.36 × (1 + 0.23%) ÷ (5% – 0.23%)
A$3,202.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$3,202.70 ÷ (1 + 5%)10
A$1,966.93
DB:7ER Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,127.00 + A$1,966.93
A$3,093.93
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$3,093.93 / 244.96
A$12.63
DB:7ER Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:7ER represents 0.60996x of ASX:EPW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.60996x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 12.63 x 0.60996
€7.70
Value per share (EUR) From above. €7.70
Current discount Discount to share price of €1.47
= -1 x (€1.47 - €7.70) / €7.70
80.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ERM Power is available for.
Intrinsic value
>50%
Share price is €1.47 vs Future cash flow value of €7.7
Current Discount Checks
For ERM Power to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ERM Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ERM Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ERM Power's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ERM Power's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:7ER PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.54
ASX:EPW Share Price ** ASX (2019-11-12) in AUD A$2.41
Europe Electric Utilities Industry PE Ratio Median Figure of 73 Publicly-Listed Electric Utilities Companies 13.1x
Germany Market PE Ratio Median Figure of 404 Publicly-Listed Companies 20.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ERM Power.

DB:7ER PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:EPW Share Price ÷ EPS (both in AUD)

= 2.41 ÷ 0.54

4.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERM Power is good value based on earnings compared to the Europe Electric Utilities industry average.
  • ERM Power is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does ERM Power's expected growth come at a high price?
Raw Data
DB:7ER PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-65.4%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 38 Publicly-Listed Electric Utilities Companies 1.59x
Germany Market PEG Ratio Median Figure of 261 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

DB:7ER PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.46x ÷ -65.4%

-0.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERM Power earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ERM Power's assets?
Raw Data
DB:7ER PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$1.75
ASX:EPW Share Price * ASX (2019-11-12) in AUD A$2.41
Europe Electric Utilities Industry PB Ratio Median Figure of 85 Publicly-Listed Electric Utilities Companies 0.86x
Germany Market PB Ratio Median Figure of 578 Publicly-Listed Companies 1.86x
DB:7ER PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:EPW Share Price ÷ Book Value per Share (both in AUD)

= 2.41 ÷ 1.75

1.38x

* Primary Listing of ERM Power.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERM Power is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess ERM Power's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. ERM Power has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

7ER Future Performance

 How is ERM Power expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-65.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ERM Power expected to grow at an attractive rate?
  • ERM Power's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ERM Power's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • ERM Power's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:7ER Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:7ER Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -65.4%
DB:7ER Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts -26.4%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 7.4%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:7ER Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:7ER Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 2,078 41 1
2020-06-30 2,047 56 1
DB:7ER Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 3,197 171 134
2018-12-31 3,332 50 -29
2018-09-30 3,306 3 -38
2018-06-30 3,281 -43 -46
2017-12-31 2,993 126 94
2017-09-30 2,892 139 57
2017-06-30 2,790 152 19
2016-12-31 2,739 179 4
2016-09-30 2,715 149 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ERM Power's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • ERM Power's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:7ER Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from ERM Power Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:7ER Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.17 0.17 0.17 1.00
2020-06-30 0.24 0.24 0.24 1.00
DB:7ER Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.54
2018-12-31 -0.12
2018-09-30 -0.15
2018-06-30 -0.19
2017-12-31 0.38
2017-09-30 0.23
2017-06-30 0.08
2016-12-31 0.02
2016-09-30 0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ERM Power will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ERM Power's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ERM Power has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

7ER Past Performance

  How has ERM Power performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ERM Power's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ERM Power's year on year earnings growth rate has been positive over the past 5 years.
  • ERM Power has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • ERM Power has become profitable in the last year making it difficult to compare the Europe Electric Utilities industry average.
Earnings and Revenue History
ERM Power's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ERM Power Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:7ER Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 3,197.04 133.96
2018-12-31 3,332.04 -28.77
2018-09-30 3,306.31 -37.75
2018-06-30 3,280.58 -46.48
2017-12-31 2,993.44 94.45
2017-09-30 2,891.84 56.85
2017-06-30 2,790.23 19.26
2016-12-31 2,739.37 3.86
2016-09-30 2,715.22 19.43
2016-06-30 2,691.06 35.00
2016-03-31 2,595.49 20.32 1.89
2015-12-31 2,499.92 5.64 3.79
2015-09-30 2,408.14 35.79 3.79
2015-06-30 2,316.36 65.94 3.79
2015-03-31 2,260.98 51.89 3.74
2014-12-31 2,205.59 37.83 3.68
2014-09-30 2,141.06 6.97 3.68
2014-06-30 2,076.54 -23.90 3.68
2014-03-31 1,950.14 -0.26 3.47
2013-12-31 1,823.74 23.38 3.25
2013-09-30 1,696.65 29.96 3.25
2013-06-30 1,569.57 36.54 3.25
2013-03-31 1,390.15 22.95 2.36
2012-12-31 1,210.72 9.36 1.48

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ERM Power has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • ERM Power used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • ERM Power has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ERM Power's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ERM Power has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

7ER Health

 How is ERM Power's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ERM Power's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ERM Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ERM Power's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ERM Power's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ERM Power Company Filings, last reported 5 months ago.

DB:7ER Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 428.96 212.89 172.10
2018-12-31 375.51 183.48 262.03
2018-09-30 375.51 183.48 262.03
2018-06-30 249.50 365.78 227.64
2017-12-31 521.34 204.01 315.56
2017-09-30 521.34 204.01 315.56
2017-06-30 565.88 222.73 244.62
2016-12-31 556.98 201.60 280.01
2016-09-30 556.98 201.60 280.01
2016-06-30 471.40 263.13 192.47
2016-03-31 471.40 263.13 192.47
2015-12-31 362.00 253.81 230.40
2015-09-30 362.00 253.81 230.40
2015-06-30 319.72 277.21 172.84
2015-03-31 319.72 277.21 172.84
2014-12-31 337.01 265.13 288.76
2014-09-30 337.01 265.13 288.76
2014-06-30 277.21 364.70 208.83
2014-03-31 277.21 364.70 208.83
2013-12-31 335.37 315.42 258.98
2013-09-30 335.37 315.42 258.98
2013-06-30 271.84 372.66 215.36
2013-03-31 271.84 372.66 215.36
2012-12-31 205.24 296.59 168.18
  • ERM Power's level of debt (49.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (130.9% vs 49.6% today).
  • Debt is well covered by operating cash flow (80.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess ERM Power's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ERM Power has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

7ER Dividends

 What is ERM Power's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.73%
Current annual income from ERM Power dividends. Estimated to be 4.56% next year.
If you bought €2,000 of ERM Power shares you are expected to receive €75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ERM Power's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • ERM Power's dividend is above the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:7ER Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:7ER Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.10 1.00
2020-06-30 0.12 1.00
DB:7ER Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-21 0.090 3.737
2019-02-20 0.090 4.928
2018-08-22 0.080 4.932
2018-02-21 0.070 4.449
2017-08-23 0.070 5.048
2017-02-22 0.070 5.743
2016-08-25 0.120 10.427
2016-04-04 0.120 10.568
2015-08-20 0.120 7.245
2015-02-18 0.120 5.210
2014-08-20 0.120 6.310
2014-02-03 0.120 5.776
2013-08-21 0.110 4.350
2013-02-20 0.100 3.850
2012-08-20 0.090 4.569
2012-02-23 0.080 4.329
2011-08-25 0.035 2.336
2011-02-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ERM Power has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but ERM Power only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of ERM Power's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess ERM Power's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ERM Power afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ERM Power has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

7ER Management

 What is the CEO of ERM Power's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Joiner
TENURE AS CEO 0.1 years
CEO Bio

Mr. Greg Joiner serves as Chief Executive Officer at ERM Power Limited since November 2019. Mr. Joiner has held several roles within Shell over that have prepared him for the challenge of growing Shell’s aspirations in new energies and power. Initially working within Shell’s downstream retail and commercial marketing businesses. Mr. Joiner led the establishment of Pulse Energy – the company’s early 2000s entry into electricity and gas retailing. Mr. Joiner subsequently held leadership roles in Shell’s Global Commercial division in both Singapore and London across strategy, mergers and acquisitions, and general management of regional and global business units. He returned to Australia (Perth) in 2013 to head upstream business development and the role of Shareholder Representative for Shell’s interests in Arrow Energy in 2015. In January 2019, Mr. Joiner took up leadership of the Shell Energy business in Australia based across Brisbane and Melbourne.

CEO Compensation
  • Insufficient data for Greg to compare compensation growth.
  • Insufficient data for Greg to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure of the ERM Power management team in years:

4.3
Average Tenure
  • The tenure for the ERM Power management team is about average.
Management Team

James Spence

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
4.3 yrs

Gregg Buskey

TITLE
Executive General Manager of Corporate Finance & Strategy
COMPENSATION
A$791K
TENURE
4.7 yrs

Derek McKay

TITLE
Chief Information Officer & Executive GM of Generation
COMPENSATION
A$837K

Steve Rogers

TITLE
Executive General Manager of Business Energy
COMPENSATION
A$666K
TENURE
5.9 yrs

Greg Joiner

TITLE
Chief Executive Officer
TENURE
0.1 yrs

Michelle Barry

TITLE
Executive GM of Corporate Affairs (IR
TENURE
4.3 yrs

Phil Davis

TITLE
Group General Counsel & Company Secretary
TENURE
4.2 yrs

Suzanne Irwin

TITLE
Additional Company Secretary
TENURE
2.3 yrs
Board of Directors
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
18. Nov 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 03. Sep 19 13. Nov 19 -11,216,981 €1.50 €-16,785,326
18. Nov 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 03. Sep 19 12. Nov 19 1,826,030 €1.50 €2,743,687
18. Nov 19 Sell First Sentier Investors (Australia) IM Ltd Company 05. Sep 19 08. Nov 19 -1,049,104 €1.51 €-1,582,777
18. Nov 19 Buy First Sentier Investors (Australia) IM Ltd Company 05. Sep 19 06. Nov 19 321,080 €1.50 €481,626
10. Nov 19 Sell UBS Asset Management Company 08. Jul 19 04. Nov 19 -3,828,022 €1.45 €-5,546,705
10. Nov 19 Buy UBS Asset Management Company 08. Jul 19 06. Nov 19 16,964,029 €1.49 €25,280,234
04. Oct 19 Buy Perpetual Limited Company 03. Sep 19 02. Oct 19 2,936,947 €1.53 €4,408,119
25. Jun 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 21. Jun 19 21. Jun 19 -407,231 €1.16 €-474,212
25. Jun 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 21. Jun 19 21. Jun 19 21,536 €1.17 €25,177
05. Sep 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 02. Sep 19 -3,696,455 €1.47 €-5,449,504
05. Sep 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 05. Aug 19 02. Sep 19 1,257,480 €1.47 €1,846,600
05. Sep 19 Sell First Sentier Investors (Australia) IM Ltd Company 19. Aug 19 20. Aug 19 -385,626 €1.05 €-404,333
28. Aug 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Aug 19 26. Aug 19 -1,016,362 €1.49 €-1,514,217
28. Aug 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Aug 19 26. Aug 19 79,925 €1.50 €119,804
26. Aug 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 23. Apr 19 22. Aug 19 2,225,844 €1.11 €2,475,882
27. Aug 19 Buy Perpetual Limited Company 19. Aug 19 23. Aug 19 2,335,544 €1.49 €3,427,068
06. Aug 19 Buy Realindex Investments Pty Limited Company 12. Apr 19 22. Jul 19 1,100,667 €1.23 €1,288,320
05. Aug 19 Sell First Sentier Investors (Australia) IM Ltd Company 03. May 19 25. Jun 19 -277,430 €1.13 €-313,284
05. Aug 19 Buy First Sentier Investors (Australia) IM Ltd Company 03. Apr 19 26. Apr 19 164,724 €1.09 €180,290
24. Jun 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 14. Jun 19 20. Jun 19 51,394 €1.16 €59,609
18. Jun 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 30. May 18 13. Jun 19 -6,227,121 €1.05 €-6,523,778
18. Jun 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 30. May 18 13. Jun 19 3,422,745 €0.99 €3,397,493
24. Jun 19 Sell Jonathan Stretch Individual 21. Jun 19 21. Jun 19 -360,000 €1.15 €-414,854
24. Jun 19 Buy Jonathan Stretch Individual 21. Jun 19 21. Jun 19 360,000 €1.15 €414,854
02. Apr 19 Buy Realindex Investments Pty Limited Company 27. Feb 19 01. Apr 19 609,292 €1.20 €733,436
02. Apr 19 Buy First Sentier Investors (Australia) IM Ltd Company 31. Dec 18 27. Mar 19 273,337 €1.18 €323,217
24. Mar 19 Buy Trevor St Baker Individual 09. May 18 21. Mar 19 2,500,000 €1.19 €2,878,717
18. Mar 19 Buy Julieanne Alroe Individual 05. Mar 19 05. Mar 19 2,824 €1.11 €3,129
25. Feb 19 Buy Perpetual Limited Company 22. Feb 18 21. Feb 19 2,406,348 €1.21 €2,504,834
02. Jan 19 Buy Julieanne Alroe Individual 18. Dec 18 18. Dec 18 6,451 €0.98 €6,327
X
Management checks
We assess ERM Power's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ERM Power has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

7ER News

Simply Wall St News

7ER Company Info

Description

ERM Power Limited, a diversified energy company, engages in the generation and sale of electricity in Australia. It operates through Business Energy Australia, Generation Assets, Energy Solutions, and Other segments. The company operates 662 megawatts of low emission gas-fired power stations in Western Australia and Queensland. It also provides energy advices and services that uses smart data and advanced analytics. In addition, the company is involved in the gas business, as well as retailing of electricity. It sells electricity to the commercial and industrial customers, and small to medium enterprises. ERM Power Limited was founded in 1980 and is headquartered in Brisbane, Australia. As of November 26, 2019, ERM Power Limited operates as a subsidiary of Shell Energy Australia Pty Ltd.

Details
Name: ERM Power Limited
7ER
Exchange: DB
Founded: 1980
A$364,081,778
244,960,979
Website: http://ermpower.com.au
Address: ERM Power Limited
111 Eagle Street,
Level 52,
Brisbane,
Queensland, 4000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX EPW Ordinary Shares Australian Securities Exchange AU AUD 10. Dec 2010
DB 7ER Ordinary Shares Deutsche Boerse AG DE EUR 10. Dec 2010
CHIA EPW Ordinary Shares Chi-X Australia AU AUD 10. Dec 2010
Number of employees
Current staff
Staff numbers
0
ERM Power employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/03 21:30
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/29
Last earnings filing: 2019/08/21
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.