Download PDF

1. Company Snapshot

1.a. Company Description

PGE Polska Grupa Energetyczna S.A. engages in the production, transmission, and distribution of electricity in Poland.The company operates through seven segments: Conventional Generation, District Heating, Renewables, Supply, Distribution, Circular Economy, and Other Operations.It generates electricity from lignite, hard coal, natural gas, and biomass, as well as renewable energy sources, such as wind, photovoltaic, and hydro.


The company operates 5 conventional power plants; 16 CHP plants; 2 lignite mines; 17 wind farms; 5 photovoltaic power plants; 29 run-of-river hydro power plants; and 4 pumped-storage power plants, including 2 with natural flow.It produces, transmits, and distributes heat; sells and purchases electricity and gas on wholesale market; trades in emission certificates; and purchases and sells fuels, as well as sells electricity and provides services to end users.The company supplies power to approximately 5 million households, businesses, and institutions.


The company was founded in 1990 and is based in Warsaw, Poland.

Show Full description

1.b. Last Insights on PGE

PGE Polska Grupa Energetyczna S.A.'s recent performance was negatively impacted by increasing competition in the renewable energy sector, as evident from Avangrid's commencement of solar panel installation at the Tower Solar project, which will supply energy to PGE's power grid. Furthermore, the company's investments in battery energy storage systems and clean energy projects, totaling over $6.4 billion through 2029, may strain its short-term financials. Additionally, the ongoing development of the Baltica 2 wind farm, jointly developed with Ørsted, may face structural monitoring challenges, as contracted to Acteon.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

Portland General Electric invests in AI-powered flexibility to speed data center connection

Oct -20

Source:

Card image cap

Portland General Electric and GridCARE Accelerate Hundreds of Megawatts of Data Center Power in Leading U.S. Market

Oct -08

Source:

Card image cap

How New Battery Investments and Solar Projects at Portland General Electric (POR) Have Changed Its Investment Story

Oct -02

Source:

Card image cap

Acteon secures structural monitoring contract for Baltica 2 wind farm

Oct -01

Source:

Card image cap

Avangrid Begins Installation of American Made Solar Panels at Tower Solar Project in Oregon

Sep -29

Source:

Card image cap

Portland General Electric brings 475MW of battery storage online

Aug -08

Source:

Card image cap

PGE Energizes 475 MW of Battery Energy Storage to Boost Grid Reliability and Keep Costs Low for Oregonians

Aug -07

Source:

Card image cap

Indonesia’s Pertamina and PLN partner for 530MW geothermal energy projects

Aug -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.96%)

6. Segments

Conventional Energy

Expected Growth: 4.83%

PGE Polska Grupa Energetyczna S.A.'s 4.83% growth in Conventional Energy is driven by increasing electricity demand, favorable regulatory environment, and investments in modernization of power plants. Additionally, the company's focus on cost optimization and efficiency improvements also contribute to the growth.

Supply

Expected Growth: 5.0%

PGE Polska Grupa Energetyczna S.A.'s 5.0% growth is driven by increasing electricity demand from industrial and residential sectors, supported by Poland's economic growth and urbanization. Additionally, investments in renewable energy sources, such as wind and solar power, contribute to the growth. Furthermore, PGE's efforts to improve operational efficiency and reduce costs also support the growth.

Distribution

Expected Growth: 4.83%

PGE Polska Grupa Energetyczna S.A.'s 4.83% growth is driven by increasing electricity demand, favorable regulatory environment, and strategic investments in renewable energy sources. Additionally, the company's focus on grid modernization and cost optimization efforts contribute to its growth momentum.

District Heating

Expected Growth: 4.83%

The 4.83% growth in District Heating from PGE Polska Grupa Energetyczna S.A. is driven by increasing demand for reliable and efficient heating solutions, government incentives for renewable energy, and investments in infrastructure upgrades, as well as growing urbanization and industrialization in Poland.

Railway Energy

Expected Growth: 4.83%

Railway Energy from PGE Polska Grupa Energetyczna S.A. growth of 4.83% driven by increasing electrification of railways, rising demand for energy-efficient transportation, and government initiatives promoting sustainable infrastructure development.

Renewables

Expected Growth: 8.23%

PGE Polska Grupa Energetyczna S.A.'s 8.23% growth in renewables is driven by increasing demand for clean energy, Polish government's support for renewable energy sources, and declining costs of wind and solar power generation. Additionally, PGE's strategic investments in onshore wind farms and solar parks, as well as its commitment to reducing carbon emissions, contribute to this growth.

Circular Economy

Expected Growth: 9.27%

PGE Polska Grupa Energetyczna S.A.'s 9.27% growth in Circular Economy is driven by increasing adoption of renewable energy sources, energy efficiency measures, and waste reduction initiatives. Additionally, government incentives and regulations promoting sustainable practices, as well as growing consumer demand for eco-friendly products and services, contribute to this growth.

Other

Expected Growth: 4.83%

PGE Polska Grupa Energetyczna S.A.'s 4.83% growth is driven by increasing electricity demand, favorable regulatory environment, and investments in renewable energy sources. Additionally, the company's efforts to improve operational efficiency, reduce costs, and expand its customer base also contribute to its growth.

Adjustments

Expected Growth: 4.83%

PGE Polska Grupa Energetyczna S.A.'s 4.83% growth is driven by increasing electricity demand, favorable regulatory environment, and strategic investments in renewable energy sources. Additionally, the company's focus on cost optimization and operational efficiency has contributed to its growth.

7. Detailed Products

Electricity Distribution

PGE Polska Grupa Energetyczna S.A. distributes electricity to households, businesses, and industries across Poland.

Heat and Cooling

PGE provides heat and cooling solutions to industrial and commercial customers, ensuring a stable and efficient energy supply.

Renewable Energy

PGE invests in renewable energy sources, such as wind farms and solar parks, to generate clean and sustainable energy.

Energy Trading

PGE engages in energy trading, buying and selling electricity, natural gas, and other energy commodities on the wholesale market.

Energy Efficiency Solutions

PGE offers energy-efficient solutions, including energy audits, energy management systems, and energy-saving technologies.

Electric Vehicle Charging Infrastructure

PGE develops and operates electric vehicle charging infrastructure, supporting the growth of e-mobility in Poland.

8. PGE Polska Grupa Energetyczna S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PGE Polska Grupa Energetyczna S.A. is medium due to the presence of alternative energy sources such as renewable energy and energy-efficient technologies.

Bargaining Power Of Customers

The bargaining power of customers for PGE Polska Grupa Energetyczna S.A. is low due to the lack of alternative energy suppliers and the company's dominant market position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for PGE Polska Grupa Energetyczna S.A. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for PGE Polska Grupa Energetyczna S.A. is low due to the high barriers to entry in the energy market, including regulatory hurdles and high capital requirements.

Intensity Of Rivalry

The intensity of rivalry for PGE Polska Grupa Energetyczna S.A. is high due to the presence of multiple competitors in the energy market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.40%
Debt Cost 6.73%
Equity Weight 77.60%
Equity Cost 10.13%
WACC 9.37%
Leverage 28.86%

11. Quality Control: PGE Polska Grupa Energetyczna S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Terna RETE

A-Score: 6.4/10

Value: 4.2

Growth: 5.6

Quality: 5.1

Yield: 7.5

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
MVV Energie

A-Score: 6.2/10

Value: 8.7

Growth: 5.7

Quality: 3.1

Yield: 7.5

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Enea

A-Score: 5.8/10

Value: 9.3

Growth: 5.8

Quality: 5.1

Yield: 1.9

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Redeia

A-Score: 5.5/10

Value: 4.1

Growth: 2.1

Quality: 5.2

Yield: 7.5

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Elia

A-Score: 4.8/10

Value: 4.5

Growth: 6.0

Quality: 3.7

Yield: 3.1

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
PGE Polska Grupa Energetyczna

A-Score: 4.5/10

Value: 9.3

Growth: 3.8

Quality: 2.4

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.61$

Current Price

8.61$

Potential

-0.00%

Expected Cash-Flows