Ellomay Capital Ltd. (NYSE: ELLO)

Sector: Utilities Industry: Utilities - Renewable CIK: 0000946394
Market Cap 357.97 Mn
P/B 2.12
P/E -402.48
P/S 7.32
ROIC (Qtr) -0.47
Div Yield % 0.00
Rev 1y % (Qtr) 9.28
Total Debt (Qtr) 643.44 Mn
Debt/Equity (Qtr) 3.82
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About

Ellomay Capital Ltd., a company with the ticker symbol ELLO, operates in the renewable and clean energy sector, with its main business activities centered on the development and construction of solar power plants, pumped storage hydro power plants, and anaerobic digestion plants in Europe, the USA, and Israel. Ellomay's primary source of revenue is the sale of electricity generated by its solar power plants, which are connected to the national grids in Spain, Italy, and Israel. The company's primary products are solar power plants, and its customer...

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Investment thesis

Bull case

  • Operating cash flow of 12.89M provides strong 342.31x coverage of stock compensation 37647.06, indicating sustainable incentive practices.
  • Strong operating cash flow of 12.89M provides 1.67x coverage of SG&A expenses 7.70M, showing efficient operational cost management.
  • Robust tangible asset base of 892.97M provides 65.38x coverage of working capital 13.66M, indicating strong operational backing.
  • Tangible assets of 892.97M provide robust 276.61x coverage of other current liabilities 3.23M, indicating strong asset backing.
  • Long-term investments of 86.45M provide solid 6.33x backing of working capital 13.66M, showing strategic capital allocation.

Bear case

  • Operating cash flow of 12.89M barely covers its investment activities of (96.32M), with a coverage ratio of -0.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (96.32M) provide weak support for R&D spending of 4.91M, which is -19.63x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (89.11M) provides weak coverage of capital expenditures of 102M, with a -0.87 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 12.89M provides minimal -3.49x coverage of tax expenses of (3.70M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 18.15M show weak coverage of depreciation charges of 19.29M, with a 0.94 ratio indicating high capital intensity and potential reinvestment needs.

Continuing and discontinued operations [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.22 0.82
EV to Cash from Ops. EV/CFO 84.28 3.77
EV to Debt EV to Debt 1.69 -7.57
EV to EBIT EV/EBIT 59.84 18.11
EV to EBITDA EV/EBITDA 73.30 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -12.19 -9.43
EV to Market Cap EV to Market Cap 3.03 -1.15
EV to Revenue EV/Rev 22.22 -22.88
Price to Book Value [P/B] P/B 2.12 2.64
Price to Earnings [P/E] P/E -402.48 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -0.74
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 12.62
Interest Coverage Int. cover (Qtr) 0.80 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -49.70 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.52 37.74
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -50.36 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.97 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 108.41 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) 12.02 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) 85.23 398.06
FCF Growth (1y) % FCF 1y % (Qtr) -25.38 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 59.62 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.35
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.78 1.83
Current Ratio Curr Ratio (Qtr) 1.18 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 3.82 0.89
Interest Cover Ratio Int Coverage (Qtr) 0.80 -4.73
Times Interest Earned Times Interest Earned (Qtr) 0.80 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 76.60 -241.05
EBIT Margin % EBIT Margin % (Qtr) 31.57 -107.41
EBT Margin % EBT Margin % (Qtr) -9.38 -407.45
Gross Margin % Gross Margin % (Qtr) 13.20 9.67
Net Profit Margin % Net Margin % (Qtr) -1.80 -408.25