MVV Energie (MVV1) AI Stock Analysis

• Market Cap: €2.06B
• Dividend Yield: 4.05%
• Average Volume (3M): 567.00
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.15
• Revenue Growth: -11.39%
• EPS Growth: -4.89%
• Country: DE
• Employees: 6,672
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.36
• Shares Outstanding: 65,906,800
• 10 Day Avg. Volume: 474
• 30 Day Avg. Volume: 567
• PEG Ratio: -0.14
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 24.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.63
• Revenue Forecast (FY): €3.37B

• Rating: 70 Outperform
• Price Target: €34.00 ▲(8.28% Upside)

MVV Energie's overall stock score reflects a balance between its stable technical indicators and attractive valuation, offset by mixed financial performance. The company's operational efficiency and reasonable valuation are positive, but declining revenue growth and cash flow challenges are significant concerns that need to be addressed.

Positive Factors

Renewable Energy Focus

MVV Energie's focus on renewable energy positions it well for future growth, as global demand for sustainable energy solutions continues to rise. This strategic emphasis aligns with regulatory trends and consumer preferences, potentially enhancing long-term revenue stability.

Strategic Partnerships

By forming strategic partnerships, MVV Energie expands its service offerings and revenue opportunities. These alliances can lead to increased market penetration and innovation in energy efficiency and smart grid technologies, supporting long-term competitive advantage.

Operational Efficiency

MVV Energie's operational efficiency is demonstrated by its stable profit margins, which indicate effective cost management. This efficiency can help sustain profitability even in challenging market conditions, supporting long-term financial health.

Negative Factors

Declining Revenue Growth

The declining revenue growth rate is a concern, as it suggests potential challenges in maintaining market share or expanding sales. Addressing this trend is crucial for MVV Energie to ensure sustained financial performance and competitiveness in the energy sector.

Cash Flow Challenges

Significant cash flow challenges, as indicated by negative free cash flow growth, could limit MVV Energie's ability to invest in growth opportunities or manage debt effectively. Improving cash flow is essential for maintaining liquidity and financial flexibility.

Limited Profitability

The low net profit margin indicates limited profitability, which may affect MVV Energie's ability to generate sufficient returns for shareholders. Enhancing profitability is important for long-term financial sustainability and shareholder value creation.

MVV Energie Business Overview & Revenue Model

Company Description

MVV Energie AG is a leading energy and infrastructure company based in Mannheim, Germany. It operates primarily in the sectors of electricity, natural gas, heat, and water supply, as well as waste management and renewable energy solutions. The company focuses on providing sustainable and efficient energy services, including the generation of electricity from renewable sources, district heating, and innovative energy management solutions for both residential and commercial customers.

How the Company Makes Money

MVV Energie generates revenue through diverse streams, primarily from the sale of electricity, natural gas, and heating services to both residential and business customers. A significant portion of its income comes from its involvement in renewable energy production, including wind and solar power, which has seen increased investment and government support. The company also earns from waste management services, including the operation of waste-to-energy plants. Additionally, MVV has established strategic partnerships with local governments and businesses, enhancing its service offerings and creating new revenue opportunities in energy efficiency and smart grid technologies. Overall, the combination of traditional utility services and innovative renewable energy projects plays a crucial role in MVV's financial performance.

MVV Energie Financial Statement Overview

Summary

MVV Energie's financial performance is mixed. The income statement shows operational efficiency but declining revenue growth. The balance sheet is stable with moderate leverage, but profitability could be enhanced. Cash flow analysis reveals significant challenges, with negative free cash flow growth and constrained liquidity. The company needs to address revenue growth and cash flow issues to strengthen its financial health.

Income Statement

MVV Energie's income statement shows mixed results. The TTM data indicates a decline in revenue growth rate at -5.8%, which is concerning. However, the company maintains a stable gross profit margin of 17.56% and an EBIT margin of 6.20%, reflecting decent operational efficiency. The net profit margin is relatively low at 2.62%, suggesting limited profitability. Overall, while the company demonstrates operational stability, the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.76, indicating a balanced approach to leveraging. The return on equity (ROE) is 6.83%, which is modest and suggests room for improvement in generating returns for shareholders. The equity ratio stands at 32.30%, reflecting a solid equity base. Overall, the balance sheet is stable, but the company could enhance its profitability metrics.

Cash Flow

Cash flow analysis highlights challenges, with a negative free cash flow growth rate of -178.40% in the TTM period, indicating cash flow issues. The operating cash flow to net income ratio is 0.16, suggesting limited cash generation relative to net income. Additionally, the negative free cash flow to net income ratio of -0.22 indicates cash flow constraints. Overall, the cash flow position is weak, requiring attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.85B	6.33B	6.62B	5.92B	4.23B	3.43B
Gross Profit	1.03B	449.16M	1.17B	-27.38M	964.82M	953.49M
EBITDA	579.05M	618.05M	1.27B	267.17M	743.40M	416.94M
Net Income	153.10M	183.01M	1.05B	-292.11M	198.78M	93.90M
Balance Sheet
Total Assets	6.95B	7.88B	9.55B	24.33B	14.81B	5.03B
Cash, Cash Equivalents and Short-Term Investments	408.01M	796.63M	1.14B	1.89B	1.27B	361.52M
Total Debt	1.70B	1.71B	1.80B	1.92B	1.89B	1.72B
Total Liabilities	4.35B	5.36B	7.10B	21.88B	13.05B	3.50B
Stockholders Equity	2.24B	2.18B	2.16B	1.72B	1.39B	1.32B
Cash Flow
Free Cash Flow	-74.13M	85.88M	-934.43M	659.97M	918.46M	92.28M
Operating Cash Flow	338.00M	498.00M	-613.75M	952.03M	1.20B	382.77M
Investing Cash Flow	-445.65M	-369.92M	-11.78M	-206.47M	-276.84M	-278.35M
Financing Cash Flow	-212.92M	-329.44M	-285.41M	-117.95M	-18.12M	-112.37M

MVV Energie Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MVV1, the sentiment is Neutral. The current price of 31.4 is above the 20-day moving average (MA) of 31.22, above the 50-day MA of 30.80, and above the 200-day MA of 30.33, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:MVV1.

MVV Energie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MVV1	70 Outperform	€2.06B	13.43	7.01%	4.05%	-11.39%	-4.89%
RWE	68 Neutral	€31.58B	12.14	6.75%	2.53%	-8.65%	-17.97%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UN0	65 Neutral	$12.33B	-38.43	0.82%	―	-18.10%	―
EOAN	60 Neutral	€41.44B	13.16	17.74%	3.47%	0.77%	67.07%
EBK	58 Neutral	€21.53B	78.25	2.13%	2.20%	-8.11%	-60.54%