Voltalia (VLTSA) AI Stock Analysis

• Market Cap: €1.05B
• Dividend Yield: N/A
• Average Volume (3M): 66.14K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.81
• Revenue Growth: 10.40%
• EPS Growth: -170.64%
• Country: FR
• Employees: 2,030
• Sector: Utilities
• Sector Strength: 83
• Industry: Renewable Utilities
• EPS (TTM): -0.16
• Shares Outstanding: 131,318,710
• 10 Day Avg. Volume: 56,874
• 30 Day Avg. Volume: 66,141
• PEG Ratio: 0.29
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.17
• 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: €9.83
• Price Target Upside: 27.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Voltalia's stock performance is hindered by significant financial challenges, including recurring net losses and high leverage, which present risks to financial sustainability. Its bearish technical indicators and unattractive valuation due to a negative P/E ratio contribute to a lower overall score. The company's strong revenue growth is a positive, but strategic improvements in profitability and cash flow are needed to enhance its financial health.

Positive Factors

Contractual Security

Voltalia benefits from solid long-term contracts guaranteeing returns on its investments.

Growth Potential

Voltalia remains particularly undervalued and still has a strong growth profile.

Reputation and Expertise

The company has unique expertise and a very high reputation within its industry, as demonstrated by the recent prestigious contracts it has signed.

Negative Factors

Financial Performance

Voltalia reported a net loss due to curtailment of production in Brazil, which are increasingly appearing to be a recurring and structural problem.

Market Perception

The group suffers from a poor stock market reputation due to a long history of profit warnings and recent guidance revisions.

Operational Challenges

Voltalia suffered a loss of more than 20% of its electricity sales volume in Brazil due to a lengthy curtailment by the national grid operator.

Voltalia Business Overview & Revenue Model

Company Description

Voltalia SA engages in the production of electricity from renewable energy sources. It operates through two segments, Energy Sales and Services. The company develops, constructs, operates, and maintains wind, solar, hydro, and biomass power plants. It also develops and sells projects, and procures equipment for solar power plants, as well as provides maintenance service. As of December 31, 2021, the company operated solar power plant with an installed capacity of 98 MW. It operates in Africa, the Middle East, Asia, other Europe, Brazil, and Latin America. The company was incorporated in 2005 and is headquartered in Paris, France. Voltalia SA is a subsidiary of Voltalia Investissement SA.

How the Company Makes Money

Voltalia generates revenue primarily through the sale of electricity produced by its renewable energy power plants. The company enters into long-term power purchase agreements (PPAs) with utility companies, corporations, and governments, ensuring a steady stream of income. Additionally, Voltalia offers services such as the development, construction, and maintenance of renewable energy facilities for third-party clients. The company's earnings are bolstered by its strategic partnerships and expansion into emerging markets, which enhance its project pipeline and provide opportunities for growth. Furthermore, Voltalia benefits from government incentives and policies that support renewable energy projects, contributing to its financial performance.

Voltalia Financial Statement Overview

Summary

Voltalia demonstrates strong revenue growth and operational efficiency. However, profitability is a significant issue with recurring net losses. High leverage and negative free cash flow indicate financial sustainability risks.

Income Statement

Voltalia has shown a consistent increase in revenue over the years, with a notable growth rate from 2019 to 2024. However, the company struggles with profitability, as evidenced by negative net income in several years, including the most recent period. Despite this, the gross profit and EBITDA margins are relatively strong, indicating operational efficiency. The decline in EBIT margin in 2024 suggests increased operational costs impacting profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. The equity ratio has declined over the years, suggesting increased reliance on debt financing. However, the company's assets have grown, supporting its expansion. The return on equity is weak due to negative net income, which impacts the overall financial health.

Cash Flow

Voltalia's cash flow statements highlight challenges in generating positive free cash flow, as seen in persistent negative free cash flow figures. Although operating cash flow improved in the latest period, the high capital expenditures create a drag on free cash flow. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio remains a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
547.00M	495.18M	469.03M	358.67M	233.46M
	Gross Profit
490.00M	424.18M	96.59M	78.77M	85.20M
	EBIT
68.00M	119.28M	63.55M	66.35M	50.86M
	EBITDA
250.65M	264.93M	153.56M	129.61M	85.91M
	Net Income Common Stockholders
-21.00M	29.63M	-7.17M	-1.32M	7.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
391.00M	385.09M	383.56M	291.40M	220.12M
	Total Assets
3.96B	3.82B	3.04B	2.11B	1.78B
	Total Debt
1.79B	1.92B	1.28B	1.03B	834.42M
	Net Debt
1.43B	1.60B	896.54M	743.56M	614.30M
	Total Liabilities
2.79B	2.43B	1.70B	1.38B	1.08B
	Stockholders Equity
1.06B	1.26B	1.23B	671.80M	640.38M
Cash Flow		Free Cash Flow
-338.00M	-578.68M	-557.34M	-306.09M	-268.18M
	Operating Cash Flow
179.00M	115.50M	-13.93M	100.21M	58.38M
	Investing Cash Flow
-440.00M	-682.11M	-536.39M	-300.56M	-316.50M
	Financing Cash Flow
329.00M	495.63M	630.15M	268.13M	230.01M

Voltalia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VLTSA, the sentiment is Positive. The current price of 7.72 is above the 20-day moving average (MA) of 7.52, above the 50-day MA of 7.18, and below the 200-day MA of 7.78, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VLTSA.

Voltalia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$8.57B	10.13	4.66%	4.38%	3.79%	-12.91%
VLTSA	57 Neutral	€1.05B	27.99	-1.80%	―	10.40%	-170.64%