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Most performing Utilities on 2015

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Jul 06, 2015
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With these articles I highlight the companies in the Utilities industry whose price rose more than the others since the beginning of the year (on a Year-To-Date basis)

Ormat Technologies Inc (ORA)

It is engaged in the geothermal and recovered energy power business. It designs, develops, builds, owns, and operates clean, environmentally friendly geothermal and recovered energy-based power plants, in many cases using equipment that it designs and manufactures.

The stock is now trading at $37 and the YTD-price rose by 37%.

ORA is trading with a trailing 12 month P/E of 40.83 that is ranked lower than
72% of the 79 companies in the Global Utilities - Independent Power Producers industry that has an average P/E of 18.40. The DCF model, gives a fair value of $13.57 that put the stock as overpriced by 176%.

Over the last 5 years revenue grew by 8.00% and EBITDA did not face any change. Book value dropped by 10.70.

The main guru holding ORA is

Jim Simons (Trades, Portfolio) who holds 0.41% of shares outstanding, followed by Mario Gabelli (Trades, Portfolio) (0.18%) and Joel Greenblatt (Trades, Portfolio) (0.02%)

Empresa Distribuidora Comercializadora (EDN)

The company is engaged in the distribution and sale of electricity in concession areas of the northwestern zone of the greater Buenos Aires metropolitan area and the northern portion of the City of Buenos Aires, Argentina.

The stock is now trading at about $13 and the price since the beginning of the year rose by 47% .

EDN is trading with a trailing 12 month P/E of 17.30 that is ranked lower than 52% of the 470 companies in the Global Utilities - Regulated Electric industry that has an average P/E ratio of 17.40.
The DCF model, gives a fair value of $16.23 that put the stock as undervalued with a margin of safety of 17%. The Peter Lynch earnings line gives an even higher fair value of $18.6.

Over the last 12 months revenue and EBITDA didn’t face any change, while earnings dropped by 21%.

The main guru holding shares of EDN is

Jim Simons (Trades, Portfolio) who holds 0.22% of shares outstanding, followed by Jeremy Grantham (Trades, Portfolio) (0.21%)

Pampa Energia SA (PAM)

The company is an integrated electricity company which, through its subsidiaries and joint ventures, is engaged in of the electricity generation, transmission, distribution and oil & gas in Argentina.

The stock is now trading at about $14 and the price since the beginning of the year rose by 50% .

PAM is trading with a P/E(ttm) of 4.84 that is ranked higher than 95% of the 470 Companies in the Global Utilities - Regulated Electric industry that has an average P/E(ttm) ratio of 17.40.
The DCF model, gives a fair value of $60.82 that put the stock as undervalued with margin of safety 77% at the current price. The Peter Lynch earnings line gives a lower fair value of $43.0 but even here the stock looks undervalued.

Over the last 5 years revenue grew by 9.30% but the real progress can be seen during the last 12 months when revenue grew by 12.90%, EBITDA by 136% and EPS by 585%.

The main guru holding shares of PAM is

Jim Simons (Trades, Portfolio) who holds 0.76% of shares outstanding, followed by Jeremy Grantham (Trades, Portfolio) (0.48%) and Stanley Druckenmiller (Trades, Portfolio) (0.41%)

Pure Cycle Corp (PCYO)

The company is an investor-owned Colorado corporation that provides wholesale water and wastewater services and leases farm land.

The stock is now trading at about $5 and the price since the beginning of the year rose by 24% .

PCYO is trading with a trailing 12 month P/E of 148.19 that is ranked lower than 96% of the 470 companies in the Global Utilities - Regulated Water industry that has an average P/E(ttm) of 17.40.

The DCF model, gives a fair value of $0.53 that put the stock as overpriced by 823%. The Peter Lynch earnings line fair value gives almost the same fair value of $0.4.

Over the last 5 years revenue grew by 72.40% and EPS dropped by 38.50%.

The main guru holding shares of PCYO is

Chuck Royce (Trades, Portfolio) who holds 2.77% of outstanding shares, followed by Bill Frels (Trades, Portfolio) (0.05%)

Transportadora de Gas del Sur SA (TGS)

It is engaged in the transportation and processing of natural gas liquids in Argentina. The Company's pipeline system connects natural gas fields in southern and western Argentina with distributors and other users of gas in those areas and the greater Buenos Aires area.

The stock is now trading at about $4.5 and the price since the beginning of the year rose by 27% .

TGS is trading with a trailing 12 month P/E multiple of 49.69 that is ranked lower than
89% of the 470 companies in the Global Utilities - Regulated Gas industry that has an average P/E of 17.40.

The DCF model, gives a fair value of $2.55 that put the stock as overpriced by 71%. The Peter Lynch earnings line confirms the same fair value ($2.1).

Over the last 5 years revenue grew by 21.90%, EBITDA grew by 2.10% and the book value dropped by 3.10%.

The main guru holding share of TGS is

Jim Simons (Trades, Portfolio) with 0.71% of shares outstanding, followed by Jeremy Grantham (Trades, Portfolio) (who holds 0.33% of outstanding shares.)

TerraForm Power Inc (TERP)

It is a global renewable energy company and is helping change the way renewable energy is generated, distributed, used and owned. It also creates value for its investors by owning and operating high quality solar power portfolios around the globe.

The stock is now trading at about $38 and the price since the beginning of the year rose by 23% .

TERP is trading with a foward P/E of 40.65 that is ranked lower than 94% of the 49 companies in the Global Utilities - Independent Power Producers industry that has an average forward P/E of 15.80.

I already wrote an article about TERP whose shares have been bought by Luxor Capital Group LP, here.

Conclusions :

The price of all these companies had a great rise since the beginning of the year that means they are in a long-term upward trend. Some of them still have a reasonable P/E ratio and they also look undervalued.

ticker

YTD performance

Discounted cash flow

P/E (ttm)

ORA

+37%

Overpriced by 176%

40.83

EDN

+47%

Undervalued by 17%

17.30

PAM

+50%

Undervalued by 77%

4.84

PCYO

+24%

Overpriced by 823%

148.19

TGS

+27%

Overpriced by 71%

49.69

TERP

+23%

n/a

40.65 (forward P/E)

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