Verbund VER.VI
Verbund is Austria's largest electricity generation company, specializing in hydroelectric power, with a business model based on the generation, trading, and commercialization of electricity, mainly from renewable sources. Verbund shows solid financial health (score 8.28) with low debt (ND/EBITDA 1.35x), but growth is negative (revenue -4.9%, earnings -39.3%) and valuation is not particularly attractive (P/E 18.67, FCF yield 0.17).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Verbund is Austria's largest electricity generation company, specializing in hydroelectric power, with a business model based on the generation, trading, and commercialization of electricity, mainly from renewable sources. Verbund shows solid financial health (score 8.28) with low debt (ND/EBITDA 1.35x), but growth is negative (revenue -4.9%, earnings -39.3%) and valuation is not particularly attractive (P/E 18.67, FCF yield 0.17).
Score by category
| Category | Score |
|---|---|
| Financial health | 8.3 |
| Quality / Moat | 4.9 |
| Valuation | 4.9 |
| Growth | 1.7 |
| Dividend | 7.0 |
| Momentum | 4.3 |
| Risk & Context | 8.9 |
OVERALL SCORE: 6.5/10
Context and risks
The rise in crude oil and the ECB rate hike (2.25%, with another expected in September) increase the financing cost of Verbund's debt (ND/EBITDA 1.35x, though manageable) and pressure the valuation of its long-duration cash flows. However, as a hydro generator with low marginal costs, the effect is limited and does not translate into a material risk to its business.
News considered in the analysis
- Verbund shares rise 3% after Deutsche Bank upgrade to Hold — Upgrade de analista a Hold, señal moderadamente positiva que refleja confianza en el valor, aunque no cambia los fundamentales.
- BASF’s Geopolitics-Driven Earnings Upgrade and Debt Move Could Be A Game Changer For BASF (XTRA:BAS) — Noticia sobre BASF, no sobre Verbund; sin impacto directo en esta empresa.
- Basf Q1 Earnings Call Highlights — Cobertura de resultados de BASF, sin relevancia para Verbund.
- BASFY Initiates Production of BMB Polyether Polyols in Geismar — Noticia operativa de BASF, sin impacto en Verbund.
- European Dividend Stocks To Consider In November 2025 — Lista genérica de dividendos sin información específica sobre Verbund; ruido.
Verdict: Hold; the solid balance sheet and dividend (2.70%) provide support, but negative growth and rate pressure limit upside potential.
Main risk: The main risk is the decline in earnings (-39.3%) and exposure to wholesale electricity prices, which could continue to pressure results despite low debt.
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