Strategic Buy Signal on Voltalia (VLTSA-FR)
Voltalia has a rather favorable stock market history with a behavioral score of 6/10, so we consider the signal as mainly medium/long term.
Voltalia is a € 2 Bn market cap, France-based holding company engaged in the renewable Utilities sector. It develops and operates electric power stations in numerous countries, such as France, French Guyana, Brazil, Greece and Morocco. The Company generates electricity using a variety of renewable energy sources. These include wind, water, biomass and solar power. In addition, Voltalia specializes in carbon credit trading activities.
The Company operates several subsidiaries, including Anelia and Bio-Bar in France, Voltalia Guyane, SIG Kourou, SIG Mana and SIG Cacao in French Guyana, Voltalia Energia do Brasil in Brazil, Thegero in Greece and Alterrya Maroc in Morocco, among others.
Voltalia posted revenues for the Q1-22 at €98.3 million, up 54% (+48% at constant exchange rates), with energy sales and services contributing 44% respectively and 56% to earnings for the quarter. Quarterly production amounted to 0.7 TWh compared to 0.8 TWh in 2021, reflecting the drop in wind and solar resources and the increase in installed capacity in operation to 1,161 MW (+8%) at the end of March 2022 . The company confirms its ambition of 2.6 GW in operation by the end of 2023 coupled with a normative EBITDA in the range of € 275 to 300 million
Voltalia is a growth story, expanding its renewable assets and at the same time an utilities, therefore a regulated business with non-cycliclal profile. The growth/defensive profile is a positive in the current market phase.
Short term catalyst : Strong EBITDA increase, defensive profile.
This signal looks consistent with the European Renewables Utilities sector in Major Bullish Trend. There is currently 43% of Utilities Renewables stocks in bullish tactical signal and 86% in bullish strategic signal.