Elia Group SA/NV
🇧🇪 ELI.BR · Brussels · BE0003822393
Utilities
EUR 135.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
23.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 135.00 ÷ 5.85 = 23.1
TTM period through: 2025-12-31
Forward P/E (estimated): 21.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 24.5
Yield (Fwd)
1.52%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.53%
Net Debt/EBITDA (TTM)
6.1x
Latest quarter: 11.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 11.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
35.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 22.1%
Cash Flow Payout (TTM): 6.1%
FCF Coverage (TTM): -19.85x
ROE
9.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Elia Group is an essential European utility operating a high-quality natural electricity transmission monopoly. However, it is not recommended for new positions given its low 1.53% yield, elevated P/E of 23, and deeply negative free cash flow stemming from massive grid expansion requirements. The upcoming 9.4% dividend cut highlights the financial strain of its transition investments, meaning better opportunities exist in utilities with stronger cash generation.
Sector Context
Elia Group is a regulated utility operating as a natural electricity transmission monopoly in Belgium and Germany, earning guaranteed returns on its asset base. While transmission monopolies generally provide highly predictable cash flows ideal for dividend investing, the unprecedented capital expenditure required for Europe's green energy transition currently severely strains free cash flow generation.
📊 Strategy Analysis
- • Operates as a highly predictable natural monopoly in electricity transmission across Belgium and Germany
- • Strong revenue trajectory with a 10-year CAGR of 18.7% and no negative earnings quarters in the last 7 periods
⚠ What to Watch
- • Current dividend yield of 1.53% falls significantly short of the strategy's 3% minimum requirement
- • Massive capital expenditure for grid expansion has resulted in deeply negative free cash flow (-€2.24B), meaning the dividend is funded by debt
- • Management has proposed a 9.4% dividend cut for 2026 to preserve capital, breaking a 10-year track record of stability
- • Valuation remains highly elevated with a P/E of 23.07, far exceeding the optimal 8-15x target range
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.