Like new technologies, the energy sector is one of the most appreciated by stock market investors. And the French multinational Areva is a real reference in the field, with a stable existence for 15 years now. However, for the past year, the group’s share price has fallen significantly. What are the prospects for the coming months and years? The details..
Presentation and quotation of Areva
Areva is a French company that was created in September 2001 and is headquartered in Paris. This multinational company operates mainly in the nuclear energy sector and is active in uranium mining and processing. Recently, it has also expanded into renewable energy, offering bioenergy products, wind and solar energy, among others.
Areva is at the top of the list of global nuclear power producers, but in recent years, the company’s results have been subject to a sharp decline. Areva’s turnover exceeded €4 billion at the end of 2015, while in December 2014, its turnover was still twice as high: more than €8 billion compared to more than €9 billion in 2013.
Listed on Euronext Paris, Areva’s shares have also shown a downward trend for more than a year. In 2016, the Group’s market capitalization is estimated at just over €1.5 billion, compared to over €2 billion in 2015, with a total of 383,204,852 shares. It should be noted that the group’s majority shareholders are the French Atomic Energy Commission (54.37%) and the French State (28.83%).
After reaching a peak of €72.48 in 2007, the Areva share price fell almost freely in the years that followed, despite some occasional increases. Thus, in April 2016, the value of a Areva share was nearly €4.10, compared with about €5.30 in 2015. And today, the figures show almost a 0% variation. Analysts believe that for 2016, the group’s sales should neither increase nor decrease significantly, but that net earnings per share could fall by as much as -89%.
For 2017, however, a 2% increase in turnover should be recorded. Thus, the Areva share price over the next few months could still be around €4. For those who expect an increase in value, 2017 will probably be a much more favourable year for them. Of course, these estimates are still subject to change depending on economic movements and the global political situation. A follow-up of news is essential for investors.