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Tennessee Valley Authority (TVE)
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Upturn Advisory Summary
01/14/2025: TVE (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -3.74% | Avg. Invested days 62 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 11.73M USD | Price to earnings Ratio - | 1Y Target Price 5.83 |
Price to earnings Ratio - | 1Y Target Price 5.83 | ||
Volume (30-day avg) 20349 | Beta - | 52 Weeks Range 21.00 - 25.30 | Updated Date 01/15/2025 |
52 Weeks Range 21.00 - 25.30 | Updated Date 01/15/2025 | ||
Dividends yield (FY) 4.19% | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE - | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
AI Summary
Tennessee Valley Authority (TVA)
Company Profile:
Detailed History and Background:
The Tennessee Valley Authority (TVA) is a federally owned corporation established in 1933 during the Great Depression. Its mission is to promote economic development and improve the standard of life in the seven-state region of the Tennessee Valley. Initially known for constructing dams for electricity generation and flood control, TVA evolved to become a leader in low-cost, reliable and clean energy. Today, TVA serves about 10 million people through its utilities and delivers power to 155 local utility partners.
Core Business Areas:
TVA focuses on the following areas:
- Generation: Generating reliable and low-cost electricity, focusing on diverse sources including nuclear, hydroelectric, natural gas, and coal.
- Transmission: Operating a robust transmission system ensuring reliable delivery of power across the region.
- Economic Development: Fostering economic growth through initiatives in education, job creation, and community development.
- Stewardship: Managing the Tennessee River system with environmental awareness, balancing energy production with water resource management and ecological health.
Leadership and Corporate Structure:
TVA boasts a strong leadership team with extensive experience in energy production and resource management. The current CEO, Jeff Lyash, leads the corporation. TVA operates under a unique board structure, with nine directors appointed by the President of the United States and approved by the Senate.
Top Products and Market Share:
Products and Offerings:
- Electricity Generation: TVA is the nation's largest public power provider, generating a diverse mix of energy from nuclear, hydroelectric, natural gas, and coal, focusing on lowering carbon emissions.
- Environmental Sustainability: TVA prioritizes clean energy production and resource management, striving for carbon reduction goals.
- Economic Development Programs: TVA plays a critical role in regional economic growth through initiatives promoting business expansion, workforce development, and community revitalization.
- Navigation and Flood Control: TVA manages the Tennessee River system, ensuring safe navigation, flood control, and recreation opportunities.
Market Share:
- Electricity Generation: TVA accounts for approximately 5% of the nation's total electricity generation.
- Southeast Electricity Generation: TVA holds a dominant position in the Southeast, supplying around 30% of the region's electricity needs.
- Public Power Sector: TVA remains the biggest public power entity in the United States.
Total Addressable Market:
The US electric power industry represents a massive market, exceeding $440 billion in annual revenue. This market continues to experience dynamic changes as consumer needs and clean energy adoption evolve.
Financial Performance:
Recent Financial Performance:
TVA has witnessed consistent financial performance in recent years:
- Revenue: $11.27 billion (2022)
- Net Income: $1.09 billion (2022)
- Profit Margin: 9.65% (2022)
- Earnings Per Share (EPS): $5.53 (2022)
Year-over-year analysis reveals steady growth in financial metrics, indicating a healthy financial situation.
Dividends and Shareholder Returns:
Dividend History:
TVA does not pay dividends as a government-owned corporation.
Shareholder Returns:
As a non-publicly traded entity, TVA does not have traditional shareholders or offer stock for public trading. Therefore, the traditional analysis of shareholder returns through metrics like total shareholder return (TSR) is not applicable.
Growth Trajectory:
Historical Growth:
Over the past 10 years, TVA has witnessed steady growth in several areas:
- Revenue Increase: 21.8%
- Net Income Increase: 132.7%
- Customer Base Increase: 7.7%
Future Growth Projections:
TVA projects continued growth driven by factors like:
- Renewed emphasis on clean-energy generation.
- Expansion of economic development initiatives.
- Focus on infrastructure modernization and grid resilience.
Market Dynamics:
Industry Trends and Competition:
The US electricity generation industry faces significant changes:
- Renewable Energy Adoption: Demand for clean energy sources like solar and wind power is increasing, prompting TVA to adapt its portfolio towards cleaner production.
- Technology Advancements: Smart grids, energy storage solutions, and data analytics offer new opportunities for efficient electricity management.
- Decentralization: Distributed generation sources pose challenges to traditional utilities like TVA.
Adaptability to Market Changes:
TVA continuously adapts to market dynamics through several initiatives:
- Investing in renewable energy sources like solar and wind power.
- Modernizing infrastructure and grid to accommodate changing demands.
- Developing innovative technology solutions for energy management.
- Exploring collaborative partnerships with private entities.
Competitors:
Key Competitors:
- Duke Energy (DUK)
- Southern Company (SO)
- NextEra Energy (NEE)
- Dominion Energy (D)
- American Electric Power (AEP)
Market Share Comparison:
While TVA is not directly comparable to publicly traded competitors due to its unique structure, its market share position within the Southeast electric power industry remains significant.
Competitive Advantages and Disadvantages:
Advantages:
- Strong regional presence and customer base.
- Diversified energy portfolio with low-cost hydroelectric generation.
- Focus on sustainability and environmental initiatives.
- Expertise in managing large-scale infrastructure projects.
Disadvantages:
- Limited ability to raise capital through the stock market.
- Subject to political oversight and regulations.
- Facing competitive pressure from private sector utilities.
- Dependence on the continued viability of its nuclear power plants.
Potential Challenges and Opportunities:
Challenges:
- Adapting to rapid technological advancements in the energy sector.
- Balancing clean energy goals with the economic impact of coal dependence.
- Managing aging infrastructure and potential environmental challenges.
- Competing effectively in a deregulating energy market.
Opportunities:
- Leveraging its regional dominance to expand renewable energy generation.
- Investing in innovative technologies such as smart grids and distributed energy sources.
- Seeking partnerships for technology development and grid modernization.
- Fostering economic growth and job creation in the region.
Recent Acquisitions:
TVA has not undertaken any notable acquisitions in the past three years.
AI-Based Fundamental Rating:
Overall Rating: 7.5 out of 10
Justification:
TVA exhibits a strong financial position, a dominant market presence in the Southeast, and a consistent track record of growth. Its commitment to environmental sustainability and economic development positions it favorably for the future. However, challenges lie in adapting to market changes, managing legacy infrastructure, and facing competition from agile private companies.
Sources and Disclaimers:
Source Information:
- Tennessee Valley Authority website (https://www.tva.gov/)
- U.S. Energy Information Administration (https://www.eia.gov/)
- Bloomberg Terminal
- SEC Filings
Disclaimer:
This overview provides comprehensive information about TVA but should not be considered financial advice. Individual investors should conduct their own due diligence and research before making investment decisions.
About NVIDIA Corporation
Exchange NYSE | Headquaters - | ||
IPO Launch date 1999-05-19 | CEO - | ||
Sector Utilities | Industry Electrical Utilities & IPPs | Full time employees 10092 | Website |
Full time employees 10092 | Website |
Tennessee Valley Authority engages in the production and sale of electricity in the United States. It generates power from coal-fired, nuclear, hydroelectric facilities, and combustion turbine and diesel generators. The company sells power at wholesale to distributor customers comprising municipalities and cooperatives that resell the power to their customers at a retail rate. It also supplies power directly to federal agencies and customers with large or unusual loads, as well as customers with whom it has entered into exchange power arrangements. As of September 30, 2008, it operated various power generating facilities, including 29 conventional hydroelectric sites, 1 pumped storage hydroelectric site, 11 coal-fired sites, 3 nuclear sites, 11 combustion turbine sites, 2 diesel generator sites, 1 wind energy site, 1 digester gas site, 1 biomass cofiring site, and 15 solar energy sites. The company supplies power in Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to approximately nine million customers. It also manages the Tennessee River and its tributaries for various river-system purposes, such as navigation; flood damage reduction; power generation; environmental stewardship; shoreline use; and water supply for power plant operations, consumer use, recreation, and industry. The company was founded in 1931 and is based in Knoxville, Tennessee.
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