Romande Energie Holding SA (REHN.SW) fair value

ACCE thesis

Romande Energie runs regulated electricity distribution and a mix of renewable generation and energy services across western Switzerland, with a 1.3B CHF market cap making it a small, domestically focused utility. The case for a closer look rests on the regulated distribution network, which gives it predictable cash flows, and on a steady 5.5% revenue growth rate that is well ahead of most Swiss utility peers. The main near-term driver is the build-out of renewable generation and grid capacity needed as Swiss electrification accelerates, though the data here doesn't break out project pipeline or capex figures, so that should be checked in the filings. At 12.9x forward earnings the stock is priced below its trailing 14.4x, which implies expected earnings growth, but the 4.1% ROE and 11.3% operating margin are thin for a company carrying regulated-asset economics, and the reader should understand why before assuming the discount is mispriced.