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New Zealand (NZX) Utilities Sector Analysis

UpdatedDec 03, 2022
DataAggregated Company Financials
Companies8
  • 7D1.4%
  • 3M-6.1%
  • 1Y-2.2%
  • YTD-3.4%

The Utilities industry is up 1.3% in the last week, with Meridian Energy up 3.8%. The industry has been flat over the past 12 months despite the gain this week. In the next few years, earnings are forecast to decline by 5.3% annually.

Sector Valuation and Performance

Has the New Zealand Utilities Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 04 Dec 2022NZ$41.3bNZ$13.9bNZ$1.6b27.1x25.5x3x
Tue, 01 Nov 2022NZ$41.7bNZ$13.6bNZ$1.6b21.5x25.5x3.1x
Thu, 29 Sep 2022NZ$41.8bNZ$13.6bNZ$1.6b21.7x25.6x3.1x
Sat, 27 Aug 2022NZ$43.6bNZ$13.6bNZ$1.7b20.5x25.9x3.2x
Mon, 25 Jul 2022NZ$41.5bNZ$14.5bNZ$1.5b22.5x28.6x2.9x
Wed, 22 Jun 2022NZ$39.0bNZ$14.5bNZ$1.5b22.3x26.9x2.7x
Fri, 20 May 2022NZ$41.1bNZ$15.0bNZ$1.4b20.4x29.8x2.7x
Sun, 17 Apr 2022NZ$42.0bNZ$15.7bNZ$1.4b20.9x30.2x2.7x
Tue, 15 Mar 2022NZ$41.7bNZ$15.7bNZ$1.4b18.8x30x2.7x
Thu, 10 Feb 2022NZ$41.7bNZ$15.8bNZ$1.1bn/a39x2.6x
Sat, 08 Jan 2022NZ$42.3bNZ$15.8bNZ$1.1bn/a39.5x2.7x
Mon, 06 Dec 2021NZ$42.2bNZ$15.8bNZ$1.1b33x39.4x2.7x
Wed, 03 Nov 2021NZ$43.3bNZ$15.4bNZ$896.3mn/a48.3x2.8x
Fri, 01 Oct 2021NZ$43.6bNZ$15.4bNZ$896.3m62.8x48.7x2.8x
Sun, 29 Aug 2021NZ$44.0bNZ$15.4bNZ$896.3m65.7x49.1x2.9x
Mon, 05 Jul 2021NZ$44.9bNZ$15.4bNZ$896.3m64.4x50.1x2.9x
Thu, 08 Apr 2021NZ$43.6bNZ$14.4bNZ$814.7m44.6x53.5x3x
Sun, 10 Jan 2021NZ$50.1bNZ$13.4bNZ$1.1b38.1x44.5x3.7x
Sat, 03 Oct 2020NZ$37.6bNZ$13.3bNZ$1.1b32.8x35.2x2.8x
Tue, 07 Jul 2020NZ$35.5bNZ$13.3bNZ$1.0b33.3x35.5x2.7x
Fri, 10 Apr 2020NZ$30.6bNZ$13.5bNZ$655.9m32.4x46.7x2.3x
Thu, 02 Jan 2020NZ$37.3bNZ$14.0bNZ$903.2m34x41.4x2.7x
Price to Earnings Ratio

41.4x


Total Market Cap: NZ$37.3bTotal Earnings: NZ$903.2mTotal Revenue: NZ$14.0bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Utilities Sector Price to Earnings3Y Average 39.8x20212022
Current Industry PE
  • Investors are pessimistic on the New Zealander Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 25.5x which is lower than its 3-year average PE of 39.8x.
  • The industry is trading close to its 3-year average PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 16% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the New Zealand Utilities sector?

NZ Market1.85%
Utilities1.36%
Renewable Energy3.74%
Electric Utilities0.54%
Gas Utilities0%
Water Utilities0%
Other Utilities-0.96%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry even though it's trading below its 3-year average PE ratio of 44.6x.
    • Analysts are expecting annual earnings decline of 0.1%, which is lower than the prior year's growth of 783.8% per year.
  • Investors are most pessimistic about the Electric Utilities industry, which is trading below its 3-year average of 48.6x.
Forecasted Growth
  • Analysts are most optimistic on the Other Utilities industry, expecting annual earnings growth of 8.7% over the next 5 years.
  • This is better than its past earnings decline of 18% per year.
  • In contrast, the Electric Utilities industry is expected to see its earnings decline by 10% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MEL Meridian EnergyNZ$4.983.8%
+NZ$464.6m		4.6%PE28.5x
CEN Contact EnergyNZ$7.652.4%
+NZ$141.0m		-3.5%PE32.9x
IFT InfratilNZ$8.800.9%
+NZ$57.9m		7.4%PE68.6x
MNW Manawa EnergyNZ$5.281.7%
+NZ$28.2m		-28.6%PE46.3x
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