New Zealand (NZX) Utilities Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sat, 09 Dec 2023	NZ$36.3b	NZ$12.1b	NZ$738.8m	41.3x	49.2x	3x
Mon, 06 Nov 2023	NZ$35.1b	NZ$12.1b	NZ$723.2m	41.1x	48.5x	2.9x
Wed, 04 Oct 2023	NZ$36.2b	NZ$12.1b	NZ$723.2m	42.6x	50.1x	3x
Fri, 01 Sep 2023	NZ$37.3b	NZ$12.1b	NZ$723.2m	44x	51.5x	3.1x
Sun, 30 Jul 2023	NZ$47.3b	NZ$14.7b	NZ$1.7b	27.1x	28.6x	3.2x
Tue, 27 Jun 2023	NZ$46.0b	NZ$14.7b	NZ$1.7b	26.3x	27.8x	3.1x
Thu, 25 May 2023	NZ$44.9b	NZ$14.0b	NZ$1.7b	25.4x	27.1x	3.2x
Sat, 22 Apr 2023	NZ$43.1b	NZ$13.8b	NZ$1.4b	30.2x	31.4x	3.1x
Mon, 20 Mar 2023	NZ$42.9b	NZ$13.8b	NZ$1.4b	29.7x	31.2x	3.1x
Wed, 15 Feb 2023	NZ$44.1b	NZ$13.7b	NZ$1.5b	28.9x	29.9x	3.2x
Fri, 13 Jan 2023	NZ$42.5b	NZ$13.9b	NZ$1.6b	28.3x	26.3x	3.1x
Sun, 11 Dec 2022	NZ$41.7b	NZ$13.9b	NZ$1.6b	27.2x	25.8x	3x
Tue, 08 Nov 2022	NZ$41.1b	NZ$13.6b	NZ$1.6b	21.7x	25.1x	3x
Thu, 06 Oct 2022	NZ$41.0b	NZ$13.6b	NZ$1.6b	21.7x	25x	3x
Sat, 03 Sep 2022	NZ$43.7b	NZ$13.6b	NZ$1.6b	23.1x	26.7x	3.2x
Mon, 01 Aug 2022	NZ$43.0b	NZ$14.5b	NZ$1.5b	23.5x	29.6x	3x
Wed, 29 Jun 2022	NZ$40.5b	NZ$14.5b	NZ$1.5b	22x	27.9x	2.8x
Fri, 27 May 2022	NZ$40.7b	NZ$14.5b	NZ$1.5b	22.6x	28x	2.8x
Sun, 24 Apr 2022	NZ$42.4b	NZ$15.7b	NZ$1.4b	20.6x	30.5x	2.7x
Tue, 22 Mar 2022	NZ$42.1b	NZ$15.7b	NZ$1.4b	19.5x	30.3x	2.7x
Thu, 17 Feb 2022	NZ$41.4b	NZ$15.8b	NZ$1.1b	56.1x	36.8x	2.6x
Sat, 15 Jan 2022	NZ$42.1b	NZ$15.8b	NZ$1.1b	n/a	39.4x	2.7x
Mon, 13 Dec 2021	NZ$41.7b	NZ$15.8b	NZ$1.1b	32.2x	39x	2.6x
Wed, 10 Nov 2021	NZ$42.6b	NZ$15.5b	NZ$976.6m	n/a	43.6x	2.7x
Fri, 08 Oct 2021	NZ$43.4b	NZ$15.4b	NZ$896.3m	61.2x	48.4x	2.8x
Sun, 05 Sep 2021	NZ$44.7b	NZ$15.4b	NZ$896.3m	64.5x	49.9x	2.9x
Tue, 03 Aug 2021	NZ$44.7b	NZ$15.4b	NZ$896.3m	66.1x	49.9x	2.9x
Fri, 07 May 2021	NZ$44.7b	NZ$14.4b	NZ$814.7m	47.6x	54.9x	3.1x
Mon, 08 Feb 2021	NZ$50.3b	NZ$13.4b	NZ$1.1b	40x	44.7x	3.7x

Current Industry PE

Investors are optimistic on the New Zealander Utilities industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 49.2x which is higher than its 3-year average PE of 37.4x.

The industry is trading close to its 3-year average PS ratio of 3.0x.

Past Earnings Growth

The earnings for companies in the Utilities industry have declined 13% per year over the last three years,
Revenues have also declined 3.5% per year.
This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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


NZ Market	0.93%
Utilities	0.52%
Other Utilities	2.18%
Electric Utilities	0.78%
Gas Utilities	0%
Water Utilities	0%
Renewable Energy	-0.28%

Industry PE

Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 46.6x.

Analysts are expecting annual earnings growth of 25.2%, which is higher than its past year's earnings decline of 78.9% per year.

Investors are most pessimistic about the Other Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 26.1x.

Forecasted Growth

Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 25% over the next 5 years.
This is better than its past earnings decline of 79% per year.

In contrast, the Electric Utilities industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

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

Company	Last Price	7D	1Y	Valuation
MEL Meridian Energy	NZ$5.25	1.0% +NZ$129.4m	4.0%	PE143x
GNE Genesis Energy	NZ$2.48	4.6% +NZ$118.1m	-5.2%	PE13.6x
VCT Vector	NZ$3.80	2.7% +NZ$100.0m	-6.4%	PE34.2x
MCY Mercury NZ	NZ$6.32	1.0% +NZ$83.5m	14.5%	PE85.4x
CEN Contact Energy	NZ$7.85	0.6% +NZ$39.4m	1.9%	PE48.7x