NZSE:MELRenewable Energy
Meridian Energy (NZSE:MEL) Stock Questions Profit Quality Behind Rich P/E
Meridian Energy heads into this earnings day with the stock down over the past week, month and quarter, yet still trading around NZ$5.50 and on a very rich P/E of 112x. The immediate price reaction only shows that traders are focused on the latest headline. The real story is in what these results indicate about profit quality and valuation.
The headline this time is simple. Meridian Energy has swung back into profit over the last twelve months and is now paying a higher dividend, yet the...