ASX:ZEL

Stock Analysis Report

Executive Summary

Z Energy Limited sells transport fuel in New Zealand.


Snowflake Analysis

Undervalued with limited growth.

Share Price & News

How has Z Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

ZEL

10.2%

AU Oil and Gas

4.9%

AU Market


1 Year Return

-52.2%

ZEL

-38.0%

AU Oil and Gas

-14.2%

AU Market

Return vs Industry: ZEL underperformed the Australian Oil and Gas industry which returned -40.1% over the past year.

Return vs Market: ZEL underperformed the Australian Market which returned -17.5% over the past year.


Shareholder returns

ZELIndustryMarket
7 Day-1.4%10.2%4.9%
30 Day-24.3%-5.6%-8.9%
90 Day-35.8%-40.3%-22.7%
1 Year-47.4%-52.2%-35.3%-38.0%-10.3%-14.2%
3 Year-46.5%-56.2%-28.5%-37.3%2.6%-11.6%
5 Year-24.4%-43.9%-32.6%-44.7%13.9%-11.8%

Price Volatility Vs. Market

How volatile is Z Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Z Energy undervalued compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZEL (A$2.89) is trading below our estimate of fair value (A$5.62)

Significantly Below Fair Value: ZEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZEL is good value based on its PE Ratio (6.3x) compared to the Oil and Gas industry average (7.9x).

PE vs Market: ZEL is good value based on its PE Ratio (6.3x) compared to the Australian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZEL is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ZEL is overvalued based on its PB Ratio (1.3x) compared to the AU Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Z Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEL's forecast earnings growth (16.8% per year) is above the savings rate (1.1%).

Earnings vs Market: ZEL's earnings (16.8% per year) are forecast to grow faster than the Australian market (10.5% per year).

High Growth Earnings: ZEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZEL's revenue is expected to decline over the next 3 years (-4.9% per year).

High Growth Revenue: ZEL's revenue is forecast to decline over the next 3 years (-4.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZEL's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Z Energy performed over the past 5 years?

30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZEL has a large one-off loss of NZ$35.0M impacting its September 30 2019 financial results.

Growing Profit Margin: ZEL's current net profit margins (1.7%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: ZEL's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: ZEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZEL had negative earnings growth (-71.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-16%).


Return on Equity

High ROE: ZEL's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Z Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ZEL's short term assets (NZ$1.0B) exceed its short term liabilities (NZ$937.0M).

Long Term Liabilities: ZEL's short term assets (NZ$1.0B) do not cover its long term liabilities (NZ$1.4B).


Debt to Equity History and Analysis

Debt Level: ZEL's debt to equity ratio (134%) is considered high.

Reducing Debt: ZEL's debt to equity ratio has increased from 77.7% to 134% over the past 5 years.

Debt Coverage: ZEL's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: ZEL's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Z Energy's current dividend yield, its reliability and sustainability?

9.46%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ZEL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZEL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ZEL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZEL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Mike Bennetts

10s

Tenure

Mr. Michael John Bennetts, also known as Mike, BBS, Diploma in Corporate Management, CMInstD, serves as a Member of the Management of Morrison & Co Infrastructure Management Limited - Manager for Infratil  ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Bennetts
Chief Executive Officer10yrsno data0.088% NZ$986.7k
Lindis Jones
Chief Financial Officer1yrno data0.026% NZ$288.8k
Debra Blackett
General Counsel & Chief Governance Officer1.5yrsno datano data
Jane Anthony
General Manager of Marketing5.17yrsno datano data
Helen Sedcole
General Manager of People & Culture2.25yrsno datano data
Scott Bishop
Chief Innovation Officerno datano datano data
Mandy Simpson
Chief Digital Officer1.17yrsno datano data

1.9yrs

Average Tenure

Experienced Management: ZEL's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Reindler
Independent Director2.92yrsno data0.0019% NZ$21.2k
Mark Malpass
Independent Director0.50yrno datano data
Blair O'Keeffe
Independent Director1.67yrsno datano data
Alan Dunn
Independent Director10yrsNZ$115.33kno data
Abigail Foote
Independent Chairman0.92yrNZ$115.33k0.0095% NZ$106.3k
Andrew Cross
Independent Director4.67yrsNZ$104.81k0.0045% NZ$50.6k
Julia Raue
Independent Director4.17yrsNZ$99.81k0.0026% NZ$29.6k

2.9yrs

Average Tenure

Experienced Board: ZEL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Z Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Z Energy Limited
  • Ticker: ZEL
  • Exchange: ASX
  • Founded: 1959
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: NZ$1.167b
  • Listing Market Cap: NZ$1.125b
  • Shares outstanding: 399.66m
  • Website: https://www.z.co.nz

Number of Employees


Location

  • Z Energy Limited
  • 3 Queens Wharf
  • Wellington
  • 6011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZELNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDAug 2013
ZELASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2013
ZELCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2013
ZNRG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2013

Biography

Z Energy Limited sells transport fuel in New Zealand. It supplies fuel to retail customers, as well as commercial customers, such as airlines, trucking companies, shipping companies, and vehicle fleet operators, as well as supplies bitumen to roading contractors. The company also offers Z card and Star card services for businesses to buy fuels. It owns and manages approximately 343 retail service stations; 155 truck stops; and pipelines, terminals, and bulk storage terminal infrastructure. The company was formerly known as Greenstone Energy Limited and changed its name to Z Energy Limited in May 2011. Z Energy Limited was incorporated in 1959 and is headquartered in Wellington, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 10:48
End of Day Share Price2020/04/09 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.