Genex Power (ASX:GNX) - Share price, News & Analysis

GNX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

GNX Stock Overview

Genex Power Limited engages in the generation and storage of renewable energy in Australia.

Rewards

Earnings are forecast to grow 47.67% per year

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Genex Power Competitors

Delorean

ASX:DEL

AU$25.9m

Timah Resources

ASX:TML

AU$6.9m

Energy World

ASX:EWC

AU$133.0m

Duxton Water

ASX:D2O

AU$202.3m

Price History & Performance

Summary of all time highs, changes and price drops for Genex Power
Historical stock prices
Current Share Price	AU$0.22
52 Week High	AU$0.24
52 Week Low	AU$0.10
Beta	1.22
1 Month Change	69.23%
3 Month Change	62.96%
1 Year Change	-4.35%
3 Year Change	-10.20%
5 Year Change	-10.20%
Change since IPO	4.76%

Shareholder Returns

	GNX	AU Renewable Energy	AU Market
7D	2.3%	1.1%	1.1%
1Y	-4.3%	-12.9%	-8.1%

Return vs Industry: GNX exceeded the Australian Renewable Energy industry which returned -12.9% over the past year.

Return vs Market: GNX exceeded the Australian Market which returned -8.1% over the past year.

Price Volatility

Is GNX's price volatile compared to industry and market?
GNX volatility
GNX Average Weekly Movement	15.5%
Renewable Energy Industry Average Movement	15.3%
Market Average Movement	10.5%
10% most volatile stocks in AU Market	17.8%
10% least volatile stocks in AU Market	4.7%

Stable Share Price: GNX is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: GNX's weekly volatility has increased from 10% to 16% over the past year.

About the Company

Founded	Employees	CEO	Website
2011	n/a	James Harding	https://www.genexpower.com.au

Genex Power Limited engages in the generation and storage of renewable energy in Australia. It generates power through hydro, wind, and solar projects. The company was formerly known as Allied Resources Limited and changed its name to Genex Power Limited in August 2013.

Genex Power Fundamentals Summary

How do Genex Power's earnings and revenue compare to its market cap?
GNX fundamental statistics
Market Cap	AU$304.74m
Earnings (TTM)	-AU$19.76m
Revenue (TTM)	AU$14.38m

21.2x

P/S Ratio

-15.4x

P/E Ratio

Is GNX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNX income statement (TTM)
Revenue	AU$14.38m
Cost of Revenue	AU$2.61m
Gross Profit	AU$11.77m
Other Expenses	AU$31.53m
Earnings	-AU$19.76m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.014
Gross Margin	81.87%
Net Profit Margin	-137.44%
Debt/Equity Ratio	200.8%

How did GNX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is GNX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GNX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GNX. This is calculated by dividing GNX's market cap by their current preferred multiple.
What is GNX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$304.74m

GNX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	37.8x
Enterprise Value/EBITDA	28.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does GNX's PS Ratio compare to its peers?

GNX PS Ratio vs Peers

The above table shows the PS ratio for GNX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.7x
DEL Delorean	0.8x	22.3%	AU$25.9m
TML Timah Resources	2.4x	n/a	AU$6.9m
EWC Energy World	0.6x	n/a	AU$133.0m
D2O Duxton Water	6.9x	n/a	AU$202.3m
GNX Genex Power	21.2x	29.7%	AU$304.7m

Price-To-Sales vs Peers: GNX is expensive based on its Price-To-Sales Ratio (21.2x) compared to the peer average (2.7x).

Price to Earnings Ratio vs Industry

How does GNX's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

Price-To-Sales vs Industry: GNX is expensive based on its Price-To-Sales Ratio (21.2x) compared to the Global Renewable Energy industry average (3.2x)

Price to Sales Ratio vs Fair Ratio

What is GNX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GNX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	21.2x
Fair PS Ratio	7.8x

Price-To-Sales vs Fair Ratio: GNX is expensive based on its Price-To-Sales Ratio (21.2x) compared to the estimated Fair Price-To-Sales Ratio (7.8x).

Share Price vs Fair Value

What is the Fair Price of GNX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate GNX's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GNX's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Genex Power forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

47.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

Earnings vs Market: GNX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GNX is expected to become profitable in the next 3 years.

Revenue vs Market: GNX's revenue (29.7% per year) is forecast to grow faster than the Australian market (5.8% per year).

High Growth Revenue: GNX's revenue (29.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GNX is forecast to be unprofitable in 3 years.

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Past Performance

How has Genex Power performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GNX is currently unprofitable.

Growing Profit Margin: GNX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GNX is unprofitable, and losses have increased over the past 5 years at a rate of 20.4% per year.

Accelerating Growth: Unable to compare GNX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GNX is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (8.5%).

Return on Equity

High ROE: GNX has a negative Return on Equity (-14.65%), as it is currently unprofitable.

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Financial Health

How is Genex Power's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GNX's short term assets (A$42.4M) exceed its short term liabilities (A$22.5M).

Long Term Liabilities: GNX's short term assets (A$42.4M) do not cover its long term liabilities (A$276.9M).

Debt to Equity History and Analysis

Debt Level: GNX's net debt to equity ratio (173.6%) is considered high.

Reducing Debt: GNX's debt to equity ratio has increased from 10.6% to 200.8% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GNX has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: GNX is forecast to have sufficient cash runway for 3 months based on free cash flow estimates, but has since raised additional capital.

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Dividend

What is Genex Power current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GNX has not reported any payouts.

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Management

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

5.7yrs

Average management tenure

CEO

James Harding

4.25yrs

Tenure

AU$830,925

Compensation

Mr. James William, BA Hons (Cantab), MA (Cantab), MBA, Harding has been chief Executive Officer of Genex Power Ltd since May 7, 2018. Mr. Harding served as an Executive General Manager of Genex Power Limit...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD579.12K) is about average for companies of similar size in the Australian market ($USD557.95K).

Compensation vs Earnings: James's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: GNX's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: GNX's board of directors are considered experienced (6.9 years average tenure).

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 been diluted in the past year, with total shares outstanding growing by 29.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30