ASX:GNX

Stock Analysis Report

Executive Summary

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

Rewards

Revenue is forecast to grow 17.33% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Concerning outlook with weak fundamentals.

Share Price & News

How has Genex Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.2%

GNX

4.3%

AU Renewable Energy

2.4%

AU Market


1 Year Return

-14.8%

GNX

25.3%

AU Renewable Energy

20.1%

AU Market

Return vs Industry: GNX underperformed the Australian Renewable Energy industry which returned 20.7% over the past year.

Return vs Market: GNX underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

GNXIndustryMarket
7 Day2.2%4.3%2.4%
30 Day4.5%4.4%3.1%
90 Day0%3.7%5.4%
1 Year-14.8%-14.8%29.6%25.3%25.5%20.1%
3 Year3.3%2.2%-22.4%-26.5%38.4%19.8%
5 Yearn/a33.7%25.6%63.6%26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Genex Power undervalued compared to its fair value and its price relative to the market?

8.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GNX (A$0.23) is trading above our estimate of fair value (A$0.22)

Significantly Below Fair Value: GNX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GNX is unprofitable, so we can't compare its PE Ratio to the Renewable Energy industry average.

PE vs Market: GNX is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GNX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GNX is overvalued based on its PB Ratio (8.5x) compared to the AU Renewable Energy industry average (0.8x).


Next Steps

Future Growth

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

59.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GNX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GNX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GNX's revenue (17.3% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: GNX's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Genex Power performed over the past 5 years?

-9.9%

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 -9.9% 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 (33.9%).


Return on Equity

High ROE: GNX has a negative Return on Equity (-64.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Genex Power's financial position?


Financial Position Analysis

Short Term Liabilities: GNX's short term assets (A$5.6M) do not cover its short term liabilities (A$7.7M).

Long Term Liabilities: GNX's short term assets (A$5.6M) do not cover its long term liabilities (A$118.4M).


Debt to Equity History and Analysis

Debt Level: GNX's debt to equity ratio (1291%) is considered high.

Reducing Debt: GNX's debt to equity ratio has increased from 21.6% to 1291% over the past 5 years.


Balance Sheet

Inventory Level: GNX has a high level of physical assets or inventory.

Debt Coverage by Assets: GNX's debt is not covered by short term assets (assets are 0.1x debt).


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GNX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GNX'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 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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Genex Power's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

James Harding 0

1.7yrs

Tenure

AU$488,174

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 ($USD336.90K) is about average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

4.5yrs

Average Tenure

Experienced Management: GNX's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

Experienced Board: GNX's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$37,30101 Nov 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares146,472
Max PriceAU$0.26
BuyAU$1,309,89931 Oct 19
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
EntityCompany
Shares5,168,693
Max PriceAU$0.26
BuyAU$5,152,47331 Oct 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares20,793,693
Max PriceAU$0.26

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Management Team

  • Justin Clyne (46yo)

    Company Secretary

    • Tenure: 5.8yrs
    • Compensation: AU$60.98k
  • Simon R. Kidston (50yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$416.10k
  • Ben Guo

    Finance Director & Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$416.10k
  • Arran McGhie

    ?Chief Operations Officer

    • Tenure: 4.5yrs
    • Compensation: AU$384.40k
  • James Harding

    Chief Executive Officer

    • Tenure: 1.7yrs
    • Compensation: AU$488.17k

Board Members

  • Michael Addison

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$329.49k
  • Ralph Craven (68yo)

    Independent Non-Executive Chairman

    • Tenure: 4.7yrs
    • Compensation: AU$153.30k
  • Yongqing Yu (57yo)

    Non-Executive Director

    • Tenure: 3.9yrs
  • Simon R. Kidston (50yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$416.10k
  • Ben Guo

    Finance Director & Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$416.10k
  • Teresa Dyson

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$78.84k
  • Kenichi Seshimo

    Director

    • Tenure: 0.3yrs

Company Information

Genex Power Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genex Power Limited
  • Ticker: GNX
  • Exchange: ASX
  • Founded: 2011
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: AU$92.424m
  • Shares outstanding: 401.84m
  • Website: https://www.genexpower.com.au

Location

  • Genex Power Limited
  • 28 O'Connell Street
  • Suite 6.02
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2015
GNXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2015
GPODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2015

Biography

Genex Power Limited engages in the generation and storage of renewable energy in Australia. It generates power through hydro 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 Limited was incorporated in 2011 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 10:38
End of Day Share Price2020/01/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.