Mercury NZ (ASX:MCY) - Stock Price, News & Analysis

MCY Stock Overview

Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand.

About the company

MCY fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	3/6
Dividends	2/6

Rewards

Trading at 58.7% below our estimate of its fair value

Earnings are forecast to grow 18.73% per year

Risk Analysis

Dividend of 3.53% is not well covered by earnings or cash flows

Large one-off items impacting financial results

Profit margins (1.3%) are lower than last year (10.7%)

Has a high level of debt

Mercury NZ Limited Competitors

Origin Energy

ASX:ORG

AU$16.8b

APA Group

ASX:APA

AU$10.8b

AGL Energy

ASX:AGL

AU$6.1b

Interconexión Eléctrica E.S.P

BVC:ISA

Col$21.0t

Price History & Performance

Summary of all time highs, changes and price drops for Mercury NZ
Historical stock prices
Current Share Price	NZ$6.09
52 Week High	NZ$6.74
52 Week Low	NZ$5.10
Beta	0.48
1 Month Change	-1.14%
3 Month Change	1.16%
1 Year Change	8.17%
3 Year Change	-3.33%
5 Year Change	66.85%
Change since IPO	180.65%

Recent updates

Shareholder Returns

	MCY	AU Electric Utilities	AU Market
7D	-1.5%	1.8%	0.2%
1Y	8.2%	9.6%	6.5%

Return vs Industry: MCY matched the Australian Electric Utilities industry which returned 8.9% over the past year.

Return vs Market: MCY matched the Australian Market which returned 7.3% over the past year.

Price Volatility

Is MCY's price volatile compared to industry and market?
MCY volatility
MCY Average Weekly Movement	6.0%
Electric Utilities Industry Average Movement	2.6%
Market Average Movement	8.9%
10% most volatile stocks in AU Market	17.5%
10% least volatile stocks in AU Market	3.4%

Stable Share Price: MCY has not had significant price volatility in the past 3 months.

Volatility Over Time: MCY's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	1,512	Vince James Hawksworth	www.mercury.co.nz

Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand. The company operates through Generation/Wholesale, Retail, and Other segments. It operates 9 hydro generation stations on the Waikato River; 6 wind plants; and 5 geothermal generation stations in the central North Island.

Mercury NZ Limited Fundamentals Summary

How do Mercury NZ's earnings and revenue compare to its market cap?
MCY fundamental statistics
Market cap	AU$8.45b
Earnings (TTM)	AU$34.88m
Revenue (TTM)	AU$2.79b

242.1x

P/E Ratio

3.0x

P/S Ratio

Is MCY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
MCY income statement (TTM)
Revenue	NZ$3.04b
Cost of Revenue	NZ$2.27b
Gross Profit	NZ$769.00m
Other Expenses	NZ$731.00m
Earnings	NZ$38.00m

Last Reported Earnings

Dec 31, 2023

Next Earnings Date

n/a

Earnings per share (EPS)	0.027
Gross Margin	25.34%
Net Profit Margin	1.25%
Debt/Equity Ratio	42.0%

How did MCY perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

818%

Payout Ratio

MCY Stock Overview

Rewards

Risk Analysis

Mercury NZ Limited Competitors

ASX:ORG

AU$16.8b

ASX:APA

AU$10.8b

ASX:AGL

AU$6.1b

BVC:ISA

Col$21.0t

Price History & Performance

Recent News & Updates

Upcoming dividend of NZ$0.11 per share

First half dividend of NZ$0.11 announced

First half 2024 earnings released: EPS: NZ$0.13 (vs NZ$0.17 in 1H 2023)

Mercury NZ Limited Announces Ordinary Fully Paid Foreign Exempt NZX Distribution for the Six Months Ended December 31, 2023, Payable on April 2, 2024

Mercury's CFO William Meek to Step Down in 2025

Mercury NZ Limited to Report First Half, 2024 Results on Feb 20, 2024

Recent updates

Upcoming dividend of NZ$0.11 per share

First half dividend of NZ$0.11 announced

First half 2024 earnings released: EPS: NZ$0.13 (vs NZ$0.17 in 1H 2023)

Mercury NZ Limited Announces Ordinary Fully Paid Foreign Exempt NZX Distribution for the Six Months Ended December 31, 2023, Payable on April 2, 2024

Mercury's CFO William Meek to Step Down in 2025

Mercury NZ Limited to Report First Half, 2024 Results on Feb 20, 2024

Mercury NZ Limited Announces Management Changes

Mercury NZ Limited Announces the Retirement of Patrick Strange as a Director

Upcoming dividend of NZ$0.15 per share at 3.8% yield

Mercury Nz Limited Announces Dividend, Payable on September 29, 2023

New major risk - Dividend sustainability

Mercury NZ Limited Announces Final Dividend for the Year 2023; Provides Dividend Guidance for the Fiscal Year 2024

Now 21% undervalued

Mercury NZ Limited Announces Director Independence

Mercury NZ Limited Announces Board Changes

Mercury NZ Limited, Annual General Meeting, Sep 19, 2023

Now 21% undervalued

Mercury NZ Limited to Report Fiscal Year 2023 Results on Aug 21, 2023

New minor risk - Shareholder dilution

First half 2023 earnings released: EPS: NZ$0.17 (vs NZ$0.31 in 1H 2022)

Julia Jack to Leave as Chief Marketing Officer of Mercury NZ Limited Before the End of April 2023

Mercury NZ Limited Announces Stepdown of Dennis Barnes from Board

Mercury NZ Limited to Report First Half, 2023 Results on Feb 21, 2023

Now 21% undervalued after recent price drop

Now 21% undervalued after recent price drop

Investor sentiment improved over the past week

Chief Executive Officer recently bought AU$54k worth of stock

Mercury NZ Limited Provides Dividend Guidance for the Fiscal Year 2023

Upcoming dividend of NZ$0.14 per share

Mercury NZ Limited Appoints Susan Peterson to Mercury Board

Mercury Nz Limited Announces Ordinary Dividend for the Period of Six Months Ended June 30, 2022, Payable on September 30, 2022

Full year 2022 earnings: Revenues exceed analyst expectations

Now 22% undervalued

Mercury NZ Limited Announces Executive Changes

Mercury NZ Limited, Annual General Meeting, Sep 22, 2022

Mercury NZ Limited to Report Q4, 2022 Results on Aug 16, 2022

Mercury NZ Limited (NZSE:MCY) completed the acquisition of Retail Business from Trustpower Limited (NZSE:TPW).

Now 24% undervalued after recent price drop

Upcoming dividend of NZ$0.094 per share

First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind

Mercury NZ Limited Approves Unfranked Fully Imputed Interim Dividend for the Period of Six Months Ended December 31, 2021, Payable on April 1, 2022

Mercury Nz Limited Provides Production Guidance for the Year 2022

Now 23% undervalued after recent price drop

Independent Non-Executive Director Keith Smith has left the company

Independent Non-Executive Director Keith Smith has left the company

Upcoming dividend of NZ$0.12 per share

Full year 2021 earnings released: EPS NZ$0.10 (vs NZ$0.15 in FY 2020)

Powering Australian Renewables completed the acquisition of Tilt Renewables Limited (NZSE:TLT) from Infratil Limited (NZSE:IFT), Mercury NZ Limited (NZSE:MCY) and others.

Mercury NZ Limited (NZSE:MCY) completed the acquisition of New Zealand business of Tilt Renewables Limited (NZSE:TLT).

Mercury NZ Limited (NZSE:MCY) agreed to acquire Retail Business from Trustpower Limited (NZSE:TPW) for approximately NZD 440 million.

Chief Executive Officer recently bought AU$64k worth of stock

General Manager of People & Performance recently sold AU$351k worth of stock

Independent Non-Executive Chairman recently bought AU$115k worth of stock

Chief Executive Officer recently bought AU$120k worth of stock

First half 2021 earnings released: EPS NZ$0.095 (vs NZ$0.061 in 1H 2020)

Revenue and earnings beat expectations

New 90-day low: AU$5.53

New 90-day high: AU$6.88

Investor sentiment deteriorated over the past week