NZSE:ZEL

Stock Analysis Report

Executive Summary

Z Energy Limited sells transport fuel in New Zealand.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

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

-0.6%

ZEL

0.6%

NZ Oil and Gas

-0.09%

NZ Market


1 Year Return

-9.3%

ZEL

3.1%

NZ Oil and Gas

16.3%

NZ Market

Return vs Industry: ZEL underperformed the NZ Oil and Gas industry which returned 3.1% over the past year.

Return vs Market: ZEL underperformed the NZ Market which returned 16.3% over the past year.


Shareholder returns

ZELIndustryMarket
7 Day-0.6%0.6%-0.09%
30 Day-5.1%3.5%-2.6%
90 Day-21.2%11.6%1.7%
1 Year-1.4%-9.3%7.4%3.1%21.3%16.3%
3 Year-13.9%-28.1%21.1%8.2%55.5%35.1%
5 Year64.1%26.5%-4.3%-18.2%93.8%50.2%

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

Valuation

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

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZEL (NZ$5.25) is trading below our estimate of fair value (NZ$7.1)

Significantly Below Fair Value: ZEL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ZEL is poor value based on its PE Ratio (11.2x) compared to the Oil and Gas industry average (9.2x).

PE vs Market: ZEL is good value based on its PE Ratio (11.2x) compared to the NZ market (18.7x).


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 (2.3x) compared to the XO Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Z Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEL's forecast earnings growth (24.8% per year) is above the savings rate (2.4%).

Earnings vs Market: ZEL's earnings (24.8% per year) are forecast to grow faster than the NZ market (8.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZEL's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: ZEL's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZEL's Return on Equity is forecast to be high in 3 years time (20.5%)


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 large one-off items impacting its 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 (58.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceeds its short term liabilities (NZ$937.0M)

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

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

Debt Coverage by Assets: ZEL's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

8.19%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Z Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.2%marketbottom25%3.1%markettop25%5.6%industryaverage4.4%forecastin3Years9.6%

Current dividend yield vs market & industry

Notable Dividend: ZEL's dividend (8.19%) is higher than the bottom 25% of dividend payers in the NZ market (3.08%).

High Dividend: ZEL's dividend (8.19%) is in the top 25% of dividend payers in the NZ market (5.62%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ZEL has been paying a dividend for less than 10 years.

Growing Dividend: ZEL's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100%), ZEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZEL's dividends in 3 years are not forecast to be well covered by earnings (115.5% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Mike Bennetts 0

9.6yrs

Tenure

0

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  ...


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: ZEL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

Experienced Board: ZEL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

SellNZ$157,59413 Aug 19
Mark Forsyth
EntityIndividual
Shares24,208
Max PriceNZ$6.51
BuyNZ$77,704,89507 May 19
Lazard Asset Management LLC
EntityCompany
Shares11,602,682
Max PriceNZ$6.70
SellNZ$246,550,21807 May 19
Lazard Asset Management LLC
EntityCompany
Shares40,306,984
Max PriceNZ$6.12

Ownership Breakdown

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


Management Team

  • Mike Bennetts

    Chief Executive Officer

    • Tenure: 9.6yrs
  • Debra Blackett

    General Counsel & Chief Governance Officer

    • Tenure: 1.1yrs
  • Mandy Simpson

    Chief Digital Officer

    • Tenure: 0.8yrs
  • Lindis Jones

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Jane Anthony

    General Manager of Marketing

    • Tenure: 4.8yrs
  • Scott Bishop

    Chief Innovation Officer

    • Tenure: 0yrs
  • Helen Sedcole

    General Manager of People & Culture

    • Tenure: 1.8yrs

Board Members

  • Steve Reindler

    Independent Director

    • Tenure: 2.5yrs
  • Mark Malpass

    Independent Director

    • Tenure: 0.08yrs
  • Blair O’Keeffe

    Independent Director

    • Tenure: 1.3yrs
  • Alan Dunn

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: NZ$115.33k
  • Abby Foote

    Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: NZ$115.33k
  • Julia Raue

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: NZ$99.81k
  • Andrew Cross

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: NZ$104.81k

Company Information

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


Key Information

  • Name: Z Energy Limited
  • Ticker: ZEL
  • Exchange: NZSE
  • Founded: 1959
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: NZ$2.098b
  • 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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 10:35
End of Day Share Price2019/11/15 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.