| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
CEN Stock Overview
Contact Energy Limited generates and sells electricity and natural gas in New Zealand.
Contact Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$7.75 |
| 52 Week High | NZ$9.39 |
| 52 Week Low | NZ$6.60 |
| Beta | 0.41 |
| 1 Month Change | -1.40% |
| 3 Month Change | -4.44% |
| 1 Year Change | -15.67% |
| 3 Year Change | 27.47% |
| 5 Year Change | 59.79% |
| Change since IPO | 132.04% |
Recent News & Updates
Is Contact Energy Limited (NZSE:CEN) Trading At A 43% Discount?
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Contact Energy (NZSE:CEN) Has Some Way To Go To Become A Multi-Bagger
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Shareholder Returns
| CEN | NZ Electric Utilities | NZ Market | |
|---|---|---|---|
| 7D | -3.6% | -0.9% | -2.1% |
| 1Y | -15.7% | -12.9% | -10.3% |
Return vs Industry: CEN underperformed the NZ Electric Utilities industry which returned -12.9% over the past year.
Return vs Market: CEN underperformed the NZ Market which returned -10.3% over the past year.
Price Volatility
| CEN volatility | |
|---|---|
| CEN Average Weekly Movement | 2.5% |
| Electric Utilities Industry Average Movement | 2.5% |
| Market Average Movement | 3.7% |
| 10% most volatile stocks in NZ Market | 6.4% |
| 10% least volatile stocks in NZ Market | 2.4% |
Stable Share Price: CEN is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: CEN's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 890 | Mike Fuge | https://contact.co.nz |
Contact Energy Limited generates and sells electricity and natural gas in New Zealand. The company operates through two segments, Wholesale and Customer. The Wholesale segment sells electricity to the wholesale electricity market, and commercial and industrial customers.
Contact Energy Fundamentals Summary
| CEN fundamental statistics | |
|---|---|
| Market Cap | NZ$6.09b |
| Earnings (TTM) | NZ$187.00m |
| Revenue (TTM) | NZ$2.57b |
0.0x
P/E Ratio0.0x
P/S RatioIs CEN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CEN income statement (TTM) | |
|---|---|
| Revenue | NZ$2.57b |
| Cost of Revenue | NZ$2.02b |
| Gross Profit | NZ$553.00m |
| Expenses | NZ$366.00m |
| Earnings | NZ$187.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 14, 2022
| Earnings per share (EPS) | 0 |
| Gross Margin | 21.49% |
| Net Profit Margin | 7.27% |
| Debt/Equity Ratio | 28.5% |
How did CEN perform over the long term?
See historical performance and comparisonDividends
4.5%
Current Dividend Yield138%
Payout RatioValuation
Is Contact Energy undervalued compared to its fair value and its price relative to the market?
45.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CEN (NZ$7.75) is trading below our estimate of fair value (NZ$14.18)
Significantly Below Fair Value: CEN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: Insufficient data to calculate CEN's PE Ratio to determine if it is good value compared to the Global Electric Utilities industry average.
PE vs Market: Insufficient data to calculate CEN's PE Ratio to determine if it is good value compared to the NZ market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CEN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: Insufficient data to calculate CEN's PB Ratio to determine if it is good value.
Future Growth
How is Contact Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CEN's forecast earnings growth (1.2% per year) is below the savings rate (2.1%).
Earnings vs Market: CEN's earnings (1.2% per year) are forecast to grow slower than the NZ market (7.4% per year).
High Growth Earnings: CEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CEN's revenue is expected to decline over the next 3 years (-4.8% per year).
High Growth Revenue: CEN's revenue is forecast to decline over the next 3 years (-4.8% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CEN's Return on Equity is forecast to be low in 3 years time (7.6%).
Past Performance
How has Contact Energy performed over the past 5 years?
16.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CEN has high quality earnings.
Growing Profit Margin: CEN's current net profit margins (7.3%) are higher than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: CEN has become profitable over the past 5 years, growing earnings by 16.4% per year.
Accelerating Growth: CEN's earnings growth over the past year (49.6%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: CEN earnings growth over the past year (49.6%) exceeded the Electric Utilities industry -12.6%.
Return on Equity
High ROE: CEN's Return on Equity (6.4%) is considered low.
Financial Health
How is Contact Energy's financial position?
Financial Position Analysis
Short Term Liabilities: CEN's short term assets (NZ$554.0M) do not cover its short term liabilities (NZ$622.0M).
Long Term Liabilities: CEN's short term assets (NZ$554.0M) do not cover its long term liabilities (NZ$1.5B).
Debt to Equity History and Analysis
Debt Level: CEN's net debt to equity ratio (23.4%) is considered satisfactory.
Reducing Debt: CEN's debt to equity ratio has reduced from 60.1% to 28.5% over the past 5 years.
Debt Coverage: CEN's debt is well covered by operating cash flow (51.7%).
Interest Coverage: CEN's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Dividend
What is Contact Energy current dividend yield, its reliability and sustainability?
4.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CEN's dividend (4.52%) is higher than the bottom 25% of dividend payers in the NZ market (2.73%).
High Dividend: CEN's dividend (4.52%) is low compared to the top 25% of dividend payers in the NZ market (4.99%).
Stability and Growth of Payments
Stable Dividend: CEN's dividends per share have been stable in the past 10 years.
Growing Dividend: CEN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (138.2%), CEN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CEN's dividends in 3 years are not forecast to be well covered by earnings (139.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Mike Fuge
1.92yrs
Tenure
NZ$2,280,840
Compensation
Mr. Michael Fuge, also known as Mike, M. Com. (Hons), B.Eng. (Hons), MIPENZ, serves as Chief Executive Officer of Contact Energy Limited since February 24, 2020. He served as Chief Executive Officer at The...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.55M) is about average for companies of similar size in the NZ market ($USD1.68M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: CEN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: CEN's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CEN insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.
Top Shareholders
Company Information
Contact Energy Limited's employee growth, exchange listings and data sources
Key Information
- Name: Contact Energy Limited
- Ticker: CEN
- Exchange: NZSE
- Founded: 1995
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: NZ$6.093b
- Shares outstanding: 779.12m
- Website: https://contact.co.nz
Number of Employees
Location
- Contact Energy Limited
- Harbour City Tower
- 29 Brandon Street
- Wellington
- 6011
- New Zealand
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 12:42 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.