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CEN

Contact EnergyNZSE:CEN Stock Report

Last Price

NZ$7.75

Market Cap

NZ$6.1b

7D

-3.6%

1Y

-15.7%

Updated

21 Jan, 2022

Data

Company Financials +
CEN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends3/6

CEN Stock Overview

Contact Energy Limited generates and sells electricity and natural gas in New Zealand.

Contact Energy Competitors

Genesis Energy

NZSE:GNE

NZ$3.0b

Trustpower

NZSE:TPW

NZ$2.3b

Meridian Energy

NZSE:MEL

NZ$12.0b

Ormat Technologies

NYSE:ORA

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Contact Energy
Historical stock prices
Current Share PriceNZ$7.75
52 Week HighNZ$9.39
52 Week LowNZ$6.60
Beta0.41
1 Month Change-1.40%
3 Month Change-4.44%
1 Year Change-15.67%
3 Year Change27.47%
5 Year Change59.79%
Change since IPO132.04%

Recent News & Updates

Jan 17
Is Contact Energy Limited (NZSE:CEN) Trading At A 43% Discount?

Is Contact Energy Limited (NZSE:CEN) Trading At A 43% Discount?

Today we will run through one way of estimating the intrinsic value of Contact Energy Limited ( NZSE:CEN ) by...

Dec 25
Contact Energy (NZSE:CEN) Seems To Use Debt Rather Sparingly

Contact Energy (NZSE:CEN) Seems To Use Debt Rather Sparingly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Sep 27
Contact Energy (NZSE:CEN) Has Some Way To Go To Become A Multi-Bagger

Contact Energy (NZSE:CEN) Has Some Way To Go To Become A Multi-Bagger

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

CENNZ Electric UtilitiesNZ 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

Is CEN's price volatile compared to industry and market?
CEN volatility
CEN Average Weekly Movement2.5%
Electric Utilities Industry Average Movement2.5%
Market Average Movement3.7%
10% most volatile stocks in NZ Market6.4%
10% least volatile stocks in NZ Market2.4%

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

FoundedEmployeesCEOWebsite
1995890Mike Fugehttps://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

How do Contact Energy's earnings and revenue compare to its market cap?
CEN fundamental statistics
Market CapNZ$6.09b
Earnings (TTM)NZ$187.00m
Revenue (TTM)NZ$2.57b

0.0x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEN income statement (TTM)
RevenueNZ$2.57b
Cost of RevenueNZ$2.02b
Gross ProfitNZ$553.00m
ExpensesNZ$366.00m
EarningsNZ$187.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 14, 2022

Earnings per share (EPS)0
Gross Margin21.49%
Net Profit Margin7.27%
Debt/Equity Ratio28.5%

How did CEN perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

138%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 12:42
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.