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GNE

Genesis EnergyNZSE:GNE Stock Report

Last Price

NZ$2.90

Market Cap

NZ$3.1b

7D

-0.2%

1Y

-24.8%

Updated

20 Jan, 2022

Data

Company Financials +
GNE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends2/6

GNE Stock Overview

Genesis Energy Limited generates, trades in, and sells electricity to residential and business customers in New Zealand.

Genesis Energy Competitors

Contact Energy

NZSE:CEN

NZ$6.1b

Trustpower

NZSE:TPW

NZ$2.3b

NextEra Energy

NYSE:NEE

US$162.1b

Duke Energy

NYSE:DUK

US$78.6b

Price History & Performance

Summary of all time highs, changes and price drops for Genesis Energy
Historical stock prices
Current Share PriceNZ$2.90
52 Week HighNZ$3.95
52 Week LowNZ$2.80
Beta0.55
1 Month Change3.21%
3 Month Change-10.51%
1 Year Change-24.81%
3 Year Change8.63%
5 Year Change32.80%
Change since IPO59.95%

Recent News & Updates

Dec 28
These 4 Measures Indicate That Genesis Energy (NZSE:GNE) Is Using Debt Reasonably Well

These 4 Measures Indicate That Genesis Energy (NZSE:GNE) Is Using Debt Reasonably Well

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 21
Return Trends At Genesis Energy (NZSE:GNE) Aren't Appealing

Return Trends At Genesis Energy (NZSE:GNE) Aren't Appealing

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to...

Oct 22
It Looks Like Shareholders Would Probably Approve Genesis Energy Limited's (NZSE:GNE) CEO Compensation Package

It Looks Like Shareholders Would Probably Approve Genesis Energy Limited's (NZSE:GNE) CEO Compensation Package

We have been pretty impressed with the performance at Genesis Energy Limited ( NZSE:GNE ) recently and CEO Marc England...

Shareholder Returns

GNENZ Electric UtilitiesNZ Market
7D-0.2%-0.7%-1.7%
1Y-24.8%-9.7%-8.2%

Return vs Industry: GNE underperformed the NZ Electric Utilities industry which returned -9.7% over the past year.

Return vs Market: GNE underperformed the NZ Market which returned -8.2% over the past year.

Price Volatility

Is GNE's price volatile compared to industry and market?
GNE volatility
GNE Average Weekly Movement3.1%
Electric Utilities Industry Average Movement2.5%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.2%
10% least volatile stocks in NZ Market2.3%

Stable Share Price: GNE is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GNE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,149Marc Englandhttps://www.genesisenergy.co.nz

Genesis Energy Limited generates, trades in, and sells electricity to residential and business customers in New Zealand. The company generates electricity from thermal, hydro, and wind sources. Its Retail segment supplies energy, including electricity, gas, and LPG to end-users, as well as provides related services.

Genesis Energy Fundamentals Summary

How do Genesis Energy's earnings and revenue compare to its market cap?
GNE fundamental statistics
Market CapNZ$3.06b
Earnings (TTM)NZ$33.50m
Revenue (TTM)NZ$3.22b

0.0x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNE income statement (TTM)
RevenueNZ$3.22b
Cost of RevenueNZ$2.81b
Gross ProfitNZ$410.80m
ExpensesNZ$377.30m
EarningsNZ$33.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 28, 2022

Earnings per share (EPS)0
Gross Margin12.75%
Net Profit Margin1.04%
Debt/Equity Ratio65.0%

How did GNE perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

541%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNE (NZ$2.9) is trading below our estimate of fair value (NZ$7.15)

Significantly Below Fair Value: GNE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate GNE'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 GNE'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 GNE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate GNE's PB Ratio to determine if it is good value.


Future Growth

How is Genesis Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNE's forecast earnings growth (18.1% per year) is above the savings rate (2.1%).

Earnings vs Market: GNE's earnings (18.1% per year) are forecast to grow faster than the NZ market (7.4% per year).

High Growth Earnings: GNE's earnings are forecast to grow, but not significantly.

Revenue vs Market: GNE's revenue is expected to decline over the next 3 years (-9.5% per year).

High Growth Revenue: GNE's revenue is forecast to decline over the next 3 years (-9.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNE's Return on Equity is forecast to be low in 3 years time (6.3%).


Past Performance

How has Genesis Energy performed over the past 5 years?

-33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNE has a large one-off gain of NZ$11.3M impacting its June 30 2021 financial results.

Growing Profit Margin: GNE's current net profit margins (1%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: GNE's earnings have declined by 33% per year over the past 5 years.

Accelerating Growth: GNE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GNE had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (-12.6%).


Return on Equity

High ROE: GNE's Return on Equity (1.6%) is considered low.


Financial Health

How is Genesis Energy's financial position?


Financial Position Analysis

Short Term Liabilities: GNE's short term assets (NZ$927.5M) do not cover its short term liabilities (NZ$1.2B).

Long Term Liabilities: GNE's short term assets (NZ$927.5M) do not cover its long term liabilities (NZ$2.0B).


Debt to Equity History and Analysis

Debt Level: GNE's net debt to equity ratio (59.9%) is considered high.

Reducing Debt: GNE's debt to equity ratio has increased from 45.9% to 65% over the past 5 years.

Debt Coverage: GNE's debt is well covered by operating cash flow (24.3%).

Interest Coverage: GNE's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is Genesis Energy current dividend yield, its reliability and sustainability?

6.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNE's dividend (6.01%) is higher than the bottom 25% of dividend payers in the NZ market (2.69%).

High Dividend: GNE's dividend (6.01%) is in the top 25% of dividend payers in the NZ market (4.99%)


Stability and Growth of Payments

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

Growing Dividend: GNE's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (540.8%), GNE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GNE's dividends in 3 years are not forecast to be well covered by earnings (146.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Marc England

5.67yrs

Tenure

NZ$2,357,414

Compensation

Mr. Marc England, MEng (Hons), MBA, has been the Chief Executive Officer of Genesis Energy Limited since May 2016. Mr. England served as an Executive General Manager of New Energy at AGL Energy Limited fro...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD1.60M) is about average for companies of similar size in the NZ market ($USD1.51M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GNE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: GNE's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GNE 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

Genesis Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Genesis Energy Limited
  • Ticker: GNE
  • Exchange: NZSE
  • Founded: 1998
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: NZ$3.057b
  • Shares outstanding: 1.04b
  • Website: https://www.genesisenergy.co.nz

Number of Employees


Location

  • Genesis Energy Limited
  • Genesis Energy
  • Level 6
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 12:19
End of Day Share Price2022/01/20 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.