Genesis Energy
Market Cap
NZ$3.9b
Last Updated
2021/01/26 06:02 UTC
Data Sources
Company Financials +
Executive Summary
Genesis Energy Limited generates, trades in, and sells electricity to residential and business customers in New Zealand. More Details
Rewards
Risk Analysis
Dividend of 4.5% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Fair value with limited growth.
Similar Companies
Share Price & News
How has Genesis Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GNE is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: GNE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
3.9%
GNE
3.9%
NZ Electric Utilities
3.9%
NZ Market
1 Year Return
19.5%
GNE
29.8%
NZ Electric Utilities
10.6%
NZ Market
Return vs Industry: GNE underperformed the NZ Electric Utilities industry which returned 29.8% over the past year.
Return vs Market: GNE exceeded the NZ Market which returned 10.6% over the past year.
Shareholder returns
| GNE | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 3.9% | 3.9% |
| 30 Day | 7.1% | 8.3% | 3.2% |
| 90 Day | 19.5% | 29.6% | 11.0% |
| 1 Year | 28.3%19.5% | 36.8%29.8% | 14.7%10.6% |
| 3 Year | 90.1%54.2% | 126.5%90.1% | 56.9%36.1% |
| 5 Year | 202.7%106.8% | 128.7%69.9% | 112.7%61.1% |
Long-Term Price Volatility Vs. Market
How volatile is Genesis Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Genesis Energy (NZSE:GNE) Likely To Turn Things Around?3 weeks ago | Simply Wall St
Shareholders Of Genesis Energy (NZSE:GNE) Must Be Happy With Their 180% Total Return1 month ago | Simply Wall St
Is Genesis Energy (NZSE:GNE) Using Too Much Debt?Valuation
Is Genesis Energy undervalued compared to its fair value and its price relative to the market?
39.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GNE (NZ$3.83) is trading below our estimate of fair value (NZ$6.35)
Significantly Below Fair Value: GNE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GNE is poor value based on its PE Ratio (85.5x) compared to the NZ Electric Utilities industry average (48.5x).
PE vs Market: GNE is poor value based on its PE Ratio (85.5x) compared to the NZ market (25.1x).
Price to Earnings Growth Ratio
PEG Ratio: GNE is poor value based on its PEG Ratio (5.2x)
Price to Book Ratio
PB vs Industry: GNE is good value based on its PB Ratio (1.9x) compared to the NZ Electric Utilities industry average (2.5x).
Next Steps
Future Growth
How is Genesis Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GNE's forecast earnings growth (16.3% per year) is above the savings rate (2.3%).
Earnings vs Market: GNE's earnings (16.3% per year) are forecast to grow faster than the NZ market (11.7% 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 (-3.8% per year).
High Growth Revenue: GNE's revenue is forecast to decline over the next 3 years (-3.8% 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%).
Next Steps
Past Performance
How has Genesis Energy performed over the past 5 years?
-28.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GNE has high quality earnings.
Growing Profit Margin: GNE's current net profit margins (1.8%) are lower than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: GNE's earnings have declined by 28.1% 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 (-21.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (-21.9%).
Return on Equity
High ROE: GNE's Return on Equity (2.2%) is considered low.
Next Steps
Financial Health
How is Genesis Energy's financial position?
Financial Position Analysis
Short Term Liabilities: GNE's short term assets (NZ$439.5M) exceed its short term liabilities (NZ$301.3M).
Long Term Liabilities: GNE's short term assets (NZ$439.5M) do not cover its long term liabilities (NZ$2.2B).
Debt to Equity History and Analysis
Debt Level: GNE's debt to equity ratio (63%) is considered high.
Reducing Debt: GNE's debt to equity ratio has increased from 52.5% to 63% over the past 5 years.
Debt Coverage: GNE's debt is well covered by operating cash flow (23.6%).
Interest Coverage: GNE's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Genesis Energy current dividend yield, its reliability and sustainability?
4.50%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GNE's dividend (4.5%) is higher than the bottom 25% of dividend payers in the NZ market (2.24%).
High Dividend: GNE's dividend (4.5%) is in the top 25% of dividend payers in the NZ market (4.1%)
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (384.6%), 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 (157.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.3yrs
Average management tenure
CEO
Marc England
4.67yrs
Tenure
NZ$2,071,613
Compensation
Mr. Marc England, MEng (Hons), MBA, has been the Chief Executive Officer of Genesis Energy Limited since May 2016. Mr. England served as an Executive General Manager of New Energy at AGL Energy Limited fro...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD1.49M) is about average for companies of similar size in the NZ market ($USD1.39M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 4.67yrs | NZ$2.07m | 0.045% NZ$ 1.8m | |
| Chief Financial Officer | 4.5yrs | no data | 0.013% NZ$ 524.5k | |
| Chief Operations Officer | 0.33yr | no data | 0.0050% NZ$ 198.2k | |
| Investor Relations Manager | no data | no data | no data | |
| Communications Manager | no data | no data | no data | |
| Chief People Officer | 4.25yrs | no data | 0.0062% NZ$ 242.8k | |
| Chief Customer Officer | 0.33yr | no data | 0.012% NZ$ 478.4k | |
| Chief Digital Officer | 0.33yr | no data | 0.0072% NZ$ 282.6k | |
| Chief Corporate Affairs Officer | 0.33yr | no data | 0.0023% NZ$ 92.2k | |
| Chief Trading Officer | 0.33yr | no data | 0.0022% NZ$ 86.7k | |
| Assistant Company Secretary | no data | no data | no data |
0.3yrs
Average Tenure
Experienced Management: GNE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 4.17yrs | NZ$102.50k | 0.0039% NZ$ 152.9k | |
| Independent Non-Executive Director | 4.25yrs | NZ$102.50k | no data | |
| Independent Chairman | 2.25yrs | NZ$180.00k | 0.0010% NZ$ 41.0k | |
| Non-Executive Independent Director | 1.83yrs | NZ$110.52k | 0.00096% NZ$ 37.8k | |
| Independent Director | 4.42yrs | NZ$109.50k | 0.0018% NZ$ 72.1k | |
| Independent Director | 6.58yrs | NZ$110.00k | 0.0019% NZ$ 74.1k | |
| Independent Director | 2.25yrs | NZ$102.00k | 0.0014% NZ$ 56.7k |
4.2yrs
Average Tenure
62yo
Average Age
Experienced Board: GNE's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GNE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Genesis Energy Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Genesis Energy Limited
- Ticker: GNE
- Exchange: NZSE
- Founded: 1998
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: NZ$3.941b
- Shares outstanding: 1.04b
- Website: https://www.genesisenergy.co.nz
Number of Employees
Location
- Genesis Energy Limited
- Genesis Energy Building
- 660 Great South Road
- Auckland
- 1051
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GNE | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Apr 2014 |
| GNE | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Apr 2014 |
| GNE | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Apr 2014 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 06:02 |
| End of Day Share Price | 2021/01/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.