NZSE:GNE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.


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

-4.9%

GNE

-3.9%

NZ Electric Utilities

-3.0%

NZ Market


1 Year Return

13.5%

GNE

28.7%

NZ Electric Utilities

9.1%

NZ Market

Return vs Industry: GNE underperformed the NZ Electric Utilities industry which returned 31% over the past year.

Return vs Market: GNE exceeded the NZ Market which returned 9.7% over the past year.


Shareholder returns

GNEIndustryMarket
7 Day-4.9%-3.9%-3.0%
30 Day5.7%11.8%3.8%
90 Day16.0%26.6%8.1%
1 Year21.9%13.5%35.5%28.7%13.2%9.1%
3 Year83.9%49.2%122.5%86.8%54.9%34.3%
5 Year189.7%97.9%133.6%73.6%111.7%60.7%

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

Valuation

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

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNE (NZ$3.74) is trading below our estimate of fair value (NZ$5.76)

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 (83.6x) compared to the NZ Electric Utilities industry average (47.9x).

PE vs Market: GNE is poor value based on its PE Ratio (83.6x) compared to the NZ market (25.3x).


Price to Earnings Growth Ratio

PEG Ratio: GNE is poor value based on its PEG Ratio (11.1x)


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?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNE's forecast earnings growth (7.5% per year) is above the savings rate (2.3%).

Earnings vs Market: GNE's earnings (7.5% per year) are forecast to grow slower than the NZ market (10.7% 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 (-5.9% per year).

High Growth Revenue: GNE's revenue is forecast to decline over the next 3 years (-5.9% 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 (4.7%).


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?

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNE's dividend (4.6%) is higher than the bottom 25% of dividend payers in the NZ market (2.36%).

High Dividend: GNE's dividend (4.6%) 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 (185.6% 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

NamePositionTenureCompensationOwnership
Marc England
Chief Executive Officer4.67yrsNZ$2.07m0.045%
NZ$ 1.8m
Chris Jewell
Chief Financial Officer4.5yrsno data0.013%
NZ$ 519.0k
Nigel Clark
Chief Operations Officer0.33yrno data0.0050%
NZ$ 196.1k
Tim McSweeney
Investor Relations Managerno datano datano data
Allan Swann
Communications Managerno datano datano data
Nicola Richardson
Chief People Officer4.25yrsno data0.0062%
NZ$ 240.2k
Tracey Hickman
Chief Customer Officer0.33yrno data0.012%
NZ$ 473.4k
James Magill
Chief Digital Officer0.33yrno data0.0072%
NZ$ 279.6k
Matthew Osborne
Chief Corporate Affairs Officer0.33yrno data0.0023%
NZ$ 91.2k
Shaun Goldsbury
Chief Trading Officer0.33yrno data0.0022%
NZ$ 85.8k
Paul Gillard
Assistant Company Secretaryno datano datano 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

NamePositionTenureCompensationOwnership
Timothy Miles
Independent Non-Executive Director4.17yrsNZ$102.50k0.0039%
NZ$ 151.3k
Paul Zealand
Independent Non-Executive Director4.25yrsNZ$102.50kno data
Barbara Chapman
Independent Chairman2.25yrsNZ$180.00k0.0010%
NZ$ 40.6k
Catherine Drayton
Non-Executive Independent Director1.83yrsNZ$110.52k0.00096%
NZ$ 37.4k
Maury Penno
Independent Director4.42yrsNZ$109.50k0.0018%
NZ$ 71.4k
Douglas McKay
Independent Director6.58yrsNZ$110.00k0.0019%
NZ$ 73.3k
James Moulder
Independent Director2.25yrsNZ$102.00k0.0014%
NZ$ 56.1k

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$3.899b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNENZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDApr 2014
GNEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2014
GNECHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 06:00
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.