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GNE

Genesis Energy NZSE:GNE Stock Report

Last Price

NZ$3.00

Market Cap

NZ$3.1b

7D

4.7%

1Y

-9.8%

Updated

08 Aug, 2022

Data

Company Financials +
GNE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health1/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Genesis Energy
Historical stock prices
Current Share PriceNZ$3.00
52 Week HighNZ$3.45
52 Week LowNZ$2.40
Beta0.53
1 Month Change9.31%
3 Month Change11.96%
1 Year Change-9.79%
3 Year Change-12.56%
5 Year Change20.52%
Change since IPO65.47%

Recent News & Updates

Jul 18
Returns On Capital At Genesis Energy (NZSE:GNE) Have Stalled

Returns On Capital At Genesis Energy (NZSE:GNE) Have Stalled

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Jun 08
Genesis Energy (NZSE:GNE) Has A Pretty Healthy Balance Sheet

Genesis Energy (NZSE:GNE) Has A Pretty Healthy Balance Sheet

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

Shareholder Returns

GNENZ Electric UtilitiesNZ Market
7D4.7%4.4%2.1%
1Y-9.8%-3.1%-11.3%

Return vs Industry: GNE underperformed the NZ Electric Utilities industry which returned -3.1% over the past year.

Return vs Market: GNE exceeded the NZ Market which returned -11.3% over the past year.

Price Volatility

Is GNE's price volatile compared to industry and market?
GNE volatility
GNE Average Weekly Movement3.3%
Electric Utilities Industry Average Movement3.7%
Market Average Movement4.4%
10% most volatile stocks in NZ Market8.2%
10% least volatile stocks in NZ Market3.0%

Stable Share Price: GNE is less volatile than 75% 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$3.14b
Earnings (TTM)NZ$66.20m
Revenue (TTM)NZ$3.18b

47.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNE income statement (TTM)
RevenueNZ$3.18b
Cost of RevenueNZ$2.78b
Gross ProfitNZ$405.10m
Other ExpensesNZ$338.90m
EarningsNZ$66.20m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)0.063
Gross Margin12.72%
Net Profit Margin2.08%
Debt/Equity Ratio65.0%

How did GNE perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

276%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GNE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GNE?

Other financial metrics that can be useful for relative valuation.

GNE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA11.9x
PEG Ratio20.3x

Price to Earnings Ratio vs Peers

How does GNE's PE Ratio compare to its peers?

GNE PE Ratio vs Peers
The above table shows the PE ratio for GNE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average53.7x
CEN Contact Energy
24.7x1.8%NZ$6.0b
MNW Manawa Energy
18.1x-1.8%NZ$1.9b
MCY Mercury NZ
20.5x-8.1%NZ$9.0b
IFT Infratil
151.5x41.9%NZ$6.6b
GNE Genesis Energy
47.5x2.3%NZ$3.1b

Price-To-Earnings vs Peers: GNE is good value based on its Price-To-Earnings Ratio (47.5x) compared to the peer average (53.7x).


Price to Earnings Ratio vs Industry

How does GNE's PE Ratio compare vs other companies in the Global Electric Utilities Industry?

Price-To-Earnings vs Industry: GNE is expensive based on its Price-To-Earnings Ratio (47.5x) compared to the NZ Electric Utilities industry average (24.7x)


Price to Earnings Ratio vs Fair Ratio

What is GNE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GNE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47.5x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: GNE is expensive based on its Price-To-Earnings Ratio (47.5x) compared to the estimated Fair Price-To-Earnings Ratio (33x).


Share Price vs Fair Value

What is the Fair Price of GNE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GNE (NZ$2.97) is trading below our estimate of fair value (NZ$7.34)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is Genesis Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNE's forecast earnings growth (2.3% per year) is above the savings rate (2.1%).

Earnings vs Market: GNE's earnings (2.3% per year) are forecast to grow slower than the NZ market (5.2% 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 (-7.9% per year).

High Growth Revenue: GNE's revenue is forecast to decline over the next 3 years (-7.9% 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 (6.6%).


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Past Performance

How has Genesis Energy performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GNE has high quality earnings.

Growing Profit Margin: GNE's current net profit margins (2.1%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: GNE's earnings have declined by 24.2% 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 (-25.5%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.9%).


Return on Equity

High ROE: GNE's Return on Equity (3.2%) is considered low.


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Financial Health

How is Genesis Energy's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GNE's short term assets (NZ$646.3M) do not cover its short term liabilities (NZ$752.1M).

Long Term Liabilities: GNE's short term assets (NZ$646.3M) 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 (61.5%) is considered high.

Reducing Debt: GNE's debt to equity ratio has increased from 55.3% to 65% over the past 5 years.

Debt Coverage: GNE's debt is not well covered by operating cash flow (15%).

Interest Coverage: GNE's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GNE's dividend (5.81%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: GNE's dividend (5.81%) is in the top 25% of dividend payers in the NZ market (5.8%)


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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (276.2%), GNE's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (156.8%), GNE's dividend payments are not well covered by cash flows.


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Management

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

0.9yrs

Average management tenure


CEO

Marc England

6.25yrs

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 ($USD1.47M) is about average for companies of similar size in the NZ market ($USD1.40M).

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 ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: GNE's board of directors are considered experienced (4.3 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 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$3.144b
  • Shares outstanding: 1.05b
  • 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 Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2021/12/31
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.