| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 2/6 |
MCY Stock Overview
Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand.
Mercury NZ Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$5.69 |
| 52 Week High | NZ$7.00 |
| 52 Week Low | NZ$5.20 |
| Beta | 0.54 |
| 1 Month Change | 1.61% |
| 3 Month Change | -4.69% |
| 1 Year Change | -13.13% |
| 3 Year Change | 25.33% |
| 5 Year Change | 70.36% |
| Change since IPO | 117.18% |
Recent News & Updates
Mercury NZ Limited (NZSE:MCY) Shares Could Be 24% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Mercury NZ Limited...
Here's Why Mercury NZ (NZSE:MCY) Has A Meaningful Debt Burden
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Shareholder Returns
| MCY | NZ Electric Utilities | NZ Market | |
|---|---|---|---|
| 7D | 5.2% | 1.2% | 1.7% |
| 1Y | -13.1% | -12.2% | -17.4% |
Return vs Industry: MCY matched the NZ Electric Utilities industry which returned -12.2% over the past year.
Return vs Market: MCY exceeded the NZ Market which returned -17.4% over the past year.
Price Volatility
| MCY volatility | |
|---|---|
| MCY Average Weekly Movement | 3.7% |
| Electric Utilities Industry Average Movement | 3.6% |
| Market Average Movement | 4.4% |
| 10% most volatile stocks in NZ Market | 8.6% |
| 10% least volatile stocks in NZ Market | 2.9% |
Stable Share Price: MCY is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MCY's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 752 | Vince James Hawksworth | https://www.mercury.co.nz |
Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand. The company operates through Generation/Wholesale, Retail, and Other segments. It operates 9 hydro generation stations on the Waikato River; and 5 geothermal generation stations in the central North Island.
Mercury NZ Fundamentals Summary
| MCY fundamental statistics | |
|---|---|
| Market Cap | NZ$7.96b |
| Earnings (TTM) | NZ$438.00m |
| Revenue (TTM) | NZ$1.97b |
18.2x
P/E Ratio4.0x
P/S RatioIs MCY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MCY income statement (TTM) | |
|---|---|
| Revenue | NZ$1.97b |
| Cost of Revenue | NZ$1.56b |
| Gross Profit | NZ$415.00m |
| Other Expenses | -NZ$23.00m |
| Earnings | NZ$438.00m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.31 |
| Gross Margin | 21.02% |
| Net Profit Margin | 22.19% |
| Debt/Equity Ratio | 34.5% |
How did MCY perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield57%
Payout RatioValuation
Is MCY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MCY?
Other financial metrics that can be useful for relative valuation.
| What is MCY's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | NZ$7.96b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 4.9x |
| Enterprise Value/EBITDA | 24.3x |
| PEG Ratio | -1.4x |
Price to Earnings Ratio vs Peers
How does MCY's PE Ratio compare to its peers?
| MCY PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 53.8x | ||
CEN Contact Energy | 23.5x | 2.0% | NZ$5.7b |
IFT Infratil | 131.5x | 63.2% | NZ$5.7b |
GNE Genesis Energy | 42.8x | 1.5% | NZ$2.8b |
MNW Manawa Energy | 17.5x | -2.2% | NZ$1.8b |
MCY Mercury NZ | 18.2x | -12.9% | NZ$8.0b |
Price-To-Earnings vs Peers: MCY is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (53.8x).
Price to Earnings Ratio vs Industry
How does MCY's PE Ratio compare vs other companies in the Global Electric Utilities Industry?
Price-To-Earnings vs Industry: MCY is good value based on its Price-To-Earnings Ratio (18.2x) compared to the NZ Electric Utilities industry average (23.3x)
Price to Earnings Ratio vs Fair Ratio
What is MCY'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 18.2x |
| Fair PE Ratio | 28.6x |
Price-To-Earnings vs Fair Ratio: MCY is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (28.6x).
Share Price vs Fair Value
What is the Fair Price of MCY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MCY (NZ$5.69) is trading below our estimate of fair value (NZ$7.74)
Significantly Below Fair Value: MCY is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: MCY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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Future Growth
How is Mercury NZ forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-12.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCY's earnings are forecast to decline over the next 3 years (-12.9% per year).
Earnings vs Market: MCY's earnings are forecast to decline over the next 3 years (-12.9% per year).
High Growth Earnings: MCY's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MCY's revenue (0.3% per year) is forecast to grow slower than the NZ market (6.7% per year).
High Growth Revenue: MCY's revenue (0.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCY's Return on Equity is forecast to be low in 3 years time (5.6%).
Discover growth companies
Past Performance
How has Mercury NZ performed over the past 5 years?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
7.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCY has a large one-off gain of NZ$347.0M impacting its December 31 2021 financial results.
Growing Profit Margin: MCY's current net profit margins (22.2%) are higher than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: MCY's earnings have grown by 7.8% per year over the past 5 years.
Accelerating Growth: MCY's earnings growth over the past year (71.1%) exceeds its 5-year average (7.8% per year).
Earnings vs Industry: MCY earnings growth over the past year (71.1%) exceeded the Electric Utilities industry 8.2%.
Return on Equity
High ROE: MCY's Return on Equity (9.5%) is considered low.
Discover strong past performing companies
Financial Health
How is Mercury NZ's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: MCY's short term assets (NZ$440.0M) do not cover its short term liabilities (NZ$811.0M).
Long Term Liabilities: MCY's short term assets (NZ$440.0M) do not cover its long term liabilities (NZ$3.1B).
Debt to Equity History and Analysis
Debt Level: MCY's net debt to equity ratio (33.4%) is considered satisfactory.
Reducing Debt: MCY's debt to equity ratio has reduced from 35.4% to 34.5% over the past 5 years.
Debt Coverage: MCY's debt is not well covered by operating cash flow (19.6%).
Interest Coverage: MCY's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
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Dividend
What is Mercury NZ current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCY's dividend (3.2%) is higher than the bottom 25% of dividend payers in the NZ market (3.02%).
High Dividend: MCY's dividend (3.2%) is low compared to the top 25% of dividend payers in the NZ market (6.25%).
Stability and Growth of Payments
Stable Dividend: MCY has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MCY's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (56.7%), MCY's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (217.6%), MCY's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Vince James Hawksworth (63 yo)
2.25yrs
Tenure
NZ$1,799,515
Compensation
Mr. Vincent John James Hawksworth, also Known as Vince, C.ENG, MBA, MIMinE, had been Non-Independent Director at Tilt Renewables Limited since April 1, 2020. He serves as Chief Executive Officer at Mercury...
CEO Compensation Analysis
Compensation vs Market: Vince's total compensation ($USD1.14M) is below average for companies of similar size in the NZ market ($USD1.76M).
Compensation vs Earnings: Vince's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: MCY's management team is seasoned and experienced (5.9 years average tenure).
Board Members
Experienced Board: MCY's board of directors are considered experienced (7.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.
Top Shareholders
Company Information
Mercury NZ Limited's employee growth, exchange listings and data sources
Key Information
- Name: Mercury NZ Limited
- Ticker: MCY
- Exchange: NZSE
- Founded: 1998
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: NZ$7.958b
- Shares outstanding: 1.40b
- Website: https://www.mercury.co.nz
Number of Employees
Location
- Mercury NZ Limited
- 33 Broadway
- Newmarket
- Auckland
- 1023
- New Zealand
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/06/30 |
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.