Mercury NZ
Market Cap
NZ$6.4b
Last Updated
2020/05/28 10:39 UTC
Data Sources
Company Financials +
Executive Summary
Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand.
Rewards
PE ratio (19.2x) is below the Electric Utilities industry average (34.9x)
Risk Analysis
Earnings are forecast to decline by an average of -4.6% per year for the next 3 years
Snowflake Analysis
Adequate balance sheet with proven track record.
Similar Companies
Share Price & News
How has Mercury NZ's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.7%
MCY
-0.1%
NZ Electric Utilities
1.5%
NZ Market
1 Year Return
21.3%
MCY
1.4%
NZ Electric Utilities
1.2%
NZ Market
Return vs Industry: MCY exceeded the NZ Electric Utilities industry which returned 3.4% over the past year.
Return vs Market: MCY exceeded the NZ Market which returned 2.2% over the past year.
Shareholder returns
| MCY | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -0.1% | 1.5% |
| 30 Day | 3.1% | 2.7% | 2.5% |
| 90 Day | -1.1% | -3.3% | -5.0% |
| 1 Year | 25.8%21.3% | 6.4%1.4% | 5.3%1.2% |
| 3 Year | 69.5%44.6% | 62.1%35.5% | 38.8%20.6% |
| 5 Year | 122.2%64.8% | 85.4%33.2% | 85.5%42.6% |
Price Volatility Vs. Market
How volatile is Mercury NZ's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Is Mercury NZ Limited's (NZSE:MCY) 9.6% ROE Better Than Average?2 months ago | Simply Wall St
Mercury NZ Limited (NZSE:MCY) Stock Goes Ex-Dividend In Just 4 Days2 months ago | Simply Wall St
Can We See Significant Institutional Ownership On The Mercury NZ Limited (NZSE:MCY) Share Register?Valuation
Is Mercury NZ undervalued compared to its fair value and its price relative to the market?
19.18x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCY (NZ$4.73) is trading above our estimate of fair value (NZ$3.36)
Significantly Below Fair Value: MCY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCY is good value based on its PE Ratio (19.2x) compared to the Electric Utilities industry average (34.9x).
PE vs Market: MCY is poor value based on its PE Ratio (19.2x) compared to the NZ market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MCY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MCY is overvalued based on its PB Ratio (1.8x) compared to the NZ Electric Utilities industry average (1.7x).
Next Steps
Future Growth
How is Mercury NZ forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-4.6%
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 (-4.6% per year).
Earnings vs Market: MCY's earnings are forecast to decline over the next 3 years (-4.6% per year).
High Growth Earnings: MCY's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MCY's revenue (1% per year) is forecast to grow slower than the NZ market (5.2% per year).
High Growth Revenue: MCY's revenue (1% 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 (5.5%).
Next Steps
Past Performance
How has Mercury NZ performed over the past 5 years?
27.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCY has a large one-off gain of NZ$177.0M impacting its December 31 2019 financial results.
Growing Profit Margin: MCY's current net profit margins (18.2%) are higher than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: MCY's earnings have grown significantly by 27.4% per year over the past 5 years.
Accelerating Growth: MCY's earnings growth over the past year (62.3%) exceeds its 5-year average (27.4% per year).
Earnings vs Industry: MCY earnings growth over the past year (62.3%) exceeded the Electric Utilities industry -27.4%.
Return on Equity
High ROE: MCY's Return on Equity (9.6%) is considered low.
Next Steps
Financial Health
How is Mercury NZ's financial position?
Financial Position Analysis
Short Term Liabilities: MCY's short term assets (NZ$362.0M) do not cover its short term liabilities (NZ$633.0M).
Long Term Liabilities: MCY's short term assets (NZ$362.0M) do not cover its long term liabilities (NZ$2.3B).
Debt to Equity History and Analysis
Debt Level: MCY's debt to equity ratio (33.9%) is considered satisfactory.
Reducing Debt: MCY's debt to equity ratio has reduced from 37.8% to 33.9% over the past 5 years.
Debt Coverage: MCY's debt is well covered by operating cash flow (28.3%).
Interest Coverage: MCY's interest payments on its debt are well covered by EBIT (3.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Mercury NZ's current dividend yield, its reliability and sustainability?
3.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCY's dividend (3.28%) is higher than the bottom 25% of dividend payers in the NZ market (3.16%).
High Dividend: MCY's dividend (3.28%) is low compared to the top 25% of dividend payers in the NZ market (6.21%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.7%), MCY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCY's dividends in 3 years are not forecast to be well covered by earnings (109% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Vince Hawksworth (60yo)
0.17
Tenure
Mr. Vincent John Hawksworth, also Known as Vince, C.ENG, MBA, MIMinE, has been Non-Independent Director at Tilt Renewables Limited since April 1, 2020. He serves as Chief Executive Officer at Mercury NZ Li ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.17yr | no data | no data | |
| Chief Financial Officer | no data | no data | 0.012% NZ$772.0k | |
| Head of Treasury & Investor Relations | no data | no data | no data | |
| Company Secretary & General Counsel | no data | no data | no data | |
| Head of Communications | no data | no data | no data | |
| Chief Marketing Officer | 3.83yrs | no data | 0.00084% NZ$54.1k | |
| General Manager of People & Performance | 5.83yrs | no data | 0.0032% NZ$206.8k | |
| Manager of Generation Development | no data | no data | no data |
3.8yrs
Average Tenure
Experienced Management: MCY's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 11yrs | NZ$124.00k | 0.0014% NZ$90.2k | |
| Independent Non-Executive Director | 6.25yrs | NZ$108.00k | 0.0029% NZ$184.9k | |
| Independent Director | 2.67yrs | NZ$106.67k | 0.0033% NZ$212.6k | |
| Independent Non-Executive Director | 5.83yrs | NZ$106.00k | 0.00024% NZ$15.5k | |
| Independent Non-Executive Director | 8yrs | NZ$117.50k | 0.0030% NZ$190.7k | |
| Independent Chairman | 0.67yr | NZ$122.00k | 0.0019% NZ$125.0k | |
| Independent Director | 4.75yrs | NZ$106.00k | 0.00016% NZ$10.3k | |
| Independent Director | 0.25yr | no data | no data |
5.3yrs
Average Tenure
Experienced Board: MCY's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCY 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
Mercury NZ Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mercury NZ Limited
- Ticker: MCY
- Exchange: NZSE
- Founded: 1998
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: NZ$6.444b
- Shares outstanding: 1.36b
- Website: https://www.mercury.co.nz
Number of Employees
Location
- Mercury NZ Limited
- 33 Broadway
- Newmarket
- Auckland
- 1023
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MCY | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | May 2013 |
| MCY | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | May 2013 |
| MRY | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2013 |
| MGHT.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2013 |
| MCY | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | May 2013 |
Biography
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 Energy Markets and Others segments. It operates nine hydro generation stations on the Waikato River; and five geothermal generation stations in the central North Island. The company sells electricity to residential, commercial, and industrial customers through the GLOBUG and Bosco brands. It also provides piped natural gas; and sells solar equipment. The company was formerly known as Mighty River Power Limited and changed its name to Mercury NZ Limited in July 2016. Mercury NZ Limited was founded in 1998 and is based in Auckland, New Zealand.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/28 10:39 |
| End of Day Share Price | 2020/05/28 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.