Mercury NZ
Market Cap
NZ$9.4b
Last Updated
2021/01/19 06:01 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. More Details
Rewards
PE ratio (43.1x) is below the Electric Utilities industry average (45.4x)
Risk Analysis
Dividend of 2.41% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Adequate balance sheet and slightly overvalued.
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 is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MCY's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-6.3%
MCY
-3.5%
NZ Electric Utilities
-3.5%
NZ Market
1 Year Return
24.5%
MCY
26.6%
NZ Electric Utilities
6.9%
NZ Market
Return vs Industry: MCY underperformed the NZ Electric Utilities industry which returned 26.6% over the past year.
Return vs Market: MCY exceeded the NZ Market which returned 6.9% over the past year.
Shareholder returns
| MCY | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.3% | -3.5% | -3.5% |
| 30 Day | 10.7% | 11.6% | 2.4% |
| 90 Day | 25.9% | 24.0% | 5.7% |
| 1 Year | 29.2%24.5% | 33.3%26.6% | 10.8%6.9% |
| 3 Year | 125.5%97.6% | 117.3%82.2% | 51.2%31.3% |
| 5 Year | 227.7%149.4% | 122.9%65.5% | 105.7%56.0% |
Long-Term 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
4 days ago | Simply Wall St
Are Dividend Investors Making A Mistake With Mercury NZ Limited (NZSE:MCY)?2 weeks ago | Simply Wall St
Read This Before Selling Mercury NZ Limited (NZSE:MCY) Shares1 month ago | Simply Wall St
How Much Of Mercury NZ Limited (NZSE:MCY) Do Institutions Own?Valuation
Is Mercury NZ undervalued compared to its fair value and its price relative to the market?
43.13x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCY (NZ$6.56) is trading above our estimate of fair value (NZ$5.32)
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 (43.1x) compared to the NZ Electric Utilities industry average (45.4x).
PE vs Market: MCY is poor value based on its PE Ratio (43.1x) compared to the NZ market (25.1x).
Price to Earnings Growth Ratio
PEG Ratio: MCY is poor value based on its PEG Ratio (33.7x)
Price to Book Ratio
PB vs Industry: MCY is good value based on its PB Ratio (2.4x) compared to the NZ Electric Utilities industry average (2.5x).
Next Steps
Future Growth
How is Mercury NZ forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
1.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCY's forecast earnings growth (1.3% per year) is below the savings rate (2.3%).
Earnings vs Market: MCY's earnings (1.3% per year) are forecast to grow slower than the NZ market (11.2% per year).
High Growth Earnings: MCY's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCY's revenue is expected to decline over the next 3 years (-5% per year).
High Growth Revenue: MCY's revenue is forecast to decline over the next 3 years (-5% 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 (5.4%).
Next Steps
Past Performance
How has Mercury NZ performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCY has high quality earnings.
Growing Profit Margin: MCY's current net profit margins (11.7%) are lower than last year (17.8%).
Past Earnings Growth Analysis
Earnings Trend: MCY's earnings have grown significantly by 21.3% per year over the past 5 years.
Accelerating Growth: MCY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MCY had negative earnings growth (-42%) over the past year, making it difficult to compare to the Electric Utilities industry average (-21.9%).
Return on Equity
High ROE: MCY's Return on Equity (5.5%) 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$473.0M) do not cover its short term liabilities (NZ$875.0M).
Long Term Liabilities: MCY's short term assets (NZ$473.0M) do not cover its long term liabilities (NZ$2.3B).
Debt to Equity History and Analysis
Debt Level: MCY's debt to equity ratio (36.1%) is considered satisfactory.
Reducing Debt: MCY's debt to equity ratio has reduced from 40.3% to 36.1% over the past 5 years.
Debt Coverage: MCY's debt is well covered by operating cash flow (26.4%).
Interest Coverage: MCY's interest payments on its debt are well covered by EBIT (5.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Mercury NZ current dividend yield, its reliability and sustainability?
2.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCY's dividend (2.41%) is higher than the bottom 25% of dividend payers in the NZ market (2.38%).
High Dividend: MCY's dividend (2.41%) is low compared to the top 25% of dividend payers in the NZ market (4.12%).
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 high payout ratio (103.9%), MCY's dividend payments are not well 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 (125.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Vince Hawksworth (61 yo)
0.83
Tenure
NZ$513,940
Compensation
Mr. Vincent John Hawksworth, also Known as Vince, C.ENG, MBA, MIMinE, has been Non-Independent Director at Tilt Renewables Limited since April 1, 2020. He serves as Chief Executive Officer at Mercury NZ Li...
CEO Compensation Analysis
Compensation vs Market: Vince's total compensation ($USD365.56K) is below average for companies of similar size in the NZ market ($USD1.21M).
Compensation vs Earnings: Insufficient data to compare Vince's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.83yr | NZ$513.94k | 0.00031% NZ$ 29.1k | |
| Chief Financial Officer | no data | no data | 0.0073% NZ$ 690.1k | |
| 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 | 4.5yrs | no data | 0.0023% NZ$ 212.5k | |
| General Manager of People & Performance | 6.5yrs | no data | 0.0045% NZ$ 423.1k | |
| Manager of Generation Development | no data | no data | no data |
4.5yrs
Average Tenure
Experienced Management: MCY's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 11.67yrs | NZ$124.00k | 0.0022% NZ$ 207.8k | |
| Independent Non-Executive Director | 6.92yrs | NZ$110.87k | 0.0029% NZ$ 269.9k | |
| Independent Non-Executive Director | 3.33yrs | NZ$114.61k | 0.0033% NZ$ 310.3k | |
| Independent Non-Executive Director | 6.5yrs | NZ$106.00k | 0.00024% NZ$ 22.6k | |
| Independent Non-Executive Director | 8.67yrs | NZ$117.50k | 0.0030% NZ$ 278.3k | |
| Independent Non-Executive Chairman | 1.33yrs | NZ$165.73k | 0.0019% NZ$ 182.4k | |
| Independent Non-Executive Director | 5.42yrs | NZ$106.00k | 0.00016% NZ$ 15.0k | |
| Independent Non-Executive Director | 0.92yr | NZ$43.58k | 0.000070% NZ$ 6.6k |
6.0yrs
Average Tenure
Experienced Board: MCY's board of directors are considered experienced (6 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 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$9.403b
- Shares outstanding: 1.36b
- Website: https://www.mercury.co.nz
Number of Employees
Location
- Mercury NZ Limited
- The Mercury Building
- 33 Broadway
- 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 Generation/Wholesale, Ret...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 06:01 |
| End of Day Share Price | 2021/01/19 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.