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MEL

Meridian EnergyNZSE:MEL Stock Report

Last Price

NZ$4.64

Market Cap

NZ$11.9b

7D

-2.7%

1Y

-42.6%

Updated

22 Jan, 2022

Data

Company Financials +
MEL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends1/6

MEL Stock Overview

Meridian Energy Limited engages in the generation, trading, and retailing of electricity to residential, business, and industrial customers in New Zealand, Australia, and the United Kingdom.

Meridian Energy Competitors

Origin Energy

ASX:ORG

AU$10.0b

Contact Energy

NZSE:CEN

NZ$6.0b

AGL Energy

ASX:AGL

AU$4.8b

Vector

NZSE:VCT

NZ$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Meridian Energy
Historical stock prices
Current Share PriceNZ$4.64
52 Week HighNZ$8.15
52 Week LowNZ$4.45
Beta0.74
1 Month Change-5.50%
3 Month Change-7.57%
1 Year Change-42.57%
3 Year Change31.63%
5 Year Change68.12%
Change since IPO84.86%

Recent News & Updates

Jan 15
I Ran A Stock Scan For Earnings Growth And Meridian Energy (NZSE:MEL) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Meridian Energy (NZSE:MEL) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Dec 31
Meridian Energy Limited's (NZSE:MEL) Intrinsic Value Is Potentially 97% Above Its Share Price

Meridian Energy Limited's (NZSE:MEL) Intrinsic Value Is Potentially 97% Above Its Share Price

How far off is Meridian Energy Limited ( NZSE:MEL ) from its intrinsic value? Using the most recent financial data...

Dec 18
Does Meridian Energy (NZSE:MEL) Have A Healthy Balance Sheet?

Does Meridian Energy (NZSE:MEL) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

MELNZ Renewable EnergyNZ Market
7D-2.7%-2.7%-3.1%
1Y-42.6%-41.1%-11.4%

Return vs Industry: MEL underperformed the NZ Renewable Energy industry which returned -41.1% over the past year.

Return vs Market: MEL underperformed the NZ Market which returned -11.4% over the past year.

Price Volatility

Is MEL's price volatile compared to industry and market?
MEL volatility
MEL Average Weekly Movement3.8%
Renewable Energy Industry Average Movement6.0%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.4%

Stable Share Price: MEL is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MEL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,015Neal Barclayhttps://www.meridianenergy.co.nz

Meridian Energy Limited engages in the generation, trading, and retailing of electricity to residential, business, and industrial customers in New Zealand, Australia, and the United Kingdom. It generates electricity through wind farms, hydro power stations, and solar farms. The company also provides management, insurance, financing, professional, trustee, and software development services; and licenses Flux developed electricity and gas retailing platform, as well as offers solar installation services.

Meridian Energy Fundamentals Summary

How do Meridian Energy's earnings and revenue compare to its market cap?
MEL fundamental statistics
Market CapNZ$11.95b
Earnings (TTM)NZ$428.00m
Revenue (TTM)NZ$4.30b

27.9x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEL income statement (TTM)
RevenueNZ$4.30b
Cost of RevenueNZ$3.57b
Gross ProfitNZ$729.00m
ExpensesNZ$301.00m
EarningsNZ$428.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 23, 2022

Earnings per share (EPS)0.17
Gross Margin16.97%
Net Profit Margin9.96%
Debt/Equity Ratio32.1%

How did MEL perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

101%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MEL (NZ$4.64) is trading below our estimate of fair value (NZ$9.57)

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


Price To Earnings Ratio

PE vs Industry: MEL is poor value based on its PE Ratio (27.9x) compared to the Global Renewable Energy industry average (18.5x).

PE vs Market: MEL is poor value based on its PE Ratio (27.9x) compared to the NZ market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MEL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MEL is overvalued based on its PB Ratio (2.3x) compared to the XO Renewable Energy industry average (1.4x).


Future Growth

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

-4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEL's earnings are forecast to decline over the next 3 years (-4% per year).

Earnings vs Market: MEL's earnings are forecast to decline over the next 3 years (-4% per year).

High Growth Earnings: MEL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MEL's revenue is expected to decline over the next 3 years (-12% per year).

High Growth Revenue: MEL's revenue is forecast to decline over the next 3 years (-12% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEL's Return on Equity is forecast to be low in 3 years time (6.2%).


Past Performance

How has Meridian Energy performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEL has high quality earnings.

Growing Profit Margin: MEL's current net profit margins (10%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: MEL's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: MEL's earnings growth over the past year (143.2%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: MEL earnings growth over the past year (143.2%) exceeded the Renewable Energy industry 10.8%.


Return on Equity

High ROE: MEL's Return on Equity (8.2%) is considered low.


Financial Health

How is Meridian Energy's financial position?


Financial Position Analysis

Short Term Liabilities: MEL's short term assets (NZ$917.0M) do not cover its short term liabilities (NZ$1.1B).

Long Term Liabilities: MEL's short term assets (NZ$917.0M) do not cover its long term liabilities (NZ$3.5B).


Debt to Equity History and Analysis

Debt Level: MEL's net debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: MEL's debt to equity ratio has increased from 24.1% to 32.1% over the past 5 years.

Debt Coverage: MEL's debt is well covered by operating cash flow (25.7%).

Interest Coverage: MEL's interest payments on its debt are well covered by EBIT (119x coverage).


Balance Sheet


Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MEL's dividend (3.64%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: MEL's dividend (3.64%) is low compared to the top 25% of dividend payers in the NZ market (4.97%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MEL has been paying a dividend for less than 10 years.

Growing Dividend: MEL'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 (101.2%), MEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MEL's dividends in 3 years are not forecast to be well covered by earnings (164.1% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Neal Barclay

4yrs

Tenure

NZ$2,308,446

Compensation

Mr. Neal Barclay has been Chief Executive Officer of Meridian Energy Limited since January 1, 2018. Mr. Barclay served as General Manager of Retail at Meridian Energy Limited since April 5, 2016 until July...


CEO Compensation Analysis

Compensation vs Market: Neal's total compensation ($USD1.55M) is about average for companies of similar size in the NZ market ($USD1.76M).

Compensation vs Earnings: Neal's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MEL's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: MEL's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MEL insiders have only sold shares 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

Meridian Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Meridian Energy Limited
  • Ticker: MEL
  • Exchange: NZSE
  • Founded: 1998
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Implied Market Cap: NZ$11.948b
  • Shares outstanding: 2.58b
  • Website: https://www.meridianenergy.co.nz

Number of Employees


Location

  • Meridian Energy Limited
  • 55 Lady Elizabeth Lane
  • Level 2
  • Wellington
  • 6011
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 06:01
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.