| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 1/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$4.64 |
| 52 Week High | NZ$8.15 |
| 52 Week Low | NZ$4.45 |
| Beta | 0.74 |
| 1 Month Change | -5.50% |
| 3 Month Change | -7.57% |
| 1 Year Change | -42.57% |
| 3 Year Change | 31.63% |
| 5 Year Change | 68.12% |
| Change since IPO | 84.86% |
Recent News & Updates
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...
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...
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
| MEL | NZ Renewable Energy | NZ 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
| MEL volatility | |
|---|---|
| MEL Average Weekly Movement | 3.8% |
| Renewable Energy Industry Average Movement | 6.0% |
| Market Average Movement | 3.8% |
| 10% most volatile stocks in NZ Market | 6.5% |
| 10% least volatile stocks in NZ Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 1,015 | Neal Barclay | https://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
| MEL fundamental statistics | |
|---|---|
| Market Cap | NZ$11.95b |
| Earnings (TTM) | NZ$428.00m |
| Revenue (TTM) | NZ$4.30b |
27.9x
P/E Ratio2.8x
P/S RatioIs MEL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MEL income statement (TTM) | |
|---|---|
| Revenue | NZ$4.30b |
| Cost of Revenue | NZ$3.57b |
| Gross Profit | NZ$729.00m |
| Expenses | NZ$301.00m |
| Earnings | NZ$428.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 23, 2022
| Earnings per share (EPS) | 0.17 |
| Gross Margin | 16.97% |
| Net Profit Margin | 9.96% |
| Debt/Equity Ratio | 32.1% |
How did MEL perform over the long term?
See historical performance and comparisonDividends
3.6%
Current Dividend Yield101%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 06:01 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| 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.