Meridian Energy
Market Cap
NZ$14.0b
Last Updated
2021/05/07 07:02 UTC
Data Sources
Company Financials +
Executive Summary
Meridian Energy Limited engages in the generation, trading, and retail of electricity and gas. More Details
Rewards
Risk Analysis
Dividend of 3.17% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Meridian Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEL is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: MEL's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of NZ stocks.
Market Performance
7 Day Return
0%
MEL
0.3%
NZ Renewable Energy
0.5%
NZ Market
1 Year Return
13.4%
MEL
27.2%
NZ Renewable Energy
20.4%
NZ Market
Return vs Industry: MEL underperformed the NZ Renewable Energy industry which returned 27.2% over the past year.
Return vs Market: MEL underperformed the NZ Market which returned 20.4% over the past year.
Shareholder returns
| MEL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.3% | 0.5% |
| 30 Day | -0.7% | 4.0% | 2.5% |
| 90 Day | -23.7% | -16.1% | -3.1% |
| 1 Year | 17.9%13.4% | 34.3%27.2% | 23.8%20.4% |
| 3 Year | 109.2%80.1% | 97.3%70.3% | 45.6%28.5% |
| 5 Year | 154.5%95.2% | 113.0%71.7% | 82.3%40.9% |
Long-Term Price Volatility Vs. Market
How volatile is Meridian Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Meridian Energy Limited (NZSE:MEL) Stock's On A Decline: Are Poor Fundamentals The Cause?1 month ago | Simply Wall St
Meridian Energy (NZSE:MEL) Takes On Some Risk With Its Use Of Debt1 month ago | Simply Wall St
Could The Meridian Energy Limited (NZSE:MEL) Ownership Structure Tell Us Something Useful?Valuation
Is Meridian Energy undervalued compared to its fair value and its price relative to the market?
20.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEL (NZ$5.33) is trading below our estimate of fair value (NZ$6.69)
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 (64.4x) compared to the XO Renewable Energy industry average (14.1x).
PE vs Market: MEL is poor value based on its PE Ratio (64.4x) compared to the NZ market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: MEL is poor value based on its PEG Ratio (15.2x)
Price to Book Ratio
PB vs Industry: MEL is good value based on its PB Ratio (2.7x) compared to the XO Renewable Energy industry average (2.9x).
Future Growth
How is Meridian Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
4.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEL's forecast earnings growth (4.2% per year) is above the savings rate (2.1%).
Earnings vs Market: MEL's earnings (4.2% per year) are forecast to grow slower than the NZ market (8.3% per year).
High Growth Earnings: MEL's earnings are forecast to grow, but not significantly.
Revenue vs Market: MEL's revenue is expected to decline over the next 3 years (-3.1% per year).
High Growth Revenue: MEL's revenue is forecast to decline over the next 3 years (-3.1% 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 (5.2%).
Past Performance
How has Meridian Energy performed over the past 5 years?
6.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEL has high quality earnings.
Growing Profit Margin: MEL's current net profit margins (6.1%) are lower than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: MEL's earnings have grown by 6.6% per year over the past 5 years.
Accelerating Growth: MEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MEL had negative earnings growth (-43.8%) over the past year, making it difficult to compare to the Renewable Energy industry average (17.9%).
Return on Equity
High ROE: MEL's Return on Equity (4.2%) is considered low.
Financial Health
How is Meridian Energy's financial position?
Financial Position Analysis
Short Term Liabilities: MEL's short term assets (NZ$653.0M) do not cover its short term liabilities (NZ$736.0M).
Long Term Liabilities: MEL's short term assets (NZ$653.0M) do not cover its long term liabilities (NZ$3.6B).
Debt to Equity History and Analysis
Debt Level: MEL's debt to equity ratio (33.5%) is considered satisfactory.
Reducing Debt: MEL's debt to equity ratio has increased from 26.5% to 33.5% over the past 5 years.
Debt Coverage: MEL's debt is well covered by operating cash flow (31.3%).
Interest Coverage: MEL's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
Dividend
What is Meridian Energy current dividend yield, its reliability and sustainability?
3.17%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEL's dividend (3.17%) is higher than the bottom 25% of dividend payers in the NZ market (2.31%).
High Dividend: MEL's dividend (3.17%) is low compared to the top 25% of dividend payers in the NZ market (4.54%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (204.3%), 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 (187% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Neal Barclay
3.33yrs
Tenure
NZ$2,039,841
Compensation
Mr. Neal Barclay has been Chief Executive Officer of Meridian Energy Limited since January 1, 2018. Mr. Barclay served as General Manager of Retail at Meridian Energy Limited since April 5, 2016 until July...
CEO Compensation Analysis
Compensation vs Market: Neal's total compensation ($USD1.47M) is below average for companies of similar size in the NZ market ($USD3.29M).
Compensation vs Earnings: Neal's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: MEL's management team is considered experienced (2 years average tenure).
Board Members
Experienced Board: MEL's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MEL insiders have sold more shares than they have bought 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Meridian Energy Limited
- Ticker: MEL
- Exchange: NZSE
- Founded: NaN
- Industry: Renewable Electricity
- Sector: Utilities
- Market Cap: NZ$13.989b
- Shares outstanding: 2.56b
- Website: https://www.meridianenergy.co.nz
Number of Employees
Location
- Meridian Energy Limited
- 55 Lady Elizabeth Lane
- Level 2
- Wellington
- 6011
- New Zealand
Listings
Biography
Meridian Energy Limited engages in the generation, trading, and retail of electricity and gas. The company generates electricity through hydro power stations and wind farms located in New Zealand and Austr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 07:02 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| 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.