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$5.25|
|52 Week High||NZ$5.36|
|52 Week Low||NZ$4.32|
|1 Month Change||7.58%|
|3 Month Change||13.88%|
|1 Year Change||0.19%|
|3 Year Change||8.47%|
|5 Year Change||75.00%|
|Change since IPO||109.16%|
Recent News & Updates
Meridian Energy (NZSE:MEL) Has Some Way To Go To Become A Multi-Bagger
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Here's Why I Think Meridian Energy (NZSE:MEL) Might Deserve Your Attention Today
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
|MEL||NZ Renewable Energy||NZ Market|
Return vs Industry: MEL exceeded the NZ Renewable Energy industry which returned -1.1% over the past year.
Return vs Market: MEL exceeded the NZ Market which returned -11.1% over the past year.
|MEL Average Weekly Movement||4.2%|
|Renewable Energy Industry Average Movement||14.8%|
|Market Average Movement||4.3%|
|10% most volatile stocks in NZ Market||8.3%|
|10% least volatile stocks in NZ Market||3.0%|
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
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|
Is MEL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MEL income statement (TTM)|
|Cost of Revenue||NZ$3.55b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 23, 2022
|Earnings per share (EPS)||0.13|
|Net Profit Margin||8.09%|
How did MEL perform over the long term?See historical performance and comparison
3.2%Current Dividend Yield
Is MEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MEL?
Other financial metrics that can be useful for relative valuation.
|What is MEL's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does MEL's PE Ratio compare to its peers?
|MEL PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MCY Mercury NZ
CEN Contact Energy
NWF NZ Windfarms
MEL Meridian Energy
Price-To-Earnings vs Peers: MEL is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the peer average (20.1x).
Price to Earnings Ratio vs Industry
How does MEL's PE Ratio compare vs other companies in the Global Renewable Energy Industry?
Price-To-Earnings vs Industry: MEL is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the Global Renewable Energy industry average (17.6x)
Price to Earnings Ratio vs Fair Ratio
What is MEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||39.1x|
|Fair PE Ratio||32.2x|
Price-To-Earnings vs Fair Ratio: MEL is expensive based on its Price-To-Earnings Ratio (39.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).
Share Price vs Fair Value
What is the Fair Price of MEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MEL (NZ$5.25) is trading above our estimate of fair value (NZ$2.57)
Significantly Below Fair Value: MEL is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
How is Meridian Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (-8.2% per year).
Earnings vs Market: MEL's earnings are forecast to decline over the next 3 years (-8.2% 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 (-2.7% per year).
High Growth Revenue: MEL's revenue is forecast to decline over the next 3 years (-2.7% 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 (5.9%).
Discover growth companies
How has Meridian Energy performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEL has high quality earnings.
Growing Profit Margin: MEL's current net profit margins (8.1%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: MEL's earnings have grown by 12.4% per year over the past 5 years.
Accelerating Growth: MEL's earnings growth over the past year (64%) exceeds its 5-year average (12.4% per year).
Earnings vs Industry: MEL earnings growth over the past year (64%) exceeded the Renewable Energy industry 8.5%.
Return on Equity
High ROE: MEL's Return on Equity (6.7%) is considered low.
Discover strong past performing companies
How is Meridian Energy's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MEL's short term assets (NZ$1.4B) exceed its short term liabilities (NZ$901.0M).
Long Term Liabilities: MEL's short term assets (NZ$1.4B) do not cover its long term liabilities (NZ$3.6B).
Debt to Equity History and Analysis
Debt Level: MEL's net debt to equity ratio (32.1%) is considered satisfactory.
Reducing Debt: MEL's debt to equity ratio has increased from 25.1% to 35% over the past 5 years.
Debt Coverage: MEL's debt is well covered by operating cash flow (26.1%).
Interest Coverage: MEL earns more interest than it pays, so coverage of interest payments is not a concern.
Discover healthy companies
What is Meridian Energy current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEL's dividend (3.25%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).
High Dividend: MEL's dividend (3.25%) is low compared to the top 25% of dividend payers in the NZ market (5.91%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MEL has been paying a dividend for less than 10 years.
Growing Dividend: MEL's dividend payments have increased, but the company has only paid a dividend for 7 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (126.5%), MEL's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (145.5%), MEL's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Neal Barclay has been Chief Executive Officer of Meridian Energy Limited since January 1, 2018. Mr. Barclay served as General Manager of Retail at Meridian Energy Limited since April 5, 2016 until July...
CEO Compensation Analysis
Compensation vs Market: Neal's total compensation ($USD1.45M) is about average for companies of similar size in the NZ market ($USD2.01M).
Compensation vs Earnings: Neal's compensation has been consistent with company performance over the past year.
Experienced Management: MEL's management team is considered experienced (3 years average tenure).
Experienced Board: MEL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MEL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meridian Energy Limited's employee growth, exchange listings and data sources
- Name: Meridian Energy Limited
- Ticker: MEL
- Exchange: NZSE
- Founded: 1998
- Industry: Renewable Electricity
- Sector: Utilities
- Implied Market Cap: NZ$13.506b
- Shares outstanding: 2.58b
- Website: https://www.meridianenergy.co.nz
Number of Employees
- Meridian Energy Limited
- 55 Lady Elizabeth Lane
- Level 2
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/10 00:00|
|End of Day Share Price||2022/08/10 00:00|
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.