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MNW

Manawa Energy NZSE:MNW Stock Report

Last Price

NZ$6.25

Market Cap

NZ$2.0b

7D

0.3%

1Y

-24.2%

Updated

19 Aug, 2022

Data

Company Financials +
MNW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends2/6

MNW Stock Overview

Manawa Energy Limited engages in the ownership and operation of electricity generation facilities in New Zealand.

Manawa Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Manawa Energy
Historical stock prices
Current Share PriceNZ$6.25
52 Week HighNZ$8.33
52 Week LowNZ$5.87
Beta0.39
1 Month Change2.46%
3 Month Change-9.55%
1 Year Change-24.24%
3 Year Change-18.83%
5 Year Change11.81%
Change since IPO27.03%

Recent News & Updates

May 22
Manawa Energy's (NZSE:MNW) Dividend Will Be Increased To NZ$0.54

Manawa Energy's (NZSE:MNW) Dividend Will Be Increased To NZ$0.54

Manawa Energy Limited's ( NZSE:MNW ) dividend will be increasing to NZ$0.54 on 17th of June. This will take the...

Shareholder Returns

MNWNZ Electric UtilitiesNZ Market
7D0.3%0.1%0.5%
1Y-24.2%-2.1%-11.4%

Return vs Industry: MNW underperformed the NZ Electric Utilities industry which returned -2.1% over the past year.

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

Price Volatility

Is MNW's price volatile compared to industry and market?
MNW volatility
MNW Average Weekly Movement3.0%
Electric Utilities Industry Average Movement3.5%
Market Average Movement4.3%
10% most volatile stocks in NZ Market8.3%
10% least volatile stocks in NZ Market2.9%

Stable Share Price: MNW is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MNW's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1915777David Prenticehttps://www.manawaenergy.co.nz

Manawa Energy Limited engages in the ownership and operation of electricity generation facilities in New Zealand. The company is also involved in the generation of renewable electricity through hydro power schemes; and supply of water to Canterbury irrigators. It operates approximately 26 power schemes in New Zealand with a total installed capacity of 498MW.

Manawa Energy Fundamentals Summary

How do Manawa Energy's earnings and revenue compare to its market cap?
MNW fundamental statistics
Market CapNZ$1.99b
Earnings (TTM)NZ$105.46m
Revenue (TTM)NZ$322.82m

18.5x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNW income statement (TTM)
RevenueNZ$322.82m
Cost of RevenueNZ$112.66m
Gross ProfitNZ$210.16m
Other ExpensesNZ$104.70m
EarningsNZ$105.46m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin65.10%
Net Profit Margin32.67%
Debt/Equity Ratio73.0%

How did MNW perform over the long term?

See historical performance and comparison

Dividends

10.7%

Current Dividend Yield

98%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MNW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MNW?

Other financial metrics that can be useful for relative valuation.

MNW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.5x
Enterprise Value/EBITDA17.2x
PEG Ratio-10.2x

Price to Earnings Ratio vs Peers

How does MNW's PE Ratio compare to its peers?

MNW PE Ratio vs Peers
The above table shows the PE ratio for MNW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average62.5x
GNE Genesis Energy
46.9x2.6%NZ$3.1b
IFT Infratil
151x41.9%NZ$6.6b
CEN Contact Energy
33.7x12.3%NZ$6.2b
MCY Mercury NZ
18.5x-23.8%NZ$8.7b
MNW Manawa Energy
18.5x-1.8%NZ$2.0b

Price-To-Earnings vs Peers: MNW is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (62.5x).


Price to Earnings Ratio vs Industry

How does MNW's PE Ratio compare vs other companies in the Global Electric Utilities Industry?

Price-To-Earnings vs Industry: MNW is good value based on its Price-To-Earnings Ratio (18.5x) compared to the NZ Electric Utilities industry average (34.1x)


Price to Earnings Ratio vs Fair Ratio

What is MNW'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.

MNW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.5x
Fair PE Ratio29.6x

Price-To-Earnings vs Fair Ratio: MNW is good value based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).


Share Price vs Fair Value

What is the Fair Price of MNW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MNW (NZ$6.25) is trading below our estimate of fair value (NZ$9.67)

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


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.


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Future Growth

How is Manawa Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNW's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: MNW's earnings are forecast to decline over the next 3 years (-1.8% per year).

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

Revenue vs Market: MNW's revenue (3.3% per year) is forecast to grow slower than the NZ market (6.2% per year).

High Growth Revenue: MNW's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNW's Return on Equity is forecast to be low in 3 years time (9.2%).


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Past Performance

How has Manawa Energy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MNW has high quality earnings.

Growing Profit Margin: MNW's current net profit margins (32.7%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: MNW's earnings have declined by 4.5% per year over the past 5 years.

Accelerating Growth: MNW's earnings growth over the past year (434.7%) exceeds its 5-year average (-4.5% per year).

Earnings vs Industry: MNW earnings growth over the past year (434.7%) exceeded the Electric Utilities industry 7.2%.


Return on Equity

High ROE: MNW's Return on Equity (10.4%) is considered low.


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Financial Health

How is Manawa Energy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MNW's short term assets (NZ$402.2M) do not cover its short term liabilities (NZ$515.5M).

Long Term Liabilities: MNW's short term assets (NZ$402.2M) do not cover its long term liabilities (NZ$730.6M).


Debt to Equity History and Analysis

Debt Level: MNW's net debt to equity ratio (72%) is considered high.

Reducing Debt: MNW's debt to equity ratio has increased from 47.8% to 73% over the past 5 years.

Debt Coverage: MNW's debt is well covered by operating cash flow (21.3%).

Interest Coverage: MNW's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


10.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MNW's dividend (10.72%) is higher than the bottom 25% of dividend payers in the NZ market (2.99%).

High Dividend: MNW's dividend (10.72%) is in the top 25% of dividend payers in the NZ market (5.81%)


Stability and Growth of Payments

Stable Dividend: MNW has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MNW's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (97.9%), MNW's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (163%), MNW's dividend payments are not well covered by cash flows.


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Management

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

0.9yrs

Average board tenure


CEO

David Prentice (52 yo)

2.58yrs

Tenure

NZ$1,012,483

Compensation

Dr. David Prentice, BEng (HONS), PhD, FEngNZ, serves as Chief Executive Officer of Manawa Energy Limited (formerly known as Trustpower Limited) since January 20, 2020. Dr. Prentice was an Independent Direc...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD636.34K) is below average for companies of similar size in the NZ market ($USD1.42M).

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


Board Members

Experienced Board: MNW's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MNW 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

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


Key Information

  • Name: Manawa Energy Limited
  • Ticker: MNW
  • Exchange: NZSE
  • Founded: 1915
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: NZ$1.987b
  • Shares outstanding: 312.97m
  • Website: https://www.manawaenergy.co.nz

Number of Employees


Location

  • Manawa Energy Limited
  • 108 Durham Street
  • Tauranga
  • 3110
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.