NZSE:NWF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

NZ Windfarms Limited generates and sells electricity to the national grid in New Zealand. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

How has NZ Windfarms's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWF is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NWF's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

NWF

8.0%

NZ Renewable Energy

3.9%

NZ Market


1 Year Return

42.1%

NWF

48.4%

NZ Renewable Energy

10.6%

NZ Market

Return vs Industry: NWF underperformed the NZ Renewable Energy industry which returned 48.4% over the past year.

Return vs Market: NWF exceeded the NZ Market which returned 10.6% over the past year.


Shareholder returns

NWFIndustryMarket
7 Day4.7%8.0%3.9%
30 Day32.7%10.6%3.2%
90 Day48.5%48.5%11.0%
1 Year61.7%42.1%57.8%48.4%14.7%10.6%
3 Year54.2%22.1%171.5%133.2%56.9%36.1%
5 Year219.3%136.9%243.5%180.9%112.7%61.1%

Long-Term Price Volatility Vs. Market

How volatile is NZ Windfarms's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NZ Windfarms 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: NWF (NZ$0.2) is trading below our estimate of fair value (NZ$1.22)

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


Price To Earnings Ratio

PE vs Industry: NWF is poor value based on its PE Ratio (33.2x) compared to the XO Renewable Energy industry average (33x).

PE vs Market: NWF is poor value based on its PE Ratio (33.2x) compared to the NZ market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWF's PB Ratio (1.4x) is in line with the XO Renewable Energy industry average.


Next Steps

Future Growth

How is NZ Windfarms forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NZ Windfarms has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NZ Windfarms performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWF has high quality earnings.

Growing Profit Margin: NWF's current net profit margins (17%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: NWF has become profitable over the past 5 years, growing earnings by -5.8% per year.

Accelerating Growth: NWF's earnings growth over the past year (173.9%) exceeds its 5-year average (-5.8% per year).

Earnings vs Industry: NWF earnings growth over the past year (173.9%) exceeded the Renewable Energy industry 7.5%.


Return on Equity

High ROE: NWF's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is NZ Windfarms's financial position?


Financial Position Analysis

Short Term Liabilities: NWF's short term assets (NZ$6.3M) exceed its short term liabilities (NZ$3.7M).

Long Term Liabilities: NWF's short term assets (NZ$6.3M) do not cover its long term liabilities (NZ$9.1M).


Debt to Equity History and Analysis

Debt Level: NWF's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: NWF's debt to equity ratio has increased from 0% to 24.2% over the past 5 years.

Debt Coverage: NWF's debt is well covered by operating cash flow (77.1%).

Interest Coverage: NWF's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is NZ Windfarms's current dividend yield, its reliability and sustainability?

9.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWF's dividend (9.05%) is higher than the bottom 25% of dividend payers in the NZ market (2.24%).

High Dividend: NWF's dividend (9.05%) is in the top 25% of dividend payers in the NZ market (4.1%)


Stability and Growth of Payments

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

Growing Dividend: NWF's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (300.2%), NWF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Warren Koia

no data

Tenure

Mr. Warren Koia serves as the Chief Executive Officer at NZ Windfarms Limited.


Board Members

NamePositionTenureCompensationOwnership
John Southworth
Chairman of the Board1.67yrsNZ$56.19k0.030%
NZ$ 17.2k
Phil Lennon
Director1.67yrsNZ$4.00k0%
NZ$ 0
Mark Evans
Independent Director1.67yrsNZ$4.00kno data
Patrick Brockie
Independent Director1.67yrsNZ$4.25kno data

1.7yrs

Average Tenure

Experienced Board: NWF's board of directors are not considered experienced ( 1.7 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: Insufficient data to determine if 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

NZ Windfarms Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NZ Windfarms Limited
  • Ticker: NWF
  • Exchange: NZSE
  • Founded: 2002
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: NZ$57.037m
  • Shares outstanding: 288.06m
  • Website: https://www.nzwindfarms.co.nz

Location

  • NZ Windfarms Limited
  • 376 North Range Road
  • Summerhill
  • Palmerston North
  • 4448
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWFNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 2006

Biography

NZ Windfarms Limited generates and sells electricity to the national grid in New Zealand. It operates the Te Rere Hau wind farm, a 48.5 megawatts wind farm located in the North Range road in the Taraua Ran...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 06:01
End of Day Share Price2021/01/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.