Trustpower Limited engages in the development, ownership, and operation of electricity generation facilities in New Zealand. More Details
Solid track record with adequate balance sheet.
Share Price & News
How has Trustpower's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TPW is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TPW's weekly volatility (4%) has been stable over the past year.
7 Day Return
NZ Electric Utilities
1 Year Return
NZ Electric Utilities
Return vs Industry: TPW underperformed the NZ Electric Utilities industry which returned 26.2% over the past year.
Return vs Market: TPW exceeded the NZ Market which returned 8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Trustpower's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StDid You Participate In Any Of Trustpower's (NZSE:TPW) Respectable 75% Return?
2 weeks ago | Simply Wall StThese 4 Measures Indicate That Trustpower (NZSE:TPW) Is Using Debt Reasonably Well
4 weeks ago | Simply Wall StCalculating The Fair Value Of Trustpower Limited (NZSE:TPW)
Is Trustpower undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TPW (NZ$8.78) is trading below our estimate of fair value (NZ$8.89)
Significantly Below Fair Value: TPW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TPW is good value based on its PE Ratio (30.5x) compared to the NZ Electric Utilities industry average (45.5x).
PE vs Market: TPW is poor value based on its PE Ratio (30.5x) compared to the NZ market (25.2x).
Price to Earnings Growth Ratio
PEG Ratio: TPW is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: TPW's PB Ratio (2.6x) is in line with the NZ Electric Utilities industry average.
How is Trustpower forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TPW's forecast earnings growth (10.3% per year) is above the savings rate (2.3%).
Earnings vs Market: TPW's earnings (10.3% per year) are forecast to grow slower than the NZ market (11.3% per year).
High Growth Earnings: TPW's earnings are forecast to grow, but not significantly.
Revenue vs Market: TPW's revenue is expected to decline over the next 3 years (-0.9% per year).
High Growth Revenue: TPW's revenue is forecast to decline over the next 3 years (-0.9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TPW's Return on Equity is forecast to be low in 3 years time (9.4%).
How has Trustpower performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TPW has high quality earnings.
Growing Profit Margin: TPW's current net profit margins (9.4%) are higher than last year (6.2%).
Past Earnings Growth Analysis
Earnings Trend: TPW's earnings have grown by 1.3% per year over the past 5 years.
Accelerating Growth: TPW's earnings growth over the past year (38.4%) exceeds its 5-year average (1.3% per year).
Earnings vs Industry: TPW earnings growth over the past year (38.4%) exceeded the Electric Utilities industry -21.9%.
Return on Equity
High ROE: TPW's Return on Equity (8.4%) is considered low.
How is Trustpower's financial position?
Financial Position Analysis
Short Term Liabilities: TPW's short term assets (NZ$210.9M) exceed its short term liabilities (NZ$128.4M).
Long Term Liabilities: TPW's short term assets (NZ$210.9M) do not cover its long term liabilities (NZ$946.3M).
Debt to Equity History and Analysis
Debt Level: TPW's debt to equity ratio (61.7%) is considered high.
Reducing Debt: TPW's debt to equity ratio has reduced from 67.9% to 61.7% over the past 5 years.
Debt Coverage: TPW's debt is well covered by operating cash flow (24.4%).
Interest Coverage: TPW's interest payments on its debt are well covered by EBIT (4.5x coverage).
What is Trustpower current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TPW's dividend (5.24%) is higher than the bottom 25% of dividend payers in the NZ market (2.39%).
High Dividend: TPW's dividend (5.24%) is in the top 25% of dividend payers in the NZ market (4.1%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, TPW has been paying a dividend for less than 10 years.
Growing Dividend: TPW's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (112.8%), TPW's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TPW's dividends in 3 years are not forecast to be well covered by earnings (103.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Prentice (50 yo)
Dr. David Prentice, BEng (HONS), PhD, FEngNZis Chief Executive Officer of Trustpower Limited since January 20, 2020. Dr. Prentice was an Independent Director at Trustpower Limited since July 26, 2019 until...
|CEO & Non-Independent Director||1yr||no data||no data|
|CFO & Company Secretary||4.08yrs||no data||0.010% |
|General Manager of Technology & Delivery||0.083yr||no data||0.0049% |
|General Manager of People & Culture||0.25yr||no data||no data|
Experienced Management: TPW's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
|CEO & Non-Independent Director||1yr||no data||no data|
|Non-Independent Director||0.17yr||no data||0.087% |
|Non Independent Director||1.5yrs||no data||0.0024% |
|Chairman of the Board||5.08yrs||NZ$176.50k||no data|
|Non Independent Director||2.58yrs||NZ$84.17k||no data|
|Independent Director||0.33yr||no data||0.0017% |
|Independent Director||5.42yrs||NZ$118.50k||no data|
Experienced Board: TPW's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if 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.
Trustpower Limited's company bio, employee growth, exchange listings and data sources
- Name: Trustpower Limited
- Ticker: TPW
- Exchange: NZSE
- Founded: 1915
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: NZ$2.748b
- Shares outstanding: 312.97m
- Website: https://www.trustpower.co.nz
Number of Employees
- Trustpower Limited
- Trustpower Building
- 108 Durham Street
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TPW||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Oct 2016|
Trustpower Limited engages in the development, ownership, and operation of electricity generation facilities in New Zealand. It operates through Generation and Retail segments. The company is also involved...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/16 06:04|
|End of Day Share Price||2021/01/15 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.