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TPW

TrustpowerNZSE:TPW Stock Report

Last Price

NZ$7.10

Market Cap

NZ$2.2b

7D

-2.1%

1Y

-18.0%

Updated

24 Jan, 2022

Data

Company Financials +
TPW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends2/6

TPW Stock Overview

Trustpower Limited engages in the development, ownership, and operation of electricity generation facilities in New Zealand.

Trustpower Competitors

Contact Energy

NZSE:CEN

NZ$6.0b

Genesis Energy

NZSE:GNE

NZ$2.9b

Meridian Energy

NZSE:MEL

NZ$11.9b

Spark New Zealand

NZSE:SPK

NZ$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Trustpower
Historical stock prices
Current Share PriceNZ$7.10
52 Week HighNZ$9.02
52 Week LowNZ$6.99
Beta0.29
1 Month Change-1.93%
3 Month Change-4.05%
1 Year Change-18.01%
3 Year Change15.45%
5 Year Change50.42%
Change since IPO44.31%

Recent News & Updates

Sep 29
Is Trustpower (NZSE:TPW) A Risky Investment?

Is Trustpower (NZSE:TPW) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

TPWNZ Electric UtilitiesNZ Market
7D-2.1%-2.8%-3.2%
1Y-18.0%-14.5%-11.4%

Return vs Industry: TPW underperformed the NZ Electric Utilities industry which returned -14.5% over the past year.

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

Price Volatility

Is TPW's price volatile compared to industry and market?
TPW volatility
TPW Average Weekly Movement2.2%
Electric Utilities Industry Average Movement2.5%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.4%

Stable Share Price: TPW is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TPW's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1915766David Prenticehttps://www.trustpower.co.nz

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 in the retail sale of electricity and gas; and the provision of telecommunications services, which include wireless broadband and mobile services to homes and businesses.

Trustpower Fundamentals Summary

How do Trustpower's earnings and revenue compare to its market cap?
TPW fundamental statistics
Market CapNZ$2.23b
Earnings (TTM)NZ$114.37m
Revenue (TTM)NZ$998.66m

19.4x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPW income statement (TTM)
RevenueNZ$998.66m
Cost of RevenueNZ$615.00m
Gross ProfitNZ$383.66m
ExpensesNZ$269.29m
EarningsNZ$114.37m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

May 16, 2022

Earnings per share (EPS)0.37
Gross Margin38.42%
Net Profit Margin11.45%
Debt/Equity Ratio62.5%

How did TPW perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

93%

Payout Ratio

Valuation

Is Trustpower undervalued compared to its fair value and its price relative to the market?

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPW (NZ$7.1) is trading below our estimate of fair value (NZ$10.37)

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


Price To Earnings Ratio

PE vs Industry: TPW is good value based on its PE Ratio (19.4x) compared to the Oceanic Electric Utilities industry average (47.6x).

PE vs Market: TPW is poor value based on its PE Ratio (19.4x) compared to the NZ market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: TPW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TPW is overvalued based on its PB Ratio (2.1x) compared to the NZ Electric Utilities industry average (1.9x).


Future Growth

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

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPW's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: TPW's earnings are forecast to decline over the next 3 years (-1.9% per year).

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

Revenue vs Market: TPW's revenue is expected to decline over the next 3 years (-7% per year).

High Growth Revenue: TPW's revenue is forecast to decline over the next 3 years (-7% 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 (10.3%).


Past Performance

How has Trustpower performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPW has high quality earnings.

Growing Profit Margin: TPW's current net profit margins (11.5%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: TPW's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: TPW's earnings growth over the past year (33.8%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: TPW earnings growth over the past year (33.8%) exceeded the Electric Utilities industry -12.6%.


Return on Equity

High ROE: TPW's Return on Equity (10.6%) is considered low.


Financial Health

How is Trustpower's financial position?


Financial Position Analysis

Short Term Liabilities: TPW's short term assets (NZ$292.8M) do not cover its short term liabilities (NZ$322.3M).

Long Term Liabilities: TPW's short term assets (NZ$292.8M) do not cover its long term liabilities (NZ$741.6M).


Debt to Equity History and Analysis

Debt Level: TPW's net debt to equity ratio (61.2%) is considered high.

Reducing Debt: TPW's debt to equity ratio has reduced from 70.5% to 62.5% over the past 5 years.

Debt Coverage: TPW's debt is well covered by operating cash flow (27.1%).

Interest Coverage: TPW's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

What is Trustpower current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPW's dividend (5%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: TPW's dividend (5%) is in the top 25% of dividend payers in the NZ market (4.97%)


Stability and Growth of Payments

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

Growing Dividend: TPW's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93%), 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 (91.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

David Prentice (51 yo)

2yrs

Tenure

NZ$1,004,128

Compensation

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 Compensation Analysis

Compensation vs Market: David's total compensation ($USD675.68K) is below average for companies of similar size in the NZ market ($USD1.53M).

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


Leadership Team

Experienced Management: TPW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: TPW's board of directors are not considered experienced ( 1.3 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: TPW 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

Trustpower Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Trustpower Limited
  • Ticker: TPW
  • Exchange: NZSE
  • Founded: 1915
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: NZ$2.235b
  • Shares outstanding: 312.97m
  • Website: https://www.trustpower.co.nz

Number of Employees


Location

  • Trustpower Limited
  • Trustpower Building
  • 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 Analysis2022/01/24 06:01
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.