TPW Stock Overview
Trustpower Limited engages in the development, ownership, and operation of electricity generation facilities in New Zealand.
Price History & Performance
|Historical stock prices|
|Current Share Price||NZ$7.10|
|52 Week High||NZ$9.02|
|52 Week Low||NZ$6.99|
|1 Month Change||-1.93%|
|3 Month Change||-4.05%|
|1 Year Change||-18.01%|
|3 Year Change||15.45%|
|5 Year Change||50.42%|
|Change since IPO||44.31%|
Recent News & Updates
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...
|TPW||NZ Electric Utilities||NZ Market|
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.
|TPW Average Weekly Movement||2.2%|
|Electric Utilities Industry Average Movement||2.5%|
|Market Average Movement||3.8%|
|10% most volatile stocks in NZ Market||6.5%|
|10% least volatile stocks in NZ Market||2.4%|
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
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
|TPW fundamental statistics|
Is TPW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TPW income statement (TTM)|
|Cost of Revenue||NZ$615.00m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
May 16, 2022
|Earnings per share (EPS)||0.37|
|Net Profit Margin||11.45%|
How did TPW perform over the long term?See historical performance and comparison
5.0%Current Dividend Yield
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$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).
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 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%).
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 (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.
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$741.6M).
Debt to Equity History and Analysis
Debt Level: TPW's net debt to equity ratio (61.2%) is considered high.
Reducing Debt: TPW's debt to equity ratio has reduced from 70.5% to 62.5% over the past 5 years.
Debt Coverage: TPW's debt is well covered by operating cash flow (27.1%).
Interest Coverage: TPW's interest payments on its debt are well covered by EBIT (6.3x coverage).
What is Trustpower current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TPW's dividend (5%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).
High Dividend: TPW's dividend (5%) is in the top 25% of dividend payers in the NZ market (4.97%)
Stability and Growth of Payments
Stable Dividend: TPW has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: TPW's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (93%), TPW's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TPW's dividends in 3 years are not forecast to be well covered by earnings (91.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Prentice (51 yo)
Dr. David Prentice, BEng (HONS), PhD, FEngNZis Chief Executive Officer of Trustpower Limited since January 20, 2020. Dr. Prentice was an Independent Director at Trustpower Limited since July 26, 2019 until...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($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.
Experienced Management: TPW's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: TPW's board of directors are not considered experienced ( 1.3 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: TPW 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 employee growth, exchange listings and data sources
- 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
- Trustpower Limited
- Trustpower Building
- 108 Durham Street
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/24 06:01|
|End of Day Share Price||2022/01/24 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.