Genie Energy Ltd. (NYSE:GNE): A Fundamentally Attractive Investment

Attractive stocks have exceptional fundamentals. In the case of Genie Energy Ltd. (NYSE:GNE), there's is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Genie Energy here.

Excellent balance sheet with solid track record

In the past couple of years, GNE has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did GNE outperformed its past performance, its growth also exceeded the Electric Utilities industry expansion, which generated a 4.2% earnings growth. This is an notable feat for the company. GNE's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that GNE manages its cash and cost levels well, which is a crucial insight into the health of the company. GNE seems to have put its debt to good use, generating operating cash levels of 3.26x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

Next Steps:

For Genie Energy, there are three important aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for GNE’s future growth? Take a look at our free research report of analyst consensus for GNE’s outlook.
2. Valuation: What is GNE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GNE is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GNE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.