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GNE

Genie Energy NYSE:GNE Stock Report

Last Price

US$9.49

Market Cap

US$245.7m

7D

1.3%

1Y

45.1%

Updated

28 Sep, 2022

Data

Company Financials
GNE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

GNE Stock Overview

Genie Energy Ltd., through its subsidiaries, supplies electricity and natural gas to residential and small business customers in the United States, Finland, Sweden, Japan, and internationally.

Genie Energy Ltd. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Genie Energy
Historical stock prices
Current Share PriceUS$9.49
52 Week HighUS$11.38
52 Week LowUS$4.74
Beta0.29
1 Month Change-11.80%
3 Month Change3.60%
1 Year Change45.11%
3 Year Change25.03%
5 Year Change45.11%
Change since IPO3.83%

Recent News & Updates

Aug 26

Genie Energy: Profitable Despite Unfavorable Market Conditions

Summary The company set record income from operations having the most profitable second quarter in the company's history. Management's hedging strategies paid off with a significant increase in gross profit and operating income. The company is still doing well despite energy price volatility, global economic situation, and geopolitical issues. Due to Genie Energy's risk management and current price trading below its fair value, I rate the stock as a Buy. Investment Thesis I think that Genie Energy Ltd. (GNE) is a profitable company because it has set record profitability and strong returns over the past few months, and its valuation implies that it is currently trading below the fair value, which leads me to rate the stock as a Buy. The company is doing reasonably well even when energy prices are volatile. I also think management is excellent at risk management due to hedging strategies (reducing commodity volatility risk) and improving its position by lessening its forward obligations in the market. Record Quarter Results GNE has set record second-quarter results which have been the company's strongest second-quarter results in the company's history. The company's revenue decreased by 1.8% ($1.35 million) from $75 million compared to Q2'21's result of $76 million. However, gross profit did increase in its second-quarter results by a whopping 218.2% to $67.5 million (impacted by the market-to-market gain on international hedges), increasing the gross margin by 89.9% compared to Q2'21's 27.7% gross margin. The increases reflect the company's risk management portfolio of "Hedging strategies to reduce commodity volatility risk" back in the first quarter of 2022 to be effective in advance of an increase in recent energy prices. Genie Energy Segments GNE operates in three different segments: Genie Retail Energy ('GRE') - supplies electricity and natural gas to residential and small business customers in certain portions of deregulated markets within the United States. Genie Retail Energy International (GRE International) supplies electricity to Scandinavia residential and small business customers. Genie Renewables - Four lines of businesses: Genie Solar Energy (Genie Solar) - Designs and builds a local solar installation for commercial-size customers. CityCom Solar - Recruits customers to purchase electricity generated by community solar fields. Prism Solar Technologies - Designs and manufactures niche solar panels for wholesale distribution. Diversegy (Diversegy) - An energy broker for commercial customers. Author - Data from Sec.Gov - Chart from mega-chart In the Q2'22 results, GRE accounted for most of the company's revenue and had a revenue of $63.2 million, while GRE International had second-quarter revenue of $8.1 million, followed by Genie Renewables of $3.8 million. Author - Data From GNE Second-Quarter Results Gross profit by segment (three months ended June 2022 & 2021): GRE: 2022 second-quarter results gross profit of $29 million vs. $18.3 million in Q2'21. GRI: 2022 second-quarter results gross profit of $37.8 million vs. $1.9 million in Q2'21 (appreciation of the value of the forward hedges). Genie Renewables: 2022 second-quarter results gross profit of $818,000 vs. $922,000 in Q2'21. Operating income increased from $4.5 million to $48.5 million due to an increase in consolidated SG&A expenses (corporate overhead included), which increased from $16.7 million in Q2'21 to $19 million in Q2'22, reflecting an increase in GRE's customer acquisition expenses and general overhead. Operating income by segment (three months ended June 2022 & 2021): GRE: 2022 second-quarter operating income of $14.4 million vs. $5.4 million in Q2'21. GRI: 2022 second-quarter operating income of $36.4 million vs. $144,000 in Q2'21. Genie Renewables: 2022 second-quarter operating income loss of $519,000 vs. $334,000 in Q2'21. GNE also announced that they will be paying a quarterly dividend of $0.075 for class A and class B stockholders and has repurchased 639,000 class B common stock shares amounting to $4.4 million, averaging about $6.90 per share. I think GNE's hedging strategies proved effective in energy price volatility and increased the company's profitability over the second quarter of 2022. GNE's share price was around $6.30 back in May and is currently trading at $10.69 or a 69% increase in the past quarter, and surprisingly enough, the company is still below fair value. The company's balance sheet is looking robust. The company has been strengthening its balance sheet by having low debt levels and increasing its cash growth. According to Michael Stein, the CEO of GNE: "Our solar strategy includes creating value with robust returns by putting our strong balance sheet to work." – GNE Q2 2022 Results - Earnings Call Transcript The company has total cash & cash equivalents of $67 million or $2.58 per diluted share. Although the company's cash grew 32% compared to last year's second quarter results, GNE's cash balance declined by $28.1 million, a 29% decrease compared to the past quarter. Avi Goldin, the company's CFO, has this to say regarding the decrease in cash: "Cash balance declined compared to last quarter as we move cash to the administrator of our former UK business as the insolvency process there moves forward." – GNE Q2 2022 Results - Earnings Call Transcript Overall, management suggests that the growth in profitability will continue in the following quarters. Most of the success in the second quarter results was from mark-to-market gains on the company's forward electricity hedges. Due to volatility in energy prices, geopolitical risks, and the overall global economic situation, the company is further improving its position by lessening its forward obligations in the market, starting with selling the Swedish book (which kind of means that they are reducing their geographic diversity, but I think it is a step into the right direction given the volatility and risks with operating in these regions). Michael Stein, GNE's CEO, also stated: "In summary, we had record bottom line results during the first half of the year and we expect to continue to generate strong year-over-year consolidated adjusted EBITDA expansion in the second half. We have also taken several steps to lay the foundation for long-term growth in our emerging renewable businesses. And finally, we continue to fulfill our commitment to return capital to shareholders." – GNE Q2 2022 Results - Earnings Call Transcript

Aug 08

Genie Energy GAAP EPS of $1.30, revenue of $75.03M

Genie Energy press release (NYSE:GNE): Q2 GAAP EPS of $1.30. Revenue of $75.03M (-1.8% Y/Y). Gross margin increased to 89.9% from 27.8%. Adjusted EBITDA increased to $49.1M from $5.5M. "Looking ahead to the remainder of 2022, we anticipate that energy price volatility will continue to impact our domestic retail provider business in the near term.  Until we return to a normalized environment, we will focus on maximizing margins and cash flow while moderating our investment in customer acquisition."

Shareholder Returns

GNEUS Electric UtilitiesUS Market
7D1.3%-4.2%-2.0%
1Y45.1%4.3%-20.3%

Return vs Industry: GNE exceeded the US Electric Utilities industry which returned 4.2% over the past year.

Return vs Market: GNE exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is GNE's price volatile compared to industry and market?
GNE volatility
GNE Average Weekly Movement7.8%
Electric Utilities Industry Average Movement3.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: GNE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GNE's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011186Michael Steinhttps://www.genie.com

Genie Energy Ltd., through its subsidiaries, supplies electricity and natural gas to residential and small business customers in the United States, Finland, Sweden, Japan, and internationally. It operates in three segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables. The company also engages in the provision of energy advisory and brokerage services; solar panel manufacturing and distribution; solar installation design; and project management activities.

Genie Energy Ltd. Fundamentals Summary

How do Genie Energy's earnings and revenue compare to its market cap?
GNE fundamental statistics
Market CapUS$245.67m
Earnings (TTM)US$67.99m
Revenue (TTM)US$353.41m

3.6x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNE income statement (TTM)
RevenueUS$353.41m
Cost of RevenueUS$156.40m
Gross ProfitUS$197.01m
Other ExpensesUS$129.02m
EarningsUS$67.99m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.63
Gross Margin55.75%
Net Profit Margin19.24%
Debt/Equity Ratio0%

How did GNE perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

9%

Payout Ratio