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Contact Energy Ltd CEN

Morningstar Rating
NZD 8.81 +0.01 (0.11%)
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Company Report

Contact Energy Is Primed for Growth

Contact Energy is one of New Zealand's leading producers and suppliers of electricity. It operates in an environment dominated by four electricity producers, resulting in disciplined competition and historically good pricing power. We believe Contact and the other major players will continue to dominate the industry and generate favorable returns in the long run.

Price vs Fair Value

CEN is trading at a 514% premium.
Price
NZD 8.80
Fair Value
NZD 6.80
Uncertainty
Medium
1-Star Price
NZD 29.93
5-Star Price
NZD 8.95
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Contact has a strong balance sheet with relatively conservative financial leverage, positioning it well to fund renewable developments.

Bears

Higher bond yields are a headwind for all income stocks, including Contact Energy.

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Trading Information

Previous Close Price
NZD 8.80
Day Range
NZD 8.808.84
52-Week Range
NZD 7.509.00
Bid/Ask
NZD 8.81 / NZD 8.83
Market Cap
NZD 6.95 Bil
Volume/Avg
254,918 / 593,034

Key Statistics

Price/Earnings (Normalized)
22.84
Price/Sales
2.86
Dividend Yield (Trailing)
3.98%
Dividend Yield (Forward)
3.18%
Total Yield
3.98%

Company Profile

Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce close to 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
Sector
Utilities
Industry
Utilities - Renewable
Stock Style Box
Mid Growth
Total Number of Employees
945

Competitors

Valuation

Metric
CEN
MNW
MEL
Price/Earnings (Normalized)
22.8420.1653.13
Price/Book Value
2.581.112.72
Price/Sales
2.865.174.23
Price/Cash Flow
12.9914.1329.25
Price/Earnings
CEN
MNW
MEL

Financial Strength

Metric
CEN
MNW
MEL
Quick Ratio
0.610.370.67
Current Ratio
0.861.130.94
Interest Coverage
6.272.861.75
Quick Ratio
CEN
MNW
MEL

Profitability

Metric
CEN
MNW
MEL
Return on Assets (Normalized)
4.95%1.19%0.79%
Return on Equity (Normalized)
10.49%2.02%1.34%
Return on Invested Capital (Normalized)
5.26%2.56%1.00%
Return on Assets
CEN
MNW
MEL
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