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Mercury NZ Ltd MCY

Morningstar Rating
NZD 6.90 +0.01 (0.15%)
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Company Report

Mercury Is Primed for Growth on Generation Developments

Mercury is one of New Zealand's leading producers of electricity, accounting for more than 15% of the country's total generation. The firm enjoys a good retail presence with Mercury Energy being the largest supplier of electricity in the key Auckland region, with an estimated market share of 40%. Mercury currently operates in a favorable environment dominated by four electricity producers. Barring regulatory change, we believe the four major players will continue to generate favorable returns on invested capital in the long run. Mercury possesses strong competitive advantages and deserves a narrow economic moat rating.

Price vs Fair Value

MCY is trading at a 876% premium.
Price
NZD 6.90
Fair Value
NZD 2.30
Uncertainty
Medium
1-Star Price
NZD 5.86
5-Star Price
NZD 8.84
Economic Moat
Npcsvl
Capital Allocation
Dwmjdzrb

Bulls Say, Bears Say

Bulls

Mercury is a low-cost provider of electricity attributed to its significant renewable assets.

Bears

A competitive retail environment weighs on pricing in the near term.

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News

Trading Information

Previous Close Price
NZD 6.89
Day Range
NZD 6.766.90
52-Week Range
NZD 5.677.25
Bid/Ask
NZD 6.79 / NZD 6.90
Market Cap
NZD 9.61 Bil
Volume/Avg
246,037 / 766,955

Key Statistics

Price/Earnings (Normalized)
47.30
Price/Sales
3.19
Dividend Yield (Trailing)
3.25%
Dividend Yield (Forward)
3.25%
Total Yield
3.25%

Company Profile

Mercury NZ (formerly Mighty River Power) generates more than 15% of New Zealand's electricity and is one of the four major electricity generators and suppliers in the country. All electricity is generated from renewable sources, which makes it one of the lowest-cost providers of electricity. The company operates nine hydro stations and five geothermal power plants in the North Island and some wind farms. Mercury sells electricity to residential and commercial customers and has the largest share of the key Auckland market.
Sector
Utilities
Industry
Utilities - Renewable
Stock Style Box
Mid Core
Total Number of Employees
1,335

Competitors

Valuation

Metric
MCY
MEL
CEN
Price/Earnings (Normalized)
47.3056.4722.19
Price/Book Value
2.012.892.51
Price/Sales
3.194.502.77
Price/Cash Flow
18.7731.0912.62
Price/Earnings
MCY
MEL
CEN

Financial Strength

Metric
MCY
MEL
CEN
Quick Ratio
0.530.670.61
Current Ratio
0.920.940.86
Interest Coverage
1.611.756.27
Quick Ratio
MCY
MEL
CEN

Profitability

Metric
MCY
MEL
CEN
Return on Assets (Normalized)
2.12%0.79%4.95%
Return on Equity (Normalized)
4.19%1.34%10.49%
Return on Invested Capital (Normalized)
4.24%1.00%5.26%
Return on Assets
MCY
MEL
CEN
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