Skip to Content

Meridian Energy Ltd MEL

Morningstar Rating
NZD 6.25 +0.04 (0.56%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Meridian to Focus on Decarbonizing New Zealand

Meridian Energy is a vertically integrated renewable energy company involved in the generation and retailing of electricity. Nearly 90% of its electricity is generated from low-cost hydro power plants, with wind making up the rest. While the significant hydro capacity is a source of competitive advantage and high returns for Meridian, it also increases the firm's risk during dry conditions when rainfall or snow melt is below average, resulting in substantially lower hydro production.

Price vs Fair Value

MEL is trading at a 619% premium.
Price
NZD 6.25
Fair Value
NZD 2.30
Uncertainty
Medium
1-Star Price
NZD 4.72
5-Star Price
NZD 5.92
Economic Moat
Zxztmn
Capital Allocation
Mttmnmwwf

Bulls Say, Bears Say

Bulls

Meridian is a low-cost provider of electricity with high-quality hydroelectric schemes.

Bears

Closure of the Tiwai Point aluminium smelter would cause major disruption to the electricity market.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if MEL is a good fit for your portfolio.

News

Trading Information

Previous Close Price
NZD 6.21
Day Range
NZD 6.166.28
52-Week Range
NZD 4.766.28
Bid/Ask
NZD 6.20 / NZD 6.28
Market Cap
NZD 16.15 Bil
Volume/Avg
990,721 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
53.60
Price/Sales
4.27
Dividend Yield (Trailing)
2.89%
Dividend Yield (Forward)
2.89%
Total Yield
2.92%

Company Profile

Meridian is New Zealand's largest electricity generator, operating hydro stations and wind farms in New Zealand. Nearly 90% of its electricity is generated from low-cost hydro power plants, with wind making up the rest. The company's main competitors are vertically integrated firms, such as Mercury NZ, Genesis Energy, Contact Energy, and Trustpower.
Sector
Utilities
Industry
Utilities - Renewable
Stock Style Box
Large Core
Total Number of Employees
959

Competitors

Valuation

Metric
MEL
GNE
MNW
Price/Earnings (Normalized)
53.6016.7319.78
Price/Book Value
2.740.941.09
Price/Sales
4.270.895.07
Price/Cash Flow
29.516.9913.87
Price/Earnings
MEL
GNE
MNW

Financial Strength

Metric
MEL
GNE
MNW
Quick Ratio
0.670.600.37
Current Ratio
0.941.151.13
Interest Coverage
1.751.482.86
Quick Ratio
MEL
GNE
MNW

Profitability

Metric
MEL
GNE
MNW
Return on Assets (Normalized)
0.79%1.69%1.19%
Return on Equity (Normalized)
1.34%3.51%2.02%
Return on Invested Capital (Normalized)
1.00%2.27%2.56%
Return on Assets
MEL
GNE
MNW
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Renewable Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CEG
Constellation Energy CorpYmmnkj$69.7 Bil
GEV
GE Vernova IncHhlzfbnWfkw$48.6 Bil
OEZVY
Verbund AG ADRFbhq$28.8 Bil
OEZVF
Verbund AG Class ARcgb$27.8 Bil
DOGEF
Orsted A/SPwqwj$25.1 Bil
DNNGY
Orsted A/S ADRPmjdmnx$24.5 Bil
CZAVF
CEZ a.sPvgnxwr$21.8 Bil
EDRVF
EDP Renovaveis SABxkq$16.3 Bil
BEP
Brookfield Renewable Partners LPZklrwvpcCpdjk$8.0 Bil
BEPC
Brookfield Renewable Corp Ordinary Shares - Class A (Sub Voting)RckyjrkmtzRyv$5.7 Bil

Sponsor Center