Manawa Energy Ltd MNW

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NZD 4.46 +0.15 (3.48%)

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As of Jul 26, 2024 5:00am Delayed Price Closed

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Company Report

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Manawa’s Growth to Be Driven by Electricity Price Increases and Investment in Generation

Adrian Atkins Jun 3, 2024

Manawa is New Zealand's fifth-largest generator behind Contact Energy, Mercury NZ, Meridian, and Genesis. Like Meridian and Mercury, Manawa generates close to 100% of electricity from renewable resources. It owns 26 relatively small hydroelectric schemes in New Zealand, producing about 1,940 gigawatt hours of electricity in an average rainfall year. The firm's wind farms and retail business were divested.

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Price vs Fair Value

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MNW is trading at a 193% premium.

Price

NZD 4.46

Jul 26, 2024

Fair Value

NZD 9.80

May 20, 2024

Uncertainty

Medium

1-Star Price: NZD 9.71
5-Star Price: NZD 6.59
Economic Moat: Khymvz
Capital Allocation: Nvqptjwqj

Bulls Say, Bears Say

Bulls

High wholesale prices and the CPI-linked contract with Mercury underpin good earnings growth potential in the medium term, aided by investment to increase generation output.

Bears

Manawa faces volatility from hydrological conditions. Weak hydrology, caused by significantly lower inflows and lake levels, can adversely affect the generation business.

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Trading Information

Previous Close Price: NZD 4.31
Day Range: NZD 4.32–4.46
52-Week Range: NZD 4.02–4.90
Bid/Ask: NZD 4.35 / NZD 4.46
Market Cap: NZD 1.40 Bil
Volume/Avg: 11,467 / 58,143

Key Statistics

Price/Earnings (Normalized): 21.63
Price/Sales: 5.44
Dividend Yield (Trailing): 4.26%
Dividend Yield (Forward): 4.93%
Total Yield: 4.26%

Company Profile

Manawa is New Zealand's fifth-largest electricity generator. It has about 26 hydroelectric schemes in New Zealand, producing more than 1,900 GWh of electricity in an average rainfall year. Manawa's retail business was sold in 2022. Most electricity is sold to Mercury NZ under a long-term contract.

Sector: Utilities
Industry: Utilities - Renewable
Stock Style Box: Small Core
Total Number of Employees: 143
Website: https://www.manawaenergy.co.nz

Competitors

Valuation

Metric	MNW	MEL	CEN
Price/Earnings (Normalized)	21.63	56.05	22.19
Price/Book Value	1.17	2.87	2.51
Price/Sales	5.44	4.46	2.77
Price/Cash Flow	14.87	30.85	12.62

Price/Earnings

MNW

MEL

CEN

Financial Strength

Metric	MNW	MEL	CEN
Quick Ratio	0.37	0.67	0.61
Current Ratio	1.13	0.94	0.86
Interest Coverage	2.86	1.75	6.27

Quick Ratio

MNW

MEL

CEN

Profitability

Metric	MNW	MEL	CEN
Return on Assets (Normalized)	3.04%	0.79%	4.95%
Return on Equity (Normalized)	5.18%	1.34%	10.49%
Return on Invested Capital (Normalized)	4.85%	1.00%	5.26%

Return on Assets

MNW

MEL

CEN

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