Genesis Energy (GNE) Stock Price, Fundamentals & Analysis

What GNE does

Genesis Energy (GNE) is a New Zealand-based utility company that generates, trades, and sells electricity to residential and business customers. It produces power from thermal, hydro, solar, and wind sources and operates through three segments: Retail (supplying energy and related services to end-users), Wholesale (selling electricity and gas on the wholesale market and trading derivatives), and Kupe (exploring, developing, and producing gas, oil, and LPG). The company, formerly known as Genesis Power Limited, changed its name in September 2013 and is headquartered in Auckland, New Zealand.

Key numbers explained

• 2.02 AUD: The current share price, which is the last traded price on the ASX.
• 33.7: The trailing P/E ratio, which divides the current share price by the last 12 months of earnings per share; a higher number can indicate the market expects future growth.
• 25.1: The forward P/E ratio, which uses expected future earnings instead of past results, offering a look at how the market prices in what comes next.
• 6.22%: The dividend yield, which shows the annual dividend as a percentage of the share price, indicating the cash return relative to the current price.
• 195%: The share of earnings paid out as dividends, meaning the company distributes more in dividends than it earns, often funded from other sources.
• 0.31: The beta, which measures the stock's volatility compared to the market; a beta below 1 suggests lower sensitivity to market swings.
• 1.75 – 2.32: The 52-week price range, showing the lowest and highest prices over the past year.
• 2.83 mld. NZD: The trailing 12-month revenue, representing the total income from operations over the last year.

What to watch

Genesis Energy operates in the utilities sector, where factors such as regulatory changes, energy price fluctuations, and fuel costs can affect results. Its exposure to both retail and wholesale markets means it can be influenced by shifts in demand and electricity prices. The company's dividend policy, tied to its earnings and cash flow, is another area to monitor. For peers, investors often compare GNE with companies like Origin Energy (ORG), Mercury NZ (MCY), AGL Energy (AGL), Contact Energy (CEN), and Meridian Energy (MEZ), which also operate in the energy space.