Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Contact Energy

DB:BZB
Snowflake Description

Second-rate dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BZB
DB
NZ$4B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Contact Energy Limited generates, trades in, and retails electricity, natural gas, and liquefied petroleum gas in New Zealand. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Contact Energy has significant price volatility in the past 3 months.
BZB Share Price and Events
7 Day Returns
-1.3%
DB:BZB
0.2%
Europe Electric Utilities
-0.6%
DE Market
1 Year Returns
-23.1%
DB:BZB
-2.6%
Europe Electric Utilities
-20.9%
DE Market
BZB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Contact Energy (BZB) -1.3% -19.7% -27.1% -23.1% - -
Europe Electric Utilities 0.2% -18.2% -13.1% -2.6% 19.9% -3%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • BZB underperformed the Electric Utilities industry which returned -2.6% over the past year.
  • BZB underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
BZB
Industry
5yr Volatility vs Market

Value

 Is Contact Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Contact Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Contact Energy.

DB:BZB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BZB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.245 (1 + (1- 28%) (27.83%))
0.527
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 5.44%)
3.96%

Discounted Cash Flow Calculation for DB:BZB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Contact Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:BZB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 3.96%)
2020 320.50 Analyst x2 308.29
2021 338.00 Analyst x2 312.73
2022 298.00 Analyst x1 265.21
2023 273.50 Est @ -8.22% 234.13
2024 257.44 Est @ -5.87% 211.98
2025 246.55 Est @ -4.23% 195.28
2026 238.97 Est @ -3.08% 182.06
2027 233.54 Est @ -2.27% 171.15
2028 229.56 Est @ -1.71% 161.81
2029 226.54 Est @ -1.31% 153.61
Present value of next 10 years cash flows NZ$2,196.00
DB:BZB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$226.54 × (1 + -0.39%) ÷ (3.96% – -0.39%)
NZ$5,185.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$5,185.22 ÷ (1 + 3.96%)10
NZ$3,515.78
DB:BZB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$2,196.00 + NZ$3,515.78
NZ$5,711.78
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$5,711.78 / 718.08
NZ$7.95
DB:BZB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BZB represents 0.5289x of NZSE:CEN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.5289x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (NZD) x Listing Adjustment Factor
= NZ$ 7.95 x 0.5289
€4.21
Value per share (EUR) From above. €4.21
Current discount Discount to share price of €3.02
= -1 x (€3.02 - €4.21) / €4.21
28.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Contact Energy is available for.
Intrinsic value
28%
Share price is €3.02 vs Future cash flow value of €4.21
Current Discount Checks
For Contact Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Contact Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Contact Energy's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Contact Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Contact Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BZB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in NZD NZ$0.18
NZSE:CEN Share Price ** NZSE (2020-04-06) in NZD NZ$5.71
Europe Electric Utilities Industry PE Ratio Median Figure of 76 Publicly-Listed Electric Utilities Companies 10.33x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Contact Energy.

DB:BZB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:CEN Share Price ÷ EPS (both in NZD)

= 5.71 ÷ 0.18

31.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Contact Energy is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • Contact Energy is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Contact Energy's expected growth come at a high price?
Raw Data
DB:BZB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
5.1%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 37 Publicly-Listed Electric Utilities Companies 1.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:BZB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.38x ÷ 5.1%

6.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Contact Energy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Contact Energy's assets?
Raw Data
DB:BZB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in NZD NZ$3.73
NZSE:CEN Share Price * NZSE (2020-04-06) in NZD NZ$5.71
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.76x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:BZB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:CEN Share Price ÷ Book Value per Share (both in NZD)

= 5.71 ÷ 3.73

1.53x

* Primary Listing of Contact Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Contact Energy is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Contact Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Contact Energy has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Contact Energy expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Contact Energy expected to grow at an attractive rate?
  • Contact Energy's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Contact Energy's earnings growth is positive but not above the Germany market average.
  • Contact Energy's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BZB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BZB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 5.1%
DB:BZB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -1.5%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BZB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BZB Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,034 159 1
2022-06-30 2,191 362 142 6
2021-06-30 2,173 383 142 7
2020-06-30 2,221 364 130 7
2020-04-07
DB:BZB Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,266 381 130
2019-09-30 2,363 424 150
2019-06-30 2,460 466 170
2018-12-31 2,330 473 164
2018-09-30 2,241 465 138
2018-06-30 2,152 457 112
2017-12-31 2,048 481 80
2017-09-30 2,004 495 105
2017-06-30 1,959 508 129
2017-03-31 2,079 506 148

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Contact Energy's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
  • Contact Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BZB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Contact Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BZB Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.22 0.22 0.22 1.00
2022-06-30 0.20 0.22 0.17 4.00
2021-06-30 0.20 0.22 0.17 5.00
2020-06-30 0.18 0.19 0.17 5.00
2020-04-07
DB:BZB Past Financials Data
Date (Data in NZD Millions) EPS *
2019-12-31 0.18
2019-09-30 0.21
2019-06-30 0.24
2018-12-31 0.23
2018-09-30 0.19
2018-06-30 0.16
2017-12-31 0.11
2017-09-30 0.15
2017-06-30 0.18
2017-03-31 0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Contact Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Contact Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Contact Energy has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Contact Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Contact Energy's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Contact Energy's year on year earnings growth rate has been positive over the past 5 years.
  • Contact Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Contact Energy's 1-year earnings growth is negative, it can't be compared to the Europe Electric Utilities industry average.
Earnings and Revenue History
Contact Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Contact Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BZB Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,266.00 130.00
2019-09-30 2,363.00 150.00
2019-06-30 2,460.00 170.00
2018-12-31 2,330.00 164.00
2018-09-30 2,241.00 138.00
2018-06-30 2,152.00 112.00
2017-12-31 2,048.00 80.00
2017-09-30 2,003.50 104.50
2017-06-30 1,959.00 129.00
2017-03-31 2,079.00 148.00 5.00
2016-12-31 2,080.00 146.00 5.00
2016-09-30 2,121.50 40.00 5.00
2016-06-30 2,163.00 -66.00 5.00
2016-03-31 2,243.00 -50.00 5.50
2015-12-31 2,323.00 -34.00 6.00
2015-09-30 2,383.00 49.50 6.00
2015-06-30 2,443.00 133.00 6.00
2015-03-31 2,490.50 153.00 3.00
2014-12-31 2,538.00 173.00
2014-09-30 2,492.00 203.50
2014-06-30 2,446.00 234.00
2014-03-31 2,453.50 228.50
2013-12-31 2,461.00 223.00
2013-09-30 2,493.50 211.00
2013-06-30 2,526.00 199.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Contact Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Contact Energy used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Contact Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Contact Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Contact Energy has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Contact Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Contact Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Contact Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Contact Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Contact Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Contact Energy Company Filings, last reported 3 months ago.

DB:BZB Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,680.00 1,117.00 25.00
2019-09-30 2,680.00 1,117.00 25.00
2019-06-30 2,782.00 1,071.00 47.00
2018-12-31 2,843.00 1,174.00 210.00
2018-09-30 2,843.00 1,174.00 210.00
2018-06-30 2,727.00 1,456.00 3.00
2017-12-31 2,727.00 1,512.00 16.00
2017-09-30 2,727.00 1,512.00 16.00
2017-06-30 2,778.00 1,508.00 14.00
2017-03-31 2,775.00 1,527.00 14.00
2016-12-31 2,819.00 1,645.00 4.00
2016-09-30 2,819.00 1,645.00 4.00
2016-06-30 2,823.00 1,696.00 5.00
2016-03-31 2,823.00 1,696.00 5.00
2015-12-31 2,878.00 1,760.00 10.00
2015-09-30 2,878.00 1,760.00 10.00
2015-06-30 3,171.00 1,750.00 4.00
2015-03-31 3,171.00 1,750.00 4.00
2014-12-31 3,522.00 1,343.00 11.00
2014-09-30 3,522.00 1,343.00 11.00
2014-06-30 3,582.00 1,294.00 12.00
2014-03-31 3,582.00 1,294.00 12.00
2013-12-31 3,539.00 1,418.00 196.00
2013-09-30 3,539.00 1,418.00 196.00
2013-06-30 3,537.00 1,369.00 80.00
  • Contact Energy's level of debt (41.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.9% vs 41.7% today).
  • Debt is well covered by operating cash flow (34.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess Contact Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Contact Energy has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Contact Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.83%
Current annual income from Contact Energy dividends. Estimated to be 6.92% next year.
If you bought €2,000 of Contact Energy shares you are expected to receive €137 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Contact Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Contact Energy's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BZB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 51 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BZB Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.43 1.00
2022-06-30 0.40 6.00
2021-06-30 0.40 7.00
2020-06-30 0.39 7.00
2020-04-07
DB:BZB Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2020-03-30 0.390 6.747
2019-08-12 0.390 5.278
2019-02-11 0.350 4.930
2018-08-13 0.320 5.503
2018-03-20 0.280 4.992
2017-08-14 0.260 4.744
2016-08-15 0.260 5.223
2016-02-15 0.260 5.132
2015-08-17 0.260 5.307
2014-08-18 0.260 4.445
2014-02-17 0.250 4.637
2013-08-20 0.250 4.860
2012-08-14 0.230 4.368
2012-03-14 0.230 4.778
2011-08-22 0.230 4.399
2011-03-21 0.250 4.479
2010-08-20 0.250 4.185
2010-02-23 0.280 4.688
2009-08-14 0.280 4.665

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Contact Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.5x coverage).
X
Income/ dividend checks
We assess Contact Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Contact Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Contact Energy has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Contact Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Fuge
TENURE AS CEO 0.2 years
CEO Bio

Mr. Michael Fuge, also known as Mike, M. Com. (Hons), B.Eng. (Hons), MIPENZ, serves as Chief Executive Officer of Contact Energy Limited since February 24, 2020. He served as Chief Executive Officer at The New Zealand Refining Company Limited from August 2018 until February 21, 2020. Mr. Fuge served as the Chief Executive Officer at Pacific Hydro Pty Ltd since July 2014 until 2018 and served as its Executive Director from January 29, 2016 to 2018. Mr. Fuge served as an Acting General Manager of Retail at Genesis Energy Limited since May 8, 2014. Mr. Fuge served as the Chief Operating Officer at Genesis Energy Limited from September 2011 to May 8, 2014. Mr. Fuge joined Genesis Energy in early September 2011. He served as General Manager of Client Delivery at Gen-i Limited for short duration. His experience includes international operations management, along with change management, planning, strategy and major project delivery at a senior level. Originally from New Zealand, he joined Gen-i in 2008 from the Royal Dutch Shell Group with assignments in New Zealand, UK, Middle East and Southeast Asia for almost two decades. He spent a significant part of his career in general management roles in the oil and gas industry with Shell in Europe, the Middle East and South East Asia, including roles as General Manager Operations Brunei and Transformation Manager for Petroleum Development Oman in Oman. Mr. Fuge has a Bachelor of Engineering (Hons) and Masters of Commerce (Hons) from Canterbury University.

CEO Compensation
  • Insufficient data for Mike to compare compensation growth.
  • Insufficient data for Mike to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure of the Contact Energy management team in years:

3.4
Average Tenure
  • The tenure for the Contact Energy management team is about average.
Management Team

Mike Fuge

TITLE
Chief Executive Officer
TENURE
0.2 yrs

Dorian Kevin Devers

TITLE
Chief Financial Officer
AGE
43
TENURE
1.3 yrs

Matthew Forbes

TITLE
Investor Relations Manager

Catherine Thompson

TITLE
GM of External Relations & General Counsel
TENURE
5.4 yrs

Jan Bibby

TITLE
Chief People Officer
TENURE
0.4 yrs

Edward Kilty

TITLE
Chief Generation & Development Officer
TENURE
5.5 yrs

Vena Crawley

TITLE
Chief Customer Officer
TENURE
5.5 yrs

Louise Griffin

TITLE
Head of External Relations

Kirsten Clayton

TITLE
Company Secretary
Board of Directors Tenure

Average tenure of the Contact Energy board of directors in years:

1.6
Average Tenure
  • The average tenure for the Contact Energy board of directors is less than 3 years, this suggests a new board.
Board of Directors

Rob McDonald

TITLE
Independent Non-Executive Chairman
COMPENSATION
NZ$257K
TENURE
1.6 yrs

Dame Walsh

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$160K
TENURE
1.6 yrs

Whai Dewes

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$184K
TENURE
10.2 yrs

Vic Crone

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$159K
TENURE
4.4 yrs

Elena Trout

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$148K
TENURE
3.5 yrs

David Smol

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$111K
TENURE
1.5 yrs

Jon Macdonald

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$99K
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Mar 20 Sell BlackRock, Inc. Company 14. Feb 20 24. Mar 20 -2,204,081 €4.48 €-112,759
25. Mar 20 Buy BlackRock, Inc. Company 07. Feb 20 24. Mar 20 3,087,691 €4.10 €151,543
12. Mar 20 Sell The Vanguard Group, Inc. Company 10. Mar 20 10. Mar 20 -5,365 €3.46 €-18,556
12. Mar 20 Buy The Vanguard Group, Inc. Company 09. Mar 20 10. Mar 20 108,275 €3.64 €380,245
25. Sep 19 Buy Dame Walsh Individual 20. Sep 19 20. Sep 19 5,000 €5.13 €25,630
04. Feb 20 Sell BlackRock, Inc. Company 09. Oct 19 13. Jan 20 -1,799,494 €6.42 €-55,475
04. Feb 20 Buy BlackRock, Inc. Company 04. Oct 19 03. Feb 20 3,730,029 €5.46 €68,678
11. Nov 19 Buy David Smol Individual 04. Nov 19 04. Nov 19 5,100 €4.21 €21,492
06. Feb 20 Sell BlackRock, Inc. Company 04. Feb 20 04. Feb 20 -110,165 €4.25 €-468,677
06. Feb 20 Buy BlackRock, Inc. Company 04. Feb 20 04. Feb 20 17,517 €4.20 €73,598
25. Sep 19 Sell Edward Kilty Individual 19. Sep 19 19. Sep 19 -54,333 €5.12 €-278,061
01. May 19 Sell Tania Palmer Individual 24. Apr 19 24. Apr 19 -4,500 €3.99 €-17,974
01. May 19 Buy Elena Trout Individual 23. Apr 19 23. Apr 19 4,000 €4.06 €16,260
27. May 19 Sell Catherine Thompson Individual 22. May 19 22. May 19 -5,000 €4.26 €-21,283
20. Sep 19 Sell Catherine Thompson Individual 18. Sep 19 18. Sep 19 -5,956 €4.81 €-28,640
20. Sep 19 Sell Dennis Barnes Individual 17. Sep 19 17. Sep 19 -429,628 €4.82 €-2,071,342
06. Feb 20 Buy BlackRock, Inc. Company 05. Feb 20 05. Feb 20 647,083 €4.24 €1,923,737
25. Sep 19 Sell Catherine Thompson Individual 23. Sep 19 23. Sep 19 -4,044 €5.20 €-21,033
04. Oct 19 Buy Victoria Crone Individual 03. Oct 19 03. Oct 19 2,500 €4.87 €12,166
X
Management checks
We assess Contact Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Contact Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Contact Energy Limited generates, trades in, and retails electricity, natural gas, and liquefied petroleum gas in New Zealand. The company generates electricity through hydro, geothermal, and thermal sources. It operates 11 power stations; and supplies piped and bottled gas. The company also provides broadband services. The company was founded in 1995 and is headquartered in Wellington, New Zealand.

Details
Name: Contact Energy Limited
BZB
Exchange: DB
Founded: 1995
NZ$2,254,549,733
718,077,598
Website: http://contact.co.nz
Address: Contact Energy Limited
Harbour City Tower,
Level 2,
Wellington,
6011,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE CEN Ordinary Shares New Zealand Stock Exchange NZ NZD 11. May 1999
OTCPK COEN.F Ordinary Shares Pink Sheets LLC US USD 11. May 1999
DB BZB Ordinary Shares Deutsche Boerse AG DE EUR 11. May 1999
ASX CEN Ordinary Shares Australian Securities Exchange AU AUD 11. May 1999
CHIA CEN Ordinary Shares Chi-X Australia AU AUD 11. May 1999
Number of employees
Current staff
Staff numbers
835
Contact Energy employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 01:24
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.