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Mercury NZ

DB:MRY
Snowflake Description

Adequate balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRY
DB
NZ$6B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Mercury NZ has significant price volatility in the past 3 months.
MRY Share Price and Events
7 Day Returns
-4.4%
DB:MRY
0.2%
Europe Electric Utilities
-0.6%
DE Market
1 Year Returns
-5.3%
DB:MRY
-2.6%
Europe Electric Utilities
-20.9%
DE Market
MRY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mercury NZ (MRY) -4.4% -20% -25.5% -5.3% 6.2% 6.6%
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
  • MRY underperformed the Electric Utilities industry which returned -2.6% over the past year.
  • MRY outperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
MRY
Industry
5yr Volatility vs Market

MRY Value

 Is Mercury NZ 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 Mercury NZ 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 Mercury NZ.

DB:MRY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in NZD NZ$ 0.164328
Payout Ratio Company Filings (2019-12-31) 9319.7%
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:MRY
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%) (22.75%))
0.521
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:MRY using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Mercury NZ is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:MRY Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= NZ$0.16 / (3.96% - -0.39%)
NZ$1.08
DB:MRY Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MRY represents 0.53465x of NZSE:MCY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.53465x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (NZD) x Listing Adjustment Factor
= NZ$ 3.78 x 0.53465
€2.02
Value per share (EUR) From above. €2.02
Current discount Discount to share price of €2.16
= -1 x (€2.16 - €2.02) / €2.02
-7%

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

  • The current share price of Mercury NZ is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Mercury NZ's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mercury NZ's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MRY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in NZD NZ$0.25
NZSE:MCY Share Price ** NZSE (2020-04-06) in NZD NZ$4.04
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 Mercury NZ.

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

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

= 4.04 ÷ 0.25

16.38x

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

  • Mercury NZ is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • Mercury NZ is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Mercury NZ's expected growth come at a high price?
Raw Data
DB:MRY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-3.9%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:MRY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.38x ÷ -3.9%

-4.17x

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

  • Mercury NZ earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mercury NZ's assets?
Raw Data
DB:MRY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in NZD NZ$2.56
NZSE:MCY Share Price * NZSE (2020-04-06) in NZD NZ$4.04
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:MRY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.04 ÷ 2.56

1.58x

* Primary Listing of Mercury NZ.

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

  • Mercury NZ is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Mercury NZ'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. Mercury NZ 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.

MRY Future Performance

 How is Mercury NZ expected to perform in the next 1 to 3 years based on estimates from 6 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
-3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mercury NZ expected to grow at an attractive rate?
  • Mercury NZ's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Mercury NZ's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Mercury NZ's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MRY Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MRY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -3.9%
DB:MRY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 0.6%
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:MRY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MRY Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,727 437 198 5
2021-06-30 1,630 393 179 6
2020-06-30 1,652 368 173 6
2020-04-06
DB:MRY Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,849 335 336
2019-09-30 1,925 331 347
2019-06-30 2,000 326 357
2019-03-31 1,961 328 282
2018-12-31 1,922 330 207
2018-09-30 1,860 353 221
2018-06-30 1,798 376 234
2018-03-31 1,777 386 218
2017-12-31 1,756 396 202
2017-09-30 1,677 384 193
2017-06-30 1,597 372 184
2017-03-31 1,572 343 192

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mercury NZ's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Mercury NZ's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
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:MRY 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 6 Analyst Estimates (S&P Global) See Below

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

DB:MRY Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.15 0.15 0.13 4.00
2021-06-30 0.13 0.14 0.12 5.00
2020-06-30 0.13 0.13 0.12 5.00
2020-04-06
DB:MRY Past Financials Data
Date (Data in NZD Millions) EPS *
2019-12-31 0.25
2019-09-30 0.25
2019-06-30 0.26
2019-03-31 0.21
2018-12-31 0.15
2018-09-30 0.16
2018-06-30 0.17
2018-03-31 0.16
2017-12-31 0.15
2017-09-30 0.14
2017-06-30 0.13
2017-03-31 0.14

*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.
  • Mercury NZ is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mercury NZ'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.
Mercury NZ has a total score of 0/6, 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.

MRY Past Performance

  How has Mercury NZ 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 Mercury NZ'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.
  • Mercury NZ has delivered over 20% year on year earnings growth in the past 5 years.
  • Mercury NZ's 1-year earnings growth exceeds its 5-year average (62.3% vs 27.4%)
  • Mercury NZ's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (62.3% vs 7.2%).
Earnings and Revenue History
Mercury NZ'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 Mercury NZ Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MRY 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 1,849.00 336.00
2019-09-30 1,924.50 346.50
2019-06-30 2,000.00 357.00
2019-03-31 1,961.00 282.00
2018-12-31 1,922.00 207.00
2018-09-30 1,860.00 220.50
2018-06-30 1,798.00 234.00
2018-03-31 1,777.00 218.00
2017-12-31 1,756.00 202.00
2017-09-30 1,676.50 193.00
2017-06-30 1,597.00 184.00
2017-03-31 1,572.00 191.50
2016-12-31 1,547.00 199.00
2016-09-30 1,555.50 179.50
2016-06-30 1,564.00 160.00
2016-03-31 1,590.50 136.50
2015-12-31 1,617.00 113.00
2015-09-30 1,647.50 80.00
2015-06-30 1,678.00 47.00
2015-03-31 1,707.50 71.50
2014-12-31 1,737.00 96.00
2014-09-30 1,721.00 154.00
2014-06-30 1,705.00 212.00
2014-03-31 1,722.12 187.80 37.70
2013-12-31 1,739.23 163.60 75.39
2013-09-30 1,788.12 139.30 106.20
2013-06-30 1,837.00 115.00 137.00

*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.
  • Mercury NZ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mercury NZ used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Mercury NZ's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mercury NZ'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.
Mercury NZ has a total score of 4/6, 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.

MRY Health

 How is Mercury NZ'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 Mercury NZ's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mercury NZ's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Mercury NZ's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Mercury NZ'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 Mercury NZ Company Filings, last reported 3 months ago.

DB:MRY Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,488.00 1,183.00 85.00
2019-09-30 3,488.00 1,183.00 85.00
2019-06-30 3,537.00 1,260.00 101.00
2019-03-31 3,537.00 1,260.00 101.00
2018-12-31 3,216.00 1,385.00 78.00
2018-09-30 3,216.00 1,385.00 78.00
2018-06-30 3,305.00 1,305.00 17.00
2018-03-31 3,305.00 1,305.00 17.00
2017-12-31 3,259.00 1,160.00 47.00
2017-09-30 3,259.00 1,160.00 47.00
2017-06-30 3,308.00 1,232.00 38.00
2017-03-31 3,308.00 1,232.00 38.00
2016-12-31 3,287.00 1,162.00 27.00
2016-09-30 3,287.00 1,162.00 27.00
2016-06-30 3,315.00 1,370.00 55.00
2016-03-31 3,315.00 1,370.00 55.00
2015-12-31 3,236.00 1,178.00 41.00
2015-09-30 3,236.00 1,178.00 41.00
2015-06-30 3,337.00 1,346.00 42.00
2015-03-31 3,337.00 1,346.00 42.00
2014-12-31 3,010.00 1,137.00 33.00
2014-09-30 3,010.00 1,137.00 33.00
2014-06-30 3,219.00 1,203.00 26.00
2014-03-31 3,219.00 1,203.00 26.00
2013-12-31 3,185.02 1,230.31 41.43
2013-09-30 3,185.02 1,230.31 41.43
2013-06-30 3,183.00 1,250.00 17.00
  • Mercury NZ's level of debt (33.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (37.8% vs 33.9% today).
  • Debt is well covered by operating cash flow (28.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
X
Financial health checks
We assess Mercury NZ'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. Mercury NZ has a total score of 4/6, 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.

MRY Dividends

 What is Mercury NZ'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
3.84%
Current annual income from Mercury NZ dividends. Estimated to be 4.07% next year.
If you bought €2,000 of Mercury NZ shares you are expected to receive €77 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?
  • Mercury NZ's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Mercury NZ's dividend is below 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:MRY 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 6 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:MRY Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.17 6.00
2021-06-30 0.16 7.00
2020-06-30 0.16 7.00
2020-04-06
DB:MRY Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-08-19 0.155 3.124
2019-02-25 0.153 3.742
2018-08-21 0.151 4.360
2018-02-26 0.198 6.039
2017-08-22 0.200 5.918
2017-08-21 0.196 5.506
2017-02-20 0.184 5.641
2016-08-23 0.186 6.161
2015-08-28 0.140 4.966
2015-08-27 0.140 5.101
2015-02-23 0.139 4.787
2014-08-20 0.135 4.718
2013-08-27 0.120 5.524

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

  • Mercury NZ has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Mercury NZ only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Mercury NZ's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
X
Income/ dividend checks
We assess Mercury NZ'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 Mercury NZ afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mercury NZ has a total score of 2/6, see the detailed checks below.


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

MRY Management

 What is the CEO of Mercury NZ'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
Vince Hawksworth
AGE 60
TENURE AS CEO 0.1 years
CEO Bio

Mr. Vincent John Hawksworth, also Known as Vince, C.ENG, MBA, MIMinE, serves as Chief Executive Officer at Mercury NZ Limited since March 30, 2020. He served as the Chief Executive at TrustPower Limited since August 24, 2010. Mr. Hawksworth serves as a Member of the Management of Morrison & Co Infrastructure Management Limited, the Manager of Infratil Ltd. He served as the Chief Executive Officer of Hydro-Electric Corporation since August 1, 2006. He served as General Manager for Generation of Genesis Energy (also known as Genesis Power) until July 28, 2006. His responsibilities included management of Genesis’ generation assets including Huntly Power Station, the Tongariro Power Development and Waikaremoana Power Scheme. He served as General Manager Retail for Genesis Energy in Auckland, New Zealand. Mr. Hawksworth has experience in the energy industry. He has deep experience of both the New Zealand and Australian electricity markets. Prior to Genesis, he held senior management positions in the UK coal mining industry. He served as Vice President, Electricity Engineers Association of New Zealand, Director of Gas Association of New Zealand and Member of Electricity Commission Retail Market Advisory Group, New Zealand. He served as an Executive Director of Hydro-Electric Corporation since August 1, 2006 until April 15, 2010. He has been Director of King Country Energy since December 07, 2015. His other directorships include King Country Energy Holdings Ltd, Tararua Wind Power Ltd, Trustpower Metering Ltd, Trustpower Australia (New Zealand) Ltd, Trustpower Insurance Ltd, Bay Energy Ltd, Energy Direct NZ Ltd, Trustpower Market Services Pty Ltd, Trustpower Australia Holdings Pty Ltd, Trustpower Renewable Investments Pty Ltd, Snowtown Wind Farm Pty Ltd, GSP Energy Pty Ltd, Snowtown Wind Farm Stage 2 Pty Ltd, Dundonnell Wind Farm Pty Ltd, Wingeel Wind Farm Pty Ltd, Church Lane Wind Farm Pty Ltd, Salt Creek Wind Farm Pty Ltd, Rye Park Renewable Energy Pty Ltd and Waddi Wind Farm Pty Ltd. Mr. Hawksworth studied mining engineering at Trent Polytechnic in Nottingham, UK and has an MBA from Waikato University.

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

Average tenure of the Mercury NZ management team in years:

3.8
Average Tenure
  • The tenure for the Mercury NZ management team is about average.
Management Team

Vince Hawksworth

TITLE
Chief Executive Officer
AGE
60
TENURE
0.1 yrs

Bill Meek

TITLE
Chief Financial Officer

Tim Thompson

TITLE
Head of Treasury & Investor Relations

Howard Thomas

TITLE
Company Secretary & General Counsel

Craig Dowling

TITLE
Head of Communications

Julia Jack

TITLE
Chief Marketing Officer
TENURE
3.8 yrs

Marlene Strawson

TITLE
General Manager of People & Performance
TENURE
5.8 yrs

Dennis Radich

TITLE
Manager of Generation Development
Board of Directors Tenure

Average tenure of the Mercury NZ board of directors in years:

5.2
Average Tenure
  • The tenure for the Mercury NZ board of directors is about average.
Board of Directors

Prue Flacks

TITLE
Independent Chairman
COMPENSATION
NZ$122K
TENURE
0.6 yrs

Keith Smith

TITLE
Independent Director
COMPENSATION
NZ$124K
AGE
67
TENURE
10.9 yrs

Patrick Strange

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$108K
TENURE
6.2 yrs

James Miller

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$118K
TENURE
7.9 yrs

Andy Lark

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$106K
TENURE
5.8 yrs

Mike Taitoko

TITLE
Independent Director
COMPENSATION
NZ$106K
TENURE
4.7 yrs

Scott St John

TITLE
Independent Director
COMPENSATION
NZ$107K
TENURE
2.6 yrs

Hannah Hamling

TITLE
Independent Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Mercury NZ individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
20. Mar 20 Buy Scott St John Individual 17. Mar 20 17. Mar 20 5,000 €2.07 €10,349
20. Mar 20 Buy Keith Smith Individual 13. Mar 20 13. Mar 20 2,288 €2.35 €5,368
16. Mar 20 Buy Scott St John Individual 10. Mar 20 13. Mar 20 10,000 €2.57 €24,317
09. Mar 20 Buy Scott St John Individual 09. Mar 20 09. Mar 20 5,000 €2.72 €13,590
06. Mar 20 Buy Scott St John Individual 06. Mar 20 06. Mar 20 4,000 €2.70 €10,785
06. Mar 20 Buy Patrick Strange Individual 04. Mar 20 04. Mar 20 25,000 €2.66 €66,425
03. Mar 20 Buy Scott St John Individual 02. Mar 20 02. Mar 20 5,000 €2.57 €12,861
27. Nov 19 Buy Prudence Flacks Individual 22. Nov 19 22. Nov 19 3,000 €2.95 €8,840
27. Aug 19 Sell William Meek Individual 21. Aug 19 22. Aug 19 -100,000 €2.89 €-289,227
27. Nov 19 Buy Scott St John Individual 21. Nov 19 21. Nov 19 3,000 €2.92 €8,763
12. Dec 19 Sell Fraser Whineray Individual 05. Dec 19 06. Dec 19 -233,351 €3.05 €-705,687
X
Management checks
We assess Mercury NZ'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. Mercury NZ 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.

MRY News

Simply Wall St News

MRY Company Info

Description

Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand. The company operates through Energy Markets and Others segments. It operates nine hydro generation stations on the Waikato River; and five geothermal generation stations in the central North Island. The company sells electricity to residential, commercial, and industrial customers through the GLOBUG and Bosco brands. It also provides piped natural gas; and sells solar equipment. The company was formerly known as Mighty River Power Limited and changed its name to Mercury NZ Limited in July 2016. Mercury NZ Limited was founded in 1998 and is based in Auckland, New Zealand.

Details
Name: Mercury NZ Limited
MRY
Exchange: DB
Founded: 1998
NZ$3,026,263,589
1,362,300,933
Website: http://www.mercury.co.nz
Address: Mercury NZ Limited
33 Broadway,
Newmarket,
Auckland,
1023,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE MCY Ordinary Shares New Zealand Stock Exchange NZ NZD 10. May 2013
OTCPK MGHT.F Ordinary Shares Pink Sheets LLC US USD 10. May 2013
DB MRY Ordinary Shares Deutsche Boerse AG DE EUR 10. May 2013
ASX MCY Ordinary Shares Australian Securities Exchange AU AUD 10. May 2013
CHIA MCY Ordinary Shares Chi-X Australia AU AUD 10. May 2013
Number of employees
Current staff
Staff numbers
775
Mercury NZ employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 23:56
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/25
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.