Obermatt

Contact Energy

NZC:CEN · NZCENE0001S6
Electric UtilitiesMedium

360

71
EV / EBIT32
Price / Owner Earnings4
Owner Earnings Yield65
Dividend Yield63
Price/Sales18
EV / Gross Profit22
Price/Book18
Return on Capital92
Cash Return on Capital69
Return on Equity64
EBIT Margin75
Gross Profitability65
Cash Conversion30
Accruals16
Owner Earnings Margin77
Sales growth16
Profit Growth51
Long-Term EPS Growth49
Owner Earnings Growth100
Reinvestment74
Price momentum41
Debt load54
Refinancing47
Debt Payback28
Liquidity63
Analyst ratings48
Opinion Changes6
Price Target Upside47
Market mood75
Value Creation8/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Contact Energy clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryNew Zealand
IndustryElectric Utilities
SizeMedium
TypePublic Company
ExchangeNZSE
Founded1995
Employees844
ISINNZCENE0001S6
Last UpdateApr 2, 2026
Themes
Power GridUtility Scale SolarClean EnergyEnergy ManagementEnergy StorageSmart EnergyEnergyRenewable EnergyRetail

Description

Contact Energy Limited generates and sells electricity and natural gas. The company's diverse portfolio includes geothermal, hydro, and thermal generation assets, enabling it to deliver energy to residential and commercial customers. Business Segmen…

Analysis

Middle-of-the-road

Contact Energy Limited sits in the middle of our grid: average quality, average price, no obvious signal in either direction. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 51.5×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 19% a year, against analyst forecasts of 4%. The market is pricing in far more than analysts expect: heroic expectations.

Growth is moderate; the safety picture is adequate. The company scores 8/20 on our value-creation score: creating some value. Analysts lean positive.

Flags to be aware of: The financial cushion is thinner than comfortable. Some accounting patterns deserve a closer look. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
41
2023202420252026

All-time high

78

Aug 2023

All-time low

28

Jun 2025

Average rank

52

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
18
34
25
25
Price/Earnings
35
28
25
18
Price/Book
18
20
21
27
Dividend Yield
63
61
65
61
Value (overall)
19
29
31
15

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →