Fact based stock research
Genesis Energy (NZSE:GNE)

NZGNEE0001S7

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Genesis Energy stock research in summary

genesisenergy.co.nz

ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Genesis Energy (Electric Utilities, New Zealand) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Genesis Energy are a good value (attractively priced) with a consolidated Value Rank of 57 (better than 57% of alternatives) but show below-average growth (Growth Rank of 45), and are riskily financed (Safety Rank of 32), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Genesis Energy's financial characteristics. As the company Genesis Energy's key financial metrics exhibit good value (Obermatt Value Rank of 57) but low growth (Obermatt Growth Rank of 45) and risky financing practices (Obermatt Safety Rank of 32), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 57% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	57
Growth Rank	45
Safety Rank	32
Combined Rank	32

Country	New Zealand
Industry	Electric Utilities
Index	Electromobility, NZSX 50
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Genesis Energy

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	35	43	57
GROWTH
GROWTH	24	53	23	45
SAFETY
SAFETY	48	43	34	32
SENTIMENT
SENTIMENT	n/a	38	30	^new
360° VIEW
360° VIEW	n/a	33	8	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Genesis Energy is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	35	43	57
GROWTH
GROWTH	24	53	23	45
SAFETY
SAFETY	48	43	34	32
COMBINED
COMBINED	62	32	10	32

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Genesis Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 57 (better than 57% compared with alternatives), Genesis Energy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Genesis Energy. Price-to-Sales (P/S) is 54 which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value for Genesis Energy's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 53. Finally, compared with other companies in the same industry, dividend yields of Genesis Energy are expected to be higher than for 96% of all competitors (a Dividend Yield rank of 96). The only low rank is for expected profits with a Price-to-Profit Rank of 21, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 57, is a buy recommendation based on Genesis Energy's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	67	41	45	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	14	25	25	21
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	59	31	49	53
DIVIDEND YIELD
DIVIDEND YIELD	90	91	86	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60	35	43	57

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Genesis Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 45 (better than 45% compared with alternatives), Genesis Energy shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Genesis Energy. Only Capital Growth has a good rank of 97, which means that currently professionals expect the company to grow its invested capital more than 34% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 8 which means that currently professionals expect the company to grow less than 92% of its competitors. Profit Growth with a rank of 34 and Stock Returns with a rank of 23 are also low (below 77% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 45, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Genesis Energy is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	59	14	32	8
PROFIT GROWTH
PROFIT GROWTH	10	78	18	34
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	87	97
STOCK RETURNS
STOCK RETURNS	14	19	23	23
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	24	53	23	45

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Genesis Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company Genesis Energy has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Genesis Energy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Genesis Energy.Leverage is at 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors.Refinancing is at a rank of 57, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 57% of its competitors. Liquidity is at 16, meaning that the company generates less profit to service its debt than 84% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), Genesis Energy has a financing structure that is riskier than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Genesis Energy more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	61	58	50	54
REFINANCING
REFINANCING	39	23	23	57
LIQUIDITY
LIQUIDITY	61	51	39	16
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	48	43	34	32

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Genesis Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	27	75	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	11	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	41	37	^new
MARKET PULSE
MARKET PULSE	n/a	53	47	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	38	30	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Genesis Energy.
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