Risk factor
Poor trading liquidity
Profitability factor
Good growth
About
Contact Energy Limited, established in 1995 and headquartered in Wellington, New Zealand, is engaged in the generation and retail of electricity and natural gas throughout the country. Its operations are organized into two primary divisions: Wholesale and Customer. The Wholesale segment is responsible for supplying electricity to the national wholesale market as well as to commercial and industrial enterprises. In contrast, the Customer division delivers electricity, natural gas, broadband, and various other services to a broad base of residential and general consumers. The company sources its electricity, natural gas, and bottled liquefied petroleum gas (LPG) from a diverse network of eleven power stations, utilizing hydro, geothermal, and thermal technologies. Currently, Contact Energy serves an extensive client base of approximately 532,000 customers.
Company Valuation
Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA,