Contact Energy Limited
Contact Energy Limited Fundamental Analysis
Contact Energy Limited (CEN.AX) shows moderate financial fundamentals with a PE ratio of 22.44, profit margin of 11.91%, and ROE of 10.94%. The company generates $3.4B in annual revenue with strong year-over-year growth of 35.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CEN.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCEN.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCEN.AX shows balanced valuation metrics.
Growth Score
ExcellentCEN.AX delivers strong and consistent growth momentum.
Financial Health Score
ModerateCEN.AX shows balanced financial health with some risks.
Profitability Score
WeakCEN.AX struggles to sustain strong margins.
Key Financial Metrics
Is CEN.AX Expensive or Cheap?
P/E Ratio
CEN.AX trades at 22.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CEN.AX's PEG of 2.61 indicates potential overvaluation.
Price to Book
The market values Contact Energy Limited at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.52 times EBITDA. This is generally considered low.
How Well Does CEN.AX Make Money?
Net Profit Margin
For every $100 in sales, Contact Energy Limited keeps $11.91 as profit after all expenses.
Operating Margin
Core operations generate 22.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.94 in profit for every $100 of shareholder equity.
ROA
Contact Energy Limited generates $4.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Contact Energy Limited produces operating cash flow of $630.65M, showing steady but balanced cash generation.
Free Cash Flow
Contact Energy Limited produces free cash flow of $194.67M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
CEN.AX converts 2.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CEN.AX Stacks Against Its Sector Peers
| Metric | CEN.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.44 | 20.28 | Worse (Expensive) |
| ROE | 10.94% | 920.00% | Weak |
| Net Margin | 11.91% | 737.00% | Weak |
| Debt/Equity | 0.71 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 1.44 | Weak Liquidity |
| ROA | 4.05% | -6170.00% (disorted) | Weak |
CEN.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Contact Energy Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.76%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
-38.00%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
14.40%
Industry Style: Defensive, Dividend, Income
High Growth