Genie Energy Ltd. Fundamental Analysis (NYSE: GNE)
Genie Energy Ltd. (NYSE: GNE) shows moderate financial fundamentals with a PE ratio of 13.13, profit margin of 4.93%, and ROE of 10.29%. The company generates $0.5B in annual revenue with strong year-over-year growth of 18.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.7/100 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 GNE's fundamental strength across five key dimensions:
Efficiency Score
WeakGNE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGNE trades at attractive valuation levels.
Growth Score
ExcellentGNE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGNE maintains a strong and stable balance sheet.
Profitability Score
WeakGNE struggles to sustain strong margins.
Key Financial Metrics
Is GNE Expensive or Cheap?
P/E Ratio
GNE trades at 13.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GNE's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Genie Energy Ltd. at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.21 times EBITDA. This signals the market has high growth expectations.
How Well Does GNE Make Money?
Net Profit Margin
For every $100 in sales, Genie Energy Ltd. keeps $4.93 as profit after all expenses.
Operating Margin
Core operations generate 4.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.29 in profit for every $100 of shareholder equity.
ROA
Genie Energy Ltd. generates $6.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Genie Energy Ltd. generates limited operating cash flow of $20.20M, signaling weaker underlying cash strength.
Free Cash Flow
Genie Energy Ltd. generates weak or negative free cash flow of $12.04M, restricting financial flexibility.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
GNE converts 3.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GNE Stacks Against Its Sector Peers
| Metric | GNE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.13 | 20.43 | Better (Cheaper) |
| ROE | 10.29% | 1037.00% | Weak |
| Net Margin | 4.93% | -667.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 1.68 | Strong (Low Leverage) |
| Current Ratio | 2.89 | 1.72 | Strong Liquidity |
| ROA | 6.70% | 4578092.00% | Weak |
GNE outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Genie Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.52%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
82.34%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
100.26%
Industry Style: Defensive, Dividend, Income
High Growth