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Genesis Energy Limited
Utilities · Utilities - Independent Power Producers
Updated just now
$1.79
MARKET CAP
$2.02B
P/E RATIO
11.8
DIV. YIELD
8.1%
FRANKING
—
Genesis Energy Limited generates, trades in, and sells electricity to residential and business customers in New Zealand. The company generates electricity from thermal, hydro, solar, and wind sources.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$6.81
Discounted cash flow estimate
$2.17
For 6% dividend yield
Business quality and balance-sheet durability.
How much the company owes vs. what it owns
Annual dividends as percentage of stock price
Genesis Energy Limited generates, trades in, and sells electricity to residential and business customers in New Zealand. The company generates electricity from thermal, hydro, solar, and wind sources. It operates through Retail, Wholesale, and Kupe segments. The Retail segment supplies energy, including electricity, gas, and LPG to end-users, and provides related services.
Its Wholesale segment engages in the supply of electricity to the wholesale electricity market; supply of gas and LPG to wholesale and retail customers; and purchase and sale of derivatives to fix the price of electricity. The Kupe segment is involved in the exploration, development, and production of gas, oil, and LPG; and supply of gas and LPG to the wholesale segment, as well as light oil. The company's generation asset portfolio comprises the Huntly power station with a generation capacity of 1200 MW; Tongariro Power Scheme that comprises three power stations with a generation capacity of 361.8MW; Waikaremoana Power Scheme, which includes three power stations with a generation capacity of 138 MW; Tekapo Power Scheme with a generation capacity of 190 MW; and Hau Nui wind farm with 15 wind turbines. The company was formerly known as Genesis Power Limited and changed its name to Genesis Energy Limited in September 2013.
Genesis Energy Limited was incorporated in 1998 and is headquartered in Auckland, New Zealand.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Few fund managers own this — expect less research and analyst coverage
Shares freely traded on the ASX by individual investors like you
Leadership owns a solid 44.2% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (3.4%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Current Snapshot
Insider %
44.2%
Institutional %
3.4%
Float %
52.5%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 44.2% and institutions own 3.4%, public float is 52.5%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Leadership owns a solid 44.2% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (3.4%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Sources
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Acceptable. Debt level (0.50) is within this Buffett-inspired framework's limit of 1.5.
Current Snapshot
Current D/E
0.50x
Industry Limit
1.50x
Headroom
+1.00x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.50, meaning it carries 50 cents of debt for every $1 of equity. The utilities & energy infrastructure limit is 1.50, leaving 1.00 of headroom.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
Low debt means this company isn't at risk of cutting dividends to service loans during downturns. Your income stream is protected by a strong balance sheet.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$177M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $177M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
5.8% average is below the 10% threshold. This suggests the business may lack a durable competitive advantage. Note: COVID-19 Pandemic year(s) excluded — ROE recovered to 230% of target.
Current Snapshot
10Y Avg
5.8%
Threshold
10.0%
Worst Year
1.0%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 5.8%, meaning each $1 of shareholder equity generates $0.06 in annual profit. The threshold is 10%, and the worst single year was 1.0%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 5.8%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Strong value. 8.5% earnings yield exceeds the threshold, and multiple valuation checks confirm it's attractively priced.
Current Snapshot
Current Yield
8.5%
Required Yield
6.0%
Spread
+2.5pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.15 and a share price of $1.79, earnings yield is 8.5%. The required yield for this industry is 6.0% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Multiple ways of measuring value agree: you're getting a fair deal. The stock offers solid returns compared to what you'd earn from safe bonds.
Sources
How current price compares with estimated intrinsic value
How much earnings are consumed by capital expenditure
Moderate capital intensity. 65% of earnings goes to CapEx — within the 100% threshold for this sector.
Current Snapshot
10Y CapEx Intensity
65%
Threshold
100%
Buffer
+35%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 65% of this company's cumulative earnings were consumed by capital expenditure. The utilities & energy infrastructure threshold is 100%, leaving a buffer of +35%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Capital needs are manageable for this sector. The business retains enough earnings to fund both maintenance and shareholder returns.
Sources
Consistency of profits over time
Years of earnings needed to retire all long-term debt
Percentage of revenue that becomes profit after all expenses
How efficiently the company turns money into profit
Is the business growing — and is debt being managed responsibly?
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Current Snapshot
Revenue Change
+31.3%
Debt Change
-0.2%
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +31.3% across the displayed period, while debt changed by -0.2%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Sources
7.24% yield meets Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
7.2%
6% Requirement
6.0%
Gross Yield
N/A
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.13 and a share price of $1.79, the Barsi yield is 7.2%. The minimum requirement is 6%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
This yield provides meaningful income that can beat inflation and compound over time. With DRIP enabled, this income can snowball into significant wealth.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~21 Aug 2026Est | ~22 Oct 2026 | ~$0.07 | 0% | ~$0.07 | $0.00 |
| ~15 Feb 2027Est | ~25 Mar 2027 | ~$0.06 | 0% | ~$0.06 | $0.00 |
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 25 Feb 2026Interim | 25 Mar 2026 | $0.06 | 0% | $0.06 | $0.00 |
| 24 Sept 2025Final | 22 Oct 2025 | $0.06 | 0% | $0.06 | $0.00 |
| 19 Mar 2025Interim | 16 Apr 2025 | $0.06 | 0% | $0.06 | $0.00 |
| 25 Sept 2024Final | 23 Oct 2024 | $0.06 | 0% | $0.06 | $0.00 |
| 20 Mar 2024Interim | 17 Apr 2024 | $0.06 | 0% | $0.06 | $0.00 |
| 21 Sept 2023Final | 19 Oct 2023 | $0.08 | 0% | $0.08 | $0.00 |
| 22 Mar 2023Interim | 19 Apr 2023 | $0.08 | 0% | $0.08 | $0.00 |
| 21 Sept 2022Final | 19 Oct 2022 | $0.07 | 0% | $0.07 | $0.00 |
| 17 Mar 2022Interim | 14 Apr 2022 | $0.08 | 0% | $0.08 | $0.00 |
| 23 Sept 2021Final | 21 Oct 2021 | $0.08 | 0% | $0.08 | $0.00 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Moderate
Payout Health
High risk
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Moderate. Payout health: High risk. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Highest price to lock in 6% yield
Current price is favourable. Locks in 6%+ dividend yield based on historical average.
Current Snapshot
Current Price
$1.79
Max Buy Price
$2.17
Delta
+17.3%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $1.79 and a ceiling of $2.17, the entry is 17.3% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying below the ceiling locks in your target yield based on proven historical dividends — not projections. Your income is secured at this price.
Sources
Industry category of the business
Sanitation is an essential service sector with stable, predictable cash flows - ideal for dividend investing.
Current Snapshot
Industry
Utilities - Independent Power Producers
BESST Match
Yes
Score Impact
+3 points
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Utilities - Independent Power Producers (Utilities sector). It matches the Sanitation category — an essential service sector with stable demand, earning a +3 point scoring advantage.
How to Interpret
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Essential services maintain demand regardless of economic conditions - people always need electricity, banking, and telecommunications. Your income is protected by inelastic demand.
Sources
How much of a company's earnings are paid out as dividends
A 81% payout means the company distributes most of its earnings as dividends — more income per share now, but less room for growth. Around 67% is often considered “normal” for established companies. This level feeds directly into the price ceiling calculation.
Current Snapshot
Latest Ratio
80.7%
Healthy Range
30%-75%
Zone
Elevated
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.13 dividend / $0.15 EPS equals 82.0% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 81% payout means the company distributes most of its earnings as dividends — more income per share now, but less room for growth. Around 67% is often considered “normal” for established companies. This level feeds directly into the price ceiling calculation.
Sources
Exceptional discount: 65% BELOW the fair-value threshold (includes 25% margin of safety).
Current Snapshot
Current Margin
73.6%
Industry Threshold
25%
Status
65% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $6.81 per share, current price is $1.79, and margin of safety is 73.6%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
The market price sits far below your required entry threshold, providing a substantial valuation buffer if assumptions prove optimistic.
Sources
10/4 positive EPS years. Limited data - full evaluation requires 8+ years. Monitor closely for consistency.
Current Snapshot
Positive Years
10/4
Allowed Losses
0 (limited)
EPS CAGR
-1.4%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 10 of the last 4 years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is -1.4%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
So far so good, but limited history means we haven't seen how this company handles a full economic cycle. Monitor closely for continued consistency.
Sources
Could pay off long-term debt in 7.0 years — within the 8-year threshold but approaching the limit.
Current Snapshot
Payoff Years
7.0yr
Target Years
8yr
Gap
+1.0yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $1.2B in long-term debt and $165M in average annual earnings (3yr), it would take 7.0 years of earnings to pay off all debt. The utilities & energy infrastructure threshold is 8 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
Debt is serviceable from earnings, but with limited headroom. An earnings dip could push this metric above the threshold — monitor debt levels and profitability trends.
Sources
4.5% net margin is below the 10% threshold. May reflect this sector's structural characteristics.
Current Snapshot
Current Margin
4.5%
Threshold
10.0%
Relative Position
-5.5%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 4.5% — it keeps 5 cents of every revenue dollar as profit after all expenses. The utilities & energy infrastructure threshold is 10%, putting it 5.5% below the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Lower margins in this sector are common, but they leave less cushion if costs rise or revenue drops. Monitor whether margins are stable over time — consistency matters more than the absolute level.
Sources
4.5% ROIC is below the 8.5% threshold. Company may not be earning enough to justify the money invested in it.
Current Snapshot
5Y Avg
4.5%
Threshold
8.5%
WACC Delta
-2.0pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 4.5%, with a cost of capital (WACC) of 6.5%. The -2.0pp gap below WACC suggests it may be destroying value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns below the cost of borrowing mean the business destroys value over time. This can erode the foundation that supports dividends — proceed with caution.
Sources
Contact Energy Limited
TPC Consolidated Limited
APA Group
Origin Energy Limited
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