Morningstar - Trustpower (TPW) Trustpower Looks Fairly Valued

Report

Morningstar

Adrian Atkins

EUR 100.00 For Business Accounts Only

Trustpower Looks Fairly Valued

Narrow-moat-rated Trustpower remains fairly valued, trading close to our unchanged NZD 5.90 fair value estimate. Fiscal 2019 has started a little softer than last year, with lower hydro generation and stiff retail competition, broadly in line with our expectations. We maintain our forecasts and fair value estimate. We forecast EBITDA falls 9% in fiscal 2019 to NZD 220 million, towards the top of management's guidance of NZD 205 million-NZD 225 million. The fall is mainly on reversion to mean rai...

10/09/2018 13 EN

Underlying

Trustpower

Trustpower is an electric power generation and retail group based in New Zealand. Co. and its subsidiaries are engaged in the development, ownership and operation of electricity generation facilities from renewable energy sources and the retail sale of electricity and telecommunications services to its customers. Co. owns and maintains 36 small to medium size Hydro Generating Stations and two Wind Farms, with a further Wind Farm in South Australia. Co. is engaged in the production of electricity from renewable sources and its power stations produce enough electricity for around 220,000 New Zealand households.

See profile

NZTPXE0001S5 NZX New Zealand

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

See profile

Analysts

Adrian Atkins

Other Reports on these Companies

Morningstar

Morningstar | Trustpower Reports In Line FY19 Result; FVE Up 3%

Narrow-moat Trustpower finished the 2019 fiscal year broadly in line with expectations. Underlying net profit after tax, or NPAT, was down 24% from the previous corresponding period, or pcp, to NZD 103 million; while EBITDA fell 9% to NZD 222 million. Both were 1% below our forecasts. Positively, the retail division continues to grow, with adjusted EBITDA up 3% mainly on higher electricity margins. However, generation volumes fell from stellar fiscal 2018 levels because of lower rainfall, causing generation EBITDA to fall 13%. Management guided to fiscal 2020 EBITDA of NZD 205-225 million. Th...

EUR 850.00

May 14, 2019 May 14, 2019 3 EN

Morningstar

Morningstar | Trustpower Offers a Solid Dividend Yield, But Don't Expect Much Earnings Growth

Trustpower generates and supplies electricity to residential, commercial, and industrial consumers. It is considered to have a narrow economic moat, underpinned by its low-cost hydroelectric assets and the efficiently scaled electricity market. The electricity market in New Zealand can be volatile, driven by hydrology conditions, retail competition, and surplus capacity. Trustpower has done a credible job of managing this volatility by hedging its electricity exposure and gradually lifting its own generation capacity. This, coupled with high service levels, good project execution, and innovati...

EUR 850.00

May 14, 2019 May 14, 2019 3 EN

Morningstar

Trustpower Reports In Line FY19 Result; FVE Up 3%

EUR 100.00

May 14, 2019 May 14, 2019 13 EN

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Contract manufacturer Lonza reported solid half-year results, with over CHF 2.9 billion in total sales year to date, up about 6.4% from last year and boosted by foreign exchange tailwinds. Core EBITDA margin expanded 30 basis points from last year to about 27.8%, helped slightly by new accounting standards. Management indicated that it continues to expect mid- to high-single-digit sales growth in 2019. We are maintaining our fair value estimate of CHF 210 per share and our no-moat rating. The ph...

EUR 100.00

July 25, 2019 July 25, 2019 13 EN

Joe Gemino

Joe Gemino

Sasol Provides Full-Year Production Update

No-moat Sasol provided an update on its full-year fiscal 2019 production metrics that included relatively stable liquids production. For the full year ended June 30, Sasol produced 1,470 thousand barrels of crude oil and condensate a day compared with 1,469 mboe/d in the year-ago period. However, declines continued with the companyâ€™s natural gas production, down 4% to 130.3 billion cubic feet compared with the period ended June 30, 2018. Sasol also reported flat refined products of 31.4 mmboe/d ...

EUR 100.00

July 25, 2019 July 25, 2019 12 EN

Damien Conover

Damien Conover

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

We don't expect any major changes to our AstraZeneca fair value estimate following second-quarter results that largely fell in line with our expectations and slightly ahead of consensus expectations. Overall, the company is posting leading Big Pharma sales growth with total sales up 18% operationally year over year, led by impressive cancer drug sales growth of 57%. Astra's ability to continue to bring next generation drugs to the market that address unmet medical need (especially in oncology) s...

EUR 100.00

July 25, 2019 July 25, 2019 14 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Trustpower Looks Fairly Valued

Morningstar | Trustpower Reports In Line FY19 Result; FVE Up 3%

Morningstar | Trustpower Offers a Solid Dividend Yield, But Don't Expect Much Earnings Growth

Trustpower Reports In Line FY19 Result; FVE Up 3%

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe