Meridian Energy Limited (MEL.NZ) stock analysis

In our weekly check, Meridian Energy Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4.

About Meridian Energy Limited

Meridian Energy Limited is an Utilities company (Renewable Utilities), listed on NZE as MEL.NZ.

What our checks show for MEL.NZ

Red flags

• The net margin fell by 8.6 points over 5 years, to 3.4%: the company keeps less of each sale as profit.
• The net margin is only 3.4%: little room if costs rise.
• The dividend takes 514% of profit: little cushion if profit falls.
• Return on capital (ROCE) is only 5%.

Warning signs

• The stock has fallen as much as 54% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Net debt is only 1.1x a year of EBITDA: the balance sheet has room.
• The gross margin is 25.3% and has risen by 14.9 points: pricing power is holding.
• Operating cash flow is 6.23x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 66.7% a year over the next years.
• Analysts expect the net margin to improve by 10.3 points from today's 3.4%.
• Earnings per share grew 10.3% a year over the last 3 years.

Similar companies

TPE.WA · EDPR.LS · ALUP11.SA · FORTUM.HE · ENLT · CEN.NZ

Questions

What grade does Meridian Energy Limited (MEL.NZ) have?

In our weekly check, Meridian Energy Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 2, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MEL.NZ stock?

This week's biggest flags for Meridian Energy Limited: Margins falling, Thin margins, Dividend stretched. In total 6 of 25 checks show a warning or a red flag.

What does Meridian Energy Limited do?

Meridian Energy Limited is an Utilities company (Renewable Utilities), listed on NZE as MEL.NZ.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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