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Contact Energy Ltd (CEN) Fair Value & Analysis

Utilities · AU · Market cap A$7.4B (≈ $5.4B) · ISIN NZCENE0001S6

What is Contact Energy Ltd really worth?

CE Contact Energy Ltd CEN · AU
PriceA$7.09
Fair ValueA$3.05
Upside−57.0%
Quality60/100

A solid business, but trading 132% above our fair value of A$3.05.

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Strengths

Solidly profitable · 11.7% net margin
Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +10.5 %/yr)
!Mixed vs. peers (7/15)
!Moderate moat 58/100
!Weak on dividend: 10 out of 100

For context

·0.48% dividend yield
Evidence: High Range A$2.18 – A$5.65

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from A$3.08 to A$3.05 (−1.0%) since Jul 19, 2026. Share price −7.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (A$5.65). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (A$2.18 to A$5.65) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

A$8.84 A$6.07 Fair Value A$3.05 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range A$6.07 – A$8.84 · fair‑value band A$2.18 – A$5.65 · the A$7.09 price screens above the A$3.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Contact Energy Ltd (CEN) currently trades at A$7.09, while our model-based Fair Value estimate is A$3.05, implying the stock looks roughly 132.5% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of A$5.99 per share, and 2 of the 23 models we run sit above the A$7.09 price. Bear case: the Asset-Based group reads lowest at A$1.86, and 21 of the 23 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Contact Energy Ltd generated revenue of A$3.3B at a net margin of 11.7%. Revenue declined 5.3% year over year. It earns a return on equity of 11.1%. Net debt stands at A$1.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from A$2.18 (bear case) to A$5.65 (bull case); at A$7.09, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −12% fair-value upside, at −57%, CEN screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$0.3358 per share, which is 11.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence A$0.2600 77
Growth DCF A$0.2100 75
EPV A$3.69 A$4.52 A$5.24 74
All 25 models by family
DCF Models
FCF DCF best evidence A$0.2600 77
Owner Earnings A$0.4300 A$1.20 73
5Y Revenue Exit A$2.26 A$4.94 A$8.29 70
5Y EBITDA Exit A$2.74 A$5.79 A$9.20 73
5Y P/E Exit A$1.21 A$3.09 A$4.96 68
10Y Revenue Exit A$0.9600 A$3.10 A$5.81 62
10Y EBITDA Exit A$1.41 A$3.66 A$6.46 65
10Y P/E Exit A$0.4800 A$1.89 A$3.46 59
Earnings-Based
Graham-Dodd A$2.26 A$5.01 A$6.40 66
PEG = 1.0 A$0.8000 A$1.15 A$1.49 57
EPV A$3.69 A$4.52 A$5.24 74
Dividend Discount
Gordon GGM A$1.75 A$2.73 A$3.77 68
DDM Multi-Stage A$1.75 A$2.50 A$3.31 67
Multiples
P/E Multiple A$4.49 A$5.99 A$7.49 63
P/S Multiple A$4.24 A$5.66 A$7.07 58
P/B Multiple A$3.75 A$5.00 A$6.24 55
EV/EBIT A$6.43 A$9.11 A$11.78 65
EV/EBITDA A$5.73 A$8.17 A$10.61 67
EV/Revenue A$4.42 A$6.99 A$9.56 53
Asset-Based
NCAV (Graham) A$1.39 A$1.86 A$2.78 54
Growth DCF
Growth DCF A$0.2100 75
Rev-Margin DCF A$2.26 A$4.91 A$7.67 70
Economic Profit
Residual Income A$2.54 A$2.92 A$4.81 74
ROIC Compounder A$3.79 A$4.92 A$6.14 72
Growth Earnings
Growth-Adj P/E A$3.38 A$4.83 A$6.28 67

Widest divergence: Multiples (A$5.99) versus Asset-Based (A$1.86). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 19.7
P/S ratio 1.91 P/E × margin
EPS (TTM) A$0.3600 price ÷ EPS = P/E 19.7
Dividend yield 0.5% payout 9.5%
Net margin 9.7% FY2025
Return on equity 11.1% TTM
More key figures
Profitability
Return on assets (EBIT) 7.5% avg 5y
Operating margin 22.5% TTM
Growth
Revenue (TTM) A$3.3B TTM
Revenue growth (YoY) −5.3% 3y avg +12.9%
EPS growth (YoY) +16.8%
Balance sheet & cash flow
Free cash flow A$95.0M FY2025
Net debt A$1.9B FY2025 · ≈ 20.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 38

Profitability 41
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 76
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Contact Energy Limited generates and sells electricity and natural gas in New Zealand. It operates through Wholesale and Retail segments.

Full company description

Contact Energy Limited generates and sells electricity and natural gas in New Zealand. It operates through Wholesale and Retail segments. The company involved in selling electricity to the wholesale electricity market, to commercial and industrial customers; and delivering electricity, natural gas, broadband, and other products and services to mass market customers. It also provides bottled gas products. In addition, the company owns and operates hydro, geothermal, and thermal power stations. Contact Energy Limited was incorporated in 1995 and is based in Wellington, New Zealand.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Contact Energy Ltd reported revenue of 3.4B NZD in FY2025 versus 2.6B NZD in FY2021, a compound +7.4%/yr. Reported net income was 331M NZD in FY2025, compounding +15.3%/yr from FY2021.

Growth Quality 59/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$3.4B
Latest YoY
+20.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.0% (10.5 + 0.5)
Revenue +7.4%/yr
FY21 2.6B NZD
FY22 2.4B NZD
FY23 2.1B NZD
FY24 2.8B NZD
FY25 3.4B NZD
Net income +15.3%/yr
FY21 187M NZD
FY22 182M NZD
FY23 127M NZD
FY24 235M NZD
FY25 331M NZD
Character of growth · EPS growth decomposed (2014-2025) +1.7 % p.a.
Revenue per share +0.8 %

of which total revenue +1.5 % · buybacks/dilution −0.8 %

EBIT margin +2.3 %
Tax rate −0.6 %
Residual (interest, one-offs) −0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CEN screens 132% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "Contact Energy Ltd Fair Value". https://www.fairvalue-calculator.com/stock/CEN

Peer Group

Utilities - Renewable · 213 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside −57% · Bottom 25%
Return on equity (TTM) 11% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 22% · Above median
Revenue growth −5% · Below median
Dividend yield (TTM) 0.5% · Below median
Debt / equity 0.76× · Higher than median

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 19.7× · Pricier than median
P/B 1.94× · Pricier than median
P/S (TTM) 1.60× · Cheaper than median
P/FCF 56.3× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than median
PEG 29.54× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 6
FUTURE0 · sector 0
PAST44 · sector 14
HEALTH62 · sector 68
DIVIDEND10 · sector 44

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.96 ¥25.13 −10%
Ørsted A/S ORSTED kr 139.25 kr 31.40 −77%
Huaneng Lancang River Hydropower Inc 600025 ¥9.79 ¥5.57 −43%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 −87%
AXIA Energia SA AXIAP $10.74 $9.49 −12%
VERBUND AG OEWA €57.00 €66.19 +16%
BEP BEP $31.27 $70.40 +125%
BEPUN BEPUN C$45.05 C$42.83 −5%
Fortum Oyj FORTUM €19.80 €13.55 −32%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 −53%

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Frequently asked questions

Is Contact Energy Ltd (CEN) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of A$3.05 versus a price of A$7.09, about −57% upside (overvalued).
What is the fair value of CEN?
Our model-based fair value for Contact Energy Ltd is A$3.05 (as of Aug 13, 2026), built from audited fundamentals. The current price: A$7.09.
What is the quality score of CEN?
Contact Energy Ltd has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Contact Energy Ltd (CEN)?
Contact Energy Ltd reported trailing-twelve-month revenue of about A$3.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CEN?
The net profit margin of Contact Energy Ltd is about 11.7%, meaning it keeps roughly 11.7% of revenue as net income. Based on the latest reported figures.
Does Contact Energy Ltd pay a dividend?
Contact Energy Ltd currently shows a dividend yield of about 0.48% relative to its recent price (as of Aug 13, 2026).
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