EN DE

Contact Energy Limited (CEN) Fair Value & Analysis

Utilities · AU · Market cap A$7.4B

CE Contact Energy Limited CEN · AU
PriceA$7.52
Fair ValueA$3.08
Upside-59.0%
Quality60/100
Watch Contact Energy Limited for free, get notified when fair value or trend changes. Watch for free
Mixed Growth
Solidly profitable · 11.7% net margin
Moderate debt · generates free cash flow
5.23% dividend yield
Mixed vs. peers (8/15)
Moderate moat 58/100
Evidence: High Range A$2.20 – A$5.70 Share as image

Fair value as of: Jul 19, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from A$3.68 to A$3.08 (−16.3%) since Jul 15, 2026. Share price +5.0% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$5.70). 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$2.20 to A$5.70) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

A$8.84 A$6.07 Fair Value A$3.08 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range A$6.07 – A$8.84 · fair‑value band A$2.20 – A$5.70 · the A$7.52 price screens above the A$3.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Contact Energy Limited (CEN) currently trades at A$7.52, while our model-based Fair Value estimate is A$3.08, implying the stock looks roughly 59.0% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Contact Energy Limited 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 Jul 19, 2026

Our scenario range runs from A$2.20 (bear case) to A$5.70 (bull case); at A$7.52, 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 13% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -30% fair-value upside, at -59%, CEN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$0.2500 80
Residual Income A$2.54 A$2.92 A$4.81 76
Rev-Margin DCF A$2.28 A$4.99 A$7.83 74
All 25 models by family
DCF Models
FCF DCF A$0.3200 38
Owner Earnings A$0.4700 A$1.28 31
5Y Revenue Exit A$2.28 A$5.02 A$8.46 39
5Y EBITDA Exit A$2.76 A$5.88 A$9.39 41
5Y P/E Exit A$1.22 A$3.15 A$5.08 38
10Y Revenue Exit A$0.9800 A$3.17 A$5.98 36
10Y EBITDA Exit A$1.43 A$3.74 A$6.64 37
10Y P/E Exit A$0.5000 A$1.94 A$3.58 35
Earnings-Based
Graham-Dodd A$2.26 A$5.25 A$6.74 54
PEG = 1.0 A$0.8900 A$1.27 A$1.65 46
EPV A$3.69 A$4.52 A$5.24 59
Dividend Discount
Gordon GGM A$1.75 A$2.87 A$4.14 70
DDM Multi-Stage A$1.75 A$2.54 A$3.37 61
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 53
EV/EBITDA A$5.73 A$8.17 A$10.61 54
EV/Revenue A$4.42 A$6.99 A$9.56 43
Asset-Based
NCAV (Graham) A$1.39 A$1.86 A$2.78 50
Growth DCF
Growth DCF A$0.2500 80
Rev-Margin DCF A$2.28 A$4.99 A$7.83 74
Economic Profit
Residual Income A$2.54 A$2.92 A$4.81 76
ROIC Compounder A$3.81 A$4.96 A$6.24 72
Growth Earnings
Growth-Adj P/E A$3.43 A$4.89 A$6.36 68

Widest divergence: Multiples (A$5.99) versus Asset-Based (A$1.86). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$3.3B
Revenue growth (YoY) -5.3%
Net margin 11.7%
Return on equity 11.1%
Free cash flow A$95.0M FY2025
P/E ratio 20.7
More key figures
Operating margin 22.5%
EPS (TTM) A$0.3600
Dividend yield 5.2%
EPS growth (YoY) +16.8%
Net debt A$1.9B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 43

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 30
Price trend over the last 3–12 months (market factor)
52W Momentum 27
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.

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 Limited reported revenue of A$3.4B in FY2025 versus A$2.6B in FY2021, a compound +7.4%/yr. Reported net income was A$331M 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. growth/yr (3Y)
+12.9%
Avg. growth/yr (5Y)
+10.5%
Avg. growth/yr (23Y)
+5.2%
Revenue +7.4%/yr
FY21 A$2.6B
FY22 A$2.4B
FY23 A$2.1B
FY24 A$2.8B
FY25 A$3.4B
Net income +15.3%/yr
FY21 A$187M
FY22 A$182M
FY23 A$127M
FY24 A$235M
FY25 A$331M

CEN screens 59% overvalued. Compare with China Yangtze Power Co →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

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

Peer Group

Utilities - Renewable · 220 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 −59% · 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) 5.2% · Top 25%
Debt / equity 0.76× · Higher than median

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 20.7× · Pricier than median
P/B 1.90× · Pricier than median
P/S (TTM) 1.57× · Cheaper than median
P/FCF 55.2× · Pricier than 75% of peers
EV/EBITDA 6.6× · Cheaper than median
PEG 29.54× · Pricier than 75% of peers

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.

VALUE 0 · sector 15
FUTURE 0 · sector 0
PAST 44 · sector 12
HEALTH 62 · sector 68
DIVIDEND 100 · sector 48

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.99 ¥25.13 -10%
Ørsted A/S ORSTED kr 149.70 kr 31.40 -79%
Huaneng Lancang River Hydropower Inc 600025 ¥9.81 ¥5.57 -43%
Adani Green Energy Limited ADANIGREEN ₹1,537 ₹170.50 -89%
AXIA Energia SA AXIAP $10.74 $9.65 -10%
VERBUND AG OEWA €58.65 €66.19 +13%
BEP BEP $32.33 $73.35 +127%
BEPUN BEPUN C$44.56 C$10.15 -77%
Fortum Oyj FORTUM €19.89 €13.90 -30%
China Longyuan Power Group 001289 ¥16.21 ¥8.23 -49%

Compare Contact Energy Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Utilities stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Contact Energy Limited (CEN) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of A$3.08 versus a price of A$7.52, about −59% (overvalued).
What is the fair value of CEN?
Our model-based fair value for Contact Energy Limited is A$3.08 (as of Jul 19, 2026), built from audited fundamentals. The current price is A$7.52.
What is the quality score of CEN?
Contact Energy Limited 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 Limited (CEN)?
Contact Energy Limited reported trailing-twelve-month revenue of about A$3.3B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of CEN?
The net profit margin of Contact Energy Limited is about 11.7%, meaning it keeps roughly 11.7% of revenue as net income. Based on the latest reported figures.
Does Contact Energy Limited pay a dividend?
Contact Energy Limited currently shows a dividend yield of about 5.00% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Contact Energy Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.