Is MEL.NZ overvalued or undervalued?

MEL.NZ currently has a P/E ratio of 111.27. Relative to the sector average of 30.60, this suggests the stock may be overvalued. A higher P/E than peers means investors are paying more for each unit of earnings, often because they expect faster future growth. However, if that growth does not materialize, the stock can appear overvalued. A lower P/E may indicate weaker growth expectations or higher risk, but it can also signal a potential valuation discount.

How can I buy Meridian Energy Limited stock?

Meridian Energy Limited trades on NZE. Investors in Latin America can buy it through international and regional brokerage and investment platforms. You simply need a valid government ID or passport to get started.

Can I buy fractional shares of MEL.NZ?

Yes. Through fractional investing, you can invest exactly the amount you want, starting with as little as $1 or $5 USD (depending on what investment platform you use), and own a proportional piece of the company.

Does buying MEL.NZ protect my money against local inflation?

Many investors in Latin America buy international stocks like MEL.NZ to protect their purchasing power. Because MEL.NZ is priced in foreign currency, your investment is tied to a hard currency. If your local currency devalues against the foreign currency, usually USD or Euro, the underlying value of your stock portfolio remains protected from local inflation.

Do I need a foreign bank account or a Visa to buy MEL.NZ shares?

No. A common misconception is that you need a foreign bank account or a foreign visa to invest in international stocks. Today, modern investment platforms allow you to fund your account using local bank transfers or local payment methods right from your home country.

Is MEL.NZ a suitable investment for my portfolio?

There is no universal answer, since fit depends on your situation, not just the stock. Think about three things: how well MEL.NZ diversifies what you already own, whether you can stomach its price swings given your risk tolerance, and how long you plan to stay invested. As a rule, a single stock works best as one piece of a broader asset allocation and with a multi-year time horizon. This is general information, not personalized financial advice.

All stocksMEL.NZ

Meridian Energy Limited

NZ$5.53+NZ$0.09+1.65%

NZE / NZD

Market cap

NZ$14.6B

P/E

111.3

EPS (TTM)

NZ$0.03

Dividend yield

4.53%

Beta

0.46

1Y return

-8.14%

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Financials

The numbers behind the company

Revenue vs net income

RevenueNet income

$2.4B2022

$2.0B2023

$2.9B2024

$2.9B2025

$2.2B2026

Financial health

Gross margin

Operating margin

ROE

ROA

Debt to equity0.20Low
Current ratio1.15
Cash ratio0.55
Net margin3.4%
Free cash flow—

Valuation

Is it expensive right now

P/E vs the market

scale 0–50

0153050

MEL.NZ111.3
Utilities sector median30.6
S&P 50022.0

Trades about 264% above its sector, the market expects faster growth.

Ratios

PEG0.25
Price to book1.47
EPS (TTM)NZ$0.03
Payout ratio28,923%
FCF yield3.68%

Range & risk

NZ$5.16NZ$6.05

Trading in the middle of its 52-week band

Beta0.46

Profile

What Meridian Energy Limited actually does

Meridian Energy Limited engages in the generation and retailing of electricity to residential, business, and industrial customers in New Zealand, Australia, and the United Kingdom. The company generates electricity through 7 hydro stations; 8 wind farms; and 100MW battery energy storage system, as well as grid-scale solar array. It sells electricity under the Meridian Energy and Powershop brands. It also offers solar installation, software development, professional, and insurance services. The company was formerly known as Hydro Energy Limited. Meridian Energy Limited was incorporated in 1998 and is based in Wellington, New Zealand. Meridian Energy Limited operates as a subsidiary of New Zealand.

CEO

Michael John Roan

Employees

935

Headquarters

Wellington, WGN

Founded

2013-10-29

Company website

If you had invested a decade ago

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Community sentiment

Bullish—

Distribution

Bearish0%
Neutral0%
Bullish0%

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Q&A

Questions people ask

MEL.NZ has a beta of 0.46, which indicates how sensitive it has historically been to movements in its broader market. A beta below 1 indicates lower relative volatility than the market. Beta is based on historical data and does not predict future performance.

Meridian Energy Limited