How to buy Contact Energy (CEN) shares
Learn how to easily invest in Contact Energy shares.
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Contact Energy Limited is an utilities-independent power producers business based in Australia. Contact Energy shares (CEN) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian Dollars. Contact Energy has a trailing 12-month revenue of around $2.1 billion. If you're looking to buy shares, check out the steps below.
How to buy shares in Contact Energy
- Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
- Search for Contact Energy. Find the share by name or ticker symbol: CEN. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Contact Energy reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
- Check in on your investment. Congratulations, you own a part of Contact Energy. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Contact Energy key stats
- Compare share trading platforms
- Is Contact Energy stock a buy or sell?
- Contact Energy performance over time
- Are Contact Energy shares over-valued?
- Contact Energy's financials
- How volatile are Contact Energy shares?
- Does Contact Energy pay a dividend?
- Have Contact Energy shares ever split?
- Other common questions
Contact Energy stock price (ASX:CEN)Use our graph to track the performance of CEN stocks over time.
Contact Energy shares at a glance
|52-week range||$5.0219 - $10.3581|
|50-day moving average||$7.6886|
|200-day moving average||$7.3507|
|Dividend yield||$0.37 (4.83%)|
|Earnings per share (TTM)||$0.188|
Compare share trading platforms
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is it a good time to buy Contact Energy stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Contact Energy price performance over time
|1 month (2021-06-29)||-4.36%|
|3 months (2021-04-29)||6.58%|
Is Contact Energy under- or over-valued?
Valuing Contact Energy stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Contact Energy's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Contact Energy's P/E ratio
Contact Energy's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 44x. In other words, Contact Energy shares trade at around 44x recent earnings.
That's relatively high compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Contact Energy's PEG ratio
Contact Energy's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 29.5361. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Contact Energy's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Contact Energy's EBITDA
Contact Energy's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $448 million.
The EBITDA is a measure of a Contact Energy's overall financial performance and is widely used to measure a its profitability.
Contact Energy financials
|Revenue TTM||$2.1 billion|
|Operating margin TTM||11.98%|
|Gross profit TTM||$451 million|
|Return on assets TTM||3.29%|
|Return on equity TTM||5.53%|
|Market capitalisation||$6.3 billion|
TTM: trailing 12 months
Contact Energy share dividends
Dividend payout ratio: 189.25% of net profits
Recently Contact Energy has paid out, on average, around 189.25% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.9% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Contact Energy shareholders could enjoy a 3.9% return on their shares, in the form of dividend payments. In Contact Energy's case, that would currently equate to about A$0.37 per share.
Contact Energy's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 11 March 2021 (the "ex-dividend date").
Have Contact Energy's shares ever split?
Contact Energy's shares were split on 23 August 2012.
Contact Energy share price volatility
Over the last 12 months, Contact Energy's shares have ranged in value from as little as $5.0219 up to $10.3581. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Contact Energy's is 0.4375. This would suggest that Contact Energy's shares are less volatile than average (for this exchange).
Contact Energy overview
Contact Energy Limited generates and sells electricity and natural gas in New Zealand. The company operates through two segments, Wholesale and Customer. The Wholesale segment sells electricity to the wholesale electricity market, and commercial and industrial customers. The Customer segment delivers electricity, natural gas, broadband, and other products and services to mass market customers. It offers electricity, natural gas, and bottled liquefied petroleum gas (LPG) generated through its 11 hydro, geothermal, and gas-fired power stations. The company serves approximately 550,000 customers. Contact Energy Limited was founded in 1995 and is headquartered in Wellington, New Zealand.
Contact Energy in the news
Contact Energy Limited's (NZSE:CEN) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
Frequently asked questions
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