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Genie Retail Energy ( GRE ) supplies electricity and natural gas to residential and small business customers through retail energy providers ("REPs") operating in certain deregulated markets within the United States; and Genie Renewables ("GREW") is primarily comprised of the following three lines of businesses: o Genie Solar an integrated solar energy company; o CityCom Solar ( CityCom ) a mar…
Operating margin is thin at 5.52%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 18.1%, still solid. Margins contracted 5.0pp, which offsets some of the top-line progress.
Free cash flow declined 40% versus the prior year, cash generation momentum has weakened. ROIC dropped from 14.74% to 8.42%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$507M
▲ +18.1% YoY
Net Income (TTM)
$16M
▼ -32.4% YoY
Op. Margin
3.18%
▼ -5.0pp YoY
ROIC
4.91%
▼ -6.3pp YoY
Cash Flow & Balance Sheet
FCF (FY)
$38M
▼ -40.4% YoY
Op. Cash Flow (TTM)
$24M
▼ -34.5% YoY
Net Debt
-$187M
Net Cash Position
Cash & Equiv.
$195M
5Y CAGR: +7.1%
5Y CAGR: +10.7%
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