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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…
$14.11
+$0.12 (+0.86%)
Live · 05:22 PM
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.
23.1x earnings, 9.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$507M
▲ +18.1% YoY
Net Income (TTM)
$17M
▼ -32.4% YoY
Op. Margin
3.03%
▼ -5.0pp YoY
ROIC
4.59%
▼ -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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At a P/E of 23.1 and a price-to-free-cash-flow of 9.7, Genie Energy (GNE) trades below a two-stage DCF intrinsic value of about $32.45 per share, so at $14.11 the stock looks undervalued (130.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Genie Energy scores 56/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $32.45 per share for GNE, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $24.34. At today's $14.11, that puts the stock about 130.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Genie Energy scores 56 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 3.0% operating margin and a 4.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Genie Energy pays a regular dividend of about $0.31 per share per year (typically in quarterly installments), a yield of roughly 2.2% at the current price. That is a payout ratio of about 46.7% of earnings, so the dividend is well covered. Genie Energy has grown the dividend at roughly 52.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For GNE's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. GNE currently trades below its estimated intrinsic value and scores 56/100 on quality (mixed). It also yields about 2.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.