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Mercury NZ Limited

MCY.AXUtilitiesASX

Utilities - Renewable

PriceMA150MA200
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Financials · Annual
Revenue
$3.50B
+2.0% YoY
Net Income
$1.0M
-99.7% YoY
EBITDA
$472.0M
-47.8% YoY
Free Cash Flow
$192.6M

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About Mercury NZ Limited

Headquartered within the utilities sector, Mercury NZ Limited focuses on Utilities - Renewable services and products. Mercury NZ Limited, together with its subsidiaries, engages in the production, trading, and sale of electricity and related activities in New Zealand. At a $8.11B market cap, Mercury NZ Limited ranks as a mid-cap company within utilities. The company operates through Generation/Wholesale, Customer, and Other segments.

Key stats
Market Cap$8.11B
P/E (TTM)114.40
Fwd P/E33.44
EPS$0.05
Beta0.32
52W Change-1.2%
Dividend Yield3.76%
ROE1.8%
Analysis

Mercury NZ Limited carries $2.40B in total debt against $94.0M in cash reserves — debt is roughly 25.5x the cash position. Managing this leverage effectively will be important for long-term financial stability. Free cash flow comes in at $192.6M, providing flexibility for reinvestment, buybacks, or dividends. Consistent free cash flow generation is often considered a sign of operational health. ROE of 1.8% points to modest capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. ROA of 3.0% is on the lower side, which is common in asset-heavy industries. Revenue has grown from $2.12B (2022) to $3.50B (2025), reflecting a 65% increase over the period.

With a beta below 0.7, Mercury NZ Limited typically sees smaller price swings than the overall market, offering a degree of stability during turbulent periods. Debt significantly exceeds cash reserves, which means the company's financial flexibility could be constrained during economic downturns. At over 50x earnings, MCY.AX carries valuation risk — any slowdown in growth expectations could lead to meaningful price adjustments. Understanding these risk dimensions helps frame what to watch going forward as conditions evolve for Mercury NZ Limited and its sector.

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