Genie Energy Ltd. (GNE) stock analysis

P/E above its 5-year median

Genie Energy's P/E of 17.7 is above its own 5-year median of 9.4.

P/E below the industry

Genie Energy's P/E of 17.7 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

Genie Energy's EV/EBITDA of 11.5 is above its 5-year median of 4.5.

P/B above the industry

Genie Energy's price-to-book of 1.89 is above the Combination Electric and Gas, and Other Utility median of 1.74.

Trading above fair value

The share price of $19.25 is above our fair value estimate of $18.37.

Margin of safety under 20%

The price is 4.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 16.7% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -34.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.9% over the last twelve months, against a 5-year average of 12.8% a year.

Growing slower than the industry

Revenue grew 1.7% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance lowered

Genie Energy lowered its full year 2026 Adjusted EBITDA outlook on May 14, 2026.

Gross margin improving

Gross margin was 28.2% over the last twelve months, against 25.7% a year earlier.

Return on equity under 15%

Return on equity was 12.5% over the last twelve months and averaged 27.2% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 57.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Genie Energy's return on equity of 12.5% is above the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 12.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.9% over the last twelve months, against a 5-year average of 12.4%.

Net margin below the industry

Genie Energy's net margin of 5.9% is below the Combination Electric and Gas, and Other Utility median of 12.7%.

Low debt

Debt is 2.5% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 273% of total debt.

Interest well covered

Operating income covers interest expense 46.0 times.

Short-term assets cover short-term debts

Current assets are 2.78 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.10; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Genie Energy paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Genie Energy yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 27.3% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.