Genie Stock Story

GNE -  USA Stock  

USD 5.15  0.02  0.39%

As many rational traders are trying to avoid utilities space, it makes sense to digest Genie Energy a little further and understand how it stands against Hawaiian Electric and other similar entities. We are going to discuss some of the competitive aspects of both Genie and Hawaiian.
Published over a month ago
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Are retail investors purchasing Genie Energy (NYSE:GNE) or Hawaiian Electric?
By analyzing existing basic indicators between Genie Energy and Hawaiian, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Hawaiian with a short position in Genie Energy. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Genie Energy has an asset utilization ratio of 263.52 percent. This indicates that the company is making $2.64 for each dollar of assets. An increasing asset utilization means that Genie Energy is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Genie Energy's Liquidity

Genie Energy financial leverage refers to using borrowed capital as a funding source to finance Genie Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Genie Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Genie Energy's total debt and its cash.

How Genie utilizes its cash?

To perform a cash flow analysis of Genie Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Genie Energy is receiving and how much cash it distributes out in a given period. The Genie Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Genie Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 23.12 Million

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Genie Energy revenue. Based on the latest financial disclosure, Genie Energy reported 410.6 M of revenue. This is 89.63% lower than that of the Utilities sector and significantly higher than that of the Utilities—Regulated Electric industry. The revenue for all United States stocks is 95.65% higher than that of the firm. As for Hawaiian Electric we see revenue of 2.62 B, which is much higher than that of the Utilities—Regulated Electric

HE
2.6 B
GNE410.6 Million13.55
Sector0.00.0
HE2.62 Billion86.45

Genie Energy is getting out of hand

Latest Total Risk Alpha is up to 0.04. Price may dip again. Genie Energy currently demonstrates below-average downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.05. However, we advise investors to further question Genie Energy expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Genie Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Genie Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Genie Energy

Although some other entities in the utilities—regulated electric industry are either recovering or due for a correction, Genie may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Genie nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Genie Energy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Genie Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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