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Contact EnergyASX:CEN -4.85%59 Debt-to-Equity is 0.71 as of Dec. 2025, which is 29% above its 10-year median of 0.55. GuruFocus rates ASX:CEN with a GF Score™ of 59/100 and a GF Value™ of A$6.81 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 395 Utilities - Independent Power Producers companies, Contact Energy ranks better than 56.96% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Contact Energy's Debt-to-Equity or its related term are showing as below:
ASX:CEN'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.29 Med: 0.55 Max: 0.89
Current: 0.71
During the past 13 years, the highest Debt-to-Equity Ratio of Contact Energy was 0.89. The lowest was 0.29. And the median was 0.55.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Contact Energy Debt-to-Equity Related Terms
Contact Energy Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Contact Energy's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Contact Energy Debt-to-Equity Competitor Comparison
For the Utilities - Renewable subindustry, Contact Energy's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Contact Energy Debt-to-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Contact Energy's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Contact Energy's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Contact Energy (ASX:CEN) has a Debt-to-Equity of 0.71 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Contact Energy and its competitors. This is 29% above median its historical median of 0.55. Over the past decade, Contact Energy's Debt-to-Equity has ranged from 0.29 to 0.89. According to the industry distribution chart, Contact Energy ranks #170 out of 395 companies in the Utilities - Independent Power Producers industry, placing it in the top 43%.
Is Contact Energy's Debt-to-Equity too high?
Contact Energy's current Debt-to-Equity of 0.71 is 29% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 0.89. The Utilities - Independent Power Producers industry median Debt-to-Equity is 0.85. Contact Energy's value of 0.71 is 16.5% below this industry median. Based on the distribution chart, Contact Energy ranks #170 out of 395 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Contact Energy has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Contact Energy's Debt-to-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Contact Energy ranks #170 out of 395 companies for Debt-to-Equity. This puts Contact Energy in the upper half of its industry. The industry median Debt-to-Equity is 0.85. Contact Energy's value of 0.71 is 16.5% below this benchmark. Historically, Contact Energy's own Debt-to-Equity has ranged from 0.29 to 0.89 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 0.85, Contact Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Utilities - Independent Power Producers company?
The median Debt-to-Equity among Utilities - Independent Power Producers companies is 0.85, based on 395 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Contact Energy's current Debt-to-Equity of 0.71 is 16.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Contact Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Debt-to-Equity is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contact Energy's current Debt-to-Equity is 0.71, which is 29% above median its own 10-year median of 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contact Energy stock overvalued right now?
Based on GuruFocus' analysis, Contact Energy (ASX:CEN) is currently considered Modestly Overvalued. The stock's GF Value™ is A$6.81, compared to a current price of A$7.45 — trading 9.4% above its estimated fair value. The current Debt-to-Equity is 0.71, which is 29% above median its 10-year median of 0.55 and 16.5% below the Utilities - Independent Power Producers industry median of 0.85. Contact Energy's overall GF Score™ is 59/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Contact Energy (ASX:CEN), the current Debt-to-Equity is 0.71 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Contact Energy (ASX:CEN) Overvalued in 2026?
Based on GuruFocus' analysis, Contact Energy stock appears to be overvalued.
The current stock price of A$7.45 is trading 9.4% above its estimated GF Value™ of A$6.81.
GuruFocus considers Contact Energy to be Modestly Overvalued.
Key valuation signals for ASX:CEN:
Debt-to-Equity: 0.71 (29% above median its 10-year median of 0.55)
GF Value™: A$6.81 vs. price of A$7.45 (9.4% above fair value)
Industry Position: 16.5% below the Utilities - Independent Power Producers median (#170 of 395)
No single metric tells the full story. See the ASX:CEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contact Energy is a diversified and integrated energy company. It owns a fleet of hydro, geothermal, and gas-fired generation assets, which produce more than 25% of New Zealand's electricity. It also retails electricity and gas to nearly half a million customers.
59GF Score
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