Meridian Energy (ASX:MEZ) ROCE %: 4.96% (As of Dec. 2025)


ASX:MEZ Meridian Energy Ltd ASX:MEZ
68 GF Score
Price A$4.79
GF Value A$4.32
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Meridian Energy ROCE %?

Meridian Energy ASX:MEZ +1.91% 68 ROCE % is 4.96% as of Dec. 2025. GuruFocus rates ASX:MEZ with a GF Score™ of 68/100 and a GF Value™ of A$4.32 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Meridian Energy's annualized ROCE % for the quarter that ended in Dec. 2025 was 4.96%.

Meridian Energy  (ASX:MEZ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Meridian Energy ROCE % Related Terms

Meridian Energy ROCE % Historical Data

* Premium members only.

The historical data trend for Meridian Energy's ROCE % 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.

Meridian Energy ROCE % Chart

Meridian Energy Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.59 7.89 2.01 6.08 -4.05

Meridian Energy Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.64 6.56 -1.96 -6.40 4.96
ASX:MEZ
68GF Score
Meridian Energy Ltd ASX:MEZ
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Meridian Energy ROCE % Calculation

Meridian Energy's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=-495.932/( ( (12520.416 - 928.192) + (13880.546 - 959.421) )/ 2 )
=-495.932/( (11592.224+12921.125)/ 2 )
=-495.932/12256.6745
=-4.05 %

Meridian Energy's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=634.05/( ( (13880.546 - 959.421) + (13180.072 - 556.536) )/ 2 )
=634.05/( ( 12921.125 + 12623.536 )/ 2 )
=634.05/12772.3305
=4.96 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 4.96% mean?
Meridian Energy (ASX:MEZ) has a ROCE % of 4.96% as of Dec. 2025.
Is Meridian Energy's ROCE % too high?
Meridian Energy's current ROCE % is 4.96%. The Utilities - Independent Power Producers industry median ROCE % is 4.79. Meridian Energy's value of 4.96% is 3.5% above this industry median. Overall, Meridian Energy has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meridian Energy's ROCE % compare to competitors?
Meridian Energy's ROCE % of 4.96% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROCE % is 4.79. Meridian Energy's value of 4.96% is 3.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Independent Power Producers company?
The median ROCE % among Utilities - Independent Power Producers companies is 4.79, based on 437 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Meridian Energy's current ROCE % of 4.96% is 3.5% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Independent Power Producers industry, the median ROCE % is 4.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meridian Energy's current ROCE % is 4.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meridian Energy stock overvalued right now?
Based on GuruFocus' analysis, Meridian Energy (ASX:MEZ) is currently considered Modestly Overvalued. The stock's GF Value™ is A$4.32, compared to a current price of A$4.79 — trading 10.9% above its estimated fair value. The current ROCE % is 4.96% and 3.5% above the Utilities - Independent Power Producers industry median of 4.79. Meridian Energy's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Meridian Energy (ASX:MEZ), the current ROCE % is 4.96% 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 Meridian Energy (ASX:MEZ) Overvalued in 2026?

Based on GuruFocus' analysis, Meridian Energy stock appears to be overvalued. The current stock price of A$4.79 is trading 10.9% above its estimated GF Value™ of A$4.32. GuruFocus considers Meridian Energy to be Modestly Overvalued.

Key valuation signals for ASX:MEZ:

  • ROCE %: 4.96%
  • GF Value™: A$4.32 vs. price of A$4.79 (10.9% above fair value)
  • GF Score™: 68/100 with 6 warning signs
  • Industry Position: 3.5% above the Utilities - Independent Power Producers median

No single metric tells the full story. See the ASX:MEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Meridian Energy Business Description

Address 98 Customhouse Quay, Level 2, Wellington, NZL, 6011
Meridian Energy is one of New Zealand's leading utilities. It is the largest electricity producer in the nation, with a third of the market, and the fourth-largest energy retailer, with about 15% of the market by customer numbers. It generates 100% renewable electricity, mainly from large hydroelectric schemes in the South Island. It also owns a geographically diversified portfolio of wind farms.
68GF Score

Get the complete analysis for ASX:MEZ

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$4.79
Price
A$4.32
GF Value