Meridian Energy Limited (MEL.NZ) Stock Analysis & Winston Score

Meridian Energy is a New Zealand electricity company that generates and sells power using only renewable sources — mainly hydroelectric dams and wind farms. It sells electricity to homes, businesses, and large industrial customers across New Zealand and Australia, and it owns the Powershop retail brand. Meridian is one of the largest electricity generators in New Zealand and is majority-owned by the New Zealand government. The company makes money by generating electricity and selling it through long-term contracts and spot market prices, as well as through its retail electricity business. Most of its revenue comes from New Zealand, with a smaller presence in Australia. Its competitive advantage comes from owning large, low-cost hydro assets that are difficult to replicate. The main risk is that Meridian's output depends heavily on rainfall — dry years reduce water levels in its lakes, cutting generation and squeezing profits, which makes earnings somewhat unpredictable from year to year.