GNE

Genie is a low-margin retail-energy reseller (IDT Energy, Residents, Town Square et al.) whose top line is growing but whose quality is quietly eroding. FY2025 revenue rose 18.1% to $502M, yet gross profit *fell* 10% to $125M (24.8% margin), operating income dropped 38.3% to $27.7M, and diluted EPS fell 31.3% to $0.90. This is not a one-off: net income has declined every year from $87.8M (FY2022) → $52.2M → $35.5M → $24.0M. The MD&A's own framing — 'we may be forced to reduce prices... and cannot always pass along increases in commodity costs' — shows up directly in the margin compression: they're buying revenue at a worsening spread. Operating cash flow also fell 34.5% to $46.3M.

What keeps this from a sell is the balance sheet and the price. Cash of $204M against total debt of ~$8.7M and a $384M market cap means over half the market value is net cash; on an enterprise basis (~$180M) the business trades near 7-8x earnings, cheap for a franchise still earning a 9.6% ROE and generating positive FCF. Management is returning capital — $8.0M dividends and (FY2024) $10.4M of buybacks, with shares down 1.8%. Liabilities/equity of 0.58x and retained earnings up 13.3% underline the durability.