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New Zealand (NZX) Telecom Sector Analysis

UpdatedMay 17, 2024
DataAggregated Company Financials
Companies5
  • 7D-1.2%
  • 3M-15.4%
  • 1Y-16.5%
  • YTD-14.9%

Over the last 7 days, the Telecom industry has dropped 1.8%, driven by Spark New Zealand declining 2.3%. However, the industry is down 18% over the past year. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

Has the New Zealand Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 17 May 2024NZ$11.4bNZ$6.1bNZ$514.4m18x22.1x1.9x
Sun, 14 Apr 2024NZ$12.4bNZ$6.1bNZ$514.4m20x24.1x2x
Tue, 12 Mar 2024NZ$13.2bNZ$6.1bNZ$514.4m21.4x25.6x2.2x
Thu, 08 Feb 2024NZ$13.6bNZ$6.6bNZ$1.2b9.6x11.1x2.1x
Sat, 06 Jan 2024NZ$13.3bNZ$6.6bNZ$1.2b9.7x10.9x2x
Mon, 04 Dec 2023NZ$13.2bNZ$6.6bNZ$1.2b8.7x10.7x2x
Wed, 01 Nov 2023NZ$12.8bNZ$6.6bNZ$1.2b8.5x10.4x1.9x
Fri, 29 Sep 2023NZ$12.6bNZ$6.6bNZ$1.2b8.7x10.3x1.9x
Sun, 27 Aug 2023NZ$13.3bNZ$6.6bNZ$1.2b9.2x10.8x2x
Tue, 25 Jul 2023NZ$13.6bNZ$6.5bNZ$1.2b8.2x11.7x2.1x
Thu, 22 Jun 2023NZ$13.7bNZ$6.5bNZ$1.2b8.3x11.8x2.1x
Sat, 20 May 2023NZ$14.0bNZ$6.5bNZ$1.2b8.6x12x2.2x
Mon, 17 Apr 2023NZ$13.9bNZ$6.5bNZ$1.2b8.5x11.9x2.1x
Wed, 15 Mar 2023NZ$13.3bNZ$6.5bNZ$1.2b8.7x11.4x2.1x
Fri, 10 Feb 2023NZ$14.3bNZ$5.8bNZ$554.1m15x25.8x2.5x
Sun, 08 Jan 2023NZ$14.3bNZ$5.8bNZ$554.1m15.1x25.7x2.5x
Tue, 06 Dec 2022NZ$13.9bNZ$5.8bNZ$554.1m14.8x25x2.4x
Thu, 03 Nov 2022NZ$13.6bNZ$5.8bNZ$554.1m14.8x24.6x2.4x
Sat, 01 Oct 2022NZ$13.4bNZ$5.8bNZ$554.1m14.5x24.1x2.3x
Mon, 29 Aug 2022NZ$14.1bNZ$5.8bNZ$554.1m15.5x25.5x2.4x
Wed, 27 Jul 2022NZ$13.6bNZ$5.7bNZ$548.3m16.9x24.8x2.4x
Fri, 24 Jun 2022NZ$12.8bNZ$5.7bNZ$548.3m16.5x23.4x2.2x
Sun, 22 May 2022NZ$12.9bNZ$5.7bNZ$548.3m16.9x23.6x2.3x
Tue, 19 Apr 2022NZ$13.3bNZ$5.7bNZ$548.3m17.7x24.2x2.3x
Thu, 17 Mar 2022NZ$12.8bNZ$5.7bNZ$548.3m17x23.4x2.2x
Sat, 12 Feb 2022NZ$12.5bNZ$5.6bNZ$496.1mn/a25.1x2.2x
Mon, 10 Jan 2022NZ$12.4bNZ$5.6bNZ$496.1m21.8x24.9x2.2x
Wed, 08 Dec 2021NZ$11.9bNZ$5.6bNZ$496.1mn/a24x2.1x
Fri, 05 Nov 2021NZ$12.0bNZ$5.6bNZ$496.1m22.1x24.1x2.1x
Sun, 03 Oct 2021NZ$12.4bNZ$5.6bNZ$496.1m23.1x25x2.2x
Tue, 31 Aug 2021NZ$12.8bNZ$5.6bNZ$496.0m23.7x25.8x2.3x
Wed, 07 Jul 2021NZ$12.3bNZ$5.6bNZ$496.0m23.3x24.8x2.2x
Price to Earnings Ratio

28.4x


Total Market Cap: NZ$11.8bTotal Earnings: NZ$414.0mTotal Revenue: NZ$5.6bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 20.1x202220232024
Current Industry PE
  • Investors are relatively neutral on the New Zealander Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 20.1x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 7.5% per year over the last three years.
  • Revenues for these companies have grown 2.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the New Zealand Telecom sector?

NZ Market-0.091%
Telecom-1.25%
Entertainment0%
Interactive Media and Services0%
Telecom Services and Carriers-1.10%
Media-4.14%
Wireless Telecom-6.00%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 8.2x.
    • It looks like they are confident that earnings will grow faster in the future than they have historically.
  • Investors are most pessimistic about the Media industry, which is trading close to its 3-year average of 7.4x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 14% over the next 5 years.
  • This is better than its past earnings decline of 46% per year.
  • In contrast, the Media industry is expected to see its earnings decline by 3.6% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CNU ChorusNZ$7.292.0%
+NZ$60.7m		-11.9%PE150.6x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
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Latest News

SPK

NZ$4.23

Spark New Zealand

7D

-2.3%

1Y

-19.0%

SKT

NZ$2.60

SKY Network Television

7D

-4.4%

1Y

4.0%

CNU

NZ$7.29

Chorus

7D

2.0%

1Y

-11.9%

Chorus Limited's (NZSE:CNU) Shares May Have Run Too Fast Too Soon

Mar 20
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NZM

NZ$0.83

NZME

7D

-3.5%

1Y

-17.8%

VTL

NZ$0.23

Vital

7D

-6.0%

1Y

11.9%