New Zealand (NZX) Real Estate Sector Analysis
UpdatedDec 04, 2022
DataAggregated Company Financials
Companies12
- 7D0.3%
- 3M-9.6%
- 1Y-19.5%
- YTD-25.7%
Over the last 7 days, the Real Estate industry has remained flat, although notably Precinct Properties New Zealand gained 4.5%. Unfortunately though, the industry is down 19% over the past 12 months. Earnings are forecast to grow by 1.5% annually.
Sector Valuation and Performance
Has the New Zealand Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 04 Dec 2022 | NZ$12.4b | NZ$1.5b | NZ$1.0b | 10.4x | 12x | 8.2x |
| Tue, 01 Nov 2022 | NZ$12.6b | NZ$1.5b | NZ$2.2b | 6.3x | 5.8x | 8.3x |
| Thu, 29 Sep 2022 | NZ$12.6b | NZ$1.5b | NZ$2.2b | 6.1x | 5.8x | 8.3x |
| Sat, 27 Aug 2022 | NZ$13.8b | NZ$1.5b | NZ$2.1b | 6.7x | 6.4x | 9x |
| Mon, 25 Jul 2022 | NZ$13.6b | NZ$1.5b | NZ$2.4b | 6.3x | 5.6x | 9.1x |
| Wed, 22 Jun 2022 | NZ$13.1b | NZ$1.5b | NZ$2.4b | 6x | 5.4x | 8.7x |
| Fri, 20 May 2022 | NZ$13.7b | NZ$1.5b | NZ$2.8b | 5.4x | 4.9x | 9.1x |
| Sun, 17 Apr 2022 | NZ$14.9b | NZ$1.5b | NZ$2.8b | 5.6x | 5.3x | 10x |
| Tue, 15 Mar 2022 | NZ$14.9b | NZ$1.5b | NZ$2.8b | 5.5x | 5.3x | 10x |
| Thu, 10 Feb 2022 | NZ$15.6b | NZ$1.4b | NZ$2.7b | 6.3x | 5.7x | 11.4x |
| Sat, 08 Jan 2022 | NZ$16.1b | NZ$1.3b | NZ$2.7b | 5.9x | 6x | 12.8x |
| Mon, 06 Dec 2021 | NZ$14.1b | NZ$1.3b | NZ$2.7b | 5.8x | 5.2x | 11.2x |
| Wed, 03 Nov 2021 | NZ$14.4b | NZ$1.2b | NZ$2.2b | n/a | 6.5x | 11.9x |
| Fri, 01 Oct 2021 | NZ$14.4b | NZ$1.2b | NZ$2.2b | 5.8x | 6.5x | 11.9x |
| Sun, 29 Aug 2021 | NZ$14.8b | NZ$1.2b | NZ$2.2b | 6x | 6.6x | 12.2x |
| Mon, 05 Jul 2021 | NZ$13.8b | NZ$1.2b | NZ$2.2b | 5.6x | 6.2x | 11.4x |
| Thu, 08 Apr 2021 | NZ$13.4b | NZ$1.2b | NZ$1.9b | 7.7x | 7x | 11.3x |
| Sun, 10 Jan 2021 | NZ$14.1b | NZ$1.1b | NZ$1.2b | 14.3x | 11.7x | 12.4x |
| Sat, 03 Oct 2020 | NZ$12.6b | NZ$1.1b | NZ$674.4m | 12.9x | 18.8x | 11.5x |
| Tue, 07 Jul 2020 | NZ$11.2b | NZ$1.1b | NZ$528.1m | 11.9x | 21.2x | 10.4x |
| Fri, 10 Apr 2020 | NZ$10.6b | NZ$1.1b | NZ$599.8m | 10.7x | 17.6x | 10x |
| Thu, 02 Jan 2020 | NZ$13.1b | NZ$1.0b | NZ$1.0b | 11x | 12.7x | 12.5x |
Price to Earnings Ratio
12.7x
Current Industry PE
- Investors are pessimistic on the New Zealander Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 9.3x which is lower than its 3-year average PE of 10.7x.
- The 3-year average PS ratio of 11.0x is higher than the industry's current PS ratio of 8.3x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 13% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the New Zealand Real Estate sector?
| NZ Market | 1.85% | |
| Real Estate | 0.32% | |
| REITS | 0.51% | |
| Real Estate | -1.96% | |
Industry PE
- Investors are most optimistic about the REITS industry even though it's trading below its 3-year average PE ratio of 10.6x.
- Analysts are expecting annual earnings growth of 0.8%, which is higher than its past year's earnings decline of 49.1% per year.
- Investors are most pessimistic about the Real Estate industry, which is trading below its 3-year average of 11.8x.
Forecasted Growth
- Analysts are most optimistic on the Real Estate industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings decline of 10.0% per year.
- In contrast, the REITS industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| PCT Precinct Properties New Zealand | NZ$1.28 | 4.5% +NZ$87.2m | -18.8% | PB0.8x | |
| KPG Kiwi Property Group | NZ$0.93 | 2.2% +NZ$31.4m | -19.1% | PB0.7x | |
| ARG Argosy Property | NZ$1.21 | 2.5% +NZ$25.4m | -19.1% | PB0.7x | |
| PFI Property For Industry | NZ$2.37 | 0.9% +NZ$9.7m | -14.6% | PB0.8x | |
| APL Asset Plus | NZ$0.23 | 9.5% +NZ$7.3m | -24.6% | PB0.5x |