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New Zealand (NZX) Telecom Sector Analysis

UpdatedFeb 22, 2025
DataAggregated Company Financials
Companies5
  • 7D-9.9%
  • 3M-14.3%
  • 1Y-37.5%
  • YTD-11.6%

The Telecom industry is up 2.8% in the last week, with Chorus up 2.9%. In the same time, Spark New Zealand was down 18%. In the past year, the industry is down 27%. Earnings are forecast to grow by 19% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 22 Feb 2025NZ$9.8bNZ$6.0bNZ$215.4m20.9x45.6x1.6x
Mon, 20 Jan 2025NZ$10.0bNZ$6.0bNZ$368.2m17.1x27.1x1.7x
Wed, 18 Dec 2024NZ$9.8bNZ$6.0bNZ$368.2m16.6x26.6x1.6x
Fri, 15 Nov 2024NZ$10.0bNZ$6.0bNZ$368.2m16.8x27.1x1.7x
Sun, 13 Oct 2024NZ$10.0bNZ$6.0bNZ$368.2m17x27.3x1.7x
Tue, 10 Sep 2024NZ$10.7bNZ$6.0bNZ$368.2m17.7x29.1x1.8x
Thu, 08 Aug 2024NZ$12.0bNZ$6.1bNZ$514.4m18.7x23.3x2x
Sat, 06 Jul 2024NZ$11.3bNZ$6.1bNZ$514.4m17.3x22x1.9x
Mon, 03 Jun 2024NZ$11.3bNZ$6.1bNZ$514.4m17.7x21.9x1.9x
Wed, 01 May 2024NZ$12.4bNZ$6.1bNZ$514.4m20.3x24x2x
Fri, 29 Mar 2024NZ$12.6bNZ$6.1bNZ$514.4m20.2x24.4x2.1x
Sun, 25 Feb 2024NZ$13.4bNZ$6.6bNZ$1.2b14.6x10.9x2x
Tue, 23 Jan 2024NZ$13.5bNZ$6.6bNZ$1.2b9.6x11x2x
Thu, 21 Dec 2023NZ$13.2bNZ$6.6bNZ$1.2b9.2x10.8x2x
Sat, 18 Nov 2023NZ$13.2bNZ$6.6bNZ$1.2b8.9x10.7x2x
Mon, 16 Oct 2023NZ$12.9bNZ$6.6bNZ$1.2b8.9x10.5x2x
Wed, 13 Sep 2023NZ$12.9bNZ$6.6bNZ$1.2b9.1x10.5x2x
Fri, 11 Aug 2023NZ$13.8bNZ$6.5bNZ$1.2b8.4x11.9x2.1x
Sun, 09 Jul 2023NZ$13.3bNZ$6.5bNZ$1.2b8.1x11.5x2.1x
Tue, 06 Jun 2023NZ$13.9bNZ$6.5bNZ$1.2b8.2x11.9x2.2x
Thu, 04 May 2023NZ$14.0bNZ$6.5bNZ$1.2b8.7x12x2.2x
Sat, 01 Apr 2023NZ$13.8bNZ$6.5bNZ$1.2b8.6x11.8x2.1x
Mon, 27 Feb 2023NZ$13.7bNZ$6.5bNZ$1.2b8.9x11.7x2.1x
Wed, 25 Jan 2023NZ$14.0bNZ$5.8bNZ$554.1m14.8x25.3x2.4x
Fri, 23 Dec 2022NZ$14.2bNZ$5.8bNZ$554.1m15.1x25.7x2.5x
Sun, 20 Nov 2022NZ$13.8bNZ$5.8bNZ$554.1m14.9x25x2.4x
Tue, 18 Oct 2022NZ$13.7bNZ$5.8bNZ$554.1m14.8x24.7x2.4x
Thu, 15 Sep 2022NZ$14.0bNZ$5.8bNZ$554.1m15.4x25.3x2.4x
Sat, 13 Aug 2022NZ$13.8bNZ$5.7bNZ$548.3m17.7x25.1x2.4x
Mon, 11 Jul 2022NZ$13.2bNZ$5.7bNZ$548.3m16.9x24x2.3x
Wed, 08 Jun 2022NZ$12.8bNZ$5.7bNZ$548.3m16.7x23.4x2.2x
Fri, 06 May 2022NZ$13.3bNZ$5.7bNZ$548.3m17.6x24.3x2.3x
Sun, 03 Apr 2022NZ$12.7bNZ$5.7bNZ$548.3m17.4x23.2x2.2x
Tue, 01 Mar 2022NZ$12.5bNZ$5.7bNZ$548.3m16.4x22.7x2.2x
Price to Earnings Ratio

22.7x


Total Market Cap: NZ$12.5bTotal Earnings: NZ$548.3mTotal Revenue: NZ$5.7bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 20.2x202320242025
Current Industry PE
  • Investors are optimistic on the New Zealander Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 26.8x which is higher than its 3-year average PE of 20.2x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 12% per year over the last three years.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

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

NZ Market-1.46%
Telecom-9.89%
Entertainment0%0
Interactive Media and Services0%0
Wireless Telecom0%0
Media-1.43%
Telecom Services and Carriers-10.37%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 84.8x.
    • 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, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.1x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is better than its past earnings decline of 72% per year.
  • In contrast, the Media 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?

CompanyLast Price7D1YValuation
CNU ChorusNZ$8.932.9%
+NZ$110.6m
12.9%PS3.8x
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Latest News

SPK

NZ$2.38

Spark New Zealand

7D

-17.9%

1Y

-53.8%

SKT

NZ$2.52

SKY Network Television

7D

-1.2%

1Y

-10.6%

NZM

NZ$1.04

NZME

7D

-1.9%

1Y

4.0%