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New Zealand (NZX) Telecom Sector Analysis

UpdatedApr 22, 2024
DataAggregated Company Financials
Companies5
  • 7D-2.0%
  • 3M-9.7%
  • 1Y-10.8%
  • YTD-9.1%

Over the last 7 days, the Telecom industry has dropped 2.0%, driven by a pullback from Chorus of 1.3%. Overall the industry is down 11% in 12 months. Looking forward, earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 23 Apr 2024NZ$12.1bNZ$6.1bNZ$514.4m19.8x23.6x2x
Thu, 21 Mar 2024NZ$13.0bNZ$6.1bNZ$514.4m21.2x25.2x2.1x
Sat, 17 Feb 2024NZ$13.3bNZ$6.6bNZ$1.2b9.5x10.9x2x
Mon, 15 Jan 2024NZ$13.5bNZ$6.6bNZ$1.2b9.6x11x2x
Wed, 13 Dec 2023NZ$13.2bNZ$6.6bNZ$1.2b8.8x10.8x2x
Fri, 10 Nov 2023NZ$13.1bNZ$6.6bNZ$1.2b8.7x10.7x2x
Sun, 08 Oct 2023NZ$12.7bNZ$6.6bNZ$1.2b9.1x10.4x1.9x
Tue, 05 Sep 2023NZ$13.2bNZ$6.6bNZ$1.2b9.1x10.7x2x
Thu, 03 Aug 2023NZ$13.8bNZ$6.5bNZ$1.2b8.4x11.8x2.1x
Sat, 01 Jul 2023NZ$13.6bNZ$6.5bNZ$1.2b8.1x11.7x2.1x
Mon, 29 May 2023NZ$13.9bNZ$6.5bNZ$1.2b8.4x11.9x2.1x
Wed, 26 Apr 2023NZ$14.0bNZ$6.5bNZ$1.2b8.6x12x2.2x
Fri, 24 Mar 2023NZ$13.2bNZ$6.5bNZ$1.2b8.3x11.3x2x
Sun, 19 Feb 2023NZ$14.3bNZ$5.8bNZ$554.1m15.2x25.8x2.5x
Tue, 17 Jan 2023NZ$14.2bNZ$5.8bNZ$554.1m15x25.6x2.4x
Thu, 15 Dec 2022NZ$14.2bNZ$5.8bNZ$554.1m14.9x25.5x2.4x
Sat, 12 Nov 2022NZ$13.8bNZ$5.8bNZ$554.1m15x24.9x2.4x
Mon, 10 Oct 2022NZ$13.5bNZ$5.8bNZ$554.1m14.7x24.3x2.3x
Wed, 07 Sep 2022NZ$14.4bNZ$5.8bNZ$554.1m15.9x26x2.5x
Fri, 05 Aug 2022NZ$13.9bNZ$5.7bNZ$548.3m17.2x25.4x2.4x
Sun, 03 Jul 2022NZ$12.9bNZ$5.7bNZ$548.3m16.6x23.5x2.2x
Tue, 31 May 2022NZ$12.7bNZ$5.7bNZ$548.3m16.6x23.3x2.2x
Thu, 28 Apr 2022NZ$13.2bNZ$5.7bNZ$548.3m17.4x24x2.3x
Sat, 26 Mar 2022NZ$12.8bNZ$5.7bNZ$548.3m17.2x23.3x2.2x
Mon, 21 Feb 2022NZ$12.3bNZ$5.6bNZ$496.1m22.1x24.7x2.2x
Wed, 19 Jan 2022NZ$12.3bNZ$5.6bNZ$496.1mn/a24.8x2.2x
Fri, 17 Dec 2021NZ$12.5bNZ$5.6bNZ$496.1m20x25.2x2.2x
Sun, 14 Nov 2021NZ$11.9bNZ$5.6bNZ$496.1m22.1x24x2.1x
Tue, 12 Oct 2021NZ$12.2bNZ$5.6bNZ$496.1m22.7x24.6x2.2x
Thu, 09 Sep 2021NZ$12.8bNZ$5.6bNZ$496.0m23.4x25.7x2.3x
Sat, 07 Aug 2021NZ$12.2bNZ$5.6bNZ$496.0m23.3x24.6x2.2x
Fri, 30 Apr 2021NZ$11.7bNZ$5.6bNZ$414.0m33.5x28.3x2.1x
Price to Earnings Ratio

28.3x


Total Market Cap: NZ$11.7bTotal Earnings: NZ$414.0mTotal Revenue: NZ$5.6bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 20.3x202220232024
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 23.6x which is higher than its 3-year average PE of 20.3x.
  • The industry is trading close to its 3-year average PS ratio of 2.2x.
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-1.08%
Telecom-1.98%
Entertainment0%
Interactive Media and Services0%
Telecom Services and Carriers-1.94%
Media-2.60%
Wireless Telecom-4.00%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 5.8x.
    • 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 6.6x.
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 3.9% 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
SPK Spark New ZealandNZ$4.741.2%
+NZ$99.8m		-7.4%PE20.1x
CNU ChorusNZ$7.401.3%
+NZ$41.2m		-15.0%PE152.9x
SKT SKY Network TelevisionNZ$2.851.4%
+NZ$4.9m		9.2%PE7.4x
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NZ$0.88

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1Y

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NZ$2.85

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1.4%

1Y

9.2%

VTL

NZ$0.24

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-4.0%

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