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New Zealand (NZX) Telecom Sector Analysis

UpdatedDec 02, 2023
DataAggregated Company Financials
Companies5
  • 7D0.6%
  • 3M0.5%
  • 1Y-2.4%
  • YTD-5.0%

In the last week, the Telecom industry is flat overall, with NZME standing out by going down 3.4%. In line with that, the industry has also been flat over the past 12 months. As for the next few years, earnings are forecast to decline by 5.9% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 03 Dec 2023NZ$13.3bNZ$6.6bNZ$1.2b8.7x10.8x2x
Tue, 31 Oct 2023NZ$12.7bNZ$6.6bNZ$1.2b8.7x10.4x1.9x
Thu, 28 Sep 2023NZ$12.7bNZ$6.6bNZ$1.2b8.7x10.4x1.9x
Sat, 26 Aug 2023NZ$13.3bNZ$6.6bNZ$1.2b9.2x11x2x
Mon, 24 Jul 2023NZ$13.6bNZ$6.5bNZ$1.2b8.2x11.7x2.1x
Wed, 21 Jun 2023NZ$13.8bNZ$6.5bNZ$1.2b8.3x11.8x2.1x
Fri, 19 May 2023NZ$13.9bNZ$6.5bNZ$1.2b8.5x11.9x2.2x
Sun, 16 Apr 2023NZ$13.9bNZ$6.5bNZ$1.2b8.5x11.9x2.1x
Tue, 14 Mar 2023NZ$13.3bNZ$6.5bNZ$1.2b8.7x11.4x2.1x
Thu, 09 Feb 2023NZ$14.3bNZ$5.8bNZ$554.1m15.1x25.9x2.5x
Sat, 07 Jan 2023NZ$14.3bNZ$5.8bNZ$554.1m15.1x25.7x2.5x
Mon, 05 Dec 2022NZ$13.9bNZ$5.8bNZ$554.1m14.8x25x2.4x
Wed, 02 Nov 2022NZ$13.9bNZ$5.8bNZ$554.1m14.9x25.1x2.4x
Fri, 30 Sep 2022NZ$13.5bNZ$5.8bNZ$554.1m14.7x24.4x2.3x
Sun, 28 Aug 2022NZ$14.1bNZ$5.8bNZ$554.1m15.6x25.5x2.4x
Tue, 26 Jul 2022NZ$13.5bNZ$5.7bNZ$548.3m16.8x24.5x2.3x
Thu, 23 Jun 2022NZ$12.7bNZ$5.7bNZ$548.3m16.4x23.1x2.2x
Sat, 21 May 2022NZ$12.9bNZ$5.7bNZ$548.3m16.9x23.6x2.3x
Mon, 18 Apr 2022NZ$13.3bNZ$5.7bNZ$548.3m17.7x24.2x2.3x
Wed, 16 Mar 2022NZ$12.7bNZ$5.7bNZ$548.3m16.9x23.2x2.2x
Fri, 11 Feb 2022NZ$12.3bNZ$5.6bNZ$496.1mn/a24.8x2.2x
Sun, 09 Jan 2022NZ$12.4bNZ$5.6bNZ$496.1m21.8x24.9x2.2x
Tue, 07 Dec 2021NZ$11.9bNZ$5.6bNZ$496.1mn/a24x2.1x
Thu, 04 Nov 2021NZ$11.9bNZ$5.6bNZ$496.1m22x24.1x2.1x
Sat, 02 Oct 2021NZ$12.4bNZ$5.6bNZ$496.1m23.1x25x2.2x
Mon, 30 Aug 2021NZ$12.8bNZ$5.6bNZ$496.0m23.8x25.8x2.3x
Tue, 06 Jul 2021NZ$12.3bNZ$5.6bNZ$496.0m23.3x24.8x2.2x
Fri, 09 Apr 2021NZ$12.0bNZ$5.6bNZ$414.0m34.8x28.9x2.1x
Thu, 31 Dec 2020NZ$12.7bNZ$5.6bNZ$339.0m32.3x37.4x2.3x
Price to Earnings Ratio

50.4x


Total Market Cap: NZ$12.6bTotal Earnings: NZ$249.6mTotal Revenue: NZ$5.7bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 22.5x202120222023
Current Industry PE
  • Investors are pessimistic on the New Zealander Communication Services 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 10.8x which is lower than its 3-year average PE of 22.5x.
  • 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 70% per year over the last three years.
  • Revenues for these companies have grown 5.2% 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 Market1.36%
Telecom0.64%
Media1.07%
Telecom Services and Carriers0.62%
Entertainment0%
Interactive Media and Services0%
Wireless Telecom0%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry even though it's trading below its 3-year average PE ratio of 22.8x.
    • Analysts are expecting annual earnings decline of 5.9%, which is lower than the prior year's growth of 57.9% per year.
Forecasted Growth
  • Despite it being negative, analysts are least pessimistic on the Media industry since they expect its earnings to decline by only 4.4% per year over the next 5 years, which isn't as bad as the other industries.
  • This is an improvement from its past earnings decline of 36% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings decline by 5.9% 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
CNU ChorusNZ$7.661.3%
+NZ$41.2m		-5.7%PE132.9x
SPK Spark New ZealandNZ$5.100.4%
+NZ$16.4m		-1.4%PE8.2x
SKT SKY Network TelevisionNZ$2.822.9%
+NZ$11.1m		22.1%PE8x
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