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New Zealand (NZX) Telecom Sector Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies5
  • 7D-0.8%
  • 3M-7.2%
  • 1Y-27.7%
  • YTD-28.2%

Over the last 7 days, the Telecom industry has remained flat, although notably SKY Network Television gained 6.0%. Unfortunately though, the industry is down 28% over the past 12 months. 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
Sun, 22 Dec 2024NZ$9.6bNZ$6.0bNZ$368.2m16.4x26x1.6x
Tue, 19 Nov 2024NZ$10.3bNZ$6.0bNZ$368.2m16.9x27.9x1.7x
Thu, 17 Oct 2024NZ$9.8bNZ$6.0bNZ$368.2m16.4x26.7x1.6x
Sat, 14 Sep 2024NZ$10.7bNZ$6.0bNZ$368.2m17.2x29.1x1.8x
Mon, 12 Aug 2024NZ$11.8bNZ$6.1bNZ$514.4m18.4x23x2x
Wed, 10 Jul 2024NZ$11.3bNZ$6.1bNZ$514.4m17.3x21.9x1.9x
Fri, 07 Jun 2024NZ$11.1bNZ$6.1bNZ$514.4m17.2x21.6x1.8x
Sun, 05 May 2024NZ$12.3bNZ$6.1bNZ$514.4m20.1x23.9x2x
Tue, 02 Apr 2024NZ$12.6bNZ$6.1bNZ$514.4m20.2x24.4x2.1x
Thu, 29 Feb 2024NZ$13.2bNZ$6.6bNZ$1.2b14.3x10.8x2x
Sat, 27 Jan 2024NZ$13.7bNZ$6.6bNZ$1.2b9.9x11.2x2.1x
Mon, 25 Dec 2023NZ$13.3bNZ$6.6bNZ$1.2b9.5x10.8x2x
Wed, 22 Nov 2023NZ$13.1bNZ$6.6bNZ$1.2b8.7x10.7x2x
Fri, 20 Oct 2023NZ$13.0bNZ$6.6bNZ$1.2b8.9x10.6x2x
Sun, 17 Sep 2023NZ$12.7bNZ$6.6bNZ$1.2b8.8x10.3x1.9x
Tue, 15 Aug 2023NZ$13.8bNZ$6.5bNZ$1.2b8.3x11.8x2.1x
Thu, 13 Jul 2023NZ$13.4bNZ$6.5bNZ$1.2b8.1x11.5x2.1x
Sat, 10 Jun 2023NZ$13.8bNZ$6.5bNZ$1.2b8.3x11.8x2.1x
Mon, 08 May 2023NZ$14.0bNZ$6.5bNZ$1.2b8.7x12x2.2x
Wed, 05 Apr 2023NZ$13.7bNZ$6.5bNZ$1.2b8.5x11.8x2.1x
Fri, 03 Mar 2023NZ$13.6bNZ$6.5bNZ$1.2b9.1x11.7x2.1x
Sun, 29 Jan 2023NZ$14.1bNZ$5.8bNZ$554.1m14.9x25.5x2.4x
Tue, 27 Dec 2022NZ$14.5bNZ$5.8bNZ$554.1m15.2x26.1x2.5x
Thu, 24 Nov 2022NZ$14.0bNZ$5.8bNZ$554.1m14.9x25.3x2.4x
Sat, 22 Oct 2022NZ$13.4bNZ$5.8bNZ$554.1m14.5x24.2x2.3x
Mon, 19 Sep 2022NZ$13.6bNZ$5.8bNZ$554.1m14.9x24.5x2.3x
Wed, 17 Aug 2022NZ$13.9bNZ$5.7bNZ$548.3m17.9x25.3x2.4x
Fri, 15 Jul 2022NZ$13.5bNZ$5.7bNZ$548.3m16.9x24.6x2.3x
Sun, 12 Jun 2022NZ$12.8bNZ$5.7bNZ$548.3m16.3x23.3x2.2x
Tue, 10 May 2022NZ$13.1bNZ$5.7bNZ$548.3m17.2x23.8x2.3x
Thu, 07 Apr 2022NZ$12.9bNZ$5.7bNZ$548.3m17.5x23.6x2.3x
Sat, 05 Mar 2022NZ$12.9bNZ$5.7bNZ$548.3m17.3x23.6x2.3x
Mon, 31 Jan 2022NZ$11.9bNZ$5.6bNZ$496.1m21.1x23.9x2.1x
Wed, 29 Dec 2021NZ$12.5bNZ$5.6bNZ$496.1m22.2x25.3x2.2x
Price to Earnings Ratio

25.3x


Total Market Cap: NZ$12.5bTotal Earnings: NZ$496.1mTotal 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 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 26.0x which is higher than its 3-year average PE of 20.1x.
  • 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 9.5% per year over the last three years.
  • Meanwhile revenues for these companies have grown 2.2% 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, which has decreased profits.

Industry Trends

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

NZ Market1.15%
Telecom-0.85%
Media4.47%
Entertainment0%
Interactive Media and Services0%
Wireless Telecom0%
Telecom Services and Carriers-1.16%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 63.9x.
    • 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 21% 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
SKT SKY Network TelevisionNZ$2.676.0%
+NZ$20.7m		-1.1%PE7.5x
CNU ChorusNZ$9.030.1%
+NZ$4.3m		16.2%PS3.9x
NZM NZMENZ$1.071.9%
+NZ$3.7m		7.0%PE16.3x
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Latest News

CNU

NZ$9.03

Chorus

7D

0.1%

1Y

16.2%

SPK

NZ$2.83

Spark New Zealand

7D

-2.1%

1Y

-44.8%

NZM

NZ$1.07

NZME

7D

1.9%

1Y

7.0%

SKT

NZ$2.67

SKY Network Television

7D

6.0%

1Y

-1.1%

Here's Why SKY Network Television Limited's (NZSE:SKT) CEO Compensation Is The Least Of Shareholders' Concerns

Nov 07
Here's Why SKY Network Television Limited's (NZSE:SKT) CEO Compensation Is The Least Of Shareholders' Concerns