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New Zealand (NZX) Telecom Sector Analysis

UpdatedOct 09, 2024
DataAggregated Company Financials
Companies5
  • 7D1.2%
  • 3M-12.7%
  • 1Y-21.9%
  • YTD-25.9%

The Telecom industry is up 1.6% in the last week, with Spark New Zealand up 2.0%. In the past year, the industry is down 20%. 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
Wed, 09 Oct 2024NZ$10.0bNZ$6.0bNZ$368.2m16.9x27.2x1.7x
Fri, 06 Sep 2024NZ$10.8bNZ$6.0bNZ$368.2m17.6x29.2x1.8x
Sun, 04 Aug 2024NZ$12.0bNZ$6.1bNZ$514.4m18.7x23.3x2x
Tue, 02 Jul 2024NZ$11.3bNZ$6.1bNZ$514.4m17.4x22x1.9x
Thu, 30 May 2024NZ$11.0bNZ$6.1bNZ$514.4m17.1x21.3x1.8x
Sat, 27 Apr 2024NZ$12.1bNZ$6.1bNZ$514.4m19.8x23.6x2x
Mon, 25 Mar 2024NZ$12.6bNZ$6.1bNZ$514.4m20.4x24.6x2.1x
Wed, 21 Feb 2024NZ$13.4bNZ$6.6bNZ$1.2b9.3x10.9x2x
Fri, 19 Jan 2024NZ$13.4bNZ$6.6bNZ$1.2b9.5x10.9x2x
Sun, 17 Dec 2023NZ$13.3bNZ$6.6bNZ$1.2b8.9x10.9x2x
Tue, 14 Nov 2023NZ$13.1bNZ$6.6bNZ$1.2b8.6x10.7x2x
Thu, 12 Oct 2023NZ$12.9bNZ$6.6bNZ$1.2b9.1x10.5x1.9x
Sat, 09 Sep 2023NZ$12.9bNZ$6.6bNZ$1.2b9.1x10.5x2x
Mon, 07 Aug 2023NZ$13.7bNZ$6.5bNZ$1.2b8.4x11.8x2.1x
Wed, 05 Jul 2023NZ$13.5bNZ$6.5bNZ$1.2b8.1x11.6x2.1x
Fri, 02 Jun 2023NZ$14.0bNZ$6.5bNZ$1.2b8.3x12x2.2x
Sun, 30 Apr 2023NZ$14.2bNZ$6.5bNZ$1.2b8.7x12.2x2.2x
Tue, 28 Mar 2023NZ$13.4bNZ$6.5bNZ$1.2b8.4x11.5x2.1x
Thu, 23 Feb 2023NZ$13.5bNZ$6.5bNZ$1.2b9x11.6x2.1x
Sat, 21 Jan 2023NZ$14.0bNZ$5.8bNZ$554.1m14.8x25.3x2.4x
Mon, 19 Dec 2022NZ$14.2bNZ$5.8bNZ$554.1m15.1x25.6x2.4x
Wed, 16 Nov 2022NZ$13.7bNZ$5.8bNZ$554.1m14.7x24.8x2.4x
Fri, 14 Oct 2022NZ$13.6bNZ$5.8bNZ$554.1m14.6x24.5x2.3x
Sun, 11 Sep 2022NZ$14.4bNZ$5.8bNZ$554.1m15.8x26.1x2.5x
Tue, 09 Aug 2022NZ$13.8bNZ$5.7bNZ$548.3m17.4x25.3x2.4x
Thu, 07 Jul 2022NZ$13.2bNZ$5.7bNZ$548.3m16.9x24.1x2.3x
Sat, 04 Jun 2022NZ$13.0bNZ$5.7bNZ$548.3m17.2x23.7x2.3x
Mon, 02 May 2022NZ$13.3bNZ$5.7bNZ$548.3m17.6x24.2x2.3x
Wed, 30 Mar 2022NZ$12.6bNZ$5.7bNZ$548.3m17x23x2.2x
Fri, 25 Feb 2022NZ$12.7bNZ$5.7bNZ$560.7m9.1x22.6x2.2x
Sun, 23 Jan 2022NZ$12.3bNZ$5.6bNZ$496.1m22x24.8x2.2x
Tue, 21 Dec 2021NZ$12.4bNZ$5.6bNZ$496.1mn/a25.1x2.2x
Thu, 18 Nov 2021NZ$11.7bNZ$5.6bNZ$496.1m24.6x23.6x2.1x
Sat, 16 Oct 2021NZ$12.2bNZ$5.6bNZ$496.1m22.7x24.6x2.2x
Price to Earnings Ratio

24.6x


Total Market Cap: NZ$12.2bTotal Earnings: NZ$496.1mTotal Revenue: NZ$5.6bTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Telecom Sector Price to Earnings3Y Average 20x202220232024
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 27.4x which is higher than its 3-year average PE of 20.0x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.7x.
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 Market0.60%
Telecom1.23%
Wireless Telecom7.41%
Telecom Services and Carriers1.38%
Entertainment0%
Interactive Media and Services0%
Media-1.21%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 38.4x.
    • 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
SPK Spark New ZealandNZ$3.123.8%
+NZ$299.1m		-36.2%PE18.2x
CNU ChorusNZ$8.932.6%
+NZ$99.8m		16.7%PS3.8x
SKT SKY Network TelevisionNZ$2.691.5%
+NZ$5.5m		7.6%PE7.6x
NZM NZMENZ$1.071.9%
+NZ$3.7m		11.5%PE16.3x
VTL VitalNZ$0.297.4%
+NZ$831.0k		38.1%PE446.3x
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