Tower Limited provides general insurance products and services in New Zealand and the Pacific Islands. More Details
Excellent balance sheet and good value.
Share Price & News
How has Tower's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TWR has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: TWR exceeded the Australian Insurance industry which returned -33.7% over the past year.
Return vs Market: TWR underperformed the Australian Market which returned -10.9% over the past year.
Price Volatility Vs. Market
How volatile is Tower's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Tower undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate TWR's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate TWR's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: TWR is good value based on its PE Ratio (11.8x) compared to the AU Insurance industry average (22.5x).
PE vs Market: TWR is good value based on its PE Ratio (11.8x) compared to the Australian market (20x).
Price to Earnings Growth Ratio
PEG Ratio: TWR is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: TWR is good value based on its PB Ratio (0.7x) compared to the AU Insurance industry average (2.8x).
How is Tower forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWR's forecast earnings growth (13.7% per year) is above the savings rate (2.3%).
Earnings vs Market: TWR's earnings (13.7% per year) are forecast to grow slower than the Australian market (17.3% per year).
High Growth Earnings: TWR's earnings are forecast to grow, but not significantly.
Revenue vs Market: TWR's revenue (4.7% per year) is forecast to grow faster than the Australian market (4.5% per year).
High Growth Revenue: TWR's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TWR's Return on Equity is forecast to be low in 3 years time (6.2%).
How has Tower performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWR has high quality earnings.
Growing Profit Margin: TWR's current net profit margins (6.1%) are higher than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: TWR's earnings have grown significantly by 43.9% per year over the past 5 years.
Accelerating Growth: TWR's earnings growth over the past year (18.5%) is below its 5-year average (43.9% per year).
Earnings vs Industry: TWR earnings growth over the past year (18.5%) exceeded the Insurance industry -33.8%.
Return on Equity
High ROE: TWR's Return on Equity (5.6%) is considered low.
How is Tower's financial position?
Financial Position Analysis
Short Term Liabilities: TWR's short term assets (NZ$379.5M) exceed its short term liabilities (NZ$320.4M).
Long Term Liabilities: TWR's short term assets (NZ$379.5M) exceed its long term liabilities (NZ$89.5M).
Debt to Equity History and Analysis
Debt Level: TWR's debt to equity ratio (4.2%) is considered satisfactory.
Reducing Debt: TWR's debt to equity ratio has increased from 0.03% to 4.2% over the past 5 years.
Debt Coverage: TWR's debt is well covered by operating cash flow (101.3%).
Interest Coverage: TWR's interest payments on its debt are well covered by EBIT (44.8x coverage).
What is Tower current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TWR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TWR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TWR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TWR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TWR is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TWR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Richard Harding has been Chief Executive Officer at Tower Limited since August 17, 2015. Mr. Harding has experience in the insurance sector in Australia and Asia. He had been Chief Executive Officer at ...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD654.59K) is above average for companies of similar size in the Australian market ($USD499.80K).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||5.17yrs||NZ$990.00k||0.011% |
|Chief Financial Officer||no data||no data||0.0059% |
|General Manager of Claims & Operations||1.33yrs||no data||no data|
|Chief Information Officer||1.83yrs||no data||no data|
|Head of Corporate Affairs & Reputation||no data||no data||no data|
|General Manager of People & Culture||1.92yrs||no data||no data|
|Chief Risk Officer||1.75yrs||no data||no data|
|Chief Customer Officer||no data||no data||no data|
|Chief Underwriting Officer||1.17yrs||no data||no data|
|no data||no data||no data|
|Appointed Actuary||no data||no data||no data|
Experienced Management: TWR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|Independent Chairman||7.58yrs||NZ$139.00k||0.12% |
|Independent Non-Executive Director||8.42yrs||NZ$87.57k||0.0055% |
|Independent Non Executive Director||5.42yrs||NZ$87.57k||0.011% |
|Independent Non-Executive Director||8.42yrs||NZ$93.57k||0.030% |
|Independent Non-Executive Director||2.58yrs||NZ$87.57k||0.0015% |
|Director of National Pacific Insurance Limited||no data||NZ$1.80k||no data|
|Director of National Pacific Insurance Limited||no data||NZ$4.31k||no data|
|Director of National Pacific Insurance Limited||no data||NZ$4.31k||no data|
|Non-Executive Director||1.75yrs||NZ$69.33k||0.000010% |
Experienced Board: TWR's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.
Tower Limited's company bio, employee growth, exchange listings and data sources
- Name: Tower Limited
- Ticker: TWR
- Exchange: CHIA
- Founded: 1869
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: NZ$252.988m
- Listing Market Cap: NZ$233.350m
- Shares outstanding: 421.65m
- Website: https://www.tower.co.nz
- Tower Limited
- Tower Centre
- Level 14
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TWR||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Sep 1999|
|TWR||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Sep 1999|
|TWR||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Sep 1999|
Tower Limited provides general insurance products and services in New Zealand and the Pacific Islands. Its insurance products include car, house, renters', landlord, contents, business, travel, boat, motor ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/01 10:37|
|End of Day Share Price||2020/07/16 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.