How does SPK's PE Ratio compare to its peers?

SPK is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (24.4x).

How does SPK's PE Ratio compare vs other companies in the Global Telecom Industry?

SPK is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the Global Telecom industry average (15.9x).

What is SPK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPK is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).

What is the Fair Price of SPK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SPK (A$2.74) is trading below our estimate of [[fair value]] (A$4.81)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Spark New Zealand (ASX:SPK) - Stock Price, News & Analysis

SPK Stock Overview

Provides telecommunications and digital services in New Zealand. More details

SPK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

Rewards

Trading at 43.1% below our estimate of its fair value

Earnings are forecast to grow 4.58% per year

Risk Analysis

Dividend of 9.41% is not well covered by earnings or free cash flows

Profit margins (8.2%) are lower than last year (25.3%)

Has a high level of debt

Spark New Zealand Limited Competitors

Telstra Group

ASX:TLS

AU$44.9b

Aussie Broadband

ASX:ABB

AU$1.0b

LG Uplus

KOSE:A032640

₩4.8t

Hrvatski Telekom d.d

ZGSE:HT

€3.0b

Price History & Performance

Summary of all time highs, changes and price drops for Spark New Zealand
Historical stock prices
Current Share Price	NZ$2.74
52 Week High	NZ$5.01
52 Week Low	NZ$2.61
Beta	0.17
11 Month Change	1.48%
3 Month Change	-20.81%
1 Year Change	-41.70%
33 Year Change	-34.13%
5 Year Change	-35.98%
Change since IPO	48.11%

Recent updates

Shareholder Returns

	SPK	AU Telecom	AU Market
7D	-3.2%	-0.7%	0.9%
1Y	-41.7%	4.5%	18.4%

Return vs Industry: SPK underperformed the Australian Telecom industry which returned 4.5% over the past year.

Return vs Market: SPK underperformed the Australian Market which returned 18.4% over the past year.

Price Volatility

Is SPK's price volatile compared to industry and market?
SPK volatility
SPK Average Weekly Movement	3.9%
Telecom Industry Average Movement	6.1%
Market Average Movement	8.5%
10% most volatile stocks in AU Market	17.5%
10% least volatile stocks in AU Market	3.2%

Stable Share Price: SPK has not had significant price volatility in the past 3 months compared to the Australian market.

Volatility Over Time: SPK's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	5,069	Jolie Hodson	www.sparknz.co.nz

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. The company offers telecommunications, information technology, media, and other digital products and services, including mobile services; IT products; broadband, IT, voice, and procurement and partner services; and high-tech and data centres. It also provides IT infrastructure, business cloud, business and outsourced telecommunications, software, data analytics, data center, and international wholesale telecommunications services.

Spark New Zealand Limited Fundamentals Summary

How do Spark New Zealand's earnings and revenue compare to its market cap?
SPK fundamental statistics
Market cap	AU$4.93b
Earnings (TTM)	AU$284.05m
Revenue (TTM)	AU$3.47b

17.4x

P/E Ratio

1.4x

P/S Ratio

Is SPK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SPK income statement (TTM)
Revenue	NZ$3.86b
Cost of Revenue	NZ$2.64b
Gross Profit	NZ$1.22b
Other Expenses	NZ$908.00m
Earnings	NZ$316.00m

Last Reported Earnings

Jun 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	0.17
Gross Margin	31.70%
Net Profit Margin	8.18%
Debt/Equity Ratio	102.5%

How did SPK perform over the long term?

See historical performance and comparison

Dividends

9.4%

Current Dividend Yield

159%

Payout Ratio

SPK Stock Overview

Rewards

Risk Analysis

Spark New Zealand Limited Competitors

ASX:TLS

AU$44.9b

ASX:ABB

AU$1.0b

KOSE:A032640

₩4.8t

ZGSE:HT

€3.0b

Price History & Performance

Recent News & Updates

Price target decreased by 8.8% to AU$3.65

Price target decreased by 7.2% to AU$3.85

Spark New Zealand Limited Announces Board Changes

Price target decreased by 14% to AU$4.15

Final dividend of NZ$0.16 announced

Full year 2024 earnings: EPS and revenues miss analyst expectations

Recent updates

Price target decreased by 8.8% to AU$3.65

Price target decreased by 7.2% to AU$3.85

Spark New Zealand Limited Announces Board Changes

Price target decreased by 14% to AU$4.15

Final dividend of NZ$0.16 announced

Full year 2024 earnings: EPS and revenues miss analyst expectations

Spark New Zealand Limited Reaffirms Dividend Guidance for the Full Year 2024

Spark New Zealand Limited (NZSE:SPK) announces an Equity Buyback for 33,659,451 shares, representing 5% for NZD 45 million.

Spark New Zealand Limited (NZSE:SPK) announces an Equity Buyback for 33,659,451 shares, representing 5% for NZD 45 million.

First half 2024 earnings: EPS and revenues miss analyst expectations

New minor risk - Profit margin trend

Now 21% undervalued

Spark New Zealand Limited, Annual General Meeting, Nov 01, 2024

Price target increased by 9.1% to AU$4.80

Spark New Zealand Limited to Report First Half, 2024 Results on Feb 22, 2024

Spark New Zealand Limited (NZSE:SPK) signed a conditional agreement to acquire remaining 53% stake in Adroit Group of Companies.

Spark New Zealand Announces Board Changes

Spark New Zealand Limited Announces Dividend for the Six Months Ended June 30, 2023, Payable on October 6, 2023

Upcoming dividend of NZ$0.16 per share at 5.5% yield

New minor risk - Financial position

Spark New Zealand Limited Announces Dividend Estimates for the Six Months Ended June 30, 2023, Payable on October 6, 2023

Full year 2023 earnings: EPS and revenues exceed analyst expectations

Spark Appoints John Wesley-Smith as Strategy and Regulatory Director, Effective from 1 August 2023

Spark New Zealand Appoints Renee Mateparae to the Role of Network and Operations Director, Effective from 1 July 2023

Marketing Director recently sold AU$219k worth of stock

Price target decreased by 7.5% to AU$4.30

First half 2023 earnings released: EPS: NZ$0.45 (vs NZ$0.096 in 1H 2022)

Spark Confirms Talks with TVNZ

Spark New Zealand Limited, Annual General Meeting, Nov 03, 2023

High number of new directors

Insider recently sold AU$187k worth of stock

Ontario Teachers' Pension Plan Board completed the acquisition of 70% stake in Spark TowerCo from Spark New Zealand Limited (NZSE:SPK).

Independent Chairman of the Board recently bought AU$160k worth of stock

Upcoming dividend of NZ$0.15 per share

Chief Operating Officer recently sold AU$339k worth of stock

High number of new directors

Full year 2022 earnings: EPS misses analyst expectations

Spark New Zealand Limited Provides Dividend Guidance for the Fiscal Year 2023

Ontario Teachers' Pension Plan Board agreed to acquire 70% stake in Spark TowerCo from Spark New Zealand Limited (NZSE:SPK) for NZD 900 million.

Ontario Teachers' Pension Plan Board agreed to acquire 70% stake in TowerCo from Spark New Zealand Limited (NZSE:SPK) for NZD 900 million.

Five Reportedly on Shortlist for Spark Towers

Spark New Zealand Limited Announces Changes to Board

Spark New Zealand Limited Declares Dividend for Period of Six Months Ended December 31, 2021, Payable on April 8, 2022

Upcoming dividend of NZ$0.15 per share

General Counsel recently sold AU$86k worth of stock

First half 2022 earnings: EPS and revenues exceed analyst expectations

Spark New Zealand Limited Declares Ordinary Dividend for the Six Months Ended December 31, 2021

Spark New Zealand Limited (NZSE:SPK) completed the acquisition of remaining 50% stake in Connect 8 Limited from Electra Ltd.

Spark New Zealand Limited (NZSE:SPK) entered into a conditional agreement to acquire remaining 50% stake in Connect 8 Limited from Electra Ltd.

Upcoming dividend of NZ$0.15 per share

Full year 2021 earnings released: EPS NZ$0.21 (vs NZ$0.23 in FY 2020)

Price target increased to AU$4.25

First half 2021 earnings released: EPS NZ$0.08 (vs NZ$0.091 in 1H 2020)

Revenue and earnings beat expectations

Spark New Zealand Limited Announces Heather Graham as CEO for CCL

New 90-day low: AU$4.15

Spark New Zealand Limited to Report First Half, 2021 Results on Feb 24, 2021

Spark New Zealand Announces Resignation of Ido Leffler from Board

Independent Chairman of the Board recently bought AU$108k worth of stock