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

SPK Stock Overview

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand.

About the company

SPK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	4/6
Dividends	3/6

Rewards

Trading at 36.8% below our estimate of its fair value

Earnings are forecast to grow 3.88% per year

Risk Analysis

Dividend of 5.81% is not well covered by earnings or cash flows

Has a high level of debt

Profit margins (10.9%) are lower than last year (24.5%)

Spark New Zealand Limited Competitors

TPG Telecom

ASX:TPG

AU$7.8b

Telstra Group

ASX:TLS

AU$42.4b

Quebecor

TSX:QBR.A

CA$6.6b

Telekom Malaysia Berhad

KLSE:TM

RM23.4b

Price History & Performance

Summary of all time highs, changes and price drops for Spark New Zealand
Historical stock prices
Current Share Price	NZ$4.33
52 Week High	NZ$5.01
52 Week Low	NZ$4.25
Beta	0.18
1 Month Change	-0.92%
3 Month Change	-12.88%
1 Year Change	-10.72%
3 Year Change	5.61%
5 Year Change	24.96%
Change since IPO	69.47%

Recent updates

Shareholder Returns

	SPK	AU Telecom	AU Market
7D	1.1%	0.07%	0.4%
1Y	-10.7%	-13.5%	6.0%

Return vs Industry: SPK exceeded the Australian Telecom industry which returned -13.5% over the past year.

Return vs Market: SPK underperformed the Australian Market which returned 6% over the past year.

Price Volatility

Is SPK's price volatile compared to industry and market?
SPK volatility
SPK Average Weekly Movement	1.9%
Telecom Industry Average Movement	9.9%
Market Average Movement	8.9%
10% most volatile stocks in AU Market	17.6%
10% least volatile stocks in AU Market	3.5%

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

Volatility Over Time: SPK's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	5,356	Jolie Hodson	www.sparknz.co.nz

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. It offers telecommunications, information technology, media, and other digital products and services, including mobile services; voice services; broadband services; internet sports streaming services; cloud, security, and service. The company 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$7.84b
Earnings (TTM)	AU$389.66m
Revenue (TTM)	AU$3.59b

19.8x

P/E Ratio

2.1x

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$3.93b
Cost of Revenue	NZ$2.66b
Gross Profit	NZ$1.27b
Other Expenses	NZ$847.00m
Earnings	NZ$427.00m

Last Reported Earnings

Dec 31, 2023

Next Earnings Date

Aug 23, 2024

Earnings per share (EPS)	0.24
Gross Margin	32.39%
Net Profit Margin	10.86%
Debt/Equity Ratio	96.0%

How did SPK perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

117%

Payout Ratio

SPK Stock Overview

Rewards

Risk Analysis

Spark New Zealand Limited Competitors

ASX:TPG

AU$7.8b

ASX:TLS

AU$42.4b

TSX:QBR.A

CA$6.6b

KLSE:TM

RM23.4b

Price History & Performance

Recent News & Updates

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.

Upcoming dividend of NZ$0.16 per share

First half dividend of NZ$0.16 announced

First half 2024 earnings released: EPS: NZ$0.086 (vs NZ$0.45 in 1H 2023)

New minor risk - Profit margin trend

Recent updates

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.

Upcoming dividend of NZ$0.16 per share

First half dividend of NZ$0.16 announced

First half 2024 earnings released: EPS: NZ$0.086 (vs NZ$0.45 in 1H 2023)

New minor risk - Profit margin trend

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

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

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

Full year 2023 earnings released: EPS: NZ$0.61 (vs NZ$0.22 in FY 2022)

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

Upcoming dividend of NZ$0.16 per share at 5.4% yield

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 released: EPS: NZ$0.22 (vs NZ$0.21 in FY 2021)

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 in line with analyst expectations despite revenue beat

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)

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

Revenue beats expectations

Spark New Zealand Limited Announces Heather Graham as CEO for CCL

New 90-day low: AU$4.16

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

Independent Non-Executive Director recently bought AU$100k worth of stock

Earnings released

New 90-day high - AU$4.61

Shareholder Returns

Price Volatility

About the Company

Spark New Zealand Limited Fundamentals Summary

19.8x

2.1x