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NZX

NZSE:NZX
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NZX
NZSE
NZ$288M
Market Cap
  1. Home
  2. NZ
  3. Diversified Financials
Company description

NZX Limited operates as a stock exchange in New Zealand. The last earnings update was 96 days ago. More info.


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NZX Share Price and Events
7 Day Returns
1.9%
NZSE:NZX
1.9%
Oceania Capital Markets
1.1%
NZ Market
1 Year Returns
-5.3%
NZSE:NZX
8.7%
Oceania Capital Markets
11.2%
NZ Market
NZX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NZX (NZX) 1.9% 5.9% 5.9% -5.3% 4.9% -18.9%
Oceania Capital Markets 1.9% -3.9% 0.7% 8.7% 73.8% 101.7%
NZ Market 1.1% 1.9% 7.6% 11.2% 27.1% 51.9%
1 Year Return vs Industry and Market
  • NZX underperformed the Capital Markets industry which returned 8.7% over the past year.
  • NZX underperformed the Market in New Zealand which returned 11.2% over the past year.
Price Volatility
NZX
Industry
5yr Volatility vs Market

NZX Value

 Is NZX undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NZX to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NZX.

NZSE:NZX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= NZ$0.22 * 19.6%
NZ$0.04
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. NZ$0.22
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:NZX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.701 (1 + (1- 28%) (13.46%))
0.845
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (0.845 * 5.96%)
7.41%

Discounted Cash Flow Calculation for NZSE:NZX using Excess Returns Model Model

The calculations below outline how an intrinsic value for NZX is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NZSE:NZX Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.6% – 7.41%) * NZ$0.22)
NZ$0.03
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= NZ$0.03 / (7.41% - 2.37%)
NZ$0.54
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= NZ$0.22 + NZ$0.54
NZ$0.77
NZSE:NZX Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$0.77
Current discount Discount to share price of NZ$1.07
= -1 x (NZ$1.07 - NZ$0.77) / NZ$0.77
-39.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of NZX is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NZX's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NZX's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:NZX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.05
NZSE:NZX Share Price ** NZSE (2019-05-22) in NZD NZ$1.07
Oceania Capital Markets Industry PE Ratio Median Figure of 22 Publicly-Listed Capital Markets Companies 18.58x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 18.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NZX.

NZSE:NZX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:NZX Share Price ÷ EPS (both in NZD)

= 1.07 ÷ 0.05

21.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NZX is overvalued based on earnings compared to the Oceania Capital Markets industry average.
  • NZX is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does NZX's expected growth come at a high price?
Raw Data
NZSE:NZX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
8.5%per year
Oceania Capital Markets Industry PEG Ratio Median Figure of 10 Publicly-Listed Capital Markets Companies 2.47x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

NZSE:NZX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.14x ÷ 8.5%

2.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NZX is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NZX's assets?
Raw Data
NZSE:NZX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$0.23
NZSE:NZX Share Price * NZSE (2019-05-22) in NZD NZ$1.07
Oceania Capital Markets Industry PB Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 1.34x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.54x
NZSE:NZX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:NZX Share Price ÷ Book Value per Share (both in NZD)

= 1.07 ÷ 0.23

4.58x

* Primary Listing of NZX.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NZX is overvalued based on assets compared to the Oceania Capital Markets industry average.
X
Value checks
We assess NZX's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. NZX has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NZX Future Performance

 How is NZX expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NZX expected to grow at an attractive rate?
  • NZX's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • NZX's earnings growth is expected to exceed the New Zealand market average.
  • NZX's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:NZX Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:NZX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 8.5%
NZSE:NZX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3.7%
Oceania Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 7%
Oceania Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 6.9%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:NZX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:NZX Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 75 25 17 3
2020-12-31 72 24 16 3
2019-12-31 69 22 14 3
NZSE:NZX Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 67 24 14
2018-09-30 68 23 14
2018-06-30 76 22 14
2018-03-31 76 23 14
2017-12-31 67 24 14
2017-09-30 70 23 14
2017-06-30 72 21 13
2017-03-31 75 17 11
2016-12-31 78 14 9
2016-09-30 77 15 9
2016-06-30 77 16 9
2016-03-31 75 17 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NZX's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • NZX's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:NZX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from NZX Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:NZX Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.06 0.07 0.06 3.00
2020-12-31 0.06 0.06 0.06 3.00
2019-12-31 0.05 0.05 0.05 3.00
NZSE:NZX Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.05
2018-09-30 0.06
2018-06-30 0.07
2018-03-31 0.06
2017-12-31 0.05
2017-09-30 0.05
2017-06-30 0.05
2017-03-31 0.04
2016-12-31 0.03
2016-09-30 0.03
2016-06-30 0.03
2016-03-31 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NZX is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess NZX's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NZX has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NZX Past Performance

  How has NZX performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NZX's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NZX's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • NZX's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • NZX's 1-year earnings growth is negative, it can't be compared to the Oceania Capital Markets industry average.
Earnings and Revenue History
NZX's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NZX Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:NZX Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 67.49 13.64 1.93
2018-09-30 67.65 13.56 1.87
2018-06-30 75.99 13.96 43.61
2018-03-31 75.66 14.40 43.58
2017-12-31 67.14 14.35 1.75
2017-09-30 69.76 13.88 14.18
2017-06-30 72.38 13.42 26.61
2017-03-31 74.96 11.30 37.46
2016-12-31 77.54 9.18 48.31
2016-09-30 77.11 9.33 46.53
2016-06-30 76.68 9.48 44.75
2016-03-31 74.92 16.67 43.40
2015-12-31 73.15 23.87 42.05
2015-09-30 70.79 23.99 40.36
2015-06-30 68.42 24.11 38.67
2015-03-31 66.81 18.61 37.34
2014-12-31 65.19 13.11 36.01
2014-09-30 64.42 12.87 33.92
2014-06-30 63.66 12.62 31.82
2014-03-31 63.22 12.35 32.32
2013-12-31 62.79 12.09 32.82
2013-09-30 61.28 12.57 31.77
2013-06-30 59.77 13.05 30.72
2013-03-31 57.88 11.45 30.25
2012-12-31 55.99 9.86 29.79
2012-09-30 55.54 11.56 24.23
2012-06-30 55.09 13.26 18.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NZX has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • NZX used its assets more efficiently than the Oceania Capital Markets industry average last year based on Return on Assets.
  • NZX has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NZX's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NZX has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NZX Health

 How is NZX's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NZX's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NZX is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NZX's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NZX's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NZX Company Filings, last reported 4 months ago.

NZSE:NZX Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 63.48 38.80 25.39
2018-09-30 63.48 38.80 25.39
2018-06-30 65.26 38.77 18.31
2018-03-31 65.26 38.77 18.31
2017-12-31 68.72 20.00 14.88
2017-09-30 68.72 20.00 14.88
2017-06-30 69.75 20.00 7.24
2017-03-31 69.75 20.00 7.24
2016-12-31 69.68 20.00 10.80
2016-09-30 69.68 20.00 10.80
2016-06-30 71.74 20.00 27.95
2016-03-31 71.74 20.00 27.95
2015-12-31 76.17 20.00 40.29
2015-09-30 76.17 20.00 40.29
2015-06-30 77.87 10.00 25.89
2015-03-31 77.87 10.00 25.89
2014-12-31 51.09 0.00 20.16
2014-09-30 51.09 0.00 20.16
2014-06-30 52.40 2.21 13.53
2014-03-31 52.40 2.21 13.53
2013-12-31 49.52 0.00 17.42
2013-09-30 49.52 0.00 17.42
2013-06-30 50.66 11.11 15.19
2013-03-31 50.66 11.11 15.19
2012-12-31 50.48 8.97 15.24
2012-09-30 50.48 8.97 15.24
2012-06-30 50.05 13.86 14.84
  • NZX's level of debt (61.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 61.1% today).
  • Debt is well covered by operating cash flow (62.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24.2x coverage).
X
Financial health checks
We assess NZX's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NZX has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NZX Dividends

 What is NZX's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.7%
Current annual income from NZX dividends. Estimated to be 5.6% next year.
If you bought NZ$2,000 of NZX shares you are expected to receive NZ$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • NZX's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.3%).
  • NZX's dividend is below the markets top 25% of dividend payers in New Zealand (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:NZX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Oceania Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 4.1%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.1%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:NZX Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.06 3.00
2020-12-31 0.06 3.00
2019-12-31 0.06 3.00
NZSE:NZX Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-02-15 0.061 6.001
2018-02-19 0.062 5.808
2017-09-14 0.060 5.237
2017-02-14 0.060 5.383
2016-08-17 0.060 5.763
2016-02-24 0.060 5.920
2015-08-19 0.060 5.991
2015-02-17 0.060 5.442
2014-08-11 0.060 5.005
2014-02-21 0.056 4.354
2013-09-27 0.056 4.468
2013-08-19 0.056 4.349
2013-02-18 0.051 3.829
2012-08-20 0.051 4.293
2012-04-30 0.024 1.909
2012-02-20 0.047 3.977
2011-08-15 0.047 4.645
2011-07-15 0.047 4.855
2011-02-28 0.054 5.603
2010-10-27 0.032 4.721
2010-03-01 0.028 4.023

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NZX has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but NZX only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of NZX's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess NZX's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NZX afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NZX has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NZX Management

 What is the CEO of NZX's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Peterson
TENURE AS CEO 2.1 years
CEO Bio

Mr. Mark Peterson has been Chief Executive Officer at NZX Limited since April 10, 2017. Mr. Peterson served as an Interim Chief Executive Officer at NZX Limited from January 1, 2017 to April 10, 2017. He served as Head of Markets at NZX Limited since May 2015 until January 1, 2017. Mr. Peterson has 25 years of experience in financial services covering the capital markets, private wealth, institutional and retail banking and insurance. He worked as the Managing Principal of ANZ Securities and before that held senior management roles with First NZ Capital, ANZ and The National Bank of NZ. He holds a Bachelor of Commerce and Administration from Victoria University of Wellington, has completed executive training at Mt Eliza business school and is an NZX Advisor and an AFA.

CEO Compensation
  • Insufficient data for Mark to compare compensation growth.
  • Insufficient data for Mark to establish whether their remuneration is reasonable compared to companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the NZX management team in years:

4.5
Average Tenure
  • The tenure for the NZX management team is about average.
Management Team

Mark Peterson

TITLE
Chief Executive Officer
TENURE
2.1 yrs

Graham Law

TITLE
Chief Financial Officer

David Godfrey

TITLE
Chief Information Officer
TENURE
3.3 yrs

Hamish MacDonald

TITLE
General Counsel & Company Secretary
TENURE
2.3 yrs

Kristin Brandon

TITLE
Head of Compliance
TENURE
4.2 yrs

Eric Reitman

TITLE
Head of Strategy
TENURE
12.8 yrs

Debbie Buckman

TITLE
Head of Corporate Office
TENURE
7.8 yrs

Kate McLaughlin

TITLE
Head of Corporate Affairs

Joost van Amelsfort

TITLE
Head of Market Supervision
TENURE
4.8 yrs

Shane Dinnan

TITLE
Head of Energy Markets
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure of the NZX board of directors in years:

2
Average Tenure
  • The average tenure for the NZX board of directors is less than 3 years, this suggests a new board.
Board of Directors

James Miller

TITLE
Chairman of the Board
COMPENSATION
NZ$100K
TENURE
4 yrs

Jon Macdonald

TITLE
Independent Director
COMPENSATION
NZ$50K
TENURE
6 yrs

Frank Aldridge

TITLE
Independent Director
COMPENSATION
NZ$50K
TENURE
2 yrs

Lindsay Wright

TITLE
Lead Independent Director
COMPENSATION
NZ$43K

Elaine Campbell

TITLE
Director
TENURE
0.3 yrs

Richard Bodman

TITLE
Director
COMPENSATION
NZ$51K
TENURE
2.1 yrs

Nigel Babbage

TITLE
Director
COMPENSATION
NZ$50K
TENURE
1.4 yrs

Anna Scott

TITLE
Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess NZX's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NZX has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NZX News

Simply Wall St News

How Do Analysts See NZX Limited (NZSE:NZX) Performing In The Years Ahead?

Below is my commentary, albeit very simple and high-level, on how market analysts perceive NZX's earnings growth outlook over the next few years and whether the future looks brighter. … Check out our latest analysis for NZX Analysts' outlook for the coming year seems rather muted, with earnings growing by a single digit 3.1%. … NZSE:NZX Past and Future Earnings, May 17th 2019 While it’s useful to understand the growth year by year relative to today’s value, it may be more insightful evaluating the rate at which the business is growing every year, on average.

Simply Wall St -

Will NZX Limited's (NZSE:NZX) Earnings Grow In The Next 12 Months?

Help shape the future of investing tools and you could win a $250 gift card! … After NZX Limited's (NZSE:NZX) earnings announcement in December 2018, … with earnings expected to grow by 3.1% in the upcoming year

Simply Wall St -

Do Insiders Own Lots Of Shares In NZX Limited (NZSE:NZX)?

A look at the shareholders of NZX Limited (NZSE:NZX) can tell us which group is most powerful. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … institutions are noticeable on the share registry.

Simply Wall St -

Imagine Owning NZX (NZSE:NZX) And Wondering If The 19% Share Price Slide Is Justified

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate half decade during which the share price slipped, NZX actually saw its earnings per share (EPS) improve by 1.2% per year. … Given that EPS has increased, but the share price has fallen, it's fair to say that market sentiment around the stock has become more negative

Simply Wall St -

Despite Its High P/E Ratio, Is NZX Limited (NZSE:NZX) Still Undervalued?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … NZX has a price to earnings ratio of 19.56, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does NZX Limited's (NZSE:NZX) Past Performance Indicate A Weaker Future?

Examining how NZX Limited (NZSE:NZX) is performing as a company requires looking at more than just a years' earnings. … NZX's trailing twelve-month earnings (from 31 December 2018) of NZ$14m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -3.1%, indicating the rate at which NZX is growing has slowed down

Simply Wall St -

Does NZX Limited (NZSE:NZX) Have A Place In Your Portfolio?

Help shape the future of investing tools and you could win a $250 gift card! … Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, NZX Limited (NZSE:NZX) has been paying a dividend to shareholders.

Simply Wall St -

Have Investors Priced In NZX Limited's (NZSE:NZX) Growth?

NZX Limited (NZSE:NZX) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of NZ$0.99 is based on unrealistic expectations. … Let’s look into this by assessing NZX's expected growth over the next few years. … If you believe the analysts covering the stock then the following year will be very interesting

Simply Wall St -

What Type Of Shareholder Owns NZX Limited's (NZSE:NZX)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Will NZX Limited's (NZSE:NZX) Earnings Grow In The Year Ahead?

Based on NZX Limited's (NZSE:NZX) earnings update in June 2018,. … as a 0.3% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of -0.9%

Simply Wall St -

NZX Company Info

Description

NZX Limited operates as a stock exchange in New Zealand. The company operates through three segments: Markets, Funds Services, and Agri. The Markets segment operates and regulates securities and derivatives markets; provides trading, post-trade, and data services for securities, derivatives, and dairy products, as well as central securities depository services. This segment is also involved in the operation of Fonterra shareholders' market; and energy market business, which comprises the contracts operated on behalf of the Electricity Authority. The Funds Services segment provides superannuation, KiwiSaver, and exchange traded funds, as well as funds administration platforms. The Agri segment offers information, news, data, and analysis relating to the agriculture sectors in New Zealand and Australia through printed publications and online services. The company’s markets also comprise NZX Main Board, NXT Market, NZX Alternative Market, NZX Debt Market, NZX Dairy Derivatives Market, and NZX Equity Derivatives Market. Its products include Smartshares products that issues exchange traded funds listed on the NZX Main Board; FundSource, an investment research house, which provide analysis to financial planners and fund managers; NZX virtualTrading, a virtual platform for people to learn about investing concepts by trading virtual securities; and NZX Data Products, which provide information across markets covering equities, agriculture, and energy. The company also offers AgriHQ and Farmers Weekly for agricultural market data and intelligence. In addition, it provides investment and insurance solutions, as well as wealth management services for advisers. It primarily serves individuals and businesses. NZX Limited was incorporated in 2002 and is based in Wellington, New Zealand.

Details
Name: NZX Limited
NZX
Exchange: NZSE
Founded: 2002
NZ$288,310,073
274,581,022
Website: http://www.nzx.com
Address: NZX Limited
NZX Centre,
Level 1,
Wellington,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE NZX Ordinary Shares New Zealand Stock Exchange NZ NZD 03. Jun 2003
OTCPK NZST.F Ordinary Shares Pink Sheets LLC US USD 03. Jun 2003
Number of employees
Current staff
Staff numbers
210
NZX employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 10:31
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/02/17
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.