NZSE:NZX

Stock Analysis Report

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Executive Summary

NZX Limited operates as a stock exchange in New Zealand.


Snowflake Analysis

Reasonable growth potential with proven track record.

Share Price & News

How has NZX's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

NZX

-1.2%

NZ Capital Markets

-2.1%

NZ Market


1 Year Return

22.2%

NZX

-2.6%

NZ Capital Markets

-0.8%

NZ Market

Return vs Industry: NZX exceeded the NZ Capital Markets industry which returned -2.6% over the past year.

Return vs Market: NZX exceeded the NZ Market which returned -0.8% over the past year.


Shareholder returns

NZXIndustryMarket
7 Day0.7%-1.2%-2.1%
30 Day1.4%4.5%3.6%
90 Day13.5%16.6%11.0%
1 Year29.2%22.2%1.2%-2.6%3.8%-0.8%
3 Year48.6%21.2%53.3%34.5%38.9%17.7%
5 Year91.4%36.2%87.5%47.7%89.2%38.4%

Price Volatility Vs. Market

How volatile is NZX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NZX undervalued compared to its fair value and its price relative to the market?

26.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZX (NZ$1.43) is trading above our estimate of fair value (NZ$0.88)

Significantly Below Fair Value: NZX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NZX is poor value based on its PE Ratio (26.8x) compared to the XO Capital Markets industry average (17.2x).

PE vs Market: NZX is poor value based on its PE Ratio (26.8x) compared to the NZ market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NZX is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: NZX is overvalued based on its PB Ratio (6.2x) compared to the XO Capital Markets industry average (1.9x).


Next Steps

Future Growth

How is NZX forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZX's forecast earnings growth (9.9% per year) is above the savings rate (2.6%).

Earnings vs Market: NZX's earnings (9.9% per year) are forecast to grow faster than the NZ market (8.1% per year).

High Growth Earnings: NZX's earnings are forecast to grow, but not significantly.

Revenue vs Market: NZX's revenue (6.6% per year) is forecast to grow faster than the NZ market (5.9% per year).

High Growth Revenue: NZX's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZX's Return on Equity is forecast to be high in 3 years time (31%)


Next Steps

Past Performance

How has NZX performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZX has high quality earnings.

Growing Profit Margin: NZX's current net profit margins (21.1%) are higher than last year (20.3%).


Past Earnings Growth Analysis

Earnings Trend: NZX's earnings have declined by -8.5% per year over the past 5 years.

Accelerating Growth: NZX's earnings growth over the past year (7.1%) exceeds its 5-year average (-8.5% per year).

Earnings vs Industry: NZX earnings growth over the past year (7.1%) underperformed the Capital Markets industry 7.1%.


Return on Equity

High ROE: NZX's Return on Equity (22.9%) is considered high.


Next Steps

Financial Health

How is NZX's financial position?


Financial Position Analysis

Short Term Liabilities: NZX's short term assets (NZ$136.4M) exceed its short term liabilities (NZ$98.9M).

Long Term Liabilities: NZX's short term assets (NZ$136.4M) exceed its long term liabilities (NZ$49.7M).


Debt to Equity History and Analysis

Debt Level: NZX's debt to equity ratio (60.8%) is considered high.

Reducing Debt: NZX's debt to equity ratio has increased from 0.2% to 60.8% over the past 5 years.

Debt Coverage: NZX's debt is well covered by operating cash flow (63.8%).

Interest Coverage: NZX's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NZX's dividend (4.27%) is higher than the bottom 25% of dividend payers in the NZ market (3.11%).

High Dividend: NZX's dividend (4.27%) is low compared to the top 25% of dividend payers in the NZ market (5.58%).


Stability and Growth of Payments

Stable Dividend: NZX's dividend payments have been volatile in the past 10 years.

Growing Dividend: NZX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.3%), NZX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NZX's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Mark Peterson

3.5yrs

Tenure

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 s ...


Leadership Team

NamePositionTenureCompensationOwnership
Mark Peterson
Chief Executive Officer3.5yrsno data0.045% NZ$175.5k
Graham Law
Chief Financial Officerno datano data0.020% NZ$80.5k
David Godfrey
Chief Information Officer4.5yrsno datano data
Hamish MacDonald
Head of External Relations & General Counsel3.42yrsno data0.035% NZ$138.3k
Kristin Brandon
Head of Compliance5.33yrsno datano data
Lara Robertson
Head of Human Resources1.25yrsno datano data
Eric Reitman
Head of Strategy14yrsno datano data
Debbie Buckman
Head of Corporate Office8.92yrsno datano data
Kate McLaughlin
Head of Corporate Affairsno datano datano data
Joost van Amelsfort
Head of Market Supervision5.92yrsno datano data
Shane Dinnan
Head of Energy Markets6.5yrsno datano data
Paul Baldwin
Head of Wealth Technologies4.67yrsno datano data

5.0yrs

Average Tenure

Experienced Management: NZX's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nigel Babbage
Independent Director2.58yrsNZ$50.00k2.11% NZ$8.3m
Elaine Campbell
Independent Director1.42yrsNZ$43.33k0.0037% NZ$14.5k
John McMahon
Independent Director1.08yrsNZ$25.00k0.032% NZ$127.8k
James Miller
Independent Chairman of the Board5.17yrsNZ$100.00k0.061% NZ$238.6k
Jon Macdonald
Independent Director7.17yrsNZ$50.00k0.027% NZ$106.5k
Frank Aldridge
Independent Director3.17yrsNZ$50.00k0.018% NZ$71.0k
Richard Bodman
Independent Director3.25yrsNZ$50.00k0.0037% NZ$14.6k
Lindsay Wright
Lead Independent Directorno dataNZ$50.00kno data

3.2yrs

Average Tenure

Experienced Board: NZX's board of directors are considered experienced (3.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NZX Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NZX Limited
  • Ticker: NZX
  • Exchange: NZSE
  • Founded: 2002
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: NZ$393.872m
  • Shares outstanding: 277.37m
  • Website: https://www.nzx.com

Number of Employees


Location

  • NZX Limited
  • NZX Centre
  • Level 1
  • Wellington
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZXNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 2003
NZST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2003

Biography

NZX Limited operates as a stock exchange in New Zealand. The company operates through five segments: Issuer Relationships, Secondary Markets, Data & Insights, Funds Management, and Wealth Technologies. The Issuer Relationships segment provides issuer services for current and prospective customers and market operator for Fonterra Co-Operative Group and the Electricity Authority. The Secondary Markets provides trading and post-trade services for securities and derivatives markets, as well as provides central securities depository. The Data & Insights segment involved in provision of data services for securities and derivatives markets; and data and analysis for New Zealand's dairy sector. The Funds Management segment offers SuperLife superannuation and KiwiSaver, and Smartshares exchange traded funds. The Wealth Technologies segment provides funds administration service. It also offers virtualTrading, a virtual platform for people to learn about key investing concepts by actively trading virtual securities. NZX Limited was incorporated in 2002 and is based in Wellington, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 10:34
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.