NZSE:NZX

Stock Analysis Report

Executive Summary

NZX Limited operates as a stock exchange in New Zealand.

Snowflake

Fundamentals

Moderate growth potential with questionable 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

-1.6%

NZX

-0.4%

NZ Capital Markets

-0.7%

NZ Market


1 Year Return

19.4%

NZX

18.8%

NZ Capital Markets

16.2%

NZ Market

Return vs Industry: NZX exceeded the NZ Capital Markets industry which returned 18.8% over the past year.

Return vs Market: NZX exceeded the NZ Market which returned 16.2% over the past year.


Shareholder returns

NZXIndustryMarket
7 Day-1.6%-0.4%-0.7%
30 Day-4.7%0.8%-2.3%
90 Day0.8%6.0%0.2%
1 Year27.4%19.4%24.2%18.8%21.1%16.2%
3 Year51.6%23.0%87.9%63.4%55.3%34.9%
5 Year40.0%-0.8%190.9%128.6%93.5%49.9%

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?

24.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZX (NZ$1.23) is trading above our estimate of fair value (NZ$0.71)

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 (24.9x) compared to the Capital Markets industry average (21.6x).

PE vs Market: NZX is poor value based on its PE Ratio (24.9x) compared to the NZ market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NZX is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NZX is overvalued based on its PB Ratio (5.3x) compared to the XO Capital Markets industry average (2.2x).


Next Steps

Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZX's forecast earnings growth (10% per year) is above the savings rate (2.4%).

Earnings vs Market: NZX's earnings (10% per year) are forecast to grow faster than the NZ market (8.5% per year).

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

Revenue vs Market: NZX's revenue (4.2% per year) is forecast to grow slower than the NZ market (4.6% per year).

High Growth Revenue: NZX's revenue (4.2% 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 (27.7%)


Next Steps

Past Performance

How has NZX performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZX has high quality earnings.

Growing Profit Margin: NZX's current net profit margins (19.6%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: NZX's earnings have declined by -6.1% per year over the past 5 years.

Accelerating Growth: NZX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NZX had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Capital Markets industry average (-2.7%).


Return on Equity

High ROE: NZX's Return on Equity (21.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NZX's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NZX has a low level of unsold assets or inventory.

Debt Coverage by Assets: NZX's debt is covered by short term assets (assets are 3.3x debt).


Financial Institutions Analysis

Asset Level: NZX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NZX has a sufficient allowance for bad loans.

Low Risk Liabilities: NZX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NZX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NZX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NZX has an appropriate level of bad loans.


Next Steps

Dividend

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

4.96%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%3.1%markettop25%5.6%industryaverage3.8%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: NZX's dividend (4.96%) is higher than the bottom 25% of dividend payers in the NZ market (3.08%).

High Dividend: NZX's dividend (4.96%) is low compared to the top 25% of dividend payers in the NZ market (5.61%).


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 (123.3%), 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 (102.1% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Mark Peterson 0

2.6yrs

Tenure

0

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 ...


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: NZX's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

Experienced Board: NZX's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Eric Reitman

    Head of Strategy

    • Tenure: 13.3yrs
  • Graham Law

    Chief Financial Officer

    • Tenure: 0yrs
  • Kristin Brandon

    Head of Compliance

    • Tenure: 4.7yrs
  • Debbie Buckman

    Head of Corporate Office

    • Tenure: 8.3yrs
  • Kate McLaughlin

    Head of Corporate Affairs

    • Tenure: 0yrs
  • Joost van Amelsfort

    Head of Market Supervision

    • Tenure: 5.3yrs
  • David Godfrey

    Chief Information Officer

    • Tenure: 3.8yrs
  • Hamish MacDonald

    General Counsel & Company Secretary

    • Tenure: 2.8yrs
  • Mark Peterson

    Chief Executive Officer

    • Tenure: 2.6yrs
  • Lara Robertson

    Head of Human Resources

    • Tenure: 0.6yrs

Board Members

  • Nigel Babbage

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: NZ$50.00k
  • Elaine Campbell

    Director

    • Tenure: 0.8yrs
  • John McMahon

    Director

    • Tenure: 0.4yrs
  • James Miller

    Independent Chairman of the Board

    • Tenure: 4.5yrs
    • Compensation: NZ$100.00k
  • Jon Macdonald

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: NZ$50.00k
  • Frank Aldridge

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: NZ$50.00k
  • Richard Bodman

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: NZ$51.00k
  • Lindsay Wright

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: NZ$43.06k
  • Anna Scott

    Director

    • Tenure: 0.8yrs

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$344.605m
  • Shares outstanding: 275.68m
  • 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 three segments: Markets, Funds Services, and Agri. The Markets segment operates and regulates securities and derivative ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 10:30
End of Day Share Price2019/11/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.