NZSE:NZX

Stock Analysis Report

Executive Summary

NZX Limited operates as a stock exchange in New Zealand.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NZX

1.7%

NZ Capital Markets

-0.3%

NZ Market


1 Year Return

16.5%

NZX

7.3%

NZ Capital Markets

9.6%

NZ Market

NZX outperformed the Capital Markets industry which returned 7.2% over the past year.

NZX outperformed the Market in New Zealand which returned 9.6% over the past year.


Share holder returns

NZXIndustryMarket
7 Day1.6%1.7%-0.3%
30 Day1.6%3.2%0.06%
90 Day17.6%2.8%3.2%
1 Year24.3%16.5%12.2%7.3%14.4%9.6%
3 Year46.3%18.7%85.7%60.8%45.2%26.2%
5 Year43.4%1.6%185.0%123.8%98.4%53.8%

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

25.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NZX's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NZX's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

NZX is poor value based on expected growth next year.


Price Based on Value of Assets

NZX is overvalued based on assets compared to the Oceania Capital Markets industry average.


Next Steps

Future Growth

How is NZX expected 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 Estimates


Future Annual Growth Analysis

NZX's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

NZX's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

NZX's revenue growth is expected to exceed the New Zealand market average.

NZX's earnings growth is expected to exceed the New Zealand market average.

NZX's earnings growth is expected to exceed the low risk savings rate of 2.4%.


Earnings per Share Growth Estimates


Future Return on Equity

NZX is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has NZX performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

NZX has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

NZX used its assets more efficiently than the Oceania Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

NZX's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NZX's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

NZX's level of debt (62.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (4.2% vs 62.5% today).

Debt is well covered by operating cash flow (49.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.3x debt.


Next Steps

Dividend

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

4.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NZX's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.11%).

NZX's dividend is below the markets top 25% of dividend payers in New Zealand (5.61%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

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 (1x coverage).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Mark Peterson 0

2.4yrs

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

4.1yrs

Average Tenure

The tenure for the NZX management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

The average tenure for the NZX board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Eric Reitman

    Head of Strategy

    • Tenure: 13.2yrs
  • Graham Law

    Chief Financial Officer

    • Tenure: 0yrs
  • Kristin Brandon

    Head of Compliance

    • Tenure: 4.5yrs
  • Debbie Buckman

    Head of Corporate Office

    • Tenure: 8.1yrs
  • Kate McLaughlin

    Head of Corporate Affairs

    • Tenure: 0yrs
  • Joost van Amelsfort

    Head of Market Supervision

    • Tenure: 5.1yrs
  • David Godfrey

    Chief Information Officer

    • Tenure: 3.7yrs
  • Hamish MacDonald

    General Counsel & Company Secretary

    • Tenure: 2.6yrs
  • Mark Peterson

    Chief Executive Officer

    • Tenure: 2.4yrs
  • Lara Robertson

    Head of Human Resources

    • Tenure: 0.4yrs

Board Members

  • Tony Falkenstein

    • Tenure: 0yrs
  • Nigel Babbage

    Director

    • Tenure: 1.8yrs
    • Compensation: NZ$50.00k
  • Elaine Campbell

    Director

    • Tenure: 0.6yrs
  • John McMahon

    Director

    • Tenure: 0.3yrs
  • James Miller

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: NZ$100.00k
  • Jon Macdonald

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: NZ$50.00k
  • Frank Aldridge

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: NZ$50.00k
  • Richard Bodman

    Director

    • Tenure: 2.4yrs
    • Compensation: NZ$51.00k
  • Lindsay Wright

    Lead Independent Director

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

    Director

    • Tenure: 0.7yrs

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$352.876m
  • 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 Analysis2019/09/21 10:30
End of Day Share Price2019/09/20 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.