NZSE:NZR

Stock Analysis Report

New Zealand Refining

Executive Summary

The New Zealand Refining Company Limited, together with its subsidiaries, engages in the refining of crude oil and supply of refined petroleum products in New Zealand.

Snowflake

Fundamentals

Good value with reasonable growth potential.

Share Price & News

How has New Zealand Refining's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

NZSE:NZR

-2.3%

NZ Oil and Gas

-2.0%

NZ Market


1 Year Return

-13.7%

NZSE:NZR

-16.1%

NZ Oil and Gas

10.5%

NZ Market

NZR outperformed the Oil and Gas industry which returned -16.1% over the past year.

NZR underperformed the Market in New Zealand which returned 10.5% over the past year.


Share holder returns

NZRIndustryMarket
7 Day1.4%-2.3%-2.0%
30 Day1.4%-3.0%-1.0%
90 Day3.9%-9.4%3.5%
1 Year-10.2%-13.7%-12.9%-16.1%15.4%10.5%
3 Year7.4%-9.3%21.2%10.7%40.8%21.6%
5 Year70.0%31.3%-25.2%-38.7%101.1%55.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

New Zealand Refining's share price is below the future cash flow value, and at a moderate discount (> 20%).

New Zealand Refining's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

New Zealand Refining is overvalued based on earnings compared to the Oceania Oil and Gas industry average.

New Zealand Refining is overvalued based on earnings compared to the New Zealand market.


Price Based on Expected Growth

New Zealand Refining is good value based on expected growth next year.


Price Based on Value of Assets

New Zealand Refining is good value based on assets compared to the Oceania Oil and Gas industry average.


Next Steps

Future Growth

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

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

New Zealand Refining's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

New Zealand Refining's earnings are expected to grow significantly at over 20% yearly.

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

New Zealand Refining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has New Zealand Refining performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

New Zealand Refining's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

New Zealand Refining's 1-year earnings growth is negative, it can't be compared to the 5-year average.

New Zealand Refining's 1-year earnings growth is negative, it can't be compared to the Oceania Oil and Gas industry average.


Return on Equity

New Zealand Refining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

New Zealand Refining used its assets less efficiently than the Oceania Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is New Zealand Refining's financial position?


Financial Position Analysis

New Zealand Refining's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

New Zealand Refining's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

New Zealand Refining's level of debt (34.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (38.6% vs 34.5% today).

Debt is well covered by operating cash flow (39.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is New Zealand Refining's current dividend yield, its reliability and sustainability?

8.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

New Zealand Refining's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.25%).

New Zealand Refining's dividend is below the markets top 25% of dividend payers in New Zealand (5.92%).

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

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x 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 New Zealand Refining's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Mike Fuge 0

1.0yrs

Tenure

NZ$1,144,296

Compensation

Mr. Michael Fuge, also known as Mike, M. Com. (Hons), B.Eng. (Hons), MIPENZ, serves as Chief Executive Officer at The New Zealand Refining Company Limited since August 2018. Mr. Fuge served as the Chief Ex ...


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in New Zealand.

Insufficient data for Mike to compare compensation growth.


Management Age and Tenure

3.6yrs

Average Tenure

The tenure for the New Zealand Refining management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

The average tenure for the New Zealand Refining 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

  • Denise Jensen

    CFO & Company Secretary

    • Tenure: 10.6yrs
  • Mike Fuge

    Chief Executive Officer

    • Tenure: 1.0yrs
    • Compensation: NZ$1.14m
  • Julian Young

    Chief Development Officer

    • Tenure: 0.0yrs
  • Greg McNeill

    Communications & External Affairs Manager

    • Tenure: 0.0yrs
  • Joe Akari

    Chief People & Capability Officer

    • Tenure: 3.6yrs

Board Members

  • Simon Allen (61yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: NZ$180.00k
  • Paul Zealand

    Independent Director

    • Tenure: 3.0yrs
    • Compensation: NZ$122.50k
  • Vanessa Cynthia Stoddart (48yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: NZ$115.00k
  • Lindis Jones

    Director

    • Tenure: 1.4yrs
    • Compensation: NZ$58.97k
  • Riccardo Cavallo

    Director

    • Tenure: 2.3yrs
    • Compensation: NZ$75.00k
  • Deborah Boffa

    Director

    • Tenure: 2.0yrs
    • Compensation: NZ$75.00k
  • James Miller

    Independent Director

    • Tenure: 0.8yrs

Company Information

The New Zealand Refining Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The New Zealand Refining Company Limited
  • Ticker: NZR
  • Exchange: NZSE
  • Founded: 1961
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: NZ$664.987m
  • Shares outstanding: 312.20m
  • Website: https://www.refiningnz.com

Number of Employees


Location

  • The New Zealand Refining Company Limited
  • Private Bag 9024
  • Whangarei
  • 148
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZRNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
NZRF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

The New Zealand Refining Company Limited, together with its subsidiaries, engages in the refining of crude oil and supply of refined petroleum products in New Zealand. The company operates through Oil Refi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 10:31
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
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.