Tower Limited provides general insurance products in New Zealand and the Pacific Islands.
Price History & Performance
|Historical stock prices|
|Current Share Price||NZ$0.64|
|52 Week High||NZ$0.56|
|52 Week Low||NZ$0.89|
|1 Month Change||-3.76%|
|3 Month Change||-5.88%|
|1 Year Change||11.30%|
|3 Year Change||-14.09%|
|5 Year Change||-28.89%|
|Change since IPO||-88.15%|
Recent News & Updates
|TWR||NZ Insurance||NZ Market|
Return vs Industry: TWR underperformed the NZ Insurance industry which returned 29.8% over the past year.
Return vs Market: TWR exceeded the NZ Market which returned 2.1% over the past year.
Stable Share Price: TWR is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: TWR's weekly volatility (2%) has been stable over the past year.
About the Company
Tower Limited provides general insurance products in New Zealand and the Pacific Islands. Its insurance products include car, contents, renters', house, landlord, business, travel, boat, motorbike, lifestyle block and farm, motorhome, and caravan or trailer insurance. The company was founded in 1869 and is based in Auckland, New Zealand.
Tower Fundamentals Summary
|TWR fundamental statistics|
Is TWR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TWR income statement (TTM)|
|Cost of Revenue||NZ$299.99m|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
Nov 23, 2021
|Earnings per share (EPS)||0.021|
|Net Profit Margin||2.70%|
How did TWR perform over the long term?See historical performance and comparison
7.8%Current Dividend Yield
Is Tower undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TWR (NZ$0.64) is trading above our estimate of fair value (NZ$0.42)
Significantly Below Fair Value: TWR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TWR's PE Ratio (30x) is in line with the Oceanic Insurance industry average.
PE vs Market: TWR is poor value based on its PE Ratio (30x) compared to the NZ market (22.2x).
Price to Earnings Growth Ratio
PEG Ratio: TWR is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: TWR is good value based on its PB Ratio (0.8x) compared to the XO Insurance industry average (3.6x).
How is Tower forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TWR's forecast earnings growth (31.5% per year) is above the savings rate (2.1%).
Earnings vs Market: TWR's earnings (31.5% per year) are forecast to grow faster than the NZ market (9.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TWR's revenue (6.3% per year) is forecast to grow faster than the NZ market (5.3% per year).
High Growth Revenue: TWR's revenue (6.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TWR's Return on Equity is forecast to be low in 3 years time (7.7%).
How has Tower performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TWR has high quality earnings.
Growing Profit Margin: TWR's current net profit margins (2.7%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: TWR has become profitable over the past 5 years, growing earnings by 61.3% per year.
Accelerating Growth: TWR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TWR had negative earnings growth (-53.7%) over the past year, making it difficult to compare to the Insurance industry average (50.3%).
Return on Equity
High ROE: TWR's Return on Equity (2.7%) is considered low.
How is Tower's financial position?
Financial Position Analysis
Short Term Liabilities: TWR's short term assets (NZ$295.8M) do not cover its short term liabilities (NZ$355.9M).
Long Term Liabilities: TWR's short term assets (NZ$295.8M) exceed its long term liabilities (NZ$15.6M).
Debt to Equity History and Analysis
Debt Level: TWR is debt free.
Reducing Debt: TWR has no debt compared to 5 years ago when its debt to equity ratio was 0%.
Debt Coverage: TWR has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TWR has no debt, therefore coverage of interest payments is not a concern.
What is Tower current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TWR's dividend (7.81%) is higher than the bottom 25% of dividend payers in the NZ market (2.41%).
High Dividend: TWR's dividend (7.81%) is in the top 25% of dividend payers in the NZ market (4.9%)
Stability and Growth of Payments
Stable Dividend: TWR's dividend payments have been volatile in the past 10 years.
Growing Dividend: TWR's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (117.3%), TWR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TWR's dividends in 3 years are forecast to be covered by earnings (75.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Blair McLaren Turnbull serves as Chief Digital Officer at Aviva Plc since September 2019. He serves as a Chief Executive Officer at Tower Limited since August 1, 2020. He served as Head for Wealth Mana...
CEO Compensation Analysis
Compensation vs Market: Blair's total compensation ($USD484.01K) is about average for companies of similar size in the NZ market ($USD536.77K).
Compensation vs Earnings: Insufficient data to compare Blair's compensation with company performance.
Experienced Management: TWR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Experienced Board: TWR's board of directors are considered experienced (7.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Tower Limited's employee growth, exchange listings and data sources
- Name: Tower Limited
- Ticker: TWR
- Exchange: NZSE
- Founded: 1869
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: NZ$269.854m
- Shares outstanding: 421.65m
- Website: https://www.tower.co.nz
- Tower Limited
- 136 Fanshawe Street
- Level 5
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/25 06:01|
|End of Day Share Price||2021/10/22 00:00|
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.