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Chorus

NZSE:CNU
Snowflake Description

Slightly overvalued with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNU
NZSE
NZ$3B
Market Cap
  1. Home
  2. NZ
  3. Telecom
Company description

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand. The last earnings update was 84 days ago. More info.


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CNU Share Price and Events
7 Day Returns
-0.5%
NZSE:CNU
3.1%
Oceania Telecom
0.6%
NZ Market
1 Year Returns
54.1%
NZSE:CNU
20.9%
Oceania Telecom
10.4%
NZ Market
CNU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chorus (CNU) -0.5% 1.8% 19.4% 54.1% 54.1% 267.1%
Oceania Telecom 3.1% 2.2% 6.7% 20.9% -34.4% -22.5%
NZ Market 0.6% 1.7% 7.1% 10.4% 26.2% 51.2%
1 Year Return vs Industry and Market
  • CNU outperformed the Telecom industry which returned 20.9% over the past year.
  • CNU outperformed the Market in New Zealand which returned 10.4% over the past year.
Price Volatility
CNU
Industry
5yr Volatility vs Market
Related Companies

CNU Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chorus to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chorus.

NZSE:CNU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:CNU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.335 (1 + (1- 28%) (110.19%))
0.733
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (0.8 * 5.96%)
7.14%

Discounted Cash Flow Calculation for NZSE:CNU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chorus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:CNU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 7.14%)
2019 -374.00 Analyst x3 -349.08
2020 -229.50 Analyst x2 -199.94
2021 -115.50 Analyst x2 -93.92
2022 23.00 Analyst x1 17.46
2023 110.00 Analyst x1 77.92
2024 185.38 Est @ 68.53% 122.58
2025 275.63 Est @ 48.68% 170.11
2026 371.52 Est @ 34.79% 214.01
2027 464.63 Est @ 25.06% 249.81
2028 549.45 Est @ 18.26% 275.74
Present value of next 10 years cash flows NZ$484.69
NZSE:CNU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$549.45 × (1 + 2.37%) ÷ (7.14% – 2.37%)
NZ$11,796.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$11,796.84 ÷ (1 + 7.14%)10
NZ$5,920.12
NZSE:CNU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$484.69 + NZ$5,920.12
NZ$6,404.80
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$6,404.80 / 439.29
NZ$14.58
NZSE:CNU Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$14.58
Current discount Discount to share price of NZ$6.24
= -1 x (NZ$6.24 - NZ$14.58) / NZ$14.58
57.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Chorus is available for.
Intrinsic value
>50%
Share price is NZ$6.24 vs Future cash flow value of NZ$14.58
Current Discount Checks
For Chorus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Chorus's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Chorus's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chorus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chorus's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:CNU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.15
NZSE:CNU Share Price ** NZSE (2019-05-20) in NZD NZ$6.24
Oceania Telecom Industry PE Ratio Median Figure of 9 Publicly-Listed Telecom Companies 34.4x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 18.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chorus.

NZSE:CNU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:CNU Share Price ÷ EPS (both in NZD)

= 6.24 ÷ 0.15

40.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chorus is overvalued based on earnings compared to the Oceania Telecom industry average.
  • Chorus is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Chorus's expected growth come at a high price?
Raw Data
NZSE:CNU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-3.5%per year
Oceania Telecom Industry PEG Ratio Median Figure of 9 Publicly-Listed Telecom Companies 1.12x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NZSE:CNU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.42x ÷ -3.5%

-11.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chorus earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Chorus's assets?
Raw Data
NZSE:CNU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$2.36
NZSE:CNU Share Price * NZSE (2019-05-20) in NZD NZ$6.24
Oceania Telecom Industry PB Ratio Median Figure of 15 Publicly-Listed Telecom Companies 2.64x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.55x
NZSE:CNU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:CNU Share Price ÷ Book Value per Share (both in NZD)

= 6.24 ÷ 2.36

2.65x

* Primary Listing of Chorus.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chorus is overvalued based on assets compared to the Oceania Telecom industry average.
X
Value checks
We assess Chorus's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Chorus has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CNU Future Performance

 How is Chorus expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chorus expected to grow at an attractive rate?
  • Chorus's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Chorus's earnings are expected to decrease over the next 1-3 years, this is below the New Zealand market average.
  • Chorus's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:CNU Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:CNU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -3.5%
NZSE:CNU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 0.2%
Oceania Telecom Industry Earnings Growth Rate Market Cap Weighted Average 2.2%
Oceania Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.3%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 7%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:CNU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:CNU Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 442
2022-06-30 445
2021-06-30 982 476 58 7
2020-06-30 981 485 47 8
2019-06-30 977 433 59 7
NZSE:CNU Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 980 519 68
2018-09-30 985 514 77
2018-06-30 990 508 85
2018-03-31 1,000 477 90
2017-12-31 1,010 439 94
2017-09-30 1,025 482 104
2017-06-30 1,040 524 113
2017-03-31 1,049 513 119
2016-12-31 1,058 502 124
2016-09-30 1,033 469 108
2016-06-30 1,008 435 91
2016-03-31 983 387 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chorus's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Chorus's revenue is expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:CNU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Chorus Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:CNU Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.13 0.15 0.09 4.00
2020-06-30 0.10 0.13 0.06 7.00
2019-06-30 0.13 0.14 0.12 6.00
NZSE:CNU Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.15
2018-09-30 0.18
2018-06-30 0.20
2018-03-31 0.22
2017-12-31 0.23
2017-09-30 0.25
2017-06-30 0.28
2017-03-31 0.30
2016-12-31 0.32
2016-09-30 0.27
2016-06-30 0.23
2016-03-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Chorus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Chorus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chorus has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CNU Past Performance

  How has Chorus performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chorus's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chorus's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Chorus's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Chorus's 1-year earnings growth is negative, it can't be compared to the Oceania Telecom industry average.
Earnings and Revenue History
Chorus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chorus Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:CNU Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 980.00 68.00 5.00
2018-09-30 985.00 76.50 2.50
2018-06-30 990.00 85.00
2018-03-31 1,000.00 89.50 1.00
2017-12-31 1,010.00 94.00 -1.00
2017-09-30 1,025.00 103.50 -0.50
2017-06-30 1,040.00 113.00
2017-03-31 1,049.00 118.50 3.50
2016-12-31 1,058.00 124.00 7.00
2016-09-30 1,033.00 107.50 7.00
2016-06-30 1,008.00 91.00 7.00
2016-03-31 983.00 75.50 6.00
2015-12-31 958.00 60.00 5.00
2015-09-30 982.00 75.50 5.00
2015-06-30 1,006.00 91.00 5.00
2015-03-31 1,028.00 112.50 5.50
2014-12-31 1,050.00 134.00 6.00
2014-09-30 1,054.00 141.00 5.50
2014-06-30 1,058.00 148.00 5.00
2014-03-31 1,062.50 156.50 5.50
2013-12-31 1,067.00 165.00 6.00
2013-09-30 1,062.00 168.00 5.50
2013-06-30 1,057.00 171.00 5.00
2012-06-30 1,050.86 174.86 5.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Chorus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Chorus used its assets less efficiently than the Oceania Telecom industry average last year based on Return on Assets.
  • Chorus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Chorus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chorus has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CNU Health

 How is Chorus's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chorus's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chorus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Chorus's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Chorus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chorus Company Filings, last reported 4 months ago.

NZSE:CNU Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,010.00 3,006.00 281.00
2018-09-30 1,010.00 3,006.00 281.00
2018-06-30 1,022.00 2,552.00 50.00
2018-03-31 1,022.00 2,552.00 50.00
2017-12-31 1,013.00 2,413.00 40.00
2017-09-30 1,013.00 2,413.00 40.00
2017-06-30 944.00 2,202.00 170.00
2017-03-31 944.00 2,202.00 170.00
2016-12-31 919.00 1,912.00 155.00
2016-09-30 919.00 1,912.00 155.00
2016-06-30 871.00 2,038.00 103.00
2016-03-31 871.00 2,038.00 103.00
2015-12-31 843.00 1,976.00 78.00
2015-09-30 843.00 1,976.00 78.00
2015-06-30 819.00 1,972.00 83.00
2015-03-31 819.00 1,972.00 83.00
2014-12-31 798.00 1,903.00 103.00
2014-09-30 798.00 1,903.00 103.00
2014-06-30 731.00 1,974.00 177.00
2014-03-31 731.00 1,974.00 177.00
2013-12-31 673.00 1,889.00 170.00
2013-09-30 673.00 1,889.00 170.00
2013-06-30 624.00 1,955.00 80.00
2012-06-30 527.00 1,843.00 140.00
  • Chorus's level of debt (297.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (280.6% vs 297.6% today).
  • Debt is not well covered by operating cash flow (17.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Chorus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chorus has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CNU Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.61%
Current annual income from Chorus dividends. Estimated to be 3.79% next year.
If you bought NZ$2,000 of Chorus shares you are expected to receive NZ$72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Chorus's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.3%).
  • Chorus's dividend is below the markets top 25% of dividend payers in New Zealand (5.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:CNU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Oceania Telecom Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.6%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.2%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:CNU Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.24 6.00
2020-06-30 0.24 7.00
2019-06-30 0.23 7.00
NZSE:CNU Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.225 3.852
2018-08-27 0.220 4.548
2017-03-27 0.205 4.902
2016-08-29 0.210 5.324
2016-02-19 0.160 3.872
2016-02-18 0.160 4.142
2015-02-23 0.000 0.000
2014-08-25 0.000 0.000
2014-02-24 0.000 0.000
2013-08-26 0.310 16.595
2013-02-25 0.200 7.385
2012-08-27 0.146 4.678

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chorus has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Chorus only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Chorus's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.5x coverage).
X
Income/ dividend checks
We assess Chorus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chorus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chorus has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CNU Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kate McKenzie
COMPENSATION NZ$2,219,475
TENURE AS CEO 2.3 years
CEO Bio

Ms. Kate M. McKenzie, B.A., L.L.B. has been the Chief Executive Officer and Managing Director at Chorus Limited since February 20, 2017. Ms. McKenzie has significant corporate governance experience. She has an extensive communications infrastructure background. She served as the Chief Operations Officer of Telstra Corporation Limited since October 2013 until July 25, 2016, responsible for Telstra’s field services, IT and network architecture and operations. Ms. McKenzie served as a Head of Innovation, Products and Marketing of Telstra Corporation Limited. She served as Group Managing Director for Telstra Innovation Products and Marketing at Telstra Corporation Limited. She served as the Chief Marketing Officer at Telstra Corporation Limited since March 2010. She served as Group Managing Director of Strategic Marketing at Telstra Wholesale from January 16, 2006 to March 2009. She served as Group Managing Director of Strategic Marketing at Telstra Corporation Limited since March 2009. Prior to, she served as Group Managing Director of Telstra Wholesale of Telstra Corp. Ltd. from January 16, 2006 to March 2009. She joined Telstra in August 2004 as Head of Telstra Regulatory and served as its Deputy Group Managing Director, Public Policy & Communication and Group Managing Director, Regulatory, Public Policy and Communications. Prior to her experience at Telstra, she was involved in a number of micro-economic reform initiatives, including the sale of a bank and an insurance company, sale of water assets and the establishment of the national electricity market. During her career, she was involved in the development and implementation of competition policy, energy reform, corporatisation and Privatisation and Commonwealth/State negotiations on a range of complex policy issues. She is a qualified lawyer with a strong track record in understanding government and regulatory environments. She has been an Independent Non-Executive Director of Allianz Australia Limited since January 1, 2012. She has been a Non-independent Director of Chorus Limited since February 20, 2017. She is a Member of Advisory Board of Mahuki. Ms. McKenzie serves as a Director of Telstra Ventures Pty Limited (also known as Telstra Applications and Ventures Group) and leads the Board. She served as a Director of Foxtel Management Pty Ltd until September 14, 2016. She served as a Director of FOXTEL Cable Television Pty Limited since June 1, 2012 until September 14, 2016. She served as a Director of Sydney Water Corporation from February 1, 2009 to October 31, 2011, Reach, CSL and Workcover. Prior to joining Telstra, she was a CEO in the NSW Government of the Departments of Commerce, Industrial Relations and the Workcover Authority. She is a Director at Chorus New Zealand Limited (CNZL). She served as Director General of the NSW Department of Commerce. She also served as Director General of the NSW Department of Industrial Relations, General Manager of the WorkCover Authority of NSW and Deputy Director General of the NSW Cabinet Office. She is a member of Chief Executive Women. She has served on the Telstra Foundation, Telstra’s philanthropic arm and has had a long history of involvement in promoting the interests of indigenous communities. She holds a Bachelor of Arts and Bachelor of Laws from the University of Sydney.

CEO Compensation
  • Kate's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Kate's remuneration is about average for companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Chorus management team in years:

0.9
Average Tenure
  • The average tenure for the Chorus management team is less than 2 years, this suggests a new team.
Management Team

Kate McKenzie

TITLE
CEO, MD & Director
COMPENSATION
NZ$2M
TENURE
2.3 yrs

David Collins

TITLE
Chief Financial Officer
TENURE
0.4 yrs

Ewen Powell

TITLE
Chief Technology Officer

Brett Jackson

TITLE
Investor Relations Manager

Elaine Campbell

TITLE
General Counsel & Company Secretary
TENURE
0.8 yrs

Nathan Beaumont

TITLE
Media & PR Manager

Shaun Philp

TITLE
General Manager of People & Culture
TENURE
1.7 yrs

Ed Hyde

TITLE
Chief Customer Officer
TENURE
0.8 yrs

Andrew Hopkinson

TITLE
Treasurer

Andy Carroll

TITLE
General Manager of Network & Field Management
TENURE
1 yrs
Board of Directors Tenure

Average tenure of the Chorus board of directors in years:

3.7
Average Tenure
  • The tenure for the Chorus board of directors is about average.
Board of Directors

Patrick Strange

TITLE
Chairman
COMPENSATION
NZ$224K
TENURE
3.7 yrs

Kate McKenzie

TITLE
CEO, MD & Director
COMPENSATION
NZ$2M
TENURE
2.3 yrs

Jon Hartley

TITLE
Deputy Chairman
COMPENSATION
NZ$168K
TENURE
3.7 yrs

Anne Urlwin

TITLE
Independent Director
COMPENSATION
NZ$144K
TENURE
7.4 yrs

Prudence Flacks

TITLE
Independent Director
COMPENSATION
NZ$143K
TENURE
7.4 yrs

Murray Jordan

TITLE
Independent Director
COMPENSATION
NZ$123K
TENURE
3.7 yrs

Mark Cross

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$128K
TENURE
2.5 yrs

Jack Matthews

TITLE
Independent Director
COMPENSATION
NZ$119K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Chorus insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
03. Apr 19 Buy Andrew Cross Individual 01. Apr 19 01. Apr 19 10,000 NZ$5.88 NZ$58,800
03. Apr 19 Buy Prudence Flacks Individual 02. Apr 19 02. Apr 19 2,480 NZ$5.88 NZ$14,582
05. Mar 19 Buy Jack Matthews Individual 05. Mar 19 05. Mar 19 10,000 NZ$5.22 NZ$52,199
14. Feb 19 Sell Accident Compensation Corporation, Asset Management Arm Company 18. Dec 18 12. Feb 19 -932,365 NZ$5.09 NZ$-4,746,952
14. Feb 19 Buy Accident Compensation Corporation, Asset Management Arm Company 18. Dec 18 12. Feb 19 748,674 NZ$4.71 NZ$3,527,767
19. Nov 18 Sell Orbis Investment Management Limited Company 07. Nov 18 16. Nov 18 -2,704,158 NZ$4.70 NZ$-12,608,073
14. Nov 18 Sell Accident Compensation Corporation, Asset Management Arm Company 11. Oct 18 13. Nov 18 -670,696 NZ$4.97 NZ$-3,335,515
14. Nov 18 Buy Accident Compensation Corporation, Asset Management Arm Company 11. Oct 18 13. Nov 18 363,645 NZ$4.68 NZ$1,660,145
02. Jul 18 Buy Realindex Investments Pty Limited Company 27. Jun 18 27. Jun 18 7,908 NZ$4.17 NZ$33,002
12. Jul 18 Buy Realindex Investments Pty Limited Company 10. Jul 18 10. Jul 18 7,576 NZ$4.27 NZ$32,353
11. Jul 18 Sell Realindex Investments Pty Limited Company 09. Jul 18 09. Jul 18 -3,093 NZ$4.32 NZ$-13,377
17. Sep 18 Sell Realindex Investments Pty Limited Company 17. Jul 18 31. Aug 18 -728,345 NZ$4.29 NZ$-3,118,566
11. Jul 18 Buy Realindex Investments Pty Limited Company 09. Jul 18 09. Jul 18 3,093 NZ$4.32 NZ$13,377
17. Sep 18 Buy Realindex Investments Pty Limited Company 13. Jul 18 14. Sep 18 355,339 NZ$4.84 NZ$1,650,291
08. Jul 18 Sell Realindex Investments Pty Limited Company 04. Jul 18 04. Jul 18 -7,549 NZ$4.22 NZ$-31,884
10. Jul 18 Sell Realindex Investments Pty Limited Company 05. Jul 18 05. Jul 18 -4,470 NZ$4.25 NZ$-19,010
02. Jul 18 Sell Realindex Investments Pty Limited Company 27. Jun 18 29. Jun 18 -191,629 NZ$4.20 NZ$-802,281
08. Jul 18 Buy Realindex Investments Pty Limited Company 04. Jul 18 04. Jul 18 10,815 NZ$4.22 NZ$45,679
16. Jul 18 Buy Realindex Investments Pty Limited Company 11. Jul 18 11. Jul 18 1,078 NZ$4.29 NZ$4,625
10. Jul 18 Buy Realindex Investments Pty Limited Company 05. Jul 18 06. Jul 18 3,381 NZ$4.29 NZ$14,455
17. Oct 18 Sell Orbis Investment Management Limited Company 03. Sep 18 16. Oct 18 -3,997,825 NZ$4.44 NZ$-17,639,592
28. Sep 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Sep 18 25. Sep 18 -80,298 NZ$4.80 NZ$-385,739
28. Sep 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 24. Sep 18 25. Sep 18 115,592 NZ$4.74 NZ$548,089
11. Oct 18 Sell Accident Compensation Corporation, Asset Management Arm Company 19. Sep 18 09. Oct 18 -51,754 NZ$4.95 NZ$-255,960
11. Oct 18 Buy Accident Compensation Corporation, Asset Management Arm Company 19. Sep 18 09. Oct 18 139,019 NZ$4.80 NZ$667,490
26. Sep 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 17. Aug 18 21. Sep 18 1,982,269 NZ$4.67 NZ$9,227,772
20. Sep 18 Buy Kate McKenzie Individual 31. Aug 18 31. Aug 18 58,095 NZ$4.57 NZ$265,320
19. Sep 18 Sell Accident Compensation Corporation, Asset Management Arm Company 18. May 18 18. Sep 18 -2,870,577 NZ$4.65 NZ$-13,354,867
19. Sep 18 Buy Accident Compensation Corporation, Asset Management Arm Company 18. May 18 18. Sep 18 1,652,116 NZ$4.29 NZ$7,024,343
17. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 13. Jul 18 28. Aug 18 -96,205 NZ$4.28 NZ$-411,431
17. Sep 18 Buy Colonial First State Asset Management (Australia) Limited Company 26. Jul 18 14. Sep 18 402,568 NZ$4.54 NZ$1,827,715
04. Sep 18 Sell Orbis Investment Management Limited Company 28. Nov 17 31. Aug 18 -5,059,563 NZ$4.53 NZ$-21,670,845
04. Sep 18 Buy Orbis Investment Management Limited Company 28. Nov 17 31. Aug 18 924,980 NZ$3.76 NZ$3,365,985
31. Aug 18 Buy Anne Urlwin Individual 29. Aug 18 29. Aug 18 5,000 NZ$4.47 NZ$22,375
28. Aug 18 Buy Murray Jordan Individual 28. Aug 18 28. Aug 18 10,000 NZ$4.42 NZ$44,200
28. Aug 18 Buy Patrick Strange Individual 28. Aug 18 28. Aug 18 10,000 NZ$4.42 NZ$44,200
21. Aug 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 10. Aug 18 16. Aug 18 -109,281 NZ$4.32 NZ$-472,303
21. Aug 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 10. Aug 18 16. Aug 18 128,182 NZ$4.33 NZ$554,508
14. Aug 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 20. Jun 18 09. Aug 18 1,447,883 NZ$4.48 NZ$6,364,786
11. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 09. Jul 18 09. Jul 18 645 NZ$4.32 NZ$2,786
05. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 02. Jul 18 02. Jul 18 4,593 NZ$4.18 NZ$19,220
02. Jul 18 Sell Colonial First State Asset Management (Australia) Limited Company 27. Jun 18 27. Jun 18 -8,965 NZ$4.17 NZ$-37,428
24. Jun 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Jun 18 19. Jun 18 -26,197 NZ$4.24 NZ$-111,153
24. Jun 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 19. Jun 18 19. Jun 18 31,968 NZ$4.25 NZ$135,457
20. Jun 18 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 08. Jun 18 15. Jun 18 -45,632 NZ$4.14 NZ$-189,074
20. Jun 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 08. Jun 18 15. Jun 18 131,828 NZ$4.17 NZ$541,966
21. Jun 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 18. Jun 18 18. Jun 18 14,255 NZ$4.23 NZ$60,241
13. Jun 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 17. May 18 07. Jun 18 308,267 NZ$4.09 NZ$1,261,280
X
Management checks
We assess Chorus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chorus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CNU News

Simply Wall St News

Is Chorus Limited (NZSE:CNU) Investing Your Capital Efficiently?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

Can Chorus Limited (NZSE:CNU) Improve Its Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every NZ$1 worth of equity in the company, it was able to earn NZ$0.083. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Do You Get For Owning Chorus Limited (NZSE:CNU)?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in Chorus, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

What You Must Know About Chorus Limited's (NZSE:CNU) Major Investors

Today, I will be analyzing Chorus Limited’s (NZSE:CNU) recent ownership structure, an important but not-so-popular subject among individual investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine CNU's ownership structure in more detail.

Simply Wall St -

Is Chorus Limited (NZSE:CNU) A Smart Pick For Income Investors?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … In the past 6 years Chorus Limited (NZSE:CNU) has returned an average of 5.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether Chorus should have a place in your portfolio.

Simply Wall St -

Why Chorus Limited (NZSE:CNU) Delivered An Inferior ROE Compared To The Industry

Chorus Limited’s (NZSE:CNU) most recent return on equity was a substandard 9.28% relative to its industry performance of 17.96% over the past year. … Though CNU's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted. … Knowing these components can change your views on CNU's below-average returns.

Simply Wall St -

Why I Sold Chorus Limited (NZSE:CNU)

Chorus Limited (NZSE:CNU) has been on my radar for a while, and I've been consistently disappointed in its investment thesis. … It's crucial to understand if a company has a strong future based on its current operations and financial status. … Chorus Limited provides fixed line communications infrastructure services in New Zealand.

Simply Wall St -

What Do Expectations Tell Us About Chorus Limited's (NZSE:CNU) Margins In The Years Ahead?

With analysts forecasting … Chorus Limited (NZSE:CNU) to … in earnings of -16.26%

Simply Wall St -

When Should You Buy Chorus Limited (NZE:CNU)?

However, could the stock still be trading at a relatively cheap price? … NZSE:CNU Future Profit Jun 6th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Should Chorus Limited's (NZE:CNU) Recent Earnings Decline Worry You?

In this commentary, I will examine Chorus Limited's (NZSE:CNU) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the telecom industry performed. … For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Although revenue growth over the past couple of years, has been negative, earnings growth has been deteriorating by even more, meaning Chorus has been growing its expenses.

Simply Wall St -

CNU Company Info

Description

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand. It offers phone and broadband services over copper and fiber networks for residential and business customers; and very high speed digital subscriber line broadband services. The company also provides colocation services. Chorus Limited was founded in 2008 and is based in Wellington, New Zealand.

Details
Name: Chorus Limited
CNU
Exchange: NZSE
Founded: 2008
NZ$2,727,979,436
439,288,154
Website: http://www.chorus.co.nz
Address: Chorus Limited
1 Willis Street,
Level 10,
Wellington,
6140,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE CNU Ordinary Shares New Zealand Stock Exchange NZ NZD 21. Nov 2011
OTCPK CRRL.F Ordinary Shares Pink Sheets LLC US USD 21. Nov 2011
BST 7CH Ordinary Shares Boerse-Stuttgart DE EUR 21. Nov 2011
ASX CNU Ordinary Shares Australian Securities Exchange AU AUD 21. Nov 2011
CHIA CNU Ordinary Shares Chi-X Australia AU AUD 21. Nov 2011
OTCPK CHRY.Y SPONSORED ADS Pink Sheets LLC US USD 23. Nov 2011
Number of employees
Current staff
Staff numbers
914
Chorus employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 10:36
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/01
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.