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CNU

ChorusNZSE:CNU Stock Report

Market Cap

NZ$3.0b

7D

2.3%

1Y

-16.5%

Updated

03 Dec, 2021

Data

Company Financials +
CNU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance1/6
Financial Health0/6
Dividends1/6

CNU Stock Overview

Chorus Limited provides fixed line communications infrastructure services in New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Chorus
Historical stock prices
Current Share PriceNZ$6.77
52 Week HighNZ$8.72
52 Week LowNZ$6.03
Beta0.038
1 Month Change5.45%
3 Month Change-5.97%
1 Year Change-16.52%
3 Year Change41.93%
5 Year Change72.70%
Change since IPO110.90%

Recent News & Updates

Oct 02
The Returns On Capital At Chorus (NZSE:CNU) Don't Inspire Confidence

The Returns On Capital At Chorus (NZSE:CNU) Don't Inspire Confidence

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Sep 17
Here's Why Chorus (NZSE:CNU) Is Weighed Down By Its Debt Load

Here's Why Chorus (NZSE:CNU) Is Weighed Down By Its Debt Load

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 25
Chorus (NZSE:CNU) Has Announced That It Will Be Increasing Its Dividend To NZ$0.17

Chorus (NZSE:CNU) Has Announced That It Will Be Increasing Its Dividend To NZ$0.17

Chorus Limited ( NZSE:CNU ) has announced that it will be increasing its dividend on the 12th of October to NZ$0.17...

Shareholder Returns

CNUNZ TelecomNZ Market
7D2.3%0.7%-0.6%
1Y-16.5%19.0%-3.2%

Return vs Industry: CNU underperformed the NZ Telecom industry which returned 19% over the past year.

Return vs Market: CNU underperformed the NZ Market which returned -3.2% over the past year.

Price Volatility

Is CNU's price volatile compared to industry and market?
CNU volatility
CNU Average Weekly Movement2.5%
Telecom Industry Average Movement6.9%
Market Average Movement3.6%
10% most volatile stocks in NZ Market6.7%
10% least volatile stocks in NZ Market2.4%

Stable Share Price: CNU is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CNU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008817JB Rousselothttps://www.chorus.co.nz

Chorus Limited 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 Fundamentals Summary

How do Chorus's earnings and revenue compare to its market cap?
CNU fundamental statistics
Market CapNZ$3.03b
Earnings (TTM)NZ$47.00m
Revenue (TTM)NZ$947.00m

64.9x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNU income statement (TTM)
RevenueNZ$947.00m
Cost of RevenueNZ$296.00m
Gross ProfitNZ$651.00m
ExpensesNZ$604.00m
EarningsNZ$47.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin68.74%
Net Profit Margin4.96%
Debt/Equity Ratio319.0%

How did CNU perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

237%

Payout Ratio

Valuation

Is Chorus undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNU (NZ$6.77) is trading below our estimate of fair value (NZ$14.2)

Significantly Below Fair Value: CNU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNU is poor value based on its PE Ratio (64.9x) compared to the Oceanic Telecom industry average (64.3x).

PE vs Market: CNU is poor value based on its PE Ratio (64.9x) compared to the NZ market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: CNU is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: CNU's PB Ratio (3.2x) is in line with the XO Telecom industry average.


Future Growth

How is Chorus forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNU's forecast earnings growth (15.3% per year) is above the savings rate (2.1%).

Earnings vs Market: CNU's earnings (15.3% per year) are forecast to grow faster than the NZ market (7.1% per year).

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

Revenue vs Market: CNU's revenue (1.5% per year) is forecast to grow slower than the NZ market (4.8% per year).

High Growth Revenue: CNU's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNU's Return on Equity is forecast to be low in 3 years time (7.9%).


Past Performance

How has Chorus performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNU has high quality earnings.

Growing Profit Margin: CNU's current net profit margins (5%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CNU's earnings have declined by 21.2% per year over the past 5 years.

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

Earnings vs Industry: CNU had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Telecom industry average (-8%).


Return on Equity

High ROE: CNU's Return on Equity (5%) is considered low.


Financial Health

How is Chorus's financial position?


Financial Position Analysis

Short Term Liabilities: CNU's short term assets (NZ$202.0M) do not cover its short term liabilities (NZ$461.0M).

Long Term Liabilities: CNU's short term assets (NZ$202.0M) do not cover its long term liabilities (NZ$4.5B).


Debt to Equity History and Analysis

Debt Level: CNU's net debt to equity ratio (313.4%) is considered high.

Reducing Debt: CNU's debt to equity ratio has increased from 218.4% to 319% over the past 5 years.

Debt Coverage: CNU's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: CNU's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

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

3.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNU's dividend (3.69%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: CNU's dividend (3.69%) is low compared to the top 25% of dividend payers in the NZ market (4.99%).


Stability and Growth of Payments

Stable Dividend: CNU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CNU's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (237.2%), CNU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNU's dividends in 3 years are not forecast to be well covered by earnings (350.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

JB Rousselot

2.08yrs

Tenure

NZ$2,018,750

Compensation

Mr. Jean-Baptiste B. Rousselot, also known as JB, has been Chief Executive Officer of Chorus Limited since November 20, 2019. Mr. Rousselot, had been a Director of Chorus Limited since November 20, 2019 u...


CEO Compensation Analysis

Compensation vs Market: JB's total compensation ($USD1.38M) is about average for companies of similar size in the NZ market ($USD1.51M).

Compensation vs Earnings: JB's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CNU's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: CNU's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Chorus Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Chorus Limited
  • Ticker: CNU
  • Exchange: NZSE
  • Founded: 2008
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: NZ$3.034b
  • Shares outstanding: 450.88m
  • Website: https://www.chorus.co.nz

Number of Employees


Location

  • Chorus Limited
  • 1 Willis Street
  • Level 10
  • Wellington
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 06:01
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.