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CNU

Chorus NZSE:CNU Stock Report

Last Price

NZ$7.56

Market Cap

NZ$3.4b

7D

-0.1%

1Y

15.6%

Updated

25 Sep, 2022

Data

Company Financials +
CNU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health0/6
Dividends2/6

CNU Stock Overview

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand.

Chorus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chorus
Historical stock prices
Current Share PriceNZ$7.56
52 Week HighNZ$8.15
52 Week LowNZ$6.18
Beta0.10
1 Month Change-4.97%
3 Month Change1.89%
1 Year Change15.60%
3 Year Change48.38%
5 Year Change92.86%
Change since IPO135.51%

Recent News & Updates

Sep 07
Chorus' (NZSE:CNU) Dividend Will Be Increased To NZ$0.21

Chorus' (NZSE:CNU) Dividend Will Be Increased To NZ$0.21

The board of Chorus Limited ( NZSE:CNU ) has announced that it will be paying its dividend of NZ$0.21 on the 11th of...

Aug 24
Chorus (NZSE:CNU) Will Pay A Larger Dividend Than Last Year At NZ$0.21

Chorus (NZSE:CNU) Will Pay A Larger Dividend Than Last Year At NZ$0.21

The board of Chorus Limited ( NZSE:CNU ) has announced that it will be paying its dividend of NZ$0.21 on the 11th of...

Shareholder Returns

CNUNZ TelecomNZ Market
7D-0.1%-0.9%-1.4%
1Y15.6%-7.4%-17.0%

Return vs Industry: CNU exceeded the NZ Telecom industry which returned -7.4% over the past year.

Return vs Market: CNU exceeded the NZ Market which returned -17% over the past year.

Price Volatility

Is CNU's price volatile compared to industry and market?
CNU volatility
CNU Average Weekly Movement2.4%
Telecom Industry Average Movement7.8%
Market Average Movement3.8%
10% most volatile stocks in NZ Market8.0%
10% least volatile stocks in NZ Market2.7%

Stable Share Price: CNU is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CNU's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008799JB Rousselothttps://www.chorus.co.nz

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand. It offers phone and broadband services for residential and business customers; and high-speed digital subscriber line broadband services. The company builds and maintains a network of fibre and copper cables, local telephone exchanges, and cabinets.

Chorus Fundamentals Summary

How do Chorus's earnings and revenue compare to its market cap?
CNU fundamental statistics
Market CapNZ$3.37b
Earnings (TTM)NZ$64.00m
Revenue (TTM)NZ$965.00m

52.7x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNU income statement (TTM)
RevenueNZ$965.00m
Cost of RevenueNZ$270.00m
Gross ProfitNZ$695.00m
Other ExpensesNZ$631.00m
EarningsNZ$64.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin72.02%
Net Profit Margin6.63%
Debt/Equity Ratio295.9%

How did CNU perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

245%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CNU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNU?

Other financial metrics that can be useful for relative valuation.

CNU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.8x
Enterprise Value/EBITDA10.8x
PEG Ratio6.4x

Price to Earnings Ratio vs Peers

How does CNU's PE Ratio compare to its peers?

CNU PE Ratio vs Peers
The above table shows the PE ratio for CNU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.2x
SPK Spark New Zealand
23.2x6.3%NZ$9.5b
YAHSAT Al Yah Satellite Communication Company PJSC
21.9x7.7%د.إ6.8b
CCOI Cogent Communications Holdings
55.1x22.9%US$2.4b
TIMECOM TIME dotCom Berhad
20.5x11.3%RM8.6b
CNU Chorus
52.7x8.3%NZ$3.4b

Price-To-Earnings vs Peers: CNU is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the peer average (30.2x).


Price to Earnings Ratio vs Industry

How does CNU's PE Ratio compare vs other companies in the Global Telecom Industry?

Price-To-Earnings vs Industry: CNU is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the Global Telecom industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is CNU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio52.7x
Fair PE Ratio39.9x

Price-To-Earnings vs Fair Ratio: CNU is expensive based on its Price-To-Earnings Ratio (52.7x) compared to the estimated Fair Price-To-Earnings Ratio (39.9x).


Share Price vs Fair Value

What is the Fair Price of CNU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNU (NZ$7.56) is trading below our estimate of fair value (NZ$18.24)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


Discover undervalued companies

Future Growth

How is Chorus forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNU's forecast earnings growth (8.3% per year) is above the savings rate (2.1%).

Earnings vs Market: CNU's earnings (8.3% per year) are forecast to grow faster than the NZ market (5.9% per year).

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

Revenue vs Market: CNU's revenue (0.6% per year) is forecast to grow slower than the NZ market (5.6% per year).

High Growth Revenue: CNU's revenue (0.6% 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 (11.4%).


Discover growth companies

Past Performance

How has Chorus performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNU has high quality earnings.

Growing Profit Margin: CNU's current net profit margins (6.6%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CNU's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: CNU's earnings growth over the past year (25.5%) exceeds its 5-year average (-14% per year).

Earnings vs Industry: CNU earnings growth over the past year (25.5%) exceeded the Telecom industry -9.1%.


Return on Equity

High ROE: CNU's Return on Equity (6.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Chorus's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNU's short term assets (NZ$249.0M) do not cover its short term liabilities (NZ$494.0M).

Long Term Liabilities: CNU's short term assets (NZ$249.0M) do not cover its long term liabilities (NZ$4.3B).


Debt to Equity History and Analysis

Debt Level: CNU's net debt to equity ratio (287.4%) is considered high.

Reducing Debt: CNU's debt to equity ratio has increased from 216.4% to 295.9% over the past 5 years.

Debt Coverage: CNU's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: CNU's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CNU's dividend (4.63%) is higher than the bottom 25% of dividend payers in the NZ market (2.85%).

High Dividend: CNU's dividend (4.63%) is low compared to the top 25% of dividend payers in the NZ market (6.04%).


Stability and Growth of Payments

Stable Dividend: CNU's dividend payments have been volatile in the past 10 years.

Growing Dividend: CNU's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (245%), CNU's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (312.5%), CNU's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure


CEO

JB Rousselot

2.83yrs

Tenure

NZ$2,422,500

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 ($USD1.40M) is about average for companies of similar size in the NZ market ($USD1.46M).

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 (4.1 years average tenure).


Board Members

Experienced Board: CNU's board of directors are considered experienced (5.2 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

NZSE:CNU Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Sep 22BuyNZ$99,604Eaton Vance ManagementCompany14,836NZ$6.71
16 Sep 22BuyNZ$2,274,557Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany294,573NZ$7.72
14 Sep 22BuyNZ$1,383,500Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany176,334NZ$7.85
14 Sep 22SellNZ$1,410,889Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany179,450NZ$7.86
09 Sep 22SellNZ$29,900First Sentier Investors (Australia) IM LtdCompany3,761NZ$7.95
07 Sep 22BuyNZ$595,285First Sentier Investors (Australia) IM LtdCompany74,351NZ$8.01
06 Sep 22BuyNZ$665,974Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany83,927NZ$8.14
31 Aug 22BuyNZ$40,070Miriam DeanIndividual5,000NZ$8.01
30 Aug 22BuyNZ$19,499,117Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany2,494,995NZ$8.47
30 Aug 22SellNZ$24,219,429Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany2,922,915NZ$8.84
29 Aug 22SellNZ$4,061,401First Sentier Investors (Australia) IM LtdCompany513,176NZ$7.92
24 Aug 22BuyNZ$1,135,782First Sentier Investors (Australia) IM LtdCompany152,481NZ$7.74
18 Aug 22BuyNZ$209Morgan Stanley Investment Management Inc.Company24NZ$8.72
04 Aug 22SellNZ$4,032Morgan Stanley Investment Management Inc.Company450NZ$8.96
15 Jul 22BuyNZ$362,845Eaton Vance ManagementCompany47,836NZ$7.59
29 Jun 22BuyNZ$26,269,781Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany3,575,855NZ$7.43
19 Apr 22BuyNZ$117,817Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany15,977NZ$7.37
19 Apr 22SellNZ$195,292Morgan Stanley, Investment Banking and Brokerage InvestmentsCompany26,473NZ$7.38
23 Feb 22BuyNZ$38,190Sue BaileyIndividual5,000NZ$7.64
23 Feb 22SellNZ$115,583Andrew CarrollIndividual15,000NZ$7.71
12 Oct 21BuyNZ$43,439Kate JorgensenIndividual6,738NZ$6.45

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 41.64% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.17%
L1 Capital Pty. Limited
36,464,794NZ$275.7m0%8.81%
6.45%
UniSuper Management Pty Limited
28,785,874NZ$217.6m0%16.55%
4.81%
The Vanguard Group, Inc.
21,465,407NZ$162.3m0%no data
2.97%
Accident Compensation Corporation, Asset Management Arm
13,275,479NZ$100.4m-35.31%2.21%
2.68%
Colonial First State Investments Limited
11,978,397NZ$90.6m0%0.69%
2.53%
First Sentier Investors (Australia) IM Ltd
11,310,109NZ$85.5m-2.38%0.11%
2.46%
Morgan Stanley, Investment Banking and Brokerage Investments
10,981,270NZ$83.0m4.85%0.01%
2.32%
ASB Group Investments Ltd.
10,352,139NZ$78.3m0%20.64%
2.1%
Dimensional Fund Advisors LP
9,390,894NZ$71.0m-0.8%0.01%
1.87%
UBS Asset Management
8,334,861NZ$63.0m26.34%0.01%
1.81%
BlackRock, Inc.
8,072,969NZ$61.0m-1.32%no data
0.87%
Smartshares Limited
3,899,803NZ$29.5m0%3.67%
0.78%
Norges Bank Investment Management
3,491,835NZ$26.4m0%no data
0.43%
BetaShares Capital Limited
1,902,584NZ$14.4m3.88%0.1%
0.3%
Charles Schwab Investment Management, Inc.
1,331,789NZ$10.1m2.2%no data
0.26%
State Street Global Advisors, Inc.
1,146,536NZ$8.7m2.44%no data
0.19%
BNP Paribas Securities Corp, Asset Management Arm
856,064NZ$6.5m0%0.27%
0.12%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
540,410NZ$4.1m-1.39%no data
0.11%
Mercer Global Investments Europe Limited
508,263NZ$3.8m0%0.01%
0.11%
Eaton Vance Management
504,977NZ$3.8m14.17%no data
0.084%
Geode Capital Management, LLC
373,337NZ$2.8m24.37%no data
0.069%
Credit Suisse Asset Management (Switzerland)
306,159NZ$2.3m1.64%no data
0.067%
Legal & General Investment Management Limited
298,250NZ$2.3m0%no data
0.035%
White Funds Management Pty Limited
157,982NZ$1.2m0%0.18%
0.032%
KLP Kapitalforvaltning AS
144,457NZ$1.1m0%no data

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
  • Implied Market Cap: NZ$3.375b
  • Shares outstanding: 446.37m
  • Website: https://www.chorus.co.nz

Number of Employees


Location

  • Chorus Limited
  • 1 Willis Street
  • Level 10
  • Wellington
  • 6011
  • New Zealand


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNUNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 2011
CNUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2011
7CHBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2011
CHRU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2011
7CHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2011
CNUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2011
CHRY.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDNov 2011

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.