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Spark New Zealand

NZSE:SPK
Snowflake Description

Fair value with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPK
NZSE
NZ$7B
Market Cap
  1. Home
  2. NZ
  3. Telecom
Company description

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The last earnings update was 90 days ago. More info.


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SPK Share Price and Events
7 Day Returns
3%
NZSE:SPK
2.1%
Oceania Telecom
0.7%
NZ Market
1 Year Returns
9.7%
NZSE:SPK
22.5%
Oceania Telecom
11.2%
NZ Market
SPK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spark New Zealand (SPK) 3% 3.5% -1.7% 9.7% 5.1% 44.8%
Oceania Telecom 2.1% 2.1% 5.8% 22.5% -34.6% -22.2%
NZ Market 0.7% 2% 7.7% 11.2% 26.6% 51.7%
1 Year Return vs Industry and Market
  • SPK underperformed the Telecom industry which returned 22.5% over the past year.
  • SPK underperformed the Market in New Zealand which returned 11.2% over the past year.
Price Volatility
SPK
Industry
5yr Volatility vs Market

Value

 Is Spark New Zealand 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 Spark New Zealand 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 Spark New Zealand.

NZSE:SPK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 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:SPK
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%) (27.57%))
0.599
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:SPK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spark New Zealand 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:SPK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 7.14%)
2019 439.61 Analyst x4 410.32
2020 444.64 Analyst x4 387.37
2021 507.90 Analyst x3 413.00
2022 558.76 Est @ 10.01% 424.09
2023 601.91 Est @ 7.72% 426.39
2024 638.72 Est @ 6.12% 422.33
2025 670.61 Est @ 4.99% 413.87
2026 698.81 Est @ 4.21% 402.54
2027 724.35 Est @ 3.65% 389.45
2028 748.03 Est @ 3.27% 375.39
Present value of next 10 years cash flows NZ$4,064.75
NZSE:SPK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$748.03 × (1 + 2.37%) ÷ (7.14% – 2.37%)
NZ$16,060.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$16,060.37 ÷ (1 + 7.14%)10
NZ$8,059.73
NZSE:SPK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$4,064.75 + NZ$8,059.73
NZ$12,124.47
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$12,124.47 / 1,836.19
NZ$6.6
NZSE:SPK Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$6.60
Current discount Discount to share price of NZ$3.83
= -1 x (NZ$3.83 - NZ$6.60) / NZ$6.60
42%

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

Current Discount
Amount off the current price Spark New Zealand is available for.
Intrinsic value
42%
Share price is NZ$3.83 vs Future cash flow value of NZ$6.6
Current Discount Checks
For Spark New Zealand to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Spark New Zealand's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Spark New Zealand'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 Spark New Zealand's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spark New Zealand's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:SPK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.20
NZSE:SPK Share Price ** NZSE (2019-05-21) in NZD NZ$3.83
Oceania Telecom Industry PE Ratio Median Figure of 9 Publicly-Listed Telecom Companies 34.15x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 18.27x

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

** Primary Listing of Spark New Zealand.

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

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

= 3.83 ÷ 0.20

18.69x

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

  • Spark New Zealand is good value based on earnings compared to the Oceania Telecom industry average.
  • Spark New Zealand is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Spark New Zealand's expected growth come at a high price?
Raw Data
NZSE:SPK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
5.6%per year
Oceania Telecom Industry PEG Ratio Median Figure of 9 Publicly-Listed Telecom Companies 1.11x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.69x ÷ 5.6%

3.32x

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

  • Spark New Zealand is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Spark New Zealand's assets?
Raw Data
NZSE:SPK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$0.80
NZSE:SPK Share Price * NZSE (2019-05-21) in NZD NZ$3.83
Oceania Telecom Industry PB Ratio Median Figure of 15 Publicly-Listed Telecom Companies 2.65x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.55x
NZSE:SPK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.83 ÷ 0.80

4.76x

* Primary Listing of Spark New Zealand.

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

  • Spark New Zealand is overvalued based on assets compared to the Oceania Telecom industry average.
X
Value checks
We assess Spark New Zealand'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. Spark New Zealand has a total score of 3/6, 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.

Future Performance

 How is Spark New Zealand expected to perform in the next 1 to 3 years based on estimates from 10 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
5.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spark New Zealand expected to grow at an attractive rate?
  • Spark New Zealand's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Spark New Zealand's earnings growth is positive but not above the New Zealand market average.
  • Spark New Zealand's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:SPK Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:SPK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 5.6%
NZSE:SPK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 1.2%
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:SPK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:SPK Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 3,735 1
2021-06-30 3,634 939 438 8
2020-06-30 3,579 892 416 10
2019-06-30 3,545 858 393 10
NZSE:SPK Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,642 744 376
2018-09-30 3,646 761 381
2018-06-30 3,649 777 385
2018-03-31 3,585 821 389
2017-12-31 3,582 843 402
2017-09-30 3,598 780 410
2017-06-30 3,614 717 418
2017-03-31 3,591 691 404
2016-12-31 3,567 664 390
2016-09-30 3,532 690 380
2016-06-30 3,497 716 370
2016-03-31 3,477 734 378

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spark New Zealand's earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
  • Spark New Zealand's revenue is expected to grow by 1.2% 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:SPK 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 10 Analyst Estimates (S&P Global) See Below

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

NZSE:SPK Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.24 0.26 0.22 7.00
2020-06-30 0.23 0.25 0.21 9.00
2019-06-30 0.21 0.22 0.20 9.00
NZSE:SPK Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.20
2018-09-30 0.21
2018-06-30 0.21
2018-03-31 0.21
2017-12-31 0.22
2017-09-30 0.22
2017-06-30 0.23
2017-03-31 0.22
2016-12-31 0.21
2016-09-30 0.21
2016-06-30 0.20
2016-03-31 0.21

*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.
  • Spark New Zealand is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Spark New Zealand'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.
Spark New Zealand has a total score of 2/6, 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.

Past Performance

  How has Spark New Zealand 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 Spark New Zealand'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.
  • Spark New Zealand's year on year earnings growth rate has been positive over the past 5 years.
  • Spark New Zealand's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Spark New Zealand's 1-year earnings growth is negative, it can't be compared to the Oceania Telecom industry average.
Earnings and Revenue History
Spark New Zealand'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 Spark New Zealand Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:SPK 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 3,642.00 376.00 80.00
2018-09-30 3,645.50 380.50 82.00
2018-06-30 3,649.00 385.00 84.00
2018-03-31 3,585.00 388.50 81.50
2017-12-31 3,582.00 402.00 79.00
2017-09-30 3,598.00 410.00 74.00
2017-06-30 3,614.00 418.00 69.00
2017-03-31 3,590.50 404.00 71.00
2016-12-31 3,567.00 390.00 73.00
2016-09-30 3,532.00 380.00 75.00
2016-06-30 3,497.00 370.00 77.00
2016-03-31 3,477.00 378.00 77.00
2015-12-31 3,457.00 386.00 77.00
2015-09-30 3,494.00 379.50 77.50
2015-06-30 3,531.00 373.00 78.00
2015-03-31 3,532.50 345.50 109.00
2014-12-31 3,588.00 320.00 71.00
2014-09-30 3,613.00 320.50 70.00
2014-06-30 3,638.00 321.00 69.00
2014-03-31 3,704.00 285.00 38.00
2013-12-31 3,716.00 247.00 76.00
2013-09-30 3,725.50 257.50 73.50
2013-06-30 3,735.00 268.00 71.00
2013-03-31 3,892.50 308.00 69.00
2012-12-31 4,050.00 348.00 67.00
2012-09-30 4,257.00 328.50 66.00
2012-06-30 4,464.00 309.00 65.00

*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.
  • Whilst Spark New Zealand has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Spark New Zealand used its assets more efficiently than the Oceania Telecom industry average last year based on Return on Assets.
  • Spark New Zealand's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Spark New Zealand'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.
Spark New Zealand has a total score of 2/6, 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.

Health

 How is Spark New Zealand'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 Spark New Zealand's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spark New Zealand's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Spark New Zealand's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Spark New Zealand'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 0.5x 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 Spark New Zealand Company Filings, last reported 4 months ago.

NZSE:SPK Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,476.00 1,929.00 110.00
2018-09-30 1,476.00 1,929.00 110.00
2018-06-30 1,541.00 1,260.00 61.00
2018-03-31 1,541.00 1,260.00 61.00
2017-12-31 1,586.00 1,255.00 117.00
2017-09-30 1,586.00 1,255.00 117.00
2017-06-30 1,651.00 1,057.00 52.00
2017-03-31 1,651.00 1,057.00 52.00
2016-12-31 1,655.00 1,074.00 56.00
2016-09-30 1,655.00 1,074.00 56.00
2016-06-30 1,684.00 944.00 52.00
2016-03-31 1,684.00 944.00 52.00
2015-12-31 1,726.00 852.00 60.00
2015-09-30 1,726.00 852.00 60.00
2015-06-30 1,778.00 714.00 80.00
2015-03-31 1,778.00 714.00 80.00
2014-12-31 1,692.00 931.00 89.00
2014-09-30 1,692.00 931.00 89.00
2014-06-30 1,708.00 720.00 208.00
2014-03-31 1,708.00 720.00 208.00
2013-12-31 1,471.00 1,241.00 124.00
2013-09-30 1,471.00 1,241.00 124.00
2013-06-30 1,413.00 1,009.00 119.00
2013-03-31 1,413.00 1,009.00 119.00
2012-12-31 1,476.00 1,229.00 311.00
2012-09-30 1,476.00 1,229.00 311.00
2012-06-30 1,626.00 1,045.00 185.00
  • Spark New Zealand's level of debt (130.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (83.8% vs 130.7% today).
  • Debt is well covered by operating cash flow (38.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).
X
Financial health checks
We assess Spark New Zealand'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. Spark New Zealand has a total score of 2/6, 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.

Dividends

 What is Spark New Zealand'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
6.14%
Current annual income from Spark New Zealand dividends. Estimated to be 6.46% next year.
If you bought NZ$2,000 of Spark New Zealand shares you are expected to receive NZ$123 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?
  • Spark New Zealand's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.3%).
  • Spark New Zealand's dividend is above the markets top 25% of dividend payers in New Zealand (5.7%).
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:SPK 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 10 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 2.1%
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:SPK Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 0.25 9.00
2020-06-30 0.25 11.00
2019-06-30 0.25 11.00
NZSE:SPK Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.235 6.366
2018-08-21 0.250 6.178
2018-02-21 0.235 6.530
2018-02-20 0.235 6.940
2017-08-18 0.250 6.833
2017-08-17 0.250 6.378
2017-02-16 0.235 6.370
2016-09-28 0.220 6.273
2016-02-18 0.220 6.050
2015-09-29 0.220 6.781
2015-02-19 0.180 6.073
2015-02-18 0.180 5.576
2014-08-22 0.180 5.801
2014-07-15 0.180 6.328
2013-08-22 0.160 6.577
2013-07-15 0.160 6.962
2013-02-22 0.190 8.022
2012-09-13 0.200 8.544
2012-02-24 0.180 7.200
2012-02-23 0.180 8.353
2011-09-12 0.180 7.943
2011-08-19 0.180 6.969
2011-05-06 0.140 5.707
2011-02-11 0.140 6.729
2011-02-10 0.140 6.437
2010-11-05 0.140 6.376
2010-11-04 0.140 6.699
2010-08-20 0.240 11.703
2010-05-06 0.240 12.273
2009-08-21 0.240 9.942

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

  • 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
What portion of Spark New Zealand's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Spark New Zealand's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.1%) - 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 Spark New Zealand afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spark New Zealand has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of Spark New Zealand'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
Simon Moutter
COMPENSATION NZ$3,820,825
TENURE AS CEO 6.8 years
CEO Bio

Mr. Simon Moutter, BE, BSc has been the Managing Director of Spark New Zealand Limited since August 13, 2012. As Managing Director he works to ensure Spark New Zealand Limited has a sound strategy in place and applies his leadership and management capability to deliver on that strategy and run an efficient business. He has led the reinvention of Telecom to Spark, to better reflect the fast-changing new world of digital services. He returned to Spark in mid-2012, having managed most parts of Telecom as Chief Operating Officer during the years 2003-2008. In the intervening years he led Auckland International Airport for a period of four years, in which he transformed the customer experience and delivered a significant uplift in its growth trajectory. Mr. Moutter served as the Chief Executive Officer of Auckland International Airport Ltd at North Queensland Airports Pty Limited from August 2008 to April 2012. He served as the Chief Operating Officer of Business at Telecom Corp. of New Zealand Ltd. from April 2006 to July 31, 2008. He also ran his own engineering consultancy. Prior to joining Auckland Airport in 2008, he served as the Chief Operating Officer of New Zealand Division at Spark New Zealand Limited since February 2002 and also served as its Acting Chief Executive until September 27, 2007. He was responsible for Telecoms New Zealand business which includes the New Zealand Wired and New Zealand Wireless Divisions plus the related sales and service channels and the technical operations and investment functions. Mr. Moutter served as the General Manager of Network Delivery since September 1999. He served for 13 years in various senior management positions in the electricity industry, including Chief Executive Officer of Powerco Ltd., General Manager of New Plymouth Energy and Station Manager at the NewPlymouth Power Station. He serves as a Director of Mackay Airport Pty Ltd. He has been an Executive Director at Spark New Zealand Limited since August 13, 2012. He served as a Director of Spark Finance Limited from August 13, 2012 to September 10, 2012. He served as a Director at New Zealand Racing Board and White Energy Company Limited. Mr. Moutter obtained his Master's Degree in Engineering (Electrical) from Canterbury University and a Bachelor of Science in Physics from Massey University.

CEO Compensation
  • Simon's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Simon's remuneration is higher than average for companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Spark New Zealand management team in years:

2.6
Average Tenure
  • The tenure for the Spark New Zealand management team is about average.
Management Team

Simon Moutter

TITLE
MD & Executive Director
COMPENSATION
NZ$4M
TENURE
6.8 yrs

David Chalmers

TITLE
Finance Director
TENURE
2.6 yrs

Mark Beder

TITLE
Technology Director
TENURE
0.8 yrs

Melissa Anastasiou

TITLE
General Counsel
TENURE
10.3 yrs

Andrew Pirie

TITLE
GM of Corporate Relations

Matt Bain

TITLE
Marketing Director
TENURE
0.5 yrs

Joe McCollum

TITLE
Group Human Resources Director
TENURE
6.5 yrs

Jeff Latch

TITLE
Head of Spark Sport
TENURE
0.8 yrs

Silvana Roest

TITLE
Company Secretary
TENURE
3.4 yrs

Claire Barber

TITLE
CEO of new subsidiary
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure of the Spark New Zealand board of directors in years:

4.8
Average Tenure
  • The tenure for the Spark New Zealand board of directors is about average.
Board of Directors

Justine Gay Smyth

TITLE
Chairman of the Board
COMPENSATION
NZ$308K
TENURE
1.5 yrs

Simon Moutter

TITLE
MD & Executive Director
COMPENSATION
NZ$4M
TENURE
6.8 yrs

Alison Barrass

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$169K
TENURE
2.7 yrs

Charles Sitch

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$159K
TENURE
7.4 yrs

Paul Berriman

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$159K
AGE
61
TENURE
7.4 yrs

Ido Leffler

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$151K
TENURE
4.8 yrs

Pip Greenwood

TITLE
Independent Non-Executive Director
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
11. Feb 19 Sell Capital Research and Management Company Company 08. Feb 19 08. Feb 19 -1,000,000 NZ$4.02 NZ$-4,020,000
20. Jan 19 Sell Capital Research and Management Company Company 17. Jan 19 17. Jan 19 -2,720,000 NZ$4.07 NZ$-11,056,800
18. Dec 18 Sell The Vanguard Group, Inc. Company 15. Aug 18 12. Dec 18 -614,849 NZ$4.30 NZ$-2,644,032
18. Dec 18 Buy The Vanguard Group, Inc. Company 15. Aug 18 13. Dec 18 38,511,930 NZ$4.33 NZ$166,756,655
X
Management checks
We assess Spark New Zealand'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. Spark New Zealand 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.

News

Simply Wall St News

Spark New Zealand Limited (NZSE:SPK) Is Employing Capital Very Effectively

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Why Spark New Zealand Limited (NZSE:SPK) Looks Like A Quality Company

Our data shows Spark New Zealand has a return on equity of 25% for the last year. … One way to conceptualize this, is that for each NZ$1 of shareholders' equity it has, the company made NZ$0.25 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Look At The Intrinsic Value Of Spark New Zealand Limited (NZSE:SPK)

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

One Factor To Consider Before Investing In Spark New Zealand Limited (NZSE:SPK)

I will take you through Spark New Zealand’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Spark New Zealand’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Spark New Zealand’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

What Should Investors Know About Spark New Zealand Limited's (NZSE:SPK) Return On Capital?

and want to begin learning the link between Spark New Zealand Limited (NZSE:SPK)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Spark New Zealand is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What You Must Know About Spark New Zealand Limited's (NZSE:SPK) Major Investors

In this article, I will take a quick look at Spark New Zealand Limited’s (NZSE:SPK) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … 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.

Simply Wall St -

Should You Buy Spark New Zealand Limited (NZSE:SPK) For Its Dividend?

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 10 years Spark New Zealand Limited (NZSE:SPK) has returned an average of 7.00% per year to investors in the form of dividend payouts. … Let's take a look at Spark New Zealand in more detail.

Simply Wall St -

A Look At Spark New Zealand Limited's (NZSE:SPK) Exceptional Fundamentals

I've been keeping an eye on Spark New Zealand Limited (NZSE:SPK) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe SPK has a lot to offer.

Simply Wall St -

Is Spark New Zealand Limited (NZE:SPK) Undervalued?

Spark New Zealand Limited (NZSE:SPK), a telecom company based in New Zealand, maintained its current share price over the past couple of month on the NZSE, with a relatively tight range of NZ$3.31 to NZ$3.63. … Let’s take a look at Spark New Zealand’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, Spark New Zealand seems to be fairly priced at around 3% above my intrinsic value, which means if you buy Spark New Zealand today, you’d be paying a relatively reasonable price for it.

Simply Wall St -

Did Insiders Buy On Spark New Zealand Limited's (NZE:SPK) Price Volatility?

Spark New Zealand is one of New Zealand’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 81 million shares during this period. … Within the past three months, Spark New Zealand’s share price traded at a high of NZ$3.63 and a low of NZ$3.31. … Next Steps: Spark New Zealand’s insider meaningful buying activity tells us the shares are currently in favour, however, earnings expectations tell a different story, and the relatively stable stock price may not warrant exploiting any mispricing.

Simply Wall St -

Company Info

Description

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company’s Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fiber, wireless, and copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumer and small business customers. Its Spark Digital segment integrates IT and telecommunications services to provide converged ICT solutions for clients. The company’s Spark Connect & Platforms segment engages in the Spark’s network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of businesses; and engages in the servicing and stewardship of Spark’s wholesale products and services. The company also offers IT infrastructure, business cloud, business telecommunications, outsourced telecommunications, subscription video-on-demand, big data analytics and marketing automation, IT infrastructure and data center, and international wholesale telecommunications services. In addition, it provides local, national, and international telephone and data services; and retails telecommunications products and services. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.

Details
Name: Spark New Zealand Limited
SPK
Exchange: NZSE
Founded: 1987
NZ$6,995,889,923
1,836,191,581
Website: http://www.sparknz.co.nz
Address: Spark New Zealand Limited
Spark City,
Level 2,
Auckland,
1010,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE SPK Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
OTCPK NZTC.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB NZT Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
ASX SPK Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
CHIA SPK Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK SPKK.Y SPONSORED ADR Pink Sheets LLC US USD 17. Jul 1991
BST NZTA SPONSORED ADR Boerse-Stuttgart DE EUR 17. Jul 1991
Number of employees
Current staff
Staff numbers
5,107
Spark New Zealand employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 10:34
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/04/03
Last earnings filing: 2019/02/20
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.