Spark New Zealand
Market Cap
NZ$8.3b
Last Updated
2021/04/22 20:55 UTC
Data Sources
Company Financials +
Executive Summary
Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. More Details
Rewards
Risk Analysis
Dividend of 5.66% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Spark New Zealand's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SPK is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SPK's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.3%
SPK
-2.1%
NZ Telecom
-1.4%
NZ Market
1 Year Return
-0.6%
SPK
15.2%
NZ Telecom
21.7%
NZ Market
Return vs Industry: SPK underperformed the NZ Telecom industry which returned 16.1% over the past year.
Return vs Market: SPK underperformed the NZ Market which returned 21.3% over the past year.
Shareholder returns
| SPK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | -2.1% | -1.4% |
| 30 Day | -0.1% | -0.4% | 1.3% |
| 90 Day | -8.7% | 0.1% | -4.9% |
| 1 Year | 6.0%-0.6% | 21.0%15.2% | 25.3%21.7% |
| 3 Year | 57.3%28.7% | 38.2%18.8% | 49.1%31.4% |
| 5 Year | 71.0%19.0% | -6.3%-28.6% | 83.8%40.3% |
Long-Term Price Volatility Vs. Market
How volatile is Spark New Zealand's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Return Trends At Spark New Zealand (NZSE:SPK) Aren't Appealing3 weeks ago | Simply Wall St
Calculating The Fair Value Of Spark New Zealand Limited (NZSE:SPK)1 month ago | Simply Wall St
It Might Not Be A Great Idea To Buy Spark New Zealand Limited (NZSE:SPK) For Its Next DividendValuation
Is Spark New Zealand undervalued compared to its fair value and its price relative to the market?
15.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SPK (NZ$4.42) is trading below our estimate of fair value (NZ$5.24)
Significantly Below Fair Value: SPK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SPK is good value based on its PE Ratio (19.9x) compared to the XO Telecom industry average (32.3x).
PE vs Market: SPK is good value based on its PE Ratio (19.9x) compared to the NZ market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: SPK is poor value based on its PEG Ratio (10x)
Price to Book Ratio
PB vs Industry: SPK is overvalued based on its PB Ratio (5.7x) compared to the XO Telecom industry average (3x).
Future Growth
How is Spark New Zealand forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPK's forecast earnings growth (2% per year) is below the savings rate (2.3%).
Earnings vs Market: SPK's earnings (2% per year) are forecast to grow slower than the NZ market (10.3% per year).
High Growth Earnings: SPK's earnings are forecast to grow, but not significantly.
Revenue vs Market: SPK's revenue (2.1% per year) is forecast to grow slower than the NZ market (7.1% per year).
High Growth Revenue: SPK's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SPK's Return on Equity is forecast to be high in 3 years time (30%)
Past Performance
How has Spark New Zealand performed over the past 5 years?
1.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPK has high quality earnings.
Growing Profit Margin: SPK's current net profit margins (11.3%) are lower than last year (11.7%).
Past Earnings Growth Analysis
Earnings Trend: SPK's earnings have grown by 1.8% per year over the past 5 years.
Accelerating Growth: SPK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SPK had negative earnings growth (-3.6%) over the past year, making it difficult to compare to the Telecom industry average (-10.1%).
Return on Equity
High ROE: Whilst SPK's Return on Equity (28.39%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Spark New Zealand's financial position?
Financial Position Analysis
Short Term Liabilities: SPK's short term assets (NZ$934.0M) exceed its short term liabilities (NZ$800.0M).
Long Term Liabilities: SPK's short term assets (NZ$934.0M) do not cover its long term liabilities (NZ$2.0B).
Debt to Equity History and Analysis
Debt Level: SPK's debt to equity ratio (118.9%) is considered high.
Reducing Debt: SPK's debt to equity ratio has increased from 37.6% to 118.9% over the past 5 years.
Debt Coverage: SPK's debt is well covered by operating cash flow (53.3%).
Interest Coverage: SPK's interest payments on its debt are well covered by EBIT (11.1x coverage).
Balance Sheet
Dividend
What is Spark New Zealand current dividend yield, its reliability and sustainability?
5.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SPK's dividend (5.66%) is higher than the bottom 25% of dividend payers in the NZ market (2.4%).
High Dividend: SPK's dividend (5.66%) is in the top 25% of dividend payers in the NZ market (4.6%)
Stability and Growth of Payments
Stable Dividend: SPK's dividend payments have been volatile in the past 10 years.
Growing Dividend: SPK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (112.8%), SPK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SPK's dividends in 3 years are not forecast to be well covered by earnings (111.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Jolie Hodson
1.75yrs
Tenure
NZ$3,046,998
Compensation
Ms. Jolie Hodson has been an Executive Director of Spark New Zealand Limited since September 23, 2019 and its Chief Executive since July 1, 2019. Ms. Hodson served as Customer Director of Spark New Zealand...
CEO Compensation Analysis
Compensation vs Market: Jolie's total compensation ($USD2.19M) is above average for companies of similar size in the NZ market ($USD1.46M).
Compensation vs Earnings: Insufficient data to compare Jolie's compensation with company performance.
Leadership Team
Experienced Management: SPK's management team is considered experienced (2.2 years average tenure).
Board Members
Experienced Board: SPK's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Spark New Zealand Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Spark New Zealand Limited
- Ticker: SPK
- Exchange: NZSE
- Founded: 1987
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: NZ$8.253b
- Shares outstanding: 1.87b
- Website: https://www.sparknz.co.nz
Number of Employees
Location
- Spark New Zealand Limited
- Spark City
- Level 2
- Auckland
- 1010
- New Zealand
Listings
Biography
Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. It offers telecommunications, information technology, media, and other digital pr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/22 20:55 |
| End of Day Share Price | 2021/04/22 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.