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SPK

Spark New ZealandNZSE:SPK Stock Report

Last Price

NZ$4.52

Market Cap

NZ$8.4b

7D

0.9%

1Y

-6.5%

Updated

22 Jan, 2022

Data

Company Financials +
SPK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends3/6

SPK Stock Overview

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand.

Spark New Zealand Competitors

Telekom Malaysia Berhad

KLSE:TM

RM19.4b

Trustpower

NZSE:TPW

NZ$2.2b

Over the Wire Holdings

ASX:OTW

AU$321.4m

Comms Group

ASX:CCG

AU$37.4m

Price History & Performance

Summary of all time highs, changes and price drops for Spark New Zealand
Historical stock prices
Current Share PriceNZ$4.52
52 Week HighNZ$4.97
52 Week LowNZ$4.35
Beta0.18
1 Month Change-1.31%
3 Month Change-0.66%
1 Year Change-6.52%
3 Year Change9.71%
5 Year Change25.73%
Change since IPO73.85%

Recent News & Updates

Dec 11
Returns At Spark New Zealand (NZSE:SPK) Appear To Be Weighed Down

Returns At Spark New Zealand (NZSE:SPK) Appear To Be Weighed Down

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Nov 15
Does Spark New Zealand (NZSE:SPK) Have A Healthy Balance Sheet?

Does Spark New Zealand (NZSE:SPK) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 30
Estimating The Fair Value Of Spark New Zealand Limited (NZSE:SPK)

Estimating The Fair Value Of Spark New Zealand Limited (NZSE:SPK)

In this article we are going to estimate the intrinsic value of Spark New Zealand Limited ( NZSE:SPK ) by projecting...

Sep 03
Spark New Zealand (NZSE:SPK) Will Pay A Dividend Of NZ$0.15

Spark New Zealand (NZSE:SPK) Will Pay A Dividend Of NZ$0.15

Spark New Zealand Limited's ( NZSE:SPK ) investors are due to receive a payment of NZ$0.15 per share on 1st of October...

Shareholder Returns

SPKNZ TelecomNZ Market
7D0.9%-3.2%-3.1%
1Y-6.5%13.6%-11.4%

Return vs Industry: SPK underperformed the NZ Telecom industry which returned 13.6% over the past year.

Return vs Market: SPK exceeded the NZ Market which returned -11.4% over the past year.

Price Volatility

Is SPK's price volatile compared to industry and market?
SPK volatility
SPK Average Weekly Movement2.8%
Telecom Industry Average Movement6.3%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
19875,083Jolie Hodsonhttps://www.sparknz.co.nz

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 products and services, including mobile services; voice services; broadband services; internet sports streaming services; cloud, security, and service. The company also provides IT infrastructure, business cloud, business and outsourced telecommunications, software, big data analytics, data center, and international wholesale telecommunications services.

Spark New Zealand Fundamentals Summary

How do Spark New Zealand's earnings and revenue compare to its market cap?
SPK fundamental statistics
Market CapNZ$8.45b
Earnings (TTM)NZ$384.00m
Revenue (TTM)NZ$3.59b

22.0x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPK income statement (TTM)
RevenueNZ$3.59b
Cost of RevenueNZ$2.39b
Gross ProfitNZ$1.20b
ExpensesNZ$819.00m
EarningsNZ$384.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 23, 2022

Earnings per share (EPS)0.21
Gross Margin33.48%
Net Profit Margin10.69%
Debt/Equity Ratio99.7%

How did SPK perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

121%

Payout Ratio

Valuation

Is Spark New Zealand undervalued compared to its fair value and its price relative to the market?

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPK (NZ$4.52) is trading below our estimate of fair value (NZ$5.79)

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


Price To Earnings Ratio

PE vs Industry: SPK is good value based on its PE Ratio (22x) compared to the Oceanic Telecom industry average (64.4x).

PE vs Market: SPK is poor value based on its PE Ratio (22x) compared to the NZ market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: SPK is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: SPK is overvalued based on its PB Ratio (5.6x) compared to the XO Telecom industry average (3.2x).


Future Growth

How is Spark New Zealand forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPK's forecast earnings growth (3.8% per year) is above the savings rate (2.1%).

Earnings vs Market: SPK's earnings (3.8% per year) are forecast to grow slower than the NZ market (7.4% per year).

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

Revenue vs Market: SPK's revenue (1.9% per year) is forecast to grow slower than the NZ market (4.8% per year).

High Growth Revenue: SPK's revenue (1.9% 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 (31.2%)


Past Performance

How has Spark New Zealand performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPK has high quality earnings.

Growing Profit Margin: SPK's current net profit margins (10.7%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: SPK's earnings have grown by 1.1% 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 (-8.6%) over the past year, making it difficult to compare to the Telecom industry average (-8.6%).


Return on Equity

High ROE: SPK's Return on Equity (25.5%) is considered high.


Financial Health

How is Spark New Zealand's financial position?


Financial Position Analysis

Short Term Liabilities: SPK's short term assets (NZ$916.0M) do not cover its short term liabilities (NZ$939.0M).

Long Term Liabilities: SPK's short term assets (NZ$916.0M) do not cover its long term liabilities (NZ$1.7B).


Debt to Equity History and Analysis

Debt Level: SPK's net debt to equity ratio (94.9%) is considered high.

Reducing Debt: SPK's debt to equity ratio has increased from 56.2% to 99.7% over the past 5 years.

Debt Coverage: SPK's debt is well covered by operating cash flow (57.3%).

Interest Coverage: SPK's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


Dividend

What is Spark New Zealand current dividend yield, its reliability and sustainability?

5.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPK's dividend (5.53%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: SPK's dividend (5.53%) is in the top 25% of dividend payers in the NZ market (4.97%)


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 (120.6%), 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 (102% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Jolie Hodson

2.5yrs

Tenure

NZ$2,994,450

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 ($USD2.01M) is about average for companies of similar size in the NZ market ($USD1.76M).

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


Leadership Team

Experienced Management: SPK's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: SPK's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SPK 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 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
  • Implied Market Cap: NZ$8.450b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 06:01
End of Day Share Price2022/01/21 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.