NZSE:AIA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Auckland International Airport

Executive Summary

Auckland International Airport Limited provides airport facilities, supporting infrastructure, and aeronautical services in Auckland, New Zealand. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has Auckland International Airport's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

AIA

-2.0%

NZ Infrastructure

0.1%

NZ Market


1 Year Return

-20.2%

AIA

-10.5%

NZ Infrastructure

5.1%

NZ Market

Return vs Industry: AIA underperformed the NZ Infrastructure industry which returned -10.5% over the past year.

Return vs Market: AIA underperformed the NZ Market which returned 5.1% over the past year.


Shareholder returns

AIAIndustryMarket
7 Day-2.5%-2.0%0.1%
30 Day5.5%3.9%6.0%
90 Day13.9%6.1%6.2%
1 Year-20.2%-20.2%-9.9%-10.5%9.4%5.1%
3 Year23.6%15.3%30.1%15.5%46.7%27.4%
5 Year54.2%34.6%72.3%40.6%100.3%51.6%

Price Volatility Vs. Market

How volatile is Auckland International Airport's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Auckland International Airport undervalued compared to its fair value and its price relative to the market?

48.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIA (NZ$7.31) is trading above our estimate of fair value (NZ$1.06)

Significantly Below Fair Value: AIA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIA is poor value based on its PE Ratio (48.2x) compared to the NZ Infrastructure industry average (48x).

PE vs Market: AIA is poor value based on its PE Ratio (48.2x) compared to the NZ market (23x).


Price to Earnings Growth Ratio

PEG Ratio: AIA is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AIA is good value based on its PB Ratio (1.6x) compared to the NZ Infrastructure industry average (2.3x).


Next Steps

Future Growth

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

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIA's forecast earnings growth (20.3% per year) is above the savings rate (2.6%).

Earnings vs Market: AIA's earnings (20.3% per year) are forecast to grow faster than the NZ market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIA's revenue (14.3% per year) is forecast to grow faster than the NZ market (5.5% per year).

High Growth Revenue: AIA's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIA's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

  • Explore growth companies in the Transportation industry.

Past Performance

How has Auckland International Airport performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIA has high quality earnings.

Growing Profit Margin: AIA's current net profit margins (34.8%) are lower than last year (71.2%).


Past Earnings Growth Analysis

Earnings Trend: AIA's earnings have grown by 14.7% per year over the past 5 years.

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

Earnings vs Industry: AIA had negative earnings growth (-63%) over the past year, making it difficult to compare to the Infrastructure industry average (-13.8%).


Return on Equity

High ROE: AIA's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Auckland International Airport's financial position?


Financial Position Analysis

Short Term Liabilities: AIA's short term assets (NZ$848.5M) exceed its short term liabilities (NZ$467.3M).

Long Term Liabilities: AIA's short term assets (NZ$848.5M) do not cover its long term liabilities (NZ$2.2B).


Debt to Equity History and Analysis

Debt Level: AIA's debt to equity ratio (34.4%) is considered satisfactory.

Reducing Debt: AIA's debt to equity ratio has reduced from 57.4% to 34.4% over the past 5 years.

Debt Coverage: AIA's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: AIA's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Auckland International Airport current dividend yield, its reliability and sustainability?

1.22%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AIA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AIA is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIA's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Adrian Littlewood

7.92yrs

Tenure

NZ$2,344,456

Compensation

Mr. Adrian Littlewood, BA, LLB has been the Chief Executive Officer at Auckland International Airport Limited since November 12, 2012. Mr. Littlewood served as General Manager of Retail and Commercial of A ...


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD1.55M) is about average for companies of similar size in the NZ market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adrian Littlewood
Chief Executive Officer7.92yrsNZ$2.34m0.017%
NZ$ 1.8m
Phil Neutze
Chief Financial Officer4.83yrsno data0.0049%
NZ$ 526.4k
Anna Cassels-Brown
General Manager of Operations2.42yrsno data0.0015%
NZ$ 163.6k
Jonathan Good
General Manager of Technology & Marketing1.42yrsno datano data
Mary-Elizabeth Tuck
General Manager of Corporate Services & General Counsel2yrsno datano data
Libby Middlebrook
Head of Communications & External Relationsno datano datano data
Stewart Reynolds
Head of Strategyno datano datano data
Morag Finch
Deputy Company Secretaryno datano datano data

2.4yrs

Average Tenure

Experienced Management: AIA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Binns
Independent Non-Executive Director2.5yrsNZ$154.18k0.0014%
NZ$ 146.4k
Patrick Strange
Independent Chair of the Board2yrsNZ$243.81k0.0015%
NZ$ 159.3k
Tania Joy Te Simpson
Independent Non-Executive Director1.92yrsNZ$141.26k0.00011%
NZ$ 11.8k
Justine Gay Smyth
Independent Non-Executive Director8.25yrsNZ$184.77k0.0041%
NZ$ 439.2k
Julia Hoare
Independent Non-Executive Director3yrsNZ$176.67k0.00032%
NZ$ 34.4k
Christine Spring
Independent Non-Executive Director6yrsNZ$178.35k0.00082%
NZ$ 88.3k
Dean Hamilton
Independent Non-Executive Director1.92yrsNZ$152.50k0.00011%
NZ$ 11.8k
Elizabeth Savage
Independent Director1yrNZ$95.12k0.000030%
NZ$ 3.2k

2.3yrs

Average Tenure

Experienced Board: AIA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 21.2%.


Top Shareholders

Company Information

Auckland International Airport Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Auckland International Airport Limited
  • Ticker: AIA
  • Exchange: NZSE
  • Founded: 1988
  • Industry: Airport Services
  • Sector: Transportation
  • Market Cap: NZ$10.764b
  • Shares outstanding: 1.47b
  • Website: https://www.aucklandairport.co.nz

Number of Employees


Location

  • Auckland International Airport Limited
  • 4 Leonard Isitt Drive
  • Auckland Airport Business District
  • Manukau
  • 2022
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZTADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1998
AIANZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 1998
AIAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1998
ACKD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1998
AIACHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1998
AUKN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Auckland International Airport Limited provides airport facilities, supporting infrastructure, and aeronautical services in Auckland, New Zealand. The company operates through three segments: Aeronautical, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:32
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.