NZSE:AIA

Stock Analysis Report

Auckland International Airport

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

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

-2.7%

AIA

-0.3%

NZ Infrastructure

1.1%

NZ Market


1 Year Return

25.5%

AIA

27.5%

NZ Infrastructure

16.5%

NZ Market

Return vs Industry: AIA underperformed the NZ Infrastructure industry which returned 27.5% over the past year.

Return vs Market: AIA exceeded the NZ Market which returned 16.5% over the past year.


Shareholder returns

AIAIndustryMarket
7 Day-2.7%-0.3%1.1%
30 Day1.7%1.8%-1.1%
90 Day-6.6%0.7%1.6%
1 Year29.4%25.5%32.7%27.5%21.5%16.5%
3 Year65.6%49.1%77.6%55.3%57.1%36.5%
5 Year161.3%120.0%134.0%88.3%94.0%50.4%

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?

20.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIA (NZ$9.02) is trading above our estimate of fair value (NZ$2.96)

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


Price To Earnings Ratio

PE vs Industry: AIA is good value based on its PE Ratio (20.8x) compared to the Infrastructure industry average (21x).

PE vs Market: AIA is poor value based on its PE Ratio (20.8x) compared to the NZ market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AIA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AIA is good value based on its PB Ratio (1.8x) compared to the NZ Infrastructure industry average (2x).


Next Steps

Future Growth

How is Auckland International Airport forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIA's earnings are forecast to decline over the next 3 years (-21.7% per year).

Earnings vs Market: AIA's earnings are forecast to decline over the next 3 years (-21.7% per year).

High Growth Earnings: AIA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AIA's revenue (5.4% per year) is forecast to grow faster than the NZ market (4.5% per year).

High Growth Revenue: AIA's revenue (5.4% 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 (4.9%).


Next Steps

Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIA has large one-off items impacting its financial results.

Growing Profit Margin: AIA's current net profit margins (71.2%) are lower than last year (96.2%).


Past Earnings Growth Analysis

Earnings Trend: AIA's earnings have grown significantly by 25% 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 (-19.5%) over the past year, making it difficult to compare to the Infrastructure industry average (3.1%).


Return on Equity

High ROE: AIA's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Auckland International Airport's financial position?


Financial Position Analysis

Short Term Liabilities: AIA's short term assets (NZ$106.3M) do not cover its short term liabilities (NZ$560.0M)

Long Term Liabilities: AIA's short term assets (106.3M) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: AIA's debt to equity ratio (37.8%) is considered satisfactory

Reducing Debt: AIA's debt to equity ratio has reduced from 52.8% to 37.8% over the past 5 years.

Debt Coverage: AIA's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: AIA's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

Inventory Level: AIA has a high level of physical assets or inventory.

Debt Coverage by Assets: AIA's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%3.1%markettop25%5.5%industryaverage3.5%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: AIA's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.1%).

High Dividend: AIA's dividend (2.49%) is low compared to the top 25% of dividend payers in the NZ market (5.5%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), AIA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIA's dividends in 3 years are not forecast to be well covered by earnings (100% payout ratio).


Next Steps

Management

What is the CEO of Auckland International Airport's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Adrian Littlewood 0

7yrs

Tenure

NZ$3,609,142

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 ($USD2.31M) is above average for companies of similar size in the NZ market ($USD1.43M).

Compensation vs Earnings: Insufficient data to compare Adrian's compensation with company performance.


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: AIA's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

Experienced Board: AIA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AIA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellNZ$97,00010 Sep 19
Justine Gay Smyth
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceNZ$9.70
BuyNZ$6,05410 Sep 19
Christine Spring
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares642
Max PriceNZ$9.43
BuyNZ$6,05410 Sep 19
Tania Joy Te Simpson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares642
Max PriceNZ$9.43
BuyNZ$6,05410 Sep 19
Dean Hamilton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares642
Max PriceNZ$9.43
SellNZ$188,00004 Sep 19
Justine Gay Smyth
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceNZ$9.40
BuyNZ$2,00719 Mar 19
Tania Joy Te Simpson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares263
Max PriceNZ$7.63
BuyNZ$8,11819 Mar 19
Henricus van der Heyden
EntityIndividual
Shares1,064
Max PriceNZ$7.63
BuyNZ$8,13319 Mar 19
Patrick Strange
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares1,066
Max PriceNZ$7.63
BuyNZ$5,89019 Mar 19
Mark Binns
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares772
Max PriceNZ$7.63
BuyNZ$5,89019 Mar 19
Justine Gay Smyth
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares772
Max PriceNZ$7.63
BuyNZ$5,89019 Mar 19
Julia Hoare
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares772
Max PriceNZ$7.63
BuyNZ$5,76819 Mar 19
James Miller
EntityIndividual
Shares756
Max PriceNZ$7.63
BuyNZ$2,00719 Mar 19
Dean Hamilton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares263
Max PriceNZ$7.63
BuyNZ$5,89019 Mar 19
Brett Godfrey
EntityIndividual
Shares772
Max PriceNZ$7.63

Ownership Breakdown

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


Management Team

  • Phil Neutze

    Chief Financial Officer

    • Tenure: 3.9yrs
  • Adrian Littlewood

    Chief Executive Officer

    • Tenure: 7yrs
    • Compensation: NZ$3.61m
  • Meyer Cassels-Brown

    General Manager of Operations

    • Tenure: 1.5yrs
  • Jonathan Good

    General Manager of Technology & Marketing

    • Tenure: 0.5yrs
  • Liz Tuck

    General Manager Corporate Services & General Counsel

    • Tenure: 0yrs
  • Libby Middlebrook

    Head of Communications & External Relations

    • Tenure: 0yrs
  • Morag Finch

    Acting Company Secretary

    • Tenure: 0yrs

Board Members

  • Mark Binns

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: NZ$159.28k
  • Patrick Strange

    Chair of the Board

    • Tenure: 1.1yrs
    • Compensation: NZ$218.94k
  • Tania Joy Te Simpson

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$98.87k
  • Justine Gay Smyth

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: NZ$178.49k
  • Julia Hoare

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: NZ$169.33k
  • Christine Spring

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: NZ$185.28k
  • Dean Hamilton

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: NZ$106.75k
  • Liz Savage

    Independent Director

    • Tenure: 0.08yrs

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$10.868b
  • Shares outstanding: 1.21b
  • 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
AIAZNZSE (New Zealand Stock Exchange)NPVNZNZDApr 2014
AIAASX (Australian Securities Exchange)NPVAUAUDApr 2014

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 Analysis2019/11/14 10:31
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.