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AIR

Air New ZealandNZSE:AIR Stock Report

Market Cap

NZ$1.9b

7D

-0.6%

1Y

13.0%

Updated

26 Oct, 2021

Data

Company Financials +
AIR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

AIR Overview

Air New Zealand Limited provides passenger and cargo transportation services on scheduled airlines primarily in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States.

Air New Zealand Competitors

Southwest Airlines

NYSE:LUV

US$28.1b

Delta Air Lines

NYSE:DAL

US$25.2b

Ryanair Holdings

ISE:RY4C

€18.1b

United Airlines Holdings

NasdaqGS:UAL

US$15.1b

Price History & Performance

Summary of all time highs, changes and price drops for Air New Zealand
Historical stock prices
Current Share PriceNZ$1.65
52 Week HighNZ$1.39
52 Week LowNZ$1.96
Beta1.71
1 Month Change0%
3 Month Change8.20%
1 Year Change13.01%
3 Year Change-41.07%
5 Year Change-14.06%
Change since IPO-79.11%

Recent News & Updates

Feb 27
The Air New Zealand Limited (NZSE:AIR) Half-Yearly Results Are Out And Analysts Have Published New Forecasts

The Air New Zealand Limited (NZSE:AIR) Half-Yearly Results Are Out And Analysts Have Published New Forecasts

Investors in Air New Zealand Limited ( NZSE:AIR ) had a good week, as its shares rose 4.6% to close at NZ$1.59...

Shareholder Returns

AIRNZ AirlinesNZ Market
7D-0.6%-2.7%0.5%
1Y13.0%17.1%2.1%

Return vs Industry: AIR underperformed the NZ Airlines industry which returned 17.1% over the past year.

Return vs Market: AIR exceeded the NZ Market which returned 2.1% over the past year.

Price Volatility

Is AIR's price volatile compared to industry and market?
AIR volatility
AIR Beta1.71
Industry Beta1.32
Market Beta1

Stable Share Price: AIR is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AIR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19407,840Greg Foranhttps://www.airnewzealand.co.nz

Air New Zealand Limited provides passenger and cargo transportation services on scheduled airlines primarily in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States. The company also offers ground handling services; engineering and maintenance services, including aircraft and component maintenance, repair, and overhaul services; aviation services; and aircraft leasing and financing services. As of June 30, 2021, it operated a fleet of 7 Boeing 777-300ER, 8 Boeing 777-200ER, 14 Boeing 787-9 Dreamliner, 11 Airbus A320/321NEO, 20 Airbus A320CEO, 28 ATR 72-600, and 23 Bombardier Q300 aircrafts.

Air New Zealand Fundamentals Summary

How do Air New Zealand's earnings and revenue compare to its market cap?
AIR fundamental statistics
Market CapNZ$1.85b
Earnings (TTM)-NZ$289.00m
Revenue (TTM)NZ$2.51b

0.7x

P/S Ratio

-6.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIR income statement (TTM)
RevenueNZ$2.51b
Cost of RevenueNZ$1.83b
Gross ProfitNZ$685.00m
ExpensesNZ$974.00m
Earnings-NZ$289.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)-0.26
Gross Margin27.25%
Net Profit Margin-11.50%
Debt/Equity Ratio140.0%

How did AIR perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIR (NZ$1.65) is trading below our estimate of fair value (NZ$3.92)

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


Price To Earnings Ratio

PE vs Industry: AIR is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: AIR is unprofitable, so we can't compare its PE Ratio to the NZ market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIR is good value based on its PB Ratio (1.7x) compared to the XX Airlines industry average (2x).


Future Growth

How is Air New Zealand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

Earnings vs Market: AIR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AIR's is expected to become profitable in the next 3 years.

Revenue vs Market: AIR's revenue (21.2% per year) is forecast to grow faster than the NZ market (5.3% per year).

High Growth Revenue: AIR's revenue (21.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIR's Return on Equity is forecast to be low in 3 years time (19.5%).


Past Performance

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

-54.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIR is currently unprofitable.

Growing Profit Margin: AIR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AIR is unprofitable, and losses have increased over the past 5 years at a rate of 54.6% per year.

Accelerating Growth: Unable to compare AIR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AIR is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-41%).


Return on Equity

High ROE: AIR has a negative Return on Equity (-26.15%), as it is currently unprofitable.


Financial Health

How is Air New Zealand's financial position?


Financial Position Analysis

Short Term Liabilities: AIR's short term assets (NZ$826.0M) do not cover its short term liabilities (NZ$2.4B).

Long Term Liabilities: AIR's short term assets (NZ$826.0M) do not cover its long term liabilities (NZ$3.2B).


Debt to Equity History and Analysis

Debt Level: AIR's debt to equity ratio (140%) is considered high.

Reducing Debt: AIR's debt to equity ratio has increased from 51.4% to 140% over the past 5 years.

Debt Coverage: AIR's debt is well covered by operating cash flow (20.9%).

Interest Coverage: Insufficient data to determine if AIR's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

2.53%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AIR'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 AIR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIR'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?

0.8yrs

Average management tenure


CEO

Greg Foran (60 yo)

1.67yrs

Tenure

NZ$3,576,652

Compensation

Mr. Gregory S. Foran, also known as Greg, has been the Chief Executive Officer at Air New Zealand Limited since February 3, 2020. Mr. Foran served as an Executive Vice President at Walmart Inc since August...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD2.56M) is above average for companies of similar size in the NZ market ($USD1.44M).

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


Leadership Team

Experienced Management: AIR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AIR's board of directors are considered experienced (4.7 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

Air New Zealand Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Air New Zealand Limited
  • Ticker: AIR
  • Exchange: NZSE
  • Founded: 1940
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: NZ$1.853b
  • Shares outstanding: 1.12b
  • Website: https://www.airnewzealand.co.nz

Number of Employees


Location

  • Air New Zealand Limited
  • Air New Zealand House
  • 185 Fanshawe Street
  • 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 Analysis2021/10/26 16:09
End of Day Share Price2021/10/26 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.