NZSE:AIR

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Air New Zealand's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

AIR

2.0%

NZ Airlines

1.0%

NZ Market


1 Year Return

-47.3%

AIR

-38.7%

NZ Airlines

8.6%

NZ Market

Return vs Industry: AIR underperformed the NZ Airlines industry which returned -38.7% over the past year.

Return vs Market: AIR underperformed the NZ Market which returned 8.6% over the past year.


Shareholder returns

AIRIndustryMarket
7 Day-1.3%2.0%1.0%
30 Day13.3%6.3%6.4%
90 Day12.5%7.9%8.4%
1 Year-47.3%-47.3%-31.5%-38.7%13.1%8.6%
3 Year-46.1%-54.8%-34.1%-44.9%47.7%28.3%
5 Year-13.2%-47.0%-30.3%-42.1%101.3%52.4%

Price Volatility Vs. Market

How volatile is Air New Zealand's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIR (NZ$1.49) is trading below our estimate of fair value (NZ$2.81)

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 XX 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 overvalued based on its PB Ratio (1.3x) compared to the XX Airlines industry average (1x).


Next Steps

Future Growth

How is Air New Zealand forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

65.5%

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 (2.6%).

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 (8.6% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: AIR's revenue (8.6% per year) is forecast to grow slower 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 (14.9%).


Next Steps

Past Performance

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

-27.5%

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 27.5% 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 (-38.5%).


Return on Equity

High ROE: AIR has a negative Return on Equity (-34.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is Air New Zealand's financial position?


Financial Position Analysis

Short Term Liabilities: AIR's short term assets (NZ$1.0B) do not cover its short term liabilities (NZ$2.1B).

Long Term Liabilities: AIR's short term assets (NZ$1.0B) do not cover its long term liabilities (NZ$4.1B).


Debt to Equity History and Analysis

Debt Level: AIR's debt to equity ratio (111%) is considered high.

Reducing Debt: AIR's debt to equity ratio has increased from 34% to 111% over the past 5 years.

Debt Coverage: AIR's debt is not well covered by operating cash flow (15.7%).

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


Balance Sheet


Next Steps

Dividend

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

4.45%

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?

1.1yrs

Average management tenure


CEO

Greg Foran (59 yo)

0.67

Tenure

NZ$5,958,150

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 ($USD3.98M) is above average for companies of similar size in the NZ market ($USD711.62K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Foran
Chief Executive Officer0.67yrNZ$5.96mno data
Jeff McDowall
Chief Financial Officer0.67yrno data0.022%
NZ$ 369.5k
Carrie Hurihanganui
Chief Operating Officer0.75yrno data0.0079%
NZ$ 135.5k
Leila Peters
General Manager of Corporate Financeno datano datano data
Kim Cootes
Manager of Investor Relationsno datano datano data
Jennifer Page
General Counsel & Company Secretary1.5yrsno datano data
Leanne Geraghty
Chief Customer & Sales Officerno datano data0.0071%
NZ$ 122.1k
Joe McCollum
Chief People Officer0.50yrno datano data
David Morgan
Chief Operational Integrity & Safety Officer7.75yrsno data0.026%
NZ$ 446.1k
Cam Wallace
Consultantno datano data0.012%
NZ$ 199.8k
Jennifer Sepull
Chief Digital Officer1.42yrsno datano data
John Blair
Executive Officer3.83yrsno datano data

1.1yrs

Average Tenure

Experienced Management: AIR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Linda Jenkinson
Independent Non-Executive Director6.33yrsNZ$200.04k0.0020%
NZ$ 33.7k
Larry De Shon
Independent Non-Executive Director0.50yrNZ$25.50k0.0044%
NZ$ 76.4k
Dean Bracewell
Independent Non-Executive Director0.50yrNZ$23.38kno data
Jonathan Mason
Independent Non-Executive Director6.58yrsNZ$168.79kno data
Robert Jager
Independent Non-Executive Director7.5yrsNZ$155.45k0.0022%
NZ$ 37.5k
Dame Walsh
Independent Chairman1.08yrsNZ$261.99k0.0089%
NZ$ 153.1k
Laurissa Cooney
Independent Non-Executive Director1yrNZ$95.87kno data

1.1yrs

Average Tenure

Experienced Board: AIR's board of directors are not considered experienced ( 1.1 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: AIR insiders have sold more shares than they have bought 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 company bio, 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$1.718b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIRNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
AIZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
ANZF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AIZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BZUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ANZL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 10:43
End of Day Share Price2020/10/27 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.