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
Reasonable growth potential and slightly overvalued.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StIs There An Opportunity With Air New Zealand Limited's (NZSE:AIR) 45% Undervaluation?
4 weeks ago | Simply Wall StDoes Air New Zealand (NZSE:AIR) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StWhat You Need To Know About The Air New Zealand Limited (NZSE:AIR) Analyst Downgrade Today
Is Air New Zealand undervalued compared to its fair value and its price relative to the market?
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).
How is Air New Zealand forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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%).
How has Air New Zealand performed over the past 5 years?
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.
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$4.1B).
Debt to Equity History and Analysis
Debt Level: AIR's debt to equity ratio (111%) is considered high.
Reducing Debt: AIR's debt to equity ratio has increased from 34% to 111% over the past 5 years.
Debt Coverage: AIR's debt is not well covered by operating cash flow (15.7%).
Interest Coverage: Insufficient data to determine if AIR's interest payments on its debt are well covered by EBIT.
What is Air New Zealand current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AIR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AIR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AIR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AIR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: AIR is not paying a notable dividend for the NZ market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AIR's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Greg Foran (59 yo)
Mr. Gregory S. Foran, also known as Greg, has been the Chief Executive Officer at Air New Zealand Limited since February 3, 2020. Mr. Foran served as an Executive Vice President at Walmart Inc since August ...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($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.
|Chief Executive Officer||0.67yr||NZ$5.96m||no data|
|Chief Financial Officer||0.67yr||no data||0.022% |
|Chief Operating Officer||0.75yr||no data||0.0079% |
|General Manager of Corporate Finance||no data||no data||no data|
|Manager of Investor Relations||no data||no data||no data|
|General Counsel & Company Secretary||1.5yrs||no data||no data|
|Chief Customer & Sales Officer||no data||no data||0.0071% |
|Chief People Officer||0.50yr||no data||no data|
|Chief Operational Integrity & Safety Officer||7.75yrs||no data||0.026% |
|Consultant||no data||no data||0.012% |
|Chief Digital Officer||1.42yrs||no data||no data|
|Executive Officer||3.83yrs||no data||no data|
Experienced Management: AIR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
|Independent Non-Executive Director||6.33yrs||NZ$200.04k||0.0020% |
|Independent Non-Executive Director||0.50yr||NZ$25.50k||0.0044% |
|Independent Non-Executive Director||0.50yr||NZ$23.38k||no data|
|Independent Non-Executive Director||6.58yrs||NZ$168.79k||no data|
|Independent Non-Executive Director||7.5yrs||NZ$155.45k||0.0022% |
|Independent Chairman||1.08yrs||NZ$261.99k||0.0089% |
|Independent Non-Executive Director||1yr||NZ$95.87k||no data|
Experienced Board: AIR's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Air New Zealand Limited's company bio, employee growth, exchange listings and data sources
- 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
- Air New Zealand Limited
- Air New Zealand House
- 185 Fanshawe Street
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AIR||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Jan 1992|
|AIZ||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|ANZF.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jan 1992|
|AIZ||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|BZU||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jan 1992|
|ANZL.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Oct 2008|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/27 10:43|
|End of Day Share Price||2020/10/27 00:00|
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.