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.


Snowflake Analysis

Good value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.0%

AIR

17.7%

NZ Airlines

2.9%

NZ Market


1 Year Return

-41.2%

AIR

-30.0%

NZ Airlines

5.1%

NZ Market

Return vs Industry: AIR underperformed the NZ Airlines industry which returned -36.2% over the past year.

Return vs Market: AIR underperformed the NZ Market which returned 5.2% over the past year.


Shareholder returns

AIRIndustryMarket
7 Day9.0%17.7%2.9%
30 Day20.8%28.1%5.8%
90 Day-26.7%-13.4%-3.3%
1 Year-38.5%-41.2%-28.3%-30.0%9.1%5.1%
3 Year-37.6%-49.7%-38.2%-34.4%43.6%25.3%
5 Year-0.5%-41.9%-37.6%-31.1%91.5%49.1%

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?

7.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIR (NZ$1.51) is trading above our estimate of fair value (NZ$1.13)

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


Price To Earnings Ratio

PE vs Industry: AIR is good value based on its PE Ratio (7.7x) compared to the Airlines industry average (8.3x).

PE vs Market: AIR is good value based on its PE Ratio (7.7x) compared to the NZ market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AIR is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: AIR is good value based on its PB Ratio (0.8x) compared to the XX Airlines industry average (0.9x).


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?

88.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIR's forecast earnings growth (88.8% per year) is above the savings rate (2.6%).

Earnings vs Market: AIR's earnings (88.8% per year) are forecast to grow faster than the NZ market (5.7% per year).

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

Revenue vs Market: AIR's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: AIR's revenue is forecast to decline over the next 3 years (-0.7% 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 (1.9%).


Next Steps

Past Performance

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

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIR has high quality earnings.

Growing Profit Margin: AIR's current net profit margins (3.8%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: AIR's earnings have declined by -6.9% per year over the past 5 years.

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

Earnings vs Industry: AIR had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Airlines industry average (-16.6%).


Return on Equity

High ROE: AIR's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Air New Zealand's financial position?


Financial Position Analysis

Short Term Liabilities: AIR's short term assets (NZ$1.8B) do not cover its short term liabilities (NZ$2.9B).

Long Term Liabilities: AIR's short term assets (NZ$1.8B) do not cover its long term liabilities (NZ$3.9B).


Debt to Equity History and Analysis

Debt Level: AIR's debt to equity ratio (73.1%) is considered high.

Reducing Debt: AIR's debt to equity ratio has increased from 32.9% to 73.1% over the past 5 years.

Debt Coverage: AIR's debt is well covered by operating cash flow (70.9%).

Interest Coverage: AIR's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.92%

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?

1.2yrs

Average management tenure


CEO

Greg Foran (58yo)

0.33

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Foran
Chief Executive Officer0.33yrno datano data
Jeff McDowall
Chief Financial Officer0.33yrno data0.021% NZ$350.2k
Leila Peters
General Manager of Corporate Financeno datano datano data
Kim Cootes
Manager of Investor Relationsno datano datano data
Jennifer Page
General Counsel & Company Secretary1.17yrsno datano data
Joe McCollum
Chief People Officer0.17yrno datano data
David Morgan
Chief Operations Integrity & Standards Officer7.42yrsno data0.026% NZ$422.8k
Cam Wallace
Chief Revenue Officerno datano data0.012% NZ$189.3k
John Whittaker
Chief of Air Operations & People Safety Officer3.67yrsno data0.021% NZ$340.4k
Carrie Hurihanganui
Chief Ground Operations Officer1.92yrsno data0.0079% NZ$128.6k

1.2yrs

Average Tenure

Experienced Management: AIR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Linda Jenkinson
Independent Non-Executive Director6yrsNZ$168.25k0.0019% NZ$31.8k
Larry De Shon
Independent Non-Executive Director0.17yrno data0.0044% NZ$72.5k
Dean Bracewell
Independent Non-Executive Director0.17yrno datano data
Jonathan Mason
Independent Non-Executive Director6.25yrsNZ$205.23kno data
Robert Jager
Independent Non-Executive Director7.17yrsNZ$178.00k0.0022% NZ$35.6k
Janice Dawson
Deputy Chairman6.75yrsNZ$189.41k0.0018% NZ$29.0k
Dame Walsh
Independent Chairman0.75yrNZ$166.69k0.0089% NZ$145.1k
Laurissa Cooney
Independent Non-Executive Director0.67yrno datano data

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: AIR's board of directors are considered experienced (3.4 years average tenure).


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$1.632b
  • Shares outstanding: 1.13b
  • 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
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 States. The company also offers ground handling services; engineering and maintenance services, including aircraft and component maintenance, repair, and overhaul services; and aircraft leasing and financing services. It operates a fleet of 113 aircraft. The company was formerly known as Tasman Empire Airways Limited and changed its name to Air New Zealand Limited in April 1965. Air New Zealand Limited was founded in 1940 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 10:39
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
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.