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FRE

FreightwaysNZSE:FRE Stock Report

Market Cap

NZ$2.1b

7D

0%

1Y

52.2%

Updated

19 Oct, 2021

Data

Company Financials +
FRE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance1/6
Financial Health3/6
Dividends3/6

FRE Overview

Freightways Limited, together with its subsidiaries, provides express package and business mail services in New Zealand, Australia, and internationally.

Freightways Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Freightways
Historical stock prices
Current Share PriceNZ$12.65
52 Week HighNZ$8.22
52 Week LowNZ$13.85
Beta0.94
1 Month Change-1.10%
3 Month Change1.28%
1 Year Change52.23%
3 Year Change73.76%
5 Year Change98.90%
Change since IPO635.47%

Recent News & Updates

Aug 29
A Look At The Fair Value Of Freightways Limited (NZSE:FRE)

A Look At The Fair Value Of Freightways Limited (NZSE:FRE)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Freightways Limited...

Jul 05
When Should You Buy Freightways Limited (NZSE:FRE)?

When Should You Buy Freightways Limited (NZSE:FRE)?

While Freightways Limited ( NZSE:FRE ) might not be the most widely known stock at the moment, it saw a double-digit...

May 31
Freightways (NZSE:FRE) Could Be Struggling To Allocate Capital

Freightways (NZSE:FRE) Could Be Struggling To Allocate Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

FRENZ LogisticsNZ Market
7D0%-0.2%-0.1%
1Y52.2%63.2%1.9%

Return vs Industry: FRE underperformed the NZ Logistics industry which returned 63.2% over the past year.

Return vs Market: FRE exceeded the NZ Market which returned 1.9% over the past year.

Price Volatility

Is FRE's price volatile compared to industry and market?
FRE volatility
FRE Beta0.94
Industry Beta0.61
Market Beta1

Stable Share Price: FRE is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19645,000Mark Troughearhttps://www.freightways.co.nz

Freightways Limited, together with its subsidiaries, provides express package and business mail services in New Zealand, Australia, and internationally. It operates through Express Package & Business Mail, Information Management, and Corporate and Other segments. The company provides network courier services under the New Zealand Couriers, Post Haste Couriers, Castle Parcels, and NOW Couriers brands; and point-to-point courier services under the SUB60, Kiwi Express, Stuck, Pass The Parcel, and Security Express brands.

Freightways Fundamentals Summary

How do Freightways's earnings and revenue compare to its market cap?
FRE fundamental statistics
Market CapNZ$2.10b
Earnings (TTM)NZ$49.56m
Revenue (TTM)NZ$800.53m

42.3x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRE income statement (TTM)
RevenueNZ$800.53m
Cost of RevenueNZ$535.99m
Gross ProfitNZ$264.55m
ExpensesNZ$214.99m
EarningsNZ$49.56m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin33.05%
Net Profit Margin6.19%
Debt/Equity Ratio48.0%

How did FRE perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

112%

Payout Ratio

Valuation

Is Freightways undervalued compared to its fair value and its price relative to the market?

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRE (NZ$12.65) is trading below our estimate of fair value (NZ$15)

Significantly Below Fair Value: FRE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FRE is poor value based on its PE Ratio (42.3x) compared to the Oceanic Logistics industry average (29.3x).

PE vs Market: FRE is poor value based on its PE Ratio (42.3x) compared to the NZ market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: FRE is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: FRE is overvalued based on its PB Ratio (6.1x) compared to the XO Logistics industry average (2x).


Future Growth

How is Freightways forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRE's forecast earnings growth (22.7% per year) is above the savings rate (2.1%).

Earnings vs Market: FRE's earnings (22.7% per year) are forecast to grow faster than the NZ market (9.2% per year).

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

Revenue vs Market: FRE's revenue (6% per year) is forecast to grow faster than the NZ market (5.2% per year).

High Growth Revenue: FRE's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRE's Return on Equity is forecast to be high in 3 years time (31%)


Past Performance

How has Freightways performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRE has a large one-off loss of NZ$23.0M impacting its June 30 2021 financial results.

Growing Profit Margin: FRE's current net profit margins (6.2%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: FRE's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: FRE's earnings growth over the past year (4.7%) exceeds its 5-year average (-3.8% per year).

Earnings vs Industry: FRE earnings growth over the past year (4.7%) underperformed the Logistics industry 39.3%.


Return on Equity

High ROE: FRE's Return on Equity (14.5%) is considered low.


Financial Health

How is Freightways's financial position?


Financial Position Analysis

Short Term Liabilities: FRE's short term assets (NZ$131.3M) do not cover its short term liabilities (NZ$163.2M).

Long Term Liabilities: FRE's short term assets (NZ$131.3M) do not cover its long term liabilities (NZ$539.9M).


Debt to Equity History and Analysis

Debt Level: FRE's debt to equity ratio (48%) is considered high.

Reducing Debt: FRE's debt to equity ratio has reduced from 79.1% to 48% over the past 5 years.

Debt Coverage: FRE's debt is well covered by operating cash flow (82.5%).

Interest Coverage: FRE's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Dividend

What is Freightways's current dividend yield, its reliability and sustainability?

2.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRE's dividend (2.85%) is higher than the bottom 25% of dividend payers in the NZ market (2.44%).

High Dividend: FRE's dividend (2.85%) is low compared to the top 25% of dividend payers in the NZ market (4.8%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.9%), FRE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRE's dividends in 3 years are forecast to be covered by earnings (78.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Mark Troughear

3.75yrs

Tenure

NZ$843,483

Compensation

Mr. Mark Troughear has been CEO at Freightways Ltd since January 1, 2018 and served as its serves as General Manager of Information Management Division. He done his BMS from Waikato University.


Leadership Team

Experienced Management: FRE's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: FRE's board of directors are considered experienced (3.3 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

Freightways Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Freightways Limited
  • Ticker: FRE
  • Exchange: NZSE
  • Founded: 1964
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: NZ$2.097b
  • Shares outstanding: 165.74m
  • Website: https://www.freightways.co.nz

Number of Employees


Location

  • Freightways Limited
  • 32 Botha Road
  • Penrose
  • DX CX10120
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:42
End of Day Share Price2021/10/19 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.