NZSE:FRE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Freightways's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

3.7%

FRE

-0.2%

NZ Logistics

0.7%

NZ Market


1 Year Return

46.6%

FRE

67.3%

NZ Logistics

8.9%

NZ Market

Return vs Industry: FRE underperformed the NZ Logistics industry which returned 67.8% over the past year.

Return vs Market: FRE exceeded the NZ Market which returned 9.2% over the past year.


Shareholder returns

FREIndustryMarket
7 Day3.7%-0.2%0.7%
30 Day1.7%-0.02%-5.3%
90 Day13.3%11.1%-1.0%
1 Year50.2%46.6%70.3%67.3%12.8%8.9%
3 Year62.3%44.7%125.1%109.6%48.3%29.6%
5 Year119.2%78.0%81.6%62.7%90.2%44.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Freightways 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: FRE (NZ$10.85) is trading below our estimate of fair value (NZ$45.34)

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


Price To Earnings Ratio

PE vs Industry: FRE is poor value based on its PE Ratio (44.1x) compared to the XO Logistics industry average (12x).

PE vs Market: FRE is poor value based on its PE Ratio (44.1x) compared to the NZ market (24.1x).


Price to Earnings Growth Ratio

PEG Ratio: FRE is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FRE is overvalued based on its PB Ratio (5.3x) compared to the XO Logistics industry average (2x).


Next Steps

Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRE's forecast earnings growth (27% per year) is above the savings rate (2.3%).

Earnings vs Market: FRE's earnings (27% per year) are forecast to grow faster than the NZ market (10.5% per year).

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

Revenue vs Market: FRE's revenue (5.3% per year) is forecast to grow slower than the NZ market (7% per year).

High Growth Revenue: FRE's revenue (5.3% 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 (24.7%)


Next Steps

Past Performance

How has Freightways performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRE has a large one-off loss of NZ$28.8M impacting its December 31 2020 financial results.

Growing Profit Margin: FRE's current net profit margins (5.5%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: FRE's earnings have declined by 0.3% per year over the past 5 years.

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

Earnings vs Industry: FRE had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Logistics industry average (-4%).


Return on Equity

High ROE: FRE's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Freightways's financial position?


Financial Position Analysis

Short Term Liabilities: FRE's short term assets (NZ$141.1M) do not cover its short term liabilities (NZ$179.8M).

Long Term Liabilities: FRE's short term assets (NZ$141.1M) do not cover its long term liabilities (NZ$542.8M).


Debt to Equity History and Analysis

Debt Level: FRE's debt to equity ratio (53.7%) is considered high.

Reducing Debt: FRE's debt to equity ratio has reduced from 83.2% to 53.7% over the past 5 years.

Debt Coverage: FRE's debt is well covered by operating cash flow (92%).

Interest Coverage: FRE's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FRE's dividend (2.86%) is higher than the bottom 25% of dividend payers in the NZ market (2.58%).

High Dividend: FRE's dividend (2.86%) is low compared to the top 25% of dividend payers in the NZ market (4.33%).


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 reasonable payout ratio (62.9%), FRE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRE's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Mark Troughear

3.17yrs

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

NamePositionTenureCompensationOwnership
Mark Troughear
Chief Executive Officer3.17yrsNZ$843.48kno data
Stephen Deschamps
CFO & Company Secretary0.75yrno datano data
Matthew Cocker
Chief Information Officer4.83yrsno datano data

3.2yrs

Average Tenure

Experienced Management: FRE's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Verbiest
Independent Chairman2.42yrsNZ$155.08kno data
Kimmitt Ellis
Independent Director11.58yrsNZ$92.50kno data
Peter Kean
Independent Director4.67yrsNZ$85.68kno data
Mark Rushworth
Independent Director5.5yrsNZ$85.68kno data
Abigail Foote
Independent Director2.75yrsNZ$97.47kno data

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: FRE'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 been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Company Information

Freightways Limited's company bio, 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$1.796b
  • Shares outstanding: 165.54m
  • Website: https://www.freightways.co.nz

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRENZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDSep 2003
FTWY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2003

Biography

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,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 06:01
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
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.