Freightways
Market Cap
NZ$1.8b
Last Updated
2021/03/04 06:01 UTC
Data Sources
Company Financials +
Executive Summary
Freightways Limited, together with its subsidiaries, provides express package and business mail services in New Zealand, Australia, and internationally. More Details
Rewards
Risk Analysis
+ 1 more risk
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
| FRE | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.7% | -0.2% | 0.7% |
| 30 Day | 1.7% | -0.02% | -5.3% |
| 90 Day | 13.3% | 11.1% | -1.0% |
| 1 Year | 50.2%46.6% | 70.3%67.3% | 12.8%8.9% |
| 3 Year | 62.3%44.7% | 125.1%109.6% | 48.3%29.6% |
| 5 Year | 119.2%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
1 week ago | Simply Wall St
Our Take On The Returns On Capital At Freightways (NZSE:FRE)3 weeks ago | Simply Wall St
Freightways Limited's (NZSE:FRE) Stock Is Going Strong: Have Financials A Role To Play?1 month ago | Simply Wall St
Shareholders Of Freightways (NZSE:FRE) Must Be Happy With Their 109% Total ReturnValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 3.17yrs | NZ$843.48k | no data | |
| CFO & Company Secretary | 0.75yr | no data | no data | |
| Chief Information Officer | 4.83yrs | no data | no data |
3.2yrs
Average Tenure
Experienced Management: FRE's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Chairman | 2.42yrs | NZ$155.08k | no data | |
| Independent Director | 11.58yrs | NZ$92.50k | no data | |
| Independent Director | 4.67yrs | NZ$85.68k | no data | |
| Independent Director | 5.5yrs | NZ$85.68k | no data | |
| Independent Director | 2.75yrs | NZ$97.47k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FRE | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | Sep 2003 |
| FTWY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 06:01 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.