OTCPK:CHRY.Y

Stock Analysis Report

Executive Summary

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand.

Snowflake

Fundamentals

Unattractive dividend payer with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

OTCPK:CHRY.Y

3.1%

US Telecom

1.2%

US Market


1 Year Return

4.8%

OTCPK:CHRY.Y

8.4%

US Telecom

1.7%

US Market

CHRY.Y underperformed the Telecom industry which returned 8.4% over the past year.

CHRY.Y outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CHRY.YIndustryMarket
7 Day-0.6%3.1%1.2%
30 Day-0.6%7.5%4.9%
90 Day-13.2%9.8%3.7%
1 Year9.2%4.8%14.1%8.4%3.9%1.7%
3 Year32.6%14.8%18.1%0.9%47.2%37.7%
5 Year174.0%132.7%35.1%4.2%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Chorus undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Chorus's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Chorus's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Chorus is overvalued based on earnings compared to the US Telecom industry average.

Chorus is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Chorus is poor value based on expected growth next year.


Price Based on Value of Assets

Chorus is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Chorus expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Chorus's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Chorus's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Chorus's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Chorus's earnings growth is positive but not above the United States of America market average.

Chorus's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Chorus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Chorus performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Chorus's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Chorus's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Chorus's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Chorus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Chorus used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Chorus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Chorus's financial position?


Financial Position Analysis

Chorus's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Chorus's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Chorus's level of debt (293.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (252.4% vs 293.7% today).

Debt is not well covered by operating cash flow (17.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

4.97%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Chorus before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Chorus's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Chorus's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Chorus has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Chorus only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.5x coverage).


Next Steps

Management

What is the CEO of Chorus's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Kate McKenzie 0

2.8yrs

Tenure

NZ$2,068,560

Compensation

Ms. Kate M. McKenzie, B.A., L.L.B. has been the Chief Executive Officer at Chorus Limited since December 2016 and Managing Director at Chorus Limited since February 20, 2017. She has been a Non-independen ...


CEO Compensation Analysis

Kate's remuneration is lower than average for companies of similar size in United States of America.

Kate's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

The average tenure for the Chorus management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

The tenure for the Chorus board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Kate McKenzie

    CEO, MD & Director

    • Tenure: 2.8yrs
    • Compensation: NZ$2.07m
  • Ewen Powell

    Chief Technology Officer

    • Tenure: 0yrs
  • Andy Carroll

    General Manager of Network & Field Management

    • Tenure: 1.3yrs
  • Andrew Hopkinson

    Treasurer

    • Tenure: 0yrs
  • Elaine Campbell

    General Counsel & Company Secretary

    • Tenure: 1.1yrs
  • Ed Hyde

    Chief Customer Officer

    • Tenure: 1.2yrs
  • Brett Jackson

    Investor Relations Manager

    • Tenure: 0yrs
  • Nathan Beaumont

    Media & PR Manager

    • Tenure: 0yrs
  • Shaun Philp

    General Manager of People & Culture

    • Tenure: 2yrs
  • David Collins

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Jon Hartley

    Deputy Chairman

    • Tenure: 4yrs
    • Compensation: NZ$167.75k
  • Patrick Strange

    Chairman

    • Tenure: 4yrs
    • Compensation: NZ$223.65k
  • Anne Urlwin

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: NZ$153.80k
  • Jack Matthews

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: NZ$125.75k
  • Kate McKenzie

    CEO, MD & Director

    • Tenure: 2.8yrs
    • Compensation: NZ$2.07m
  • Murray Jordan

    Independent Director

    • Tenure: 4yrs
    • Compensation: NZ$125.75k
  • Prudence Flacks

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: NZ$145.78k
  • Mark Cross

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: NZ$130.30k

Company Information

Chorus Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chorus Limited
  • Ticker: CHRY.Y
  • Exchange: OTCPK
  • Founded: 2008
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: NZ$2.227b
  • Listing Market Cap: NZ$1.423b
  • Shares outstanding: 439.29m
  • Website: https://www.chorus.co.nz

Number of Employees


Location

  • Chorus Limited
  • 1 Willis Street
  • Level 10
  • Wellington
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNUNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 2011
CNUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2011
7CHBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2011
CRRL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2011
CNUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2011
CHRY.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDNov 2011

Biography

Chorus Limited, together with its subsidiaries, provides fixed line communications infrastructure services in New Zealand. It offers phone and broadband services over copper and fiber networks for resident ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:46
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.