OTCPK:CRRL.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Overvalued 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

Stable Share Price: CRRL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CRRL.F

-2.1%

US Telecom

-2.8%

US Market


1 Year Return

n/a

CRRL.F

-11.5%

US Telecom

-15.9%

US Market

Return vs Industry: Insufficient data to determine how CRRL.F performed against the US Telecom industry.

Return vs Market: Insufficient data to determine how CRRL.F performed against the US Market.


Shareholder returns

CRRL.FIndustryMarket
7 Day0%-2.1%-2.8%
30 Dayn/a-16.1%-18.8%
90 Dayn/a-20.0%-24.0%
1 Yearn/a-7.1%-11.5%-14.2%-15.9%
3 Yearn/a-3.0%-16.2%9.9%2.8%
5 Yearn/a15.0%-9.8%27.2%13.3%

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 compared to its fair value and its price relative to the market?

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRRL.F ($3.85) is trading below our estimate of fair value ($4.65)

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


Price To Earnings Ratio

PE vs Industry: CRRL.F is poor value based on its PE Ratio (56.9x) compared to the Telecom industry average (14.5x).

PE vs Market: CRRL.F is poor value based on its PE Ratio (56.9x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: CRRL.F is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: CRRL.F is overvalued based on its PB Ratio (3.2x) compared to the US Telecom industry average (1x).


Next Steps

Future Growth

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

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRRL.F's forecast earnings growth (8.9% per year) is above the savings rate (1.7%).

Earnings vs Market: CRRL.F's earnings (8.9% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: CRRL.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRRL.F's revenue (0.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CRRL.F's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRRL.F's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Chorus performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRRL.F has high quality earnings.

Growing Profit Margin: CRRL.F's current net profit margins (5.6%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: CRRL.F's earnings have declined by -10.9% per year over the past 5 years.

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

Earnings vs Industry: CRRL.F had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the Telecom industry average (4.8%).


Return on Equity

High ROE: CRRL.F's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Chorus's financial position?


Financial Position Analysis

Short Term Liabilities: CRRL.F's short term assets (NZ$894.0M) do not cover its short term liabilities (NZ$1.0B).

Long Term Liabilities: CRRL.F's short term assets (NZ$894.0M) do not cover its long term liabilities (NZ$4.2B).


Debt to Equity History and Analysis

Debt Level: CRRL.F's debt to equity ratio (352.7%) is considered high.

Reducing Debt: CRRL.F's debt to equity ratio has increased from 222.5% to 352.7% over the past 5 years.

Debt Coverage: CRRL.F's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: CRRL.F's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: CRRL.F has a high level of physical assets or inventory.

Debt Coverage by Assets: CRRL.F's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

3.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRRL.F's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: CRRL.F's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: CRRL.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CRRL.F's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.4%), CRRL.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRRL.F's dividends in 3 years are not forecast to be well covered by earnings (181.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

JB Rousselot

0.42

Tenure

Mr. Jean-Baptiste B. Rousselot, also known as JB, has been Chief Executive Office and Director of Chorus Limited since November 20, 2019. Mr. Rousselot was Chief Strategy Officer of nbn co limited since Ju ...


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Baptiste Rousselot
CEO & Director0.42yrno datano data
David Collins
Chief Financial Officer1.33yrsno datano data
Ewen Powell
Chief Technology Officerno datano data0.013% NZ$242.5k
Brett Jackson
Investor Relations Managerno datano datano data
Elaine Campbell
General Counsel & Company Secretary1.67yrsno datano data
Nathan Beaumont
Media & PR Managerno datano datano data
Shaun Philp
General Manager of People & Culture2.58yrsno data0.000070% NZ$1.3k
Ed Hyde
Chief Customer Officer1.75yrsno datano data
Andrew Hopkinson
Treasurerno datano datano data
Andrew Carroll
General Manager of Network & Field Management1.92yrsno data0.016% NZ$295.5k

1.7yrs

Average Tenure

Experienced Management: CRRL.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jean-Baptiste Rousselot
CEO & Director0.42yrno datano data
Jonathan Hartley
Deputy Chairman4.58yrsNZ$167.75k0.016% NZ$284.9k
Patrick Strange
Independent Chairman4.58yrsNZ$223.65k0.0092% NZ$166.8k
Jack Matthews
Independent Director2.75yrsNZ$125.75k0.0022% NZ$40.6k
Murray Jordan
Independent Director4.58yrsNZ$125.75k0.026% NZ$463.3k
Prudence Flacks
Independent Director8.33yrsNZ$145.78k0.0043% NZ$78.0k
Andrew Cross
Independent Non-Executive Director3.42yrsNZ$130.30k0.0064% NZ$114.8k
Sue Bailey
Independent Director0.50yrno datano data

4.0yrs

Average Tenure

Experienced Board: CRRL.F's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CRRL.F insiders have only sold shares 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

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


Key Information

  • Name: Chorus Limited
  • Ticker: CRRL.F
  • Exchange: OTCPK
  • Founded: 2008
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: NZ$3.084b
  • Listing Market Cap: NZ$1.805b
  • Shares outstanding: 443.71m
  • 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
7CHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 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 residential and business customers; and very high speed digital subscriber line broadband services. The company also provides colocation services. Chorus Limited was founded in 2008 and is based in Wellington, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:27
End of Day Share Price2020/03/12 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.