OTCPK:CRRL.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.

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%

OTCPK:CRRL.F

1.5%

US Telecom

1.1%

US Market


1 Year Return

n/a

OTCPK:CRRL.F

6.9%

US Telecom

2.1%

US Market

No trading data on CRRL.F.

No trading data on CRRL.F.


Share holder returns

CRRL.FIndustryMarket
7 Day0%1.5%1.1%
30 Day0%5.9%3.7%
90 Day0%9.0%2.3%
1 Yearn/a12.6%6.9%4.4%2.1%
3 Yearn/a17.5%0.4%47.0%37.4%
5 Year167.1%167.1%33.7%3.1%61.6%43.8%

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?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Chorus's share price is below the future cash flow value, and at a moderate discount (> 20%).

Chorus's share price is below the future cash flow value, and 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 earnings are not expected to grow next year, we can't assess if its growth is good value.


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 8 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Chorus's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

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

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

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

Chorus's earnings are expected to decrease over the next 1-3 years, this is below 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?

-12.0%

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 is able to meet its short term (1 year) commitments with 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 (273.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (280.6% vs 273.6% today).

Debt is not well covered by operating cash flow (18.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x 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?

4.13%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Chorus's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

Chorus's dividend is above the markets top 25% of dividend payers in United States of America (3.68%).

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 (0.7x 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?

1.1yrs

Average management tenure


CEO

Kate McKenzie 0

2.4yrs

Tenure

NZ$2,219,475

Compensation

Ms. Kate M. McKenzie, B.A., L.L.B. has been the Chief Executive Officer and Managing Director at Chorus Limited since February 20, 2017. Ms. McKenzie has significant corporate governance experience. She ha ...


CEO Compensation Analysis

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

Kate's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.1yrs

Average Tenure

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


Board Age and Tenure

3.8yrs

Average Tenure

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


Insider Trading

More shares have been bought than sold by Chorus individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellNZ$10,442,79611 Sep 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares2,812,969
Max PriceNZ$3.71
BuyNZ$19,829,49011 Sep 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares5,770,837
Max PriceNZ$3.47
BuyNZ$254,21204 Sep 19
Murray Jordan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares78,438
Max PriceNZ$3.24
BuyNZ$16,14204 Sep 19
Anne Urlwin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceNZ$3.23
BuyNZ$1,987,52004 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares618,077
Max PriceNZ$3.24
BuyNZ$16,48704 Sep 19
Realindex Investments Pty Limited
EntityCompany
Shares5,115
Max PriceNZ$3.22
SellNZ$558,38625 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares166,781
Max PriceNZ$3.35
SellNZ$225,40525 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares67,206
Max PriceNZ$3.35
BuyNZ$422,44125 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares125,894
Max PriceNZ$3.36
SellNZ$2,61023 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares793
Max PriceNZ$3.29
BuyNZ$2,61023 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares793
Max PriceNZ$3.29
BuyNZ$289,55823 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares88,096
Max PriceNZ$3.29
BuyNZ$22,313,72908 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares6,065,497
Max PriceNZ$3.92
BuyNZ$008 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares997,058
Max PriceNZ$4.03
SellNZ$11,601,01905 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,403,208
Max PriceNZ$3.57
BuyNZ$9,772,84205 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,913,158
Max PriceNZ$3.49
SellNZ$1,951,31405 Aug 19
ASB Group Investments Ltd.
EntityCompany
Shares580,099
Max PriceNZ$3.36
BuyNZ$6,761,58505 Aug 19
ASB Group Investments Ltd.
EntityCompany
Shares2,017,833
Max PriceNZ$3.35
BuyNZ$24,00005 Jul 19
Jonathan Hartley
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares35,000
Max PriceNZ$0.69
BuyNZ$40,07103 Apr 19
Andrew Cross
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceNZ$4.01
BuyNZ$9,83103 Apr 19
Prudence Flacks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,480
Max PriceNZ$3.96
BuyNZ$35,41605 Mar 19
Jack Matthews
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceNZ$3.54
SellNZ$3,198,97014 Feb 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares932,365
Max PriceNZ$3.43
BuyNZ$2,377,36214 Feb 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares748,674
Max PriceNZ$3.18
SellNZ$8,648,10519 Nov 18
Orbis Investment Management Limited
EntityCompany
Shares2,704,158
Max PriceNZ$3.22
SellNZ$2,255,40214 Nov 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares670,696
Max PriceNZ$3.36
BuyNZ$1,122,55414 Nov 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares363,645
Max PriceNZ$3.16
SellNZ$11,628,71117 Oct 18
Orbis Investment Management Limited
EntityCompany
Shares3,997,825
Max PriceNZ$2.92
SellNZ$165,25311 Oct 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares51,754
Max PriceNZ$3.19
BuyNZ$430,94411 Oct 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares139,019
Max PriceNZ$3.10
SellNZ$256,56028 Sep 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares80,298
Max PriceNZ$3.20
BuyNZ$364,54228 Sep 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares115,592
Max PriceNZ$3.15
BuyNZ$6,163,76426 Sep 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,982,269
Max PriceNZ$3.12
SellNZ$8,792,46019 Sep 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares2,870,577
Max PriceNZ$3.06
BuyNZ$4,624,62519 Sep 18
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares1,652,116
Max PriceNZ$2.83

Ownership Breakdown


Management Team

  • Kate McKenzie

    CEO, MD & Director

    • Tenure: 2.4yrs
    • Compensation: NZ$2.22m
  • Ewen Powell

    Chief Technology Officer

    • Tenure: 0yrs
  • Andy Carroll

    General Manager of Network & Field Management

    • Tenure: 1.2yrs
  • Andrew Hopkinson

    Treasurer

    • Tenure: 0yrs
  • Elaine Campbell

    General Counsel & Company Secretary

    • Tenure: 0.9yrs
  • Ed Hyde

    Chief Customer Officer

    • Tenure: 1yrs
  • Brett Jackson

    Investor Relations Manager

    • Tenure: 0yrs
  • Nathan Beaumont

    Media & PR Manager

    • Tenure: 0yrs
  • Shaun Philp

    General Manager of People & Culture

    • Tenure: 1.8yrs
  • David Collins

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Jon Hartley

    Deputy Chairman

    • Tenure: 3.8yrs
    • Compensation: NZ$167.75k
  • Patrick Strange

    Chairman

    • Tenure: 3.8yrs
    • Compensation: NZ$223.65k
  • Anne Urlwin

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: NZ$143.85k
  • Jack Matthews

    Independent Director

    • Tenure: 2yrs
    • Compensation: NZ$119.16k
  • Kate McKenzie

    CEO, MD & Director

    • Tenure: 2.4yrs
    • Compensation: NZ$2.22m
  • Murray Jordan

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: NZ$123.35k
  • Prudence Flacks

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: NZ$143.20k
  • Mark Cross

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: NZ$127.85k

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$2.548b
  • Listing Market Cap: NZ$1.686b
  • Shares outstanding: 439.29m
  • Website: https://www.chorus.co.nz

Number of Employees


Location

  • Chorus Limited
  • 1 Willis Street
  • Level 10
  • Wellington
  • 6140
  • 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 Analysis2019/07/08 00:37
End of Day Share Price2019/04/09 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.