OTCPK:NZTC.F

Stock Analysis Report

Executive Summary

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand.

Snowflake

Fundamentals

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Spark New Zealand's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

OTCPK:NZTC.F

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

9.7%

OTCPK:NZTC.F

7.9%

US Telecom

1.6%

US Market

NZTC.F outperformed the Telecom industry which returned 7.9% over the past year.

NZTC.F outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

NZTC.FIndustryMarket
7 Day-0.2%-2.9%-0.02%
30 Day10.7%4.4%2.7%
90 Day9.0%8.4%1.4%
1 Year9.7%9.7%13.6%7.9%3.8%1.6%
3 Year10.1%10.1%15.6%-1.2%45.2%35.8%
5 Year20.3%20.3%33.5%2.9%61.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Spark New Zealand is overvalued based on earnings compared to the US Telecom industry average.

Spark New Zealand is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Spark New Zealand is poor value based on expected growth next year.


Price Based on Value of Assets

Spark New Zealand is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Spark New Zealand expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Spark New Zealand's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Spark New Zealand's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Spark New Zealand is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Spark New Zealand performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Spark New Zealand's year on year earnings growth rate has been positive over the past 5 years.

Spark New Zealand's 1-year earnings growth exceeds its 5-year average (12.1% vs 3.3%)

Spark New Zealand's earnings growth has exceeded the US Telecom industry average in the past year (12.1% vs -18%).


Return on Equity

Whilst Spark New Zealand has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Spark New Zealand used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Spark New Zealand's financial position?


Financial Position Analysis

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

Spark New Zealand's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Spark New Zealand's level of debt (103.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42% vs 103.2% today).

Debt is well covered by operating cash flow (51.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Spark New Zealand's current dividend yield, its reliability and sustainability?

5.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Spark New Zealand's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Spark New Zealand's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jolie Hodson 0

0.2yrs

Tenure

0

Ms. Jolie Hodson has been Chief Executive of Spark New Zealand Limited since July 1, 2019. Ms. Hodson served as Customer Director of Spark New Zealand Limited since July 2018 and served as its Chief Execut ...


Management Age and Tenure

1.2yrs

Average Tenure

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


Board Age and Tenure

4.1yrs

Average Tenure

The tenure for the Spark New Zealand board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellNZ$2,714,93211 Feb 19
Capital Research and Management Company
EntityCompany
Shares1,000,000
Max PriceNZ$2.71
SellNZ$7,458,21320 Jan 19
Capital Research and Management Company
EntityCompany
Shares2,720,000
Max PriceNZ$2.74
SellNZ$1,812,59518 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares614,849
Max PriceNZ$2.95
BuyNZ$114,326,51518 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares38,511,930
Max PriceNZ$2.97

Ownership Breakdown


Management Team

  • Andrew Pirie

    GM of Corporate Relations

    • Tenure: 0yrs
  • Grant McBeath

    Customer Director

    • Tenure: 0yrs
  • David Chalmers

    Finance Director & CFO

    • Tenure: 2.9yrs
  • Jolie Hodson

    Chief Executive Officer

    • Tenure: 0.2yrs
  • Silvana Roest

    Company Secretary

    • Tenure: 3.8yrs
  • Melissa Anastasiou

    General Counsel

    • Tenure: 10.7yrs
  • Heather Polglase

    Group Human Resources Director

    • Tenure: 0yrs
  • Mark Beder

    Technology Director

    • Tenure: 1.2yrs
  • Matt Bain

    Marketing Director

    • Tenure: 0.8yrs
  • Jeff Latch

    Head of Spark Sport

    • Tenure: 1.1yrs

Board Members

  • Paul Berriman (62yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: NZ$161.50k
  • Alison Barrass

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: NZ$175.70k
  • Justine Gay Smyth

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: NZ$362.50k
  • Ido Leffler

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: NZ$159.30k
  • Charles Sitch

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: NZ$164.10k
  • Pip Greenwood

    Independent Non-Executive Director

    • Tenure: 1.4yrs

Company Information

Spark New Zealand Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spark New Zealand Limited
  • Ticker: NZTC.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: NZ$8.227b
  • Listing Market Cap: NZ$5.187b
  • Shares outstanding: 1.84b
  • Website: https://www.sparknz.co.nz

Number of Employees


Location

  • Spark New Zealand Limited
  • Spark City
  • Level 2
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPKK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1991
NZTABST (Boerse-Stuttgart)SPONSORED ADRDEEURJul 1991
NZTC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SPKNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
SPKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NZTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SPKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. It offers telecommunications, information technology, media, and other digital pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 23:47
End of Day Share Price2019/09/19 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.