OTCPK:NZTC.F

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with mediocre balance sheet.


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

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


Market Performance


7 Day Return

-3.8%

NZTC.F

0.4%

US Telecom

0.09%

US Market


1 Year Return

8.1%

NZTC.F

-11.6%

US Telecom

12.6%

US Market

Return vs Industry: NZTC.F exceeded the US Telecom industry which returned -11.6% over the past year.

Return vs Market: NZTC.F underperformed the US Market which returned 12.6% over the past year.


Shareholder returns

NZTC.FIndustryMarket
7 Day-3.8%0.4%0.09%
30 Day-4.9%-0.2%-1.6%
90 Day8.8%1.7%7.9%
1 Year8.1%8.1%-7.1%-11.6%15.2%12.6%
3 Year8.9%8.9%7.4%-8.0%38.9%29.6%
5 Year59.9%59.9%32.1%2.5%87.6%66.5%

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

19.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NZTC.F ($3.07) is trading above our estimate of fair value ($2.69)

Significantly Below Fair Value: NZTC.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NZTC.F is poor value based on its PE Ratio (19.7x) compared to the US Telecom industry average (11.9x).

PE vs Market: NZTC.F is poor value based on its PE Ratio (19.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NZTC.F is poor value based on its PEG Ratio (11.1x)


Price to Book Ratio

PB vs Industry: NZTC.F is overvalued based on its PB Ratio (5.6x) compared to the US Telecom industry average (1.3x).


Next Steps

Future Growth

How is Spark New Zealand forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZTC.F's forecast earnings growth (1.8% per year) is below the savings rate (2.2%).

Earnings vs Market: NZTC.F's earnings (1.8% per year) are forecast to grow slower than the US market (23.2% per year).

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

Revenue vs Market: NZTC.F's revenue (1.3% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: NZTC.F's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZTC.F's Return on Equity is forecast to be high in 3 years time (30.8%)


Next Steps

Past Performance

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

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZTC.F has high quality earnings.

Growing Profit Margin: NZTC.F's current net profit margins (11.8%) are higher than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: NZTC.F's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: NZTC.F's earnings growth over the past year (4.4%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: NZTC.F earnings growth over the past year (4.4%) exceeded the Telecom industry -12.9%.


Return on Equity

High ROE: Whilst NZTC.F's Return on Equity (28.6%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Spark New Zealand's financial position?


Financial Position Analysis

Short Term Liabilities: NZTC.F's short term assets (NZ$928.0M) exceed its short term liabilities (NZ$781.0M).

Long Term Liabilities: NZTC.F's short term assets (NZ$928.0M) do not cover its long term liabilities (NZ$2.1B).


Debt to Equity History and Analysis

Debt Level: NZTC.F's debt to equity ratio (109.4%) is considered high.

Reducing Debt: NZTC.F's debt to equity ratio has increased from 33% to 109.4% over the past 5 years.

Debt Coverage: NZTC.F's debt is well covered by operating cash flow (55.3%).

Interest Coverage: NZTC.F's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NZTC.F's dividend (5.47%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: NZTC.F's dividend (5.47%) is in the top 25% of dividend payers in the US market (4.7%)


Stability and Growth of Payments

Stable Dividend: NZTC.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: NZTC.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.6%), NZTC.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NZTC.F's dividends in 3 years are not forecast to be well covered by earnings (97.8% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jolie Hodson

1.17yrs

Tenure

NZ$3,046,998

Compensation

Ms. Jolie Hodson has been an Executive Director of Spark New Zealand Limited since September 23, 2019 and its Chief Executive since July 1, 2019. Ms. Hodson served as Customer Director of Spark New Zealand ...


CEO Compensation Analysis

Compensation vs Market: Jolie's total compensation ($USD2.06M) is below average for companies of similar size in the US market ($USD7.41M).

Compensation vs Earnings: Insufficient data to compare Jolie's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jolie Hodson
CEO & Executive Director1.17yrsNZ$3.05m0.0078%
NZ$ 446.5k
Stefan Knight
Finance Director0.75yrno data0.0013%
NZ$ 71.1k
Mark Beder
Technology Director2.17yrsno data0.015%
NZ$ 834.5k
Melissa Anastasiou
General Counsel11.67yrsno data0.0048%
NZ$ 274.2k
Leela Gantman
Corporate Relations Director0.67yrno datano data
Matthew Bain
Marketing Director1.83yrsno data0.0016%
NZ$ 89.9k
Heather Polglase
Human Resources Director1yrno data0.0011%
NZ$ 63.7k
Jeff Latch
Head of Spark Sport2.08yrsno datano data
Silvana Roest
Company Secretary4.75yrsno datano data
Claire Barber
CEO of new subsidiary1.58yrsno data0.0013%
NZ$ 71.1k
Robin Cockayne
Chief Executive Officer of Leavenno datano datano data

1.7yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Jolie Hodson
CEO & Executive Director1.17yrsNZ$3.05m0.0078%
NZ$ 446.5k
Paul Berriman
Independent Non-Executive Director8.75yrsNZ$164.20k0.0011%
NZ$ 62.0k
Alison Barrass
Independent Non-Executive Director4yrsNZ$178.70k0.0021%
NZ$ 116.6k
Warwick Bray
Independent Non Executive Director1yrNZ$126.72kno data
Justine Gay Smyth
Independent Chairman of the Board2.83yrsNZ$368.70k0.020%
NZ$ 1.2m
Ido Leffler
Independent Non-Executive Director6.25yrsNZ$162.00k0.0017%
NZ$ 99.0k
Charles Sitch
Independent Non-Executive Director8.75yrsNZ$184.30k0.0018%
NZ$ 101.3k
Pip Greenwood
Independent Non-Executive Director2.42yrsno data0.0018%
NZ$ 103.0k
Ana Wight
Director0.58yrno datano data

2.8yrs

Average Tenure

Experienced Board: NZTC.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

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$8.395b
  • Listing Market Cap: NZ$5.688b
  • 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
TELCHIA (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 Analysis2020/09/20 05:51
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.