Air New Zealand Limited
Air New Zealand Limited Fundamental Analysis
Air New Zealand Limited (ANZLY) shows weak financial fundamentals with a PE ratio of 14.92, profit margin of 1.87%, and ROE of 6.31%. The company generates $6.4B in annual revenue with weak year-over-year growth of 0.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ANZLY's fundamental strength across five key dimensions:
Efficiency Score
WeakANZLY struggles to generate sufficient returns from assets.
Valuation Score
ModerateANZLY shows balanced valuation metrics.
Growth Score
WeakANZLY faces weak or negative growth trends.
Financial Health Score
WeakANZLY carries high financial risk with limited liquidity.
Profitability Score
WeakANZLY struggles to sustain strong margins.
Key Financial Metrics
Is ANZLY Expensive or Cheap?
P/E Ratio
ANZLY trades at 14.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ANZLY's PEG of 2.28 indicates potential overvaluation.
Price to Book
The market values Air New Zealand Limited at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.67 times EBITDA. This is generally considered low.
How Well Does ANZLY Make Money?
Net Profit Margin
For every $100 in sales, Air New Zealand Limited keeps $1.87 as profit after all expenses.
Operating Margin
Core operations generate 13.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.31 in profit for every $100 of shareholder equity.
ROA
Air New Zealand Limited generates $1.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Air New Zealand Limited produces operating cash flow of $885.47M, showing steady but balanced cash generation.
Free Cash Flow
Air New Zealand Limited generates weak or negative free cash flow of $150.72M, restricting financial flexibility.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
ANZLY converts 9.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ANZLY Stacks Against Its Sector Peers
| Metric | ANZLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.92 | 26.71 | Better (Cheaper) |
| ROE | 6.31% | 1311.00% | Weak |
| Net Margin | 1.87% | -29317.00% (disorted) | Weak |
| Debt/Equity | 1.46 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.57 | 10.53 | Weak Liquidity |
| ROA | 1.44% | -1537638.00% (disorted) | Weak |
ANZLY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Air New Zealand Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.98%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
115.10%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
93.05%
Industry Style: Cyclical, Value, Infrastructure
High Growth