Spark New Zealand Limited
Spark New Zealand Limited Fundamental Analysis
Spark New Zealand Limited (NZTCF) shows moderate financial fundamentals with a PE ratio of 13.18, profit margin of 8.08%, and ROE of 20.11%. The company generates $3.6B in annual revenue with weak year-over-year growth of -3.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NZTCF's fundamental strength across five key dimensions:
Efficiency Score
WeakNZTCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNZTCF trades at attractive valuation levels.
Growth Score
WeakNZTCF faces weak or negative growth trends.
Financial Health Score
ModerateNZTCF shows balanced financial health with some risks.
Profitability Score
ModerateNZTCF maintains healthy but balanced margins.
Key Financial Metrics
Is NZTCF Expensive or Cheap?
P/E Ratio
NZTCF trades at 13.18 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NZTCF's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Spark New Zealand Limited at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.79 times EBITDA. This is generally considered low.
How Well Does NZTCF Make Money?
Net Profit Margin
For every $100 in sales, Spark New Zealand Limited keeps $8.08 as profit after all expenses.
Operating Margin
Core operations generate 10.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.11 in profit for every $100 of shareholder equity.
ROA
Spark New Zealand Limited generates $6.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spark New Zealand Limited generates strong operating cash flow of $1.00B, reflecting robust business health.
Free Cash Flow
Spark New Zealand Limited generates strong free cash flow of $579.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
NZTCF converts 15.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NZTCF Stacks Against Its Sector Peers
| Metric | NZTCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.18 | 21.28 | Better (Cheaper) |
| ROE | 20.11% | 1116.00% | Weak |
| Net Margin | 8.08% | -55491.00% (disorted) | Weak |
| Debt/Equity | 2.25 | 1.38 | Weak (High Leverage) |
| Current Ratio | 1.18 | 1.61 | Neutral |
| ROA | 6.60% | -204827.00% (disorted) | Weak |
NZTCF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spark 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
0.98%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-39.11%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-24.02%
Industry Style: Growth, Technology, Streaming
Declining