Spark New Zealand Limited
Spark New Zealand Limited Fundamental Analysis
Spark New Zealand Limited (SPK.AX) shows moderate financial fundamentals with a PE ratio of 14.98, 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 SPK.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakSPK.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPK.AX shows balanced valuation metrics.
Growth Score
WeakSPK.AX faces weak or negative growth trends.
Financial Health Score
ModerateSPK.AX shows balanced financial health with some risks.
Profitability Score
ModerateSPK.AX maintains healthy but balanced margins.
Key Financial Metrics
Is SPK.AX Expensive or Cheap?
P/E Ratio
SPK.AX trades at 14.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPK.AX's PEG of 2.10 indicates potential overvaluation.
Price to Book
The market values Spark New Zealand Limited at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.28 times EBITDA. This is generally considered low.
How Well Does SPK.AX 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 $580.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
SPK.AX converts 13.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
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 SPK.AX Stacks Against Its Sector Peers
| Metric | SPK.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.98 | 23.54 | Better (Cheaper) |
| ROE | 20.11% | 1056.00% | Weak |
| Net Margin | 8.08% | -61946.00% (disorted) | Weak |
| Debt/Equity | 2.25 | 1.40 | Weak (High Leverage) |
| Current Ratio | 1.18 | 1.62 | Neutral |
| ROA | 6.60% | -39340.00% (disorted) | Weak |
SPK.AX 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