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Undervalued
Morningstar Quantitative Rating as of 12 NOV 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 6.45 Fair value 7.32 One-star price 8.29
Morningstar Quantitative Rating as of 12 NOV 2026.
Morningstar Quantitative Rating as of 12 NOV 2026. The slider runs from the five-star price (6.45) to the one-star price (8.29).
| Ratios |
|---|
| Currency (Price/reporting): AUD/NZD |
| Exchange Rate: 0.8153 |
| Price - closing or last bid | 6.78 |
| Price - 12 month high | 8.49 |
| Price - 12 month low | 6.32 |
| Pricing date | 12 NOV 2026 |
| Volume - avg. trading volume for the last ten days | 0.49 |
| Market capitalization | 2,941.76 |
| 12 Month High price date | 12 MAY 2026 |
| 12 Month Low price date | 28 OCT 2026 |
| Volume - avg. trading volume for the last 3 months | 0.57 |
| Price - 1 Day % Change | 0.44% |
| Price - 13 week price percent change | -14.82% |
| Price - 26 week price percent change | -18.21% |
| Price - 5 Day % Change | 1.65% |
| Price - 52 week price percent change | -17.32% |
| Price - YTD price percent change | -16.61% |
| Price % Change Month To Date | 1.50% |
| EPS excluding extraordinary items - most recent fiscal year | 0.085 |
| EPS excluding extraordinary items - trailing 12 month | 0.085 |
| EPS Normalized - most recent fiscal year | 0.085 |
| Revenue/share - most recent fiscal year | 2.371 |
| Revenue/share - trailing 12 month | 2.371 |
| Book value per share - most recent fiscal year | 2.374 |
| Book value per share - most recent half-year | 2.374 |
| Book value (tangible) per share - most recent fiscal year | 1.885 |
| Book value (tangible) per share - most recent half-year | 1.885 |
| Cash per share - most recent fiscal year | 0.459 |
| Cash per share - most recent half-year | 0.459 |
| Cash Flow per share - most recent fiscal year | 1.334 |
| Cash Flow per share - trailing 12 month | 1.334 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 0.419 |
| EBITD per share - trailing 12 month | 1.168 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 0.085 |
| EPS Basic excluding extraordinary items - trailing 12 month | 0.085 |
| EPS including extraordinary items - most recent fiscal year | 0.085 |
| EPS including extraordinary items - trailing 12 month | 0.085 |
| Free Cash Flow per share - trailing 12 month | 0.472 |
| P/E excluding extraordinary items, most recent fiscal year | 92.10 |
| P/E Normalized, most recent fiscal year | 92.10 |
| Price to sales - most recent fiscal year | 3.31 |
| Price to Tangible Book - most fiscal year | 4.38 |
| Price to Free Cash Flow per Share - most recent fiscal year | 16.63 |
| Price to Cash Flow per share - trailing 12 month | 5.89 |
| Price to Book - most recent fiscal year | 3.48 |
| P/E excluding extraordinary items high, trailing 12 months | 1,240.37 |
| P/E excluding extraordinary items low, trailing 12 months | 85.85 |
| Net Debt, LFI | 3,332.00 |
| Net Debt, LFY | 3,264.00 |
| Dividend Yield - 5 Year Average | 4.62% |
| Dividend Yield - indicated annual dividend divided by closing price | 6.30% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 6.19% |
| Free Cash Flow - most recent fiscal year | 205.00 |
| LT debt/equity - most recent fiscal year | 324.17% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 336.21% |
| LT debt/equity - most recent half-year | 782.79% |
| Total debt/total equity - most recent half-year | 812.33% |
| Free Cash Flow - trailing 12 month | 205.00 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 1,029.00 |
| Revenue - trailing 12 month | 1,029.00 |
| EBITD - most recent fiscal year | 507.00 |
| EBITD - trailing 12 month | 507.00 |
| Earnings before taxes - most recent fiscal year | 69.00 |
| Earnings before taxes - trailing 12 month | 69.00 |
| Net Income available to common - most recent fiscal year | 37.00 |
| Net Income available to common - trailing 12 months | 37.00 |
| Earnings before taxes Normalized - most recent fiscal year | 69.00 |
| Net Income Available to Common, Normalized - most recent fiscal year | — |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 0.09 |
| Net Profit Margin % - 1st historical fiscal year | 3.60% |
| Net Profit Margin % - trailing 12 month | 3.60% |
| Operating margin - 1st historical fiscal year | 27.89% |
| Operating margin - trailing 12 month | 27.89% |
| Pretax margin - trailing 12 month | 6.71% |
| Pretax margin - 1st historical fiscal year | 6.71% |
| Operating Margin - 5 year average | 24.60% |
| Pretax Margin - 5 year average | 5.00% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 8.92% |
| Free Operating Cash Flow/Revenue, TTM | 19.92% |
| Net Profit Margin - 5 year average | 2.46% |
| Return on average assets - most recent fiscal year | 0.58% |
| Return on average assets - trailing 12 month | 0.58% |
| Return on average equity - most recent fiscal year | 5.48% |
| Return on average equity - trailing 12 month | 5.48% |
| Return on average assets - 5 year average | 0.41% |
| Return on average equity - 5 year average | 2.79% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | 1.67% |
| EPS growth rate, 5 year | 1.29% |
| Growth rate% - dividend, 3 year | 14.34% |
| Revenue/share (5 yr growth) | 3.74% |
| Growth rate% - Revenue, 3 year | 1.64% |
| Growth rate% - EPS, 3 year | 23.76% |
| Book value per share growth rate, 5 year | 2.28% |
| Capital Spending growth rate, 5 year | -10.38% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 0.48% |
Financial forecast (NZD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | ||||||
| Estimate breakdown | ||||||||
Financials (NZD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
Chorus is the largest fixed line wholesale broadband provider in New Zealand. They own and operate the country’s copper and fiber infrastructure, including the Ultra-Fast Broadband (UFB) network. They then sell access on a wholesale basis to retail providers like Spark (SPK) and Vodafone.
Wellington-based telecommunications infrastructure company CNU rallied strongly after its FY24 results were released in August. The company reported steady progress with its fibre connection rollout and an 8% increase in network traffic over the financial year. We see better value elsewhere from its ASX-related alternatives.
CNU is trading at est. EV/RAB of ~1.2x which is like a normal regulated utility, moving forward we believe price increases will become harder post 2023 based on relative affordability, and emerging 5G wireless broadband competition (FWA) could increase fibre churn like it has in US hence with its buy back >90% complete we aren’t fans of the current outlook for CNU.
A 2nd NZ player in the telco space is fixed line infrastructure business CNU which delivered a solid result last week although increased capex rattled the shares. We remain cautious and believe the prospect of more intense 5G wireless broadband competition and consumer affordability will make it harder for CNU moving forward and the stock is simply rich in our opinion. • We see no reason to buy CNU above $7.
NZ based fixed line infrastructure business does on the surface fit a defensive-orientated portfolio, especially as the shares are forecast to yield over 5% over the next 12 months. However the stock has struggled to keep pace over the last few years and at this stage, we see no catalysts on the horizon to reignite buyers’ interest.
NZ based fixed line infrastructure business may have crossed some investors’ minds as they scanned the main board for defensive orientated positions, especially as the shares are forecast to yield in excess of 4% over the next 12-months. The stock keeps promising and then failing to deliver, MM believes this is a time to keep it simple, we prefer Telstra (TLS) and TPG Telecom (TPL) in the Telco space.
CNU is a NZ based fixed line communications infrastructure business which has a projected 12-month yield of 4.5% but investors need to be conscious that this can be a volatile beast at times. Unfortunately the business has experienced a drop in revenue due to the worrisome combination of weaker market conditions plus increased competition from other fibre and wireless network businesses. The $6-7 area feels about fair value but it’s not exciting to MM at this stage of its evolution.
NZ based fixed line infrastructure business CNU has struggled over the last 12-months, the stocks 36% decline now has it forecast to yield 4.8% which is clearly attractive but further capital losses should not be discounted. The company has experienced a drop in revenue due to weaker market conditions plus increased competition from other fibre and wireless networks – not a great...
NZ based telco CNU has struggled after being the sectors shining light into late 2020, after announcing a 2.1% decline in revenue back in February it’s been one-way traffic even after adding more than 60,000 connections - new regulations being introduced for fibre service providers is not helping. Also NZ is rolling out its equivalent to the NBN which...
MM is bullish towards CNU around $8
MM is neutral towards CNU, around $8
MM is neutral CNU
MM in neutral CNU around $7.40
MM is neutral toward CNU
MM is neutral CNU
MM is neutral CNU
MM is neutral CNU
MM likes CNU into weakness under $6
Chorus is New Zealand's largest fixed-line communications infrastructure entity. It completed the government's rollout of ultra-fast broadband, a fiber-to-the-premises network covering 87% of New Zealand's population in December 2022. Chorus provides wholesale access to the country's only nationwide copper and fiber infrastructure network. This enables more than 100 retail service providers to connect consumers and businesses to the internet and other telecommunications products. Chorus also provides backhaul services to retail service providers and connects mobile telephony towers.
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