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Undervalued
Morningstar Quantitative Rating as of 5 NOV 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 1.94 Fair value 2.38 One-star price 2.90
Morningstar Quantitative Rating as of 5 NOV 2026.
Morningstar Quantitative Rating as of 5 NOV 2026. The slider runs from the five-star price (1.94) to the one-star price (2.90).
| Ratios |
|---|
| Currency (Price/reporting): AUD/NZD |
| Exchange Rate: 0.8068 |
| Price - closing or last bid | 1.69 |
| Price - 12 month high | 2.08 |
| Price - 12 month low | 1.44 |
| Pricing date | 5 NOV 2026 |
| Volume - avg. trading volume for the last ten days | 1.33 |
| Market capitalization | 3,194.18 |
| 12 Month High price date | 6 NOV 2025 |
| 12 Month Low price date | 24 JUN 2026 |
| Volume - avg. trading volume for the last 3 months | 1.62 |
| Price - 1 Day % Change | 0.30% |
| Price - 13 week price percent change | 2.74% |
| Price - 26 week price percent change | -2.32% |
| Price - 5 Day % Change | 6.98% |
| Price - 52 week price percent change | -18.60% |
| Price - YTD price percent change | -13.59% |
| Price % Change Month To Date | 6.98% |
| EPS excluding extraordinary items - most recent fiscal year | 0.257 |
| EPS excluding extraordinary items - trailing 12 month | 0.257 |
| EPS Normalized - most recent fiscal year | 0.119 |
| Revenue/share - most recent fiscal year | 1.924 |
| Revenue/share - trailing 12 month | 1.924 |
| Book value per share - most recent fiscal year | 0.871 |
| Book value per share - most recent half-year | 0.871 |
| Book value (tangible) per share - most recent fiscal year | 0.455 |
| Book value (tangible) per share - most recent half-year | 0.455 |
| Cash per share - most recent fiscal year | 0.083 |
| Cash per share - most recent half-year | 0.083 |
| Cash Flow per share - most recent fiscal year | 0.552 |
| Cash Flow per share - trailing 12 month | 0.552 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 0.122 |
| EBITD per share - trailing 12 month | 0.619 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 0.257 |
| EPS Basic excluding extraordinary items - trailing 12 month | 0.257 |
| EPS including extraordinary items - most recent fiscal year | 0.264 |
| EPS including extraordinary items - trailing 12 month | 0.264 |
| Free Cash Flow per share - trailing 12 month | 0.354 |
| P/E excluding extraordinary items, most recent fiscal year | 7.60 |
| P/E Normalized, most recent fiscal year | 16.41 |
| Price to sales - most recent fiscal year | 1.01 |
| Price to Tangible Book - most fiscal year | 4.51 |
| Price to Free Cash Flow per Share - most recent fiscal year | 5.52 |
| Price to Cash Flow per share - trailing 12 month | 3.53 |
| Price to Book - most recent fiscal year | 2.36 |
| P/E excluding extraordinary items high, trailing 12 months | 16.28 |
| P/E excluding extraordinary items low, trailing 12 months | 6.79 |
| Net Debt, LFI | 2,233.00 |
| Net Debt, LFY | 1,744.00 |
| Dividend Yield - 5 Year Average | 6.89% |
| Dividend Yield - indicated annual dividend divided by closing price | 7.40% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 7.22% |
| Free Cash Flow - most recent fiscal year | 669.00 |
| LT debt/equity - most recent fiscal year | 98.91% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 115.42% |
| LT debt/equity - most recent half-year | 126.96% |
| Total debt/total equity - most recent half-year | 171.20% |
| Free Cash Flow - trailing 12 month | 669.00 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 3,637.00 |
| Revenue - trailing 12 month | 3,637.00 |
| EBITD - most recent fiscal year | 1,170.00 |
| EBITD - trailing 12 month | 1,170.00 |
| Earnings before taxes - most recent fiscal year | 574.00 |
| Earnings before taxes - trailing 12 month | 574.00 |
| Net Income available to common - most recent fiscal year | 499.00 |
| Net Income available to common - trailing 12 months | 499.00 |
| Earnings before taxes Normalized - most recent fiscal year | 277.00 |
| Net Income Available to Common, Normalized - most recent fiscal year | 225.00 |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 0.12 |
| Net Profit Margin % - 1st historical fiscal year | 13.36% |
| Net Profit Margin % - trailing 12 month | 13.36% |
| Operating margin - 1st historical fiscal year | 10.92% |
| Operating margin - trailing 12 month | 10.92% |
| Pretax margin - trailing 12 month | 15.78% |
| Pretax margin - 1st historical fiscal year | 15.78% |
| Operating Margin - 5 year average | 13.66% |
| Pretax Margin - 5 year average | 16.90% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 10.16% |
| Free Operating Cash Flow/Revenue, TTM | 18.39% |
| Net Profit Margin - 5 year average | 13.82% |
| Return on average assets - most recent fiscal year | 11.04% |
| Return on average assets - trailing 12 month | 11.04% |
| Return on average equity - most recent fiscal year | 32.25% |
| Return on average equity - trailing 12 month | 32.25% |
| Return on average assets - 5 year average | 11.36% |
| Return on average equity - 5 year average | 30.44% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | 0.40% |
| EPS growth rate, 5 year | 4.98% |
| Growth rate% - dividend, 3 year | -9.79% |
| Revenue/share (5 yr growth) | -0.01% |
| Growth rate% - Revenue, 3 year | -2.09% |
| Growth rate% - EPS, 3 year | -24.19% |
| Book value per share growth rate, 5 year | 1.60% |
| Capital Spending growth rate, 5 year | -0.58% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | 1.80% |
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 |
SPK has tumbled 40% from its 2024 high following a 4% downgrade in May and an FY24 miss in August. Last month, revenue missed analyst estimates by 1.7%, and Earnings per share (EPS) also missed analyst estimates by 24%. Our first thought is that downgrades/misses often happen in threes, so there's no hurry to catch this falling knife just yet. Interestingly, the NZ FY24 reporting season was one of two halves.
The old Telecom NZ, SPK delivered a disappointing 1H23 result last week but the outlook is expected to improv, the issue for us is the stock has run hard and if it doesn’t deliver on these expectations we could see SPK at $4 in rapid fashion. However, the company has announced a NZ$350mn on-market buyback starting April 5thwhich should prove supportive of the stock as is its forecast 5.15% yield. • We like the SPK business but the risk/reward is not exciting around $4.60.
SPK, formerly Telecom Corp. of NZ, has performed strongly through 2022 advancing +8.8% in a tough environment but it’s not particularly cheap above $5 forcing us into a neutral corner. We like SPK on its improving outlook for mobile revenue and prospect of higher dividend growth – a few months ago they reported a strong FY22 EBITDA of $1.150bn which was in line with guidance.
SPK which is formerly Telecom Corp. of NZ has been the standout sector performer over recent years but it’s not particularly cheap above $5 however the trends friend especially in a market as nervous as today i.e. SPK is performing strongly and is in a relatively recession-proof industry. We like SPK on its improving outlook for mobile revenue and prospect of higher dividend growth - they recently reported a strong FY22 EBITDA of $1.150bn which was in line with guidance.
SPX has been the standout sector performer over recent years but it feels fully priced near the $4.50 area. The company has significant infrastructure spend planned for 2022 including funds to accelerate the 5G rollout. We really like what the business has achieved over recent years but it’s a touch harder to see major growth moving forward e.g. the companies...
MM is neutral towards SPK around $3
MM likes SPK into pullbacks
MM is neutral SPK around $4.60
MM is neutral SPK around $5
MM is bullish SPK targeting fresh 2022 highs
MM likes SPK into pullbacks
Spark is one of only three integrated telecommunications operators in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services witha mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision market. Spark supplements its core telecommunications operations and related infrastructure with IT productsand services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book valueand to which Spark has no funding obligations.
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