Investors Aren't Buying Spark New Zealand Limited's (NZSE:SPK) Earnings

Simply Wall St.11-26

When close to half the companies in New Zealand have price-to-earnings ratios (or "P/E's") above 20x, you may consider Spark New Zealand Limited (NZSE:SPK) as an attractive investment with its 17.4x P...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2486807050?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9022000-choice2-main-header/1585186701264","is_english":true,"pubTime":"2024-11-26 02:09","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2486807050","market":"sg","top_or_hot":-1,"title":"Investors Aren't Buying Spark New Zealand Limited's (NZSE:SPK) Earnings","media":"Simply Wall St.","content":"<div>\n<p>When close to half the companies in New Zealand have price-to-earnings ratios (or \"P/E's\") above 20x, you may consider Spark New Zealand Limited (NZSE:SPK) as an attractive investment with its 17.4x P...</p>\n\n<a href=\"https://simplywall.st/stocks/nz/telecom/nzx-spk/spark-new-zealand-shares/news/investors-arent-buying-spark-new-zealand-limiteds-nzsespk-ea\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investors Aren't Buying Spark New Zealand Limited's (NZSE:SPK) Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvestors Aren't Buying Spark New Zealand Limited's (NZSE:SPK) Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-26 02:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/nz/telecom/nzx-spk/spark-new-zealand-shares/news/investors-arent-buying-spark-new-zealand-limiteds-nzsespk-ea><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When close to half the companies in New Zealand have price-to-earnings ratios (or \"P/E's\") above 20x, you may consider Spark New Zealand Limited (NZSE:SPK) as an attractive investment with its 17.4x P...</p>\n\n<a href=\"https://simplywall.st/stocks/nz/telecom/nzx-spk/spark-new-zealand-shares/news/investors-arent-buying-spark-new-zealand-limiteds-nzsespk-ea\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NZ50G.NZ","symbol_name":"S&P/NZX 50","start_time":0,"source_url":"https://simplywall.st/stocks/nz/telecom/nzx-spk/spark-new-zealand-shares/news/investors-arent-buying-spark-new-zealand-limiteds-nzsespk-ea","article_id":"2486807050","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9022000-choice2-main-header/1585186701264"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2486807050","pubTimestamp":1732558162,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in New Zealand have price-to-earnings ratios (or \"P/E's\") above 20x, you may consider...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NZ50G.NZ":"S&P/NZX 50","SPK":"SPK Acquisition Corp","T10G.NZ":"S&P/NZX 10","NZ20C.NZ":"S&P/NZX 20","ISBC":"投资者银行"},"translate_title":"投资者并不购买Spark New Zealand Limited(NZSE：SPK)的收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISBC":1,"NZ20C.NZ":1,"NZ50G.NZ":1,"SPK":1,"T10G.NZ":1},"content_text":"When close to half the companies in New Zealand have price-to-earnings ratios (or \"P/E's\") above 20x, you may consider Spark New Zealand Limited (NZSE:SPK) as an attractive investment with its 17.4x P/E ratio.  Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.     With earnings that are retreating more than the market's of late, Spark New Zealand has been very sluggish.   The P/E is probably low because investors think this poor earnings performance isn't going to improve at all.  If you still like the company, you'd want its earnings trajectory to turn around before making any decisions.  Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.      Check out our latest analysis for Spark New Zealand NZSE:SPK Price to Earnings Ratio vs Industry November 25th 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Spark New Zealand.  Does Growth Match The Low P/E?   Spark New Zealand's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.   If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 71%.   The last three years don't look nice either as the company has shrunk EPS by 17% in aggregate.  Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.     Shifting to the future, estimates from the eight analysts covering the company suggest earnings should grow by 4.0% per year over the next three years.  With the market predicted to deliver 18% growth  per annum, the company is positioned for a weaker earnings result.  With this information, we can see why Spark New Zealand is trading at a P/E lower than the market.  Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.    The Key Takeaway  We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.  We've established that Spark New Zealand maintains its low P/E on the weakness of its forecast growth being lower than the wider market, as expected.  Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises.  It's hard to see the share price rising strongly in the near future under these circumstances.      It is also worth noting that we have found 3 warning signs for Spark New Zealand (1 makes us a bit uncomfortable!) that you need to take into consideration.   If these risks are making you reconsider your opinion on Spark New Zealand, explore our interactive list of high quality stocks to get an idea of what else is out there. New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2486807050"}