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New Zealand (NZX) Financials Sector Analysis

UpdatedOct 30, 2023
DataAggregated Company Financials
Companies9
  • 7D-2.0%
  • 3M-4.6%
  • 1Y4.5%
  • YTD-1.4%

Over the last 7 days, the Financials industry has dropped 2.0%, driven by a pullback from Heartland Group Holdings of 4.8%. Over the past 12 months, the industry was up 4.5%. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

Has the New Zealand Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 30 Oct 2023NZ$3.9bNZ$1.3bNZ$191.3m18x20.2x3.1x
Wed, 27 Sep 2023NZ$4.1bNZ$1.3bNZ$191.3m19.6x21.4x3.3x
Fri, 25 Aug 2023NZ$4.1bNZ$1.3bNZ$192.1m21x21.4x3.3x
Sun, 23 Jul 2023NZ$4.0bNZ$1.2bNZ$168.5m27.8x23.7x3.3x
Tue, 20 Jun 2023NZ$3.8bNZ$1.2bNZ$168.5m25.5x22.8x3.1x
Thu, 18 May 2023NZ$3.7bNZ$1.2bNZ$177.7m13.2x20.7x3.1x
Sat, 15 Apr 2023NZ$3.7bNZ$1.2bNZ$177.4m13.8x21x3.2x
Mon, 13 Mar 2023NZ$1.9bNZ$772.8mNZ$135.0m12.7x14.1x2.5x
Wed, 08 Feb 2023NZ$2.0bNZ$758.5mNZ$134.4m13.4x14.7x2.6x
Fri, 06 Jan 2023NZ$2.0bNZ$758.5mNZ$134.4m13.6x14.8x2.6x
Sun, 04 Dec 2022NZ$2.0bNZ$758.5mNZ$134.4m13.6x14.8x2.6x
Tue, 01 Nov 2022NZ$1.9bNZ$739.3mNZ$127.8m12.7x14.7x2.5x
Thu, 29 Sep 2022NZ$1.8bNZ$739.3mNZ$127.8m12x14.2x2.5x
Sat, 27 Aug 2022NZ$1.8bNZ$739.3mNZ$127.8m11.6x14.1x2.4x
Mon, 25 Jul 2022NZ$2.2bNZ$769.4mNZ$169.4m17x12.7x2.8x
Wed, 22 Jun 2022NZ$2.1bNZ$769.3mNZ$169.0m15.6x12.2x2.7x
Fri, 20 May 2022NZ$2.2bNZ$759.1mNZ$177.7m14.2x12.6x3x
Sun, 17 Apr 2022NZ$2.4bNZ$759.1mNZ$177.7m14.6x13.2x3.1x
Tue, 15 Mar 2022NZ$2.2bNZ$759.1mNZ$177.7m14.1x12.2x2.9x
Thu, 10 Feb 2022NZ$2.5bNZ$778.6mNZ$197.6m17.4x12.8x3.3x
Sat, 08 Jan 2022NZ$2.7bNZ$778.6mNZ$197.6mn/a13.5x3.4x
Mon, 06 Dec 2021NZ$2.5bNZ$778.6mNZ$197.6m15.8x12.7x3.2x
Wed, 03 Nov 2021NZ$2.5bNZ$764.9mNZ$187.6mn/a13.3x3.3x
Fri, 01 Oct 2021NZ$2.5bNZ$764.9mNZ$187.6m22.7x13.2x3.2x
Sun, 29 Aug 2021NZ$2.5bNZ$764.9mNZ$187.6m23.4x13.2x3.2x
Mon, 05 Jul 2021NZ$2.4bNZ$764.9mNZ$187.6m24.3x13x3.2x
Thu, 08 Apr 2021NZ$2.3bNZ$736.6mNZ$166.3m23.6x13.6x3.1x
Sun, 10 Jan 2021NZ$2.1bNZ$703.2mNZ$146.1m20.7x14.4x3x
Price to Earnings Ratio

12.6x


Total Market Cap: NZ$1.7bTotal Earnings: NZ$137.4mTotal Revenue: NZ$682.8mTotal Market Cap vs Earnings and Revenue0%0%0%
New Zealand Financials Sector Price to Earnings3Y Average 15.3x202120222023
Current Industry PE
  • Investors are optimistic on the New Zealander Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 20.2x which is higher than its 3-year average PE of 15.3x.
  • The industry is trading close to its 3-year average PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 12% per year over the last three years.
  • Revenues for these companies have grown 23% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the New Zealand Financials sector?

NZ Market-2.02%
Financials-2.00%
Insurance1.56%
Mortgage Finance0%
Mortgage REITs0%
Diversified Financial-0.76%
Consumer Finance-1.25%
Capital Markets-2.26%
Banks-4.85%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry, which is trading close to its 3-year average PE ratio of 42.7x.
    • Analysts are expecting annual earnings growth of 19.3%, which is lower than the prior year's growth of 68.4% per year.
  • Investors are most pessimistic about the Consumer Finance industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 7.1x.
Forecasted Growth
  • Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 71% over the next 5 years.
  • This is better than its past earnings decline of 18% per year.
  • In contrast, the Capital Markets industry is expected to see its earnings grow by 7.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
TWR TowerNZ$0.651.6%
+NZ$3.8m		-0.8%PE31.5x
MLN Marlin GlobalNZ$0.921.1%
+NZ$2.1m		-8.0%PE8.1x
GEN General CapitalNZ$0.0776.9%
+NZ$1.8m		42.6%PE12.4x
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