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Chorus Ltd CNU

Morningstar Rating
NZD 7.28 +0.03 (0.34%)
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Company Report

Chorus Continues to Deliver Steady Performance

Chorus was demerged from Telecom New Zealand in 2011 and is the largest fixed-line access telecommunications infrastructure (copper and fiber) entity in New Zealand. It owns and operates a national fixed-line network that includes local phone exchanges and copper and fiber cables. Chorus partnered with the government in rolling out fiber to the premises though the ultra-fast broadband, or UFB, initiative. As a near-monopoly operator, Chorus' wholesale prices are regulated by the Commerce Commission, or ComCom.

Price vs Fair Value

CNU is trading at a 7% discount.
Price
NZD 7.27
Fair Value
NZD 2.50
Uncertainty
Medium
1-Star Price
NZD 83.18
5-Star Price
NZD 3.15
Economic Moat
Cczzy
Capital Allocation
Zxrnlsq

Bulls Say, Bears Say

Bulls

Rising demand for data will underpin take-up of fiber-based broadband services.

Bears

Chorus lacks pricing power, as the price it can charge access seekers for its network and infrastructure is determined by the set regulatory framework.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
NZD 7.25
Day Range
NZD 7.237.28
52-Week Range
NZD 7.048.73
Bid/Ask
NZD 7.23 / NZD 7.30
Market Cap
NZD 3.16 Bil
Volume/Avg
175,688 / 832,331

Key Statistics

Price/Earnings (Normalized)
4.86
Price/Sales
5.06
Dividend Yield (Trailing)
6.12%
Dividend Yield (Forward)
5.22%
Total Yield
8.59%

Company Profile

Chorus is New Zealand’s biggest fixed-line communications infrastructure entity, and was demerged in 2011 from Telecom New Zealand. Chorus offers wholesale access to its nationwide copper and fiber network to retail service providers. It also provides backhaul services to retail service providers and connects mobile phone towers. At the end of 2022, Chorus completed the government's rollout of ultra-fast broadband, or UFB, a fiber-to-the-premises network to cover 87% of the population in New Zealand.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Mid Core
Total Number of Employees
799

Competitors

Valuation

Metric
CNU
TPG
SPK
Price/Earnings (Normalized)
4.8614.0121.99
Price/Book Value
3.430.715.13
Price/Sales
5.061.492.64
Price/Cash Flow
9.536.8711.88
Price/Earnings
CNU
TPG
SPK

Financial Strength

Metric
CNU
TPG
SPK
Quick Ratio
0.560.630.90
Current Ratio
0.560.751.00
Interest Coverage
0.121.175.08
Quick Ratio
CNU
TPG
SPK

Profitability

Metric
CNU
TPG
SPK
Return on Assets (Normalized)
0.35%3.00%0.13%
Return on Equity (Normalized)
2.16%4.96%0.31%
Return on Invested Capital (Normalized)
0.55%4.81%−0.02%
Return on Assets
CNU
TPG
SPK
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