Air New Zealand Limited

AIR.NZ

Airlines, Airports & Air Services · Industrials

Price

NZ$0.41

-0.01 (-1.19%)

Market Cap

NZ$1.34B

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+85.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.83B (2021) → 3.41B (2025)

Air New Zealand is the national airline of New Zealand. It flies passengers and cargo to destinations across New Zealand, Australia, the Pacific Islands, Asia, and North America. The New Zealand government owns roughly 51% of the company, making it a majority state-owned enterprise.

The airline earns money by selling passenger tickets, charging for cargo, and offering loyalty program services through its Airpoints program. It operates in a relatively protected home market because New Zealand's remote geography limits competition on many routes, giving it a natural advantage on domestic and trans-Tasman flying. However, the airline faces real risks from rising fuel costs, which are its largest expense, and from any slowdown in international tourism to New Zealand, since visitor traffic is a major driver of long-haul revenue growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+20.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$41M/ year

↑ Rising (+5% vs prior year)

0.6% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

50.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$1.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Air New Zealand Limited is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

22.7%

Thin — 22.7% gross margin

Operating Margin

11.9%

Modest — 11.9% operating margin

ROCE

12.3%

Good — 12.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+21.3%

Fast-growing sales (21.3% YoY)

EPS YoY

-54.3%

Earnings shrinking (-54.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

1507%

Turns 1507% of profit into real cash

FCF Margin

-1.9%

Burning cash (-1.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.66

Moderate — manageable debt (0.66)

Interest Cover

1.93x

Dangerous — barely covers interest (1.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

13.8x

Attractive valuation — P/E 13.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+1.4

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

5.62%

Healthy income — 5.62% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

-85.0%

Dividend cut (-85.0% YoY) — warning sign

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