Spark New Zealand Limited

SPK.NZ

Telecommunications Services · Communication Services

Price

NZ$1.94

-0.02 (-1.02%)

Market Cap

NZ$3.67B

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Dec 31, 2025

Spark New Zealand is the country's largest telecommunications company. It provides mobile phone plans, home broadband internet, and cloud and IT services to everyday consumers, small businesses, and large corporations across New Zealand. The company also owns the Spark Sport streaming platform and offers digital health and cybersecurity services.

Spark earns money by charging customers monthly fees for mobile and broadband subscriptions, and by selling IT and cloud services to business clients under longer-term contracts. It operates almost entirely within New Zealand, making it a domestically focused business with a large, established customer base and significant network infrastructure that is difficult for rivals to replicate. However, the company faces pressure from intense competition in mobile and broadband pricing, and its relatively low gross margin of around 18% leaves limited room for error. The key growth opportunity lies in expanding its cloud and IT services division, which tends to carry better margins than traditional telecom products.

Winston Score History

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.85B (2021) → 1.85B (2025)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

13.9%

Thin — 13.9% gross margin

Operating Margin

6.3%

Modest — 6.3% operating margin

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-5.9%

Shrinking sales (-5.9% YoY)

EPS YoY

+44.2%

Earnings growing fast (+44.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

346%

Turns 346% of profit into real cash

FCF Margin

16.2%

Converts sales into free cash efficiently (16.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

1.71

Elevated debt (1.71)

Interest Cover

2.68x

Tight — interest eats into profit (2.7x)

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

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

12.6x

Attractive valuation — P/E 12.6

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

P/E vs Forward

-0.1

SLOWING

Earnings expected to fall — forward P/E higher than today

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

10.76%

Healthy income — 10.76% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

-13.8%

Dividend cut (-13.8% YoY) — warning sign

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial