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Spark New Zealand Limited logo

Spark New Zealand Limited

SPKKY
45
Telecommunications Services · Communication Services
Price
$5.54
+0.17 (+3.17%)
Market Cap
$2.09B
Exchange
Other OTC
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 28, 2026 · filings through Dec 31, 2025

Operating from its base in Auckland, New Zealand, Spark New Zealand Limited, along with its various subsidiaries, stands as a leading provider of telecommunications and digital solutions across the nation. Its comprehensive portfolio encompasses a wide array of telecommunications, information technology, media, and digital offerings. These include mobile connectivity, traditional voice services, high-speed broadband, internet-based sports streaming, and sophisticated cloud and cybersecurity solutions. Beyond consumer services, Spark caters to businesses with services such as IT infrastructure management, specialized business cloud solutions, outsourced telecommunications, software development, big data analytics, data center facilities, and international wholesale telecommunications. The company's offerings also extend to local, national, and international voice and data connections, financial services, group insurance policies, and mobile device repair. Additionally, Spark engages in the retail sale of telecommunications products and services, alongside equipment distribution. Its diverse clientele spans individual consumers, households, small and medium-sized enterprises (SMEs), government agencies, and large corporate entities. Notably, the entity formerly operated under the name Telecom Corporation of New Zealand Limited, before undergoing a rebranding to Spark New Zealand Limited in August 2014. The company was established in 1987 and maintains its headquarters in Auckland, New Zealand.

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: 369.4M (2021) → 369.4M (2025)

Score breakdown

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Quality

Gross Margin
13.9%
Thin — 13.9% gross margin
Operating Margin
6.3%
Modest — 6.3% operating margin
ROCE
3.3%
Weak — 3.3% return on capital

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

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Growth

Sales YoY
-5.9%
Shrinking sales (-5.9% YoY)
EPS YoY
+43.9%
Earnings growing fast (43.9% YoY)

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

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
348%
Turns 348% 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.

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Stability

Debt / Equity
1.71
Elevated debt (1.71)
Interest Cover
2.67x
Tight — interest eats into profit (2.7x)

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

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Valuation

P/E Ratio (TTM)
7.2x
Attractive valuation — P/E 7.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.1
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
10.66%
Healthy income — 10.66% yield

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

Dividend Growth
-17.1%
Dividend cut (-17.1% YoY) — warning sign

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