Tower Limited

TWR.NZ

Insurance - Property & Casualty · Financial Services

Price

NZ$1.87

-0.01 (-0.27%)

Market Cap

NZ$642.2M

Exchange

New Zealand Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 10, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

−13.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 421.6M (2021) → 363.8M (2025)

Tower Limited is a New Zealand-based insurance company that sells home, car, contents, and business insurance to everyday customers. It operates mainly in New Zealand and the Pacific Islands, serving individual households and small businesses. Tower is one of the older and more recognized insurance brands in New Zealand, competing against larger players like IAG and Suncorp.

Tower makes money by collecting premiums from policyholders and investing those funds, paying out claims when customers suffer losses like car accidents or storm damage. The company has been investing in digital tools and data-driven pricing to better assess risk and attract customers online, which is a key part of its strategy. However, New Zealand's exposure to natural disasters — especially earthquakes and severe weather events — creates significant claims volatility, and Tower's current negative operating margin shows that claims costs and expenses have been outpacing premium income, making profitability a central challenge for the business.

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

Revenue declining

EPS Growth

-55.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

4.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$422M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Revenue declining

Tower Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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

100.0%

Premium pricing power — 100.0% gross margin

Operating Margin

10.8%

Modest — 10.8% operating margin

ROCE

10.1%

Below par — 10.1% 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

+0.3%

Nearly flat sales (+0.3% YoY)

EPS YoY

-36.2%

Earnings shrinking (-36.2% YoY)

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

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

210%

Turns 210% of profit into real cash

FCF Margin

19.4%

Converts sales into free cash efficiently (19.4%)

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

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

11.3x

Attractive valuation — P/E 11.3

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

P/E vs Forward

+2.5

GROWING

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

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Dividends

Dividend Yield

11.50%

Healthy income — 11.50% yield

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

Dividend Growth

+162.8%

Dividend growing fast (162.8% YoY)

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