Air New Zealand Ltd
NZX:AIR

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Air New Zealand Ltd
NZX:AIR
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Price: 0.535 NZD 0.94% Market Closed
Market Cap: 1.8B NZD
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Intrinsic Value

The intrinsic value of one AIR stock under the Base Case scenario is 0.879 NZD. Compared to the current market price of 0.535 NZD, Air New Zealand Ltd is Undervalued by 39%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

AIR Intrinsic Value
0.879 NZD
Undervaluation 39%
Intrinsic Value
Price
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Valuation Backtest
Air New Zealand Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
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Balance Sheet Decomposition
Air New Zealand Ltd

Current Assets 2.4B
Cash & Short-Term Investments 1.3B
Receivables 892m
Other Current Assets 269m
Non-Current Assets 6.1B
Long-Term Investments 205m
PP&E 5.1B
Intangibles 188m
Other Non-Current Assets 587m
Current Liabilities 3.6B
Accounts Payable 849m
Other Current Liabilities 2.8B
Non-Current Liabilities 2.9B
Long-Term Debt 2.3B
Other Non-Current Liabilities 611m
Efficiency

Earnings Waterfall
Air New Zealand Ltd

Revenue
6.8B NZD
Cost of Revenue
-3.4B NZD
Gross Profit
3.4B NZD
Operating Expenses
-3.1B NZD
Operating Income
228m NZD
Other Expenses
-82m NZD
Net Income
146m NZD

Free Cash Flow Analysis
Air New Zealand Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Since pre-COVID, the company's yield increased by 25-35%. However, due to growing competition, further significant yield improvements seem unlikely. As for costs, 2024 is projected to exhibit a more moderate operating environment with additional pressures such as increased aeronautical charges and wage inflation. The EBITDA margin remains a key focus for assessing the business's health. For the first half of the year, yields are expected to be relatively firm while costs grow. Unit costs excluding fuel are anticipated to rise between 5% and 6%, with the company seeking productivity improvements to mitigate some increases. Net debt-to-EBITDA is expected to return to the midpoint of the targeted range within the next 18-24 months.

What is Earnings Call?
Fundamental Scores

AIR Profitability Score
Profitability Due Diligence

Air New Zealand Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
ROE is Increasing
Positive Free Cash Flow
49/100
Profitability
Score

Air New Zealand Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

AIR Solvency Score
Solvency Due Diligence

Air New Zealand Ltd's solvency score is 28/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Positive Net Debt
Average D/E
Short-Term Solvency
28/100
Solvency
Score

Air New Zealand Ltd's solvency score is 28/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

AIR Price Targets Summary
Air New Zealand Ltd

Wall Street analysts forecast AIR stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for AIR is 0.579 NZD with a low forecast of 0.485 NZD and a high forecast of 0.725 NZD.

Lowest
Price Target
0.485 NZD
9% Downside
Average
Price Target
0.579 NZD
8% Upside
Highest
Price Target
0.725 NZD
35% Upside
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Dividends

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Shareholder Yield

Current shareholder yield for AIR is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
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AIR News

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Air New Zealand Ltd Logo
Air New Zealand Ltd

Country

New Zealand

Industry

Airlines

Market Cap

1.8B NZD

Dividend Yield

6.54%

Description

Air New Zealand Ltd. engages in the transportation of passengers and cargo on an integrated network of scheduled airline services. The Company, through its subsidiaries, is also engaged in aviation, aircraft leasing and financing, investment, and engineering services. The company is engaged in the operation of domestic and international passenger transport and cargo. Its operational fleet includes Boeing 777-300ER, Boeing 777-200ER, Boeing 787-9 Dreamliner, Boeing 767-300ER, Airbus A320-200, ATR 72-500/72-600, Bombardier Q300 and Beech 1900D. The firm offers check in and immigration services; baggage services, such as cabin baggage and excess baggage; on board flight services, and special assistant services for disable and pregnant people, and children, among others. The firm's short haul operations are represented in New Zealand, Australia and Pacific Islands, and its long haul operations are represented in Asia, North America and Europe.

Contact

AUCKLAND
185 Fanshawe Street
+6493573000.0
www.airnewzealand.co.nz

IPO

1989-10-24

Employees

7 840

Officers

Chief Executive Officer
Mr. Gregory S. Foran
Chief Financial Officer
Mr. Richard Thomson B.Com., L.L.B.
Chief Operating Officer
Ms. Alexandria Panot Marren
General Manager of Corporate Finance
Ms. Leila Peters
Head of Investor Relations
Kim Cootes
General Counsel & Company Secretary
Ms. Jennifer Page
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Chief Customer & Sales Officer
Ms. Leanne Geraghty
Chief People Officer
Ms. Nikki Dines
Executive Officer
Captain David Morgan
Chief Digital Officer
Mr. Nikhil Ravishankar B.Com., B.Sc.
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See Also

Discover More
What is the Intrinsic Value of one AIR stock?

The intrinsic value of one AIR stock under the Base Case scenario is 0.879 NZD.

Is AIR stock undervalued or overvalued?

Compared to the current market price of 0.535 NZD, Air New Zealand Ltd is Undervalued by 39%.

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