NZX (5NZ) AI Stock Analysis

NZX

(Frankfurt:5NZ)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Diversified earnings growthNZX is demonstrating that growth is not dependent on one market activity alone. Smartshares, wealth technology and derivatives contributed alongside its core exchange operations, supporting resilience, broader revenue opportunities and a stronger platform for investment over the next several quarters.

Negative Factors

Sharp decline in capital raisingA sustained slowdown in new issuance reduces activity linked to listings and capital formation, potentially limiting issuer-service growth and weakening the pipeline of future listed companies. This creates a structural headwind even while trading and funds businesses remain comparatively stronger.

NZX (5NZ) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 287.76M
Dividend Yield: 5.77%
Average Volume (3M): 3,755
Price to Earnings (P/E): 21.7
Beta (1Y): 0.22
Revenue Growth: 6.56%
EPS Growth: 13.64%
Country: Germany
Employees: 356
Sector: Financial
Sector Strength: 68
Industry: Financial - Data & Stock Exchanges

NZX Business Overview & Revenue Model

Company Description

NZX Limited functions as the primary operator of New Zealand's stock exchange. The company's diverse activities are structured across five principal divisions. Its Capital Markets Origination segment offers essential services to both existing and pot...

NZX Earnings Call Summary

Earnings Call Date:Feb 24, 2026(Q4-2025)|% Change Since:-7.25%|Next Earnings Date:Feb 18, 2027

Earnings Call SentimentPositive

The call presented a largely positive operational and financial story: revenue up 7.3%, EBITDA (pre‑one‑offs) up 11.6%, strong growth in Smart and Wealth Technologies (ARR +22.2%, FUA +23.1%, average FUM +20.3%), improved margin (41.5%), and a higher dividend supported by stronger free cash flow (+25%). Offsetting these positives were headwinds in the Markets business (impacted by the Fonterra contract move and lower contractual revenues), a headline NPAT decline driven by prior year accounting items, targeted integration and restructuring costs, and near‑term uncertainty from macro and regulatory factors. On balance the company showed solid momentum in its growth businesses and healthy cash generation, while managing legacy market and one‑off pressures.

Positive Updates

Strong EBITDA Performance

Operating earnings (EBITDA) before integration and restructuring were $53.5 million, up 11.6% year‑on‑year; including integration and restructuring costs EBITDA was $51.7 million, also up ~11%.

Negative Updates

Markets Segment Headwinds

Markets operating earnings decreased by $2.2 million; Markets revenue declined $1.7 million due to the Fonterra contract moving to the main board, electricity authority contract repricing at lower preset levels, and absence of one‑off audit/backdated license revenues.

Company Guidance

NZX guided FY2026 operating earnings (excluding one‑offs) of $53.0m–$58.5m (the bottom of the range equals FY2025 operating earnings of $53.5m), noting the range is conservative and subject to normal market caveats; management expects Wealth Technologies and Smart to drive growth while Markets and issuance remain subject to macro conditions. Key FY2025 metrics underpinning the guidance: revenue $128.9m (+7.3%), operating expenses $75.5m (+4.5%), operating margin 41.5%, operating earnings before integration/restructuring $53.5m (+11.6%), reported NPAT $21.5m (like‑for‑like +20.2%), free cash flow $26.5m (+25%) and net cash flow $3.2m; Wealth Technologies ARR +22.2% (ARR $13.2m at Dec‑25 with $1.3m of migrations anchored and $4.3m of additional prospective migrations — potential ARR ~ $17.8m), FUA +23.1% and Wealth Tech operating earnings $6.3m (+31.1%); Smart average FUM +20.3%, FUM/Funds under management growth ~17.9% and Smart operating earnings $29.3m (+30.9%); dairy derivatives lots +22.2%; Board declared a fully‑imputed final dividend $0.033/share (full year $0.063/share, up from $0.061) and signalled a path to progressively lift dividends, while expecting Wealth Tech CapEx to increase for at least the next two years to support client migrations.

NZX Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:5NZ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NZ:TWR	75Outperform	NZD 721.16M	12.66	16.98%	12.04%	0.08%	-32.20%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NZ:HGH	61Neutral	NZD 1.19B	12.74	7.10%	6.54%	-4.94%	139.47%

* Financial Sector Average

Performance Comparison

DE:5NZ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:5NZ	NZX	0.67	-0.30	-31.02%
NZ:TWR	Tower Limited	2.10	0.47	28.52%
NZ:HGH	Heartland Group Holdings Ltd.	1.26	0.24	24.02%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

NZX AI Stock Analysis