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Chorus Limited
(CNU)
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Rating:53Neutral
Price Target:
$8.50
â–¼(-5.45% Downside)
Action:N/A
Date:10/05/26
The score is primarily held back by balance-sheet risk (high leverage) despite strong and improving cash generation. Technical signals are weak (below major moving averages with negative MACD), and valuation is pressured by a very high P/E even with an attractive dividend yield. Offsetting these, the latest earnings call was moderately positive with stable-to-improving FY27 guidance and continued fiber momentum, though copper decline and rating/leverage uncertainty remain key watch-outs.
Positive Factors
Fibre adoption and usage growth
Rising fibre connections, high household uptake and accelerating data consumption reinforce Chorus’s position as New Zealand’s core fixed-line infrastructure provider. These trends support recurring wholesale demand and provide a durable platform for higher-capacity products as broadband usage expands over the coming quarters.
Negative Factors
Elevated leverage limits flexibility
High leverage constrains financial flexibility and leaves less capacity to absorb weaker operating conditions or fund additional strategic investment. It also makes Chorus more sensitive to refinancing costs and rating-agency treatment, which could affect capital allocation over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Fibre adoption and usage growth
Rising fibre connections, high household uptake and accelerating data consumption reinforce Chorus’s position as New Zealand’s core fixed-line infrastructure provider. These trends support recurring wholesale demand and provide a durable platform for higher-capacity products as broadband usage expands over the coming quarters.
Read all positive factors
Chorus Limited (CNU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.62B
Dividend Yield7.21%
Average Volume (3M)386.65K
Price to Earnings (P/E)98.0
Beta (1Y)0.56
Revenue Growth1.58%
EPS Growth827.17%
CountryNZ
Employees745
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding433,887,300
10 Day Avg. Volume290,541
30 Day Avg. Volume386,652
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)4.21
Price to Sales (P/S)4.22
P/FCF Ratio20.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.18
Revenue Forecast (FY)$1.05B
Chorus Limited Business Overview & Revenue Model
Company Description
Chorus Limited serves as a primary provider of fixed-line telecommunications infrastructure across New Zealand. The company delivers internet and voice connectivity solutions, leveraging both traditional copper and advanced fiber optic networks to...
How the Company Makes Money
Chorus makes money primarily by selling wholesale access and connectivity services to retail service providers (RSPs) and other customers who use Chorus’ fixed-line infrastructure to serve end users. Its key revenue streams typically include: (1) ...
Chorus Limited Earnings Call Summary
Earnings Call Date:Aug 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture driven by continued fiber uptake, revenue growth in fiber, modest EBITDA expansion, strong cash generation and strategic progress (product launches, copper retirement, asset revaluation). Key challenges include the rapid decline of legacy copper revenues, some cost and weather-related maintenance pressures, rating/leverage uncertainty tied to the NIFF securities sale, and subdued property development. On balance the highlights—sustained fiber growth, improving profitability and cash flow, product pipeline and meaningful asset revaluation—outweigh the lowlights, which are largely transitional or one-off in nature.Positive Updates
Fiber connections and uptake growth
Fiber connections rose ~3% to over 1.1 million connections, with overall fiber uptake reaching 75.9% (UFB1 77.3%, UFB2 67.5%). Management highlights ~400,000 addresses passed but not yet connected as an addressable growth pool.
Negative Updates
Copper revenue and connection decline
Copper broadband, voice and data revenues fell ~$34 million (down ~45%) as total copper connections declined ~48,000 (down ~52%), reflecting accelerated copper exit and materially shrinking copper business.
Read all updates
Q4-2026 Updates
Positive
Negative
Fiber connections and uptake growth
Fiber connections rose ~3% to over 1.1 million connections, with overall fiber uptake reaching 75.9% (UFB1 77.3%, UFB2 67.5%). Management highlights ~400,000 addresses passed but not yet connected as an addressable growth pool.
Read all positive updates
Company Guidance
Chorus guided FY27 EBITDA of $730–760 million, total CapEx of $375–415 million (sustaining CapEx $195–215 million) and a minimum dividend of $0.62 per share (vs FY26 total $0.60 and final $0.36), implying a 3.3% uplift; they expect copper connections revenue in the high‑teens of millions and net copper recycling gains in the low‑teens, with a further step‑down in copper depreciation in FY27 and full copper asset depreciation by 2028. For context FY26 results included EBITDA $726m, operating cash flow $740m, gross CapEx $375m, fiber connections up ~3% to >1.1m with 75.9% uptake and fiber revenue +6%. Balance sheet and funding metrics cited: net debt $3.2bn (up $72m), weighted average interest ~4.95% with ~65% of exposure fixed for three years, leverage ~4.75x debt/EBITDA (Moody’s 5.25x trigger), S&P FFO/debt ~17.2% (9% threshold) and bank covenant at ~4.37x.Chorus Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.03B | 950.00M | 1.01B | 980.00M | 965.00M |
| Gross Profit | 386.00M | 950.00M | 333.00M | 318.00M | 335.00M |
| EBITDA | 726.00M | 694.00M | 705.00M | 676.00M | 675.00M |
| Net Income | 37.00M | 4.00M | -9.00M | 25.00M | 64.00M |
Balance Sheet | |||||
| Total Assets | 7.08B | 6.09B | 6.01B | 6.17B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 199.00M | 81.00M | 45.00M | 76.00M | 88.00M |
| Total Debt | 5.01B | 3.30B | 2.80B | 4.33B | 4.03B |
| Total Liabilities | 6.05B | 5.52B | 5.17B | 5.10B | 4.82B |
| Stockholders Equity | 1.03B | 567.00M | 841.00M | 1.06B | 1.03B |
Cash Flow | |||||
| Free Cash Flow | 207.00M | 162.00M | 70.00M | 28.00M | 50.00M |
| Operating Cash Flow | 581.00M | 559.00M | 512.00M | 523.00M | 568.00M |
| Investing Cash Flow | -369.00M | -396.00M | -442.00M | -496.00M | -517.00M |
| Financing Cash Flow | -94.00M | -127.00M | -102.00M | -40.00M | -18.00M |
Chorus Limited Technical Analysis
Negative
8.99
Price Trends
8.73
Negative
9.04
Negative
9.01
Negative
Market Momentum
-0.10
Negative
43.35
Neutral
38.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:CNU, the sentiment is Negative. The current price of 8.99 is above the 20-day moving average (MA) of 8.41, above the 50-day MA of 8.73, and below the 200-day MA of 9.01, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:CNU.
Chorus Limited Peers Comparison
UnderperformOutperform
Sector (60)
NZ:CNU
Chorus Limited
8.31
-0.50
-5.66%
NZ:SPK
Spark New Zealand Limited
1.98
-0.21
-9.69%
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.