Millennium & Copthorne Hotels New Zealand Limited (MCK) AI Stock Analysis

Millennium & Copthorne Hotels New Zealand Limited

(NZX:MCK)

Select Model

Rating:62Neutral

Price Target:NZD 3.50▲(11.11% Upside)

Action:initiatedcoverage

Date:10/05/26

The score is primarily supported by strong operating profitability in the latest period and a low-leverage balance sheet, but it is held back by recent negative free cash flow and weaker cash conversion. Technically, the stock is in a soft/neutral setup (below major moving averages with negative MACD), while valuation is moderately supportive due to the modest P/E but offset by a low dividend yield.

Positive Factors

2026 earnings reboundThe strong first-half rebound shows that higher occupancy and refurbished properties are translating into meaningful revenue and profit growth. If demand remains healthy, improved operating performance can support reinvestment and strengthen earnings over the next several quarters.

Negative Factors

Negative free cash flowRepeated negative free cash flow means reported profitability has not recently converted into surplus cash after investment requirements. Continued weakness could limit internally funded growth, increase reliance on asset sales or financing, and reduce resilience if operating conditions soften.

Millennium & Copthorne Hotels New Zealand Limited (MCK) vs. SPDR S&P 500 ETF (SPY)

Market Cap: NZD 420.72M
Dividend Yield: 1.12%
Average Volume (3M): 3,361
Price to Earnings (P/E): 19.8
Beta (1Y): -0.21
Revenue Growth: 15.35%
EPS Growth: 18.85%
Country: NZ
Employees: 1,007
Sector: General
Sector Strength: 55
Industry: Travel Lodging

Millennium & Copthorne Hotels New Zealand Limited Business Overview & Revenue Model

Company Description

Millennium & Copthorne Hotels New Zealand Limited operates within the hospitality sector across New Zealand and Australia, engaging in the ownership, operation, management, leasing, and franchising of hotels. Beyond its hotel-related activities, the...

How the Company Makes Money

MCK primarily makes money by selling hotel rooms and related hospitality services across its portfolio. The largest revenue stream is typically accommodation revenue (room nights sold), which is driven by occupancy levels and average daily room rates...

Millennium & Copthorne Hotels New Zealand Limited Financial Statement Overview

Summary

Income statement strength (score 76) reflects a strong 2025 rebound in revenue and margins, and the balance sheet is conservatively financed with very low leverage (score 84). However, cash flow is a clear weak spot (score 45) with negative free cash flow in both 2024 and 2025 and weaker cash conversion, which reduces confidence in the sustainability of the earnings recovery.

Income Statement

76Positive

Balance Sheet

84Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	196.25M	186.70M	176.18M	145.66M	144.20M	164.77M
Gross Profit	90.48M	88.37M	97.86M	77.78M	84.51M	86.26M
EBITDA	89.83M	75.75M	56.45M	48.54M	55.44M	74.35M
Net Income	25.14M	20.20M	2.76M	21.60M	21.71M	40.05M
Balance Sheet
Total Assets	785.76M	812.07M	774.00M	746.79M	709.19M	680.80M
Cash, Cash Equivalents and Short-Term Investments	14.40M	24.20M	41.30M	75.33M	173.33M	206.47M
Total Debt	27.37M	47.72M	30.10M	39.29M	25.69M	17.32M
Total Liabilities	87.85M	127.05M	109.09M	84.34M	66.48M	63.00M
Stockholders Equity	579.58M	567.25M	547.91M	547.92M	531.02M	514.19M
Cash Flow
Free Cash Flow	24.80M	-26.51M	-14.77M	5.78M	19.20M	25.04M
Operating Cash Flow	35.95M	25.74M	13.68M	19.68M	26.35M	29.02M
Investing Cash Flow	-2.11M	-52.75M	33.07M	-72.34M	-11.14M	49.73M
Financing Cash Flow	-39.70M	5.33M	-20.43M	736.00K	-13.76M	-42.49M

Millennium & Copthorne Hotels New Zealand Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price3.15

Price Trends

50DMA3.10Positive

100DMA3.17Negative

200DMA3.22Negative

Market Momentum

MACD-0.01Negative

RSI57.00Neutral

STOCH72.55Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:MCK, the sentiment is Positive. The current price of 3.15 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 3.10, and below the 200-day MA of 3.22, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:MCK.

Millennium & Copthorne Hotels New Zealand Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

NZ:MCK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NZ:TAH	70Outperform	NZD 41.81M	15.00	―	3.83%	21.56%	18.96%
NZ:SUM	66Neutral	NZD 1.61B	5.21	8.89%	2.61%	14.09%	-18.30%
NZ:MCK	62Neutral	NZD 429.83M	19.81	―	1.12%	15.35%	18.85%
NZ:RAD	56Neutral	NZD 110.55M	11.71	―	4.34%	14.16%	34.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

NZ:MCK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:MCK	Millennium & Copthorne Hotels New Zealand Limited	3.15	0.36	12.98%
NZ:SUM	Summerset Group Holdings Limited	6.56	-5.08	-43.66%
NZ:TAH	Third Age Health Services Limited	4.20	-0.45	-9.70%
NZ:RAD	Radius Residential Care Ltd	0.39	0.04	10.80%

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.

Date of analysis: Oct 05, 2026

Millennium & Copthorne Hotels New Zealand Limited AI Stock Analysis