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NZX
(NZX)
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Rating:73Outperform
Price Target:
$1.50
â–²(3.45% Upside)
Action:N/A
Date:10/05/26
Overall score reflects solid financial performance (steady revenue growth and strong operating profitability tempered by a 2025 net income/net margin dip and uneven cash conversion) and supportive technicals (price above key moving averages with positive momentum). Valuation is balanced, with an attractive dividend yield partly offset by a moderate-to-high P/E.
Positive Factors
Diversified earnings growth
NZX 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 raising
A 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified earnings growth
NZX 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.
Read all positive factors
NZX (NZX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$500.45M
Dividend Yield5.13%
Average Volume (3M)339.96K
Price to Earnings (P/E)21.7
Beta (1Y)0.81
Revenue Growth15.44%
EPS Growth23.50%
CountryNZ
Employees356
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.07
Shares Outstanding329,241,120
10 Day Avg. Volume442,075
30 Day Avg. Volume339,962
Financial Highlights & Ratios
PEG Ratio-1.45
Price to Book (P/B)4.19
Price to Sales (P/S)3.97
P/FCF Ratio18.38
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 ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)$156.10M
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 ...
How the Company Makes Money
NZX primarily makes money by charging fees tied to the operation and use of its market infrastructure and information products. Key revenue streams typically include: (1) Trading and post-trade services: fees earned from on-market trading activity...
NZX Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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%.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 143.85M | 128.95M | 120.65M | 108.39M | 95.67M | 87.87M |
| Gross Profit | 104.49M | 109.67M | 120.65M | 41.63M | 37.97M | 37.08M |
| EBITDA | 56.18M | 53.78M | 56.31M | 40.11M | 36.60M | 35.78M |
| Net Income | 22.98M | 21.48M | 25.49M | 13.55M | 14.16M | 15.02M |
Balance Sheet | ||||||
| Total Assets | 296.30M | 277.39M | 282.43M | 276.47M | 233.20M | 180.63M |
| Cash, Cash Equivalents and Short-Term Investments | 35.14M | 52.05M | 48.83M | 44.67M | 40.61M | 49.06M |
| Total Debt | 73.53M | 81.16M | 81.19M | 82.32M | 60.71M | 52.52M |
| Total Liabilities | 174.50M | 155.20M | 155.44M | 159.10M | 121.49M | 110.02M |
| Stockholders Equity | 121.79M | 122.19M | 127.00M | 117.37M | 111.71M | 70.61M |
Cash Flow | ||||||
| Free Cash Flow | 43.45M | 27.85M | 22.46M | 22.04M | -17.06M | 10.47M |
| Operating Cash Flow | 44.25M | 39.49M | 35.89M | 34.44M | 23.44M | 27.39M |
| Investing Cash Flow | -13.65M | -14.84M | -13.42M | -34.93M | -57.13M | -16.92M |
| Financing Cash Flow | -29.64M | -21.42M | -18.31M | 4.55M | 25.25M | -14.19M |
NZX Technical Analysis
Positive
1.45
Price Trends
1.46
Positive
1.44
Positive
1.40
Positive
Market Momentum
<0.01
Negative
61.45
Neutral
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:NZX, the sentiment is Positive. The current price of 1.45 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.46, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:NZX.
NZX Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $721.16M | 12.67 | 16.98% | 12.16% | 0.08% | -32.20% | |
73 Outperform | $500.45M | 21.75 | 18.84% | 5.13% | 15.44% | 23.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $1.19B | 12.74 | 7.10% | 6.59% | -4.94% | 139.47% |
* Financial Sector Average
NZ:NZX
NZX
1.52
0.08
5.34%
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.