Spark New ZealandASX:SPK -2.55%72 Return-on-Tangible-Equity is 19.75% as of Dec. 2025, which is 73% below its 10-year median of 72.96. GuruFocus rates ASX:SPK with a GF Score™ of 72/100 and a GF Value™ of A$2.67 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 327 Telecommunication Services companies, Spark New Zealand ranks better than 71.56% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Spark New Zealand's annualized net income for the quarter that ended in Dec. 2025 was A$111 Mil. Spark New Zealand's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$564 Mil. Therefore, Spark New Zealand's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 19.75%.
The historical rank and industry rank for Spark New Zealand's Return-on-Tangible-Equity or its related term are showing as below:
ASX:SPK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 33.74 Med: 72.96 Max: 128.25
Current: 47.17
During the past 13 years, Spark New Zealand's highest Return-on-Tangible-Equity was 128.25%. The lowest was 33.74%. And the median was 72.96%.
ASX:SPK's Return-on-Tangible-Equity is ranked better than 71.56% of 327
companies
in the Telecommunication Services industry
Industry Median: 13.99
vs ASX:SPK: 47.17
Spark New Zealand (ASX:SPK) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Spark New Zealand Return-on-Tangible-Equity Related Terms
Spark New Zealand Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Spark New Zealand's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:SPK vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Spark New Zealand's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Spark New Zealand Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Spark New Zealand's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.75% mean?
Spark New Zealand (ASX:SPK) has a Return-on-Tangible-Equity of 19.75% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spark New Zealand and its competitors. This is 73% below median its historical median of 72.96. Over the past decade, Spark New Zealand's Return-on-Tangible-Equity has ranged from 33.74 to 128.25. According to the industry distribution chart, Spark New Zealand ranks #93 out of 327 companies in the Telecommunication Services industry, placing it in the top 28.4%.
Is Spark New Zealand's Return-on-Tangible-Equity too high?
Spark New Zealand's current Return-on-Tangible-Equity of 19.75% is 73% below median its 10-year median of 72.96. Over the past 10 years, this metric has ranged from a low of 33.74 to a high of 128.25. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.99. Spark New Zealand's value of 19.75% is 41.2% above this industry median. Based on the distribution chart, Spark New Zealand ranks #93 out of 327 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Spark New Zealand has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #93 out of 327 companies for Return-on-Tangible-Equity. This puts Spark New Zealand in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.99. Spark New Zealand's value of 19.75% is 41.2% above this benchmark. Historically, Spark New Zealand's own Return-on-Tangible-Equity has ranged from 33.74 to 128.25 over the past decade. While the company's 10-year median is 72.96 vs. the industry median of 13.99, Spark New Zealand has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.99, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spark New Zealand's current Return-on-Tangible-Equity of 19.75% is 41.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Spark New Zealand and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current Return-on-Tangible-Equity is 19.75%, which is 73% below median its own 10-year median of 72.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (ASX:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is A$2.67, compared to a current price of A$1.53 — trading 42.7% below its estimated fair value. The current Return-on-Tangible-Equity is 19.75%, which is 73% below median its 10-year median of 72.96 and 41.2% above the Telecommunication Services industry median of 13.99. Spark New Zealand's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Spark New Zealand (ASX:SPK), the current Return-on-Tangible-Equity is 19.75% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Spark New Zealand (ASX:SPK) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of A$1.53 is trading 42.7% below its estimated GF Value™ of A$2.67.
GuruFocus considers Spark New Zealand to be Significantly Undervalued.
Key valuation signals for ASX:SPK:
Return-on-Tangible-Equity: 19.75% (73% below median its 10-year median of 72.96)
GF Value™: A$2.67 vs. price of A$1.53 (42.7% below fair value)
Industry Position: 41.2% above the Telecommunication Services median (#93 of 327)
No single metric tells the full story. See the ASX:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
72GF Score
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