Spark New ZealandNZTCF -9.91%66 ROA % is 2.81% as of Dec. 2025, which is 73% below its 10-year median of 10.51. GuruFocus rates NZTCF with a GF Score™ of 66/100 and a GF Value™ of $1.81 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 372 Telecommunication Services companies, Spark New Zealand ranks better than 72.58% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Spark New Zealand's annualizedNet Income for the quarter that ended in Dec. 2025 was $74 Mil.
Spark New Zealand's average Total Assets over the quarter that ended in Dec. 2025 was $2,633 Mil. Therefore, Spark New Zealand's annualized ROA % for the quarter that ended in Dec. 2025 was 2.81%.
The historical rank and industry rank for Spark New Zealand's ROA % or its related term are showing as below:
NZTCF'
s ROA % Range Over the Past 10 Years
Min: 5.68 Med: 10.51 Max: 26.18
Current: 6.28
During the past 13 years, Spark New Zealand's highest ROA % was 26.18%. The lowest was 5.68%. And the median was 10.51%.
NZTCF's ROA % is ranked better than 72.58% of 372
companies
in the Telecommunication Services industry
Industry Median: 2.745
vs NZTCF: 6.28
Spark New Zealand (OTCPK:NZTCF) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Spark New Zealand ROA % Related Terms
Spark New Zealand ROA % Historical Data
* Premium members only.
The historical data trend for Spark New Zealand's ROA % 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.
For the Telecom Services subindustry, Spark New Zealand's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's ROA % distribution charts can be found below:
* The bar in red indicates where Spark New Zealand's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Spark New Zealand (NZTCF) has a ROA % of 2.81% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Spark New Zealand and its competitors. This is 73% below median its historical median of 10.51. Over the past decade, Spark New Zealand's ROA % has ranged from 5.68 to 26.18. According to the industry distribution chart, Spark New Zealand ranks #102 out of 372 companies in the Telecommunication Services industry, placing it in the top 27.4%.
Is Spark New Zealand's ROA % too high?
Spark New Zealand's current ROA % of 2.81% is 73% below median its 10-year median of 10.51. Over the past 10 years, this metric has ranged from a low of 5.68 to a high of 26.18. The Telecommunication Services industry median ROA % is 2.75. Spark New Zealand's value of 2.81% is 2.4% above this industry median. Based on the distribution chart, Spark New Zealand ranks #102 out of 372 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Spark New Zealand has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #102 out of 372 companies for ROA %. This puts Spark New Zealand in the upper half of its industry. The industry median ROA % is 2.75. Spark New Zealand's value of 2.81% is 2.4% above this benchmark. Historically, Spark New Zealand's own ROA % has ranged from 5.68 to 26.18 over the past decade. While the company's 10-year median is 10.51 vs. the industry median of 2.75, 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 ROA % for a Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.75, based on 372 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spark New Zealand's current ROA % of 2.81% is 2.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Spark New Zealand and its competitors. For the Telecommunication Services industry, the median ROA % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current ROA % is 2.81%, which is 73% below median its own 10-year median of 10.51. 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 (NZTCF) is currently considered Significantly Undervalued. The stock's GF Value™ is $1.81, compared to a current price of $1.00 — trading 44.8% below its estimated fair value. The current ROA % is 2.81%, which is 73% below median its 10-year median of 10.51 and 2.4% above the Telecommunication Services industry median of 2.75. Spark New Zealand's overall GF Score™ is 66/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Spark New Zealand (NZTCF), the current ROA % is 2.81% 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 (NZTCF) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of $1.00 is trading 44.8% below its estimated GF Value™ of $1.81.
GuruFocus considers Spark New Zealand to be Significantly Undervalued.
Key valuation signals for NZTCF:
ROA %: 2.81% (73% below median its 10-year median of 10.51)
GF Value™: $1.81 vs. price of $1.00 (44.8% below fair value)
Industry Position: 2.4% above the Telecommunication Services median (#102 of 372)
No single metric tells the full story. See the NZTCF 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.
66GF Score
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