Spark New ZealandNZTCF -9.91%66 ROE % is 8.71% as of Dec. 2025, which is 66% below its 10-year median of 25.35. 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 349 Telecommunication Services companies, Spark New Zealand ranks better than 77.94% on this metric.
The historical rank and industry rank for Spark New Zealand's ROE % or its related term are showing as below:
NZTCF'
s ROE % Range Over the Past 10 Years
Min: 16.72 Med: 25.35 Max: 66.47
Current: 20.12
During the past 13 years, Spark New Zealand's highest ROE % was 66.47%. The lowest was 16.72%. And the median was 25.35%.
NZTCF's ROE % is ranked better than 77.94% of 349
companies
in the Telecommunication Services industry
Industry Median: 7.41
vs NZTCF: 20.12
Spark New Zealand (OTCPK:NZTCF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Spark New Zealand ROE % Related Terms
Spark New Zealand ROE % Historical Data
* Premium members only.
The historical data trend for Spark New Zealand's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's ROE % distribution charts can be found below:
* The bar in red indicates where Spark New Zealand's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Spark New Zealand (NZTCF) has a ROE % of 8.71% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spark New Zealand and its competitors. This is 66% below median its historical median of 25.35. Over the past decade, Spark New Zealand's ROE % has ranged from 16.72 to 66.47. According to the industry distribution chart, Spark New Zealand ranks #77 out of 349 companies in the Telecommunication Services industry, placing it in the top 22.1%.
Is Spark New Zealand's ROE % too high?
Spark New Zealand's current ROE % of 8.71% is 66% below median its 10-year median of 25.35. Over the past 10 years, this metric has ranged from a low of 16.72 to a high of 66.47. The Telecommunication Services industry median ROE % is 7.41. Spark New Zealand's value of 8.71% is 17.5% above this industry median. Based on the distribution chart, Spark New Zealand ranks #77 out of 349 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #77 out of 349 companies for ROE %. This places Spark New Zealand in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 7.41. Spark New Zealand's value of 8.71% is 17.5% above this benchmark. Historically, Spark New Zealand's own ROE % has ranged from 16.72 to 66.47 over the past decade. While the company's 10-year median is 25.35 vs. the industry median of 7.41, 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 ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spark New Zealand's current ROE % of 8.71% is 17.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Spark New Zealand and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spark New Zealand's current ROE % is 8.71%, which is 66% below median its own 10-year median of 25.35. 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 ROE % is 8.71%, which is 66% below median its 10-year median of 25.35 and 17.5% above the Telecommunication Services industry median of 7.41. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Spark New Zealand (NZTCF), the current ROE % is 8.71% 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:
ROE %: 8.71% (66% below median its 10-year median of 25.35)
GF Value™: $1.81 vs. price of $1.00 (44.8% below fair value)
Industry Position: 17.5% above the Telecommunication Services median (#77 of 349)
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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