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Chorus Limited
CNU.AU
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Chorus Limited (CHRUF) Gets a Buy from Macquarie

The word on The Street in general, suggests a Hold analyst consensus rating for Chorus Limited.

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Macquarie Reaffirms Their Buy Rating on Chorus Limited (CHRUF)

The analyst consensus on Chorus Limited is currently a Hold rating.

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Government Considers Sale of Chorus UFB Securities

The New Zealand government is considering selling its UFB funding securities in Chorus Limited (CHRUF), as announced by the Ministers of Finance and Infrastructure. This feasibility investigation by NIFFCo is not expected to change the terms of the securities, and Chorus will monitor the process closely. Chorus Limited operates in the telecommunications sector, focusing on broadband infrastructure and the Ultra-Fast Broadband (UFB) build programs in New Zealand.

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Can Chorus Limited (NZSE:CNU) Improve Its Returns?

Chorus Limited (NZSE:CNU) has a low Return on Equity (ROE) of 0.7%, significantly below the Telecom industry average of 3.8%. This suggests sub-optimal performance, although there may be opportunities for improvement through leverage, given its high debt-to-equity ratio of 6.75. While ROE is a useful metric for assessing business quality, investors should consider other factors, such as profit growth rates, before making investment decisions. Overall, Chorus may not be the best stock to buy, and investors are encouraged to explore alternatives with higher ROE and lower debt.

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Is Chorus (NZSE:CNU) Using Too Much Debt?

Chorus Limited (NZSE:CNU) has a significant debt burden, with NZ$3.74 billion in net debt and liabilities totaling NZ$5.29 billion, exceeding its market capitalization of NZ$4.14 billion. The company's high net debt to EBITDA ratio of 5.8 and weak interest coverage (EBIT at 1.1 times interest expense) raise concerns about its financial health. Despite some free cash flow, the overall outlook is cautious, indicating that shareholders should monitor liquidity closely due to the risks associated with its balance sheet.

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