# Chorus (CNU.AU)

Canonical: https://gigainvestors.com/s/CNU.AU

Analysis as of: 2026-10-16T07:40:52.599Z. Financial observations: FY2012–FY2026.

Listing currency: AUD. Reporting currency: NZD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 6.74 per share; close as of 2026-10-15.

Estimated value: low AUD 0.91 per share, central AUD 0.99 per share, high AUD 1.10 per share. Buy at or below the central value AUD 0.99 per share. Valuation as of 2026-10-16T07:40:52.599Z; scenarios are not confidence intervals.

Expected annual return: 3.7% at the stated quote. About 3.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.12×

- FY2019: 0.28×

- FY2020: 0.27×

- FY2021: 0.26×

- FY2022: 0.26×

- FY2023: 0.23×

- FY2024: 0.24×

- FY2025: 0.19×

- FY2026: 0.28×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.5%

- ROIC, second-lowest year: 3.1%

- Typical minus recent gross margin: -2.8 pp

- Typical gross margin (annual median): 34.7%

- Recent gross margin (lower of latest and 3-year median): 37.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 57.5%

- ROIC including acquisitions, ten-year median: -0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 3.9%

- FY2018: 2.4%

- FY2019: 4.8%

- FY2020: 4.3%

- FY2021: 3.6%

- FY2022: 3.2%

- FY2023: 3.5%

- FY2024: 4.4%

- FY2025: 3.1%

- FY2026: 3.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD 116M

- Net income, five-year total: NZD 121M

- Return on incremental invested capital: 7.1%

- Working capital / revenue, annual change: -2.5 pp

- Working capital / revenue, change between three-year averages: -14.8 pp

- Working capital / revenue, final three-year average: -8.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.42×

- FY2023: -0.45×

- FY2024: 3.40×

- FY2025: 14.67×

- FY2026: 1.96×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.9% vs 3.2%

- Per-share earnings: 0.19 to 0.01 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: NZD 3.0B

- Cumulative retained earnings: NZD -941M

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -32.8%

- Per-share value change: NZD -0.19

- Per-share value, starting three-year median: NZD 0.19

- Per-share value, ending three-year median: NZD 0.01

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 1.0%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: NZD 141M

- Cumulative net income, 10 years: NZD 471M

- ROIC, first three-year median: 3.9%

- ROIC, last three-year median: 3.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: NZD 0.24

- FY2018: NZD 0.16

- FY2019: NZD 0.10

- FY2020: NZD 0.10

- FY2021: NZD 0.08

- FY2022: NZD 0.14

- FY2023: NZD 0.06

- FY2024: NZD -0.04

- FY2025: NZD 0.01

- FY2026: NZD 0.07

### accounting: pass

- Sloan accruals: -7.7%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 15.70×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -9.3%

- FY2018: -8.4%

- FY2019: -7.8%

- FY2020: -6.9%

- FY2021: -7.9%

- FY2022: -7.7%

- FY2023: -7.4%

- FY2024: -8.7%

- FY2025: -9.1%

- FY2026: -7.7%

## Holders

## Price story

Down 24% since Aug 2025 · sales +8.2%

Story as of 2026-10-16T10:00:11.699Z; price observation 2026-10-15.

Price needs cash profits to grow 30.5% a year for ten years

### Sales · FY2025–2026

sales +8.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: NZD 1.0B 

- FY2018: NZD 990M 

- FY2019: NZD 896M 

- FY2020: NZD 959M 

- FY2021: NZD 879M 

- FY2022: NZD 965M 

- FY2023: NZD 980M 

- FY2024: NZD 1.0B 

- FY2025: NZD 950M 

- FY2026: NZD 1.0B 

### Gross margin · FY2026

gross margin 37.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 39.4% 

- FY2018: 35.3% 

- FY2019: 29.6% 

- FY2020: 34.6% 

- FY2021: 26.8% 

- FY2022: 34.7% 

- FY2023: 32.4% 

- FY2024: 33.0% 

- FY2026: 37.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are NZD 1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2026: revenue 1028195717; grossProfit 385698295; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CNU.AU: Chorus Limited, together with its subsidiaries, engages in the provision of fixed line communications infrastructure services in New Zealand. The company offers wholesale broadband, data, and voice services. It also provides a network of fiber and copper cables, ducts, poles, network electronics, and IT systems. In addition, the company offers value-added network services; physical storage and site-sharing rental services for co-location of third party or shared asset; and installation, wiring, and consultation services. Chorus Limited was incorporated in 2011 and is based in Wellington, New Zealand.

### Why customers stay

Margins ranged from 33% to 100% during 2024–26; it earns 3.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2024: grossProfit / revenue = 33%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2026: grossProfit / revenue = 37.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); 10-year return on capital observations [[2017,0.03882147617804285],[2018,0.024316525286698677],[2019,0.048466381846703245],[2020,0.04327309204563414],[2021,0.035666585721223894],[2022,0.03242156074014481],[2023,0.03491132523390588],[2024,0.04387407827566648],[2025,0.030903328050713153],[2026,0.0319544364100898]]; median 0.03528895547756489. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2022: growth capex 91000000; upkeep 427000000; owner earnings 26600000. Growth capex / owner earnings = 3.4210526315789473.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2025: growth capex 0; upkeep 397000000; owner earnings 58685621. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); FY2026: growth capex 0; upkeep 373707675; owner earnings 72520273. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); Dividend observations: [[2017,44000000],[2018,43000000],[2019,49000000],[2020,76000000],[2021,86000000],[2022,97000000],[2023,160000000],[2024,193000000],[2025,223000000],[2026,253801469]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CNU.AU SharesStats.PercentInsiders = 1.9929999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 30.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:52.599Z); Ten-year compound average after fade. Initial solved rate 0.4356741302345748. Price 6.74; FX 0.8124078517533463; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.29167297638548106 → FY2026 0.1321047678675489. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 3.45 per share

- 2016-11: AUD 3.80 per share

- 2016-12: AUD 3.83 per share

- 2017-01: AUD 3.90 per share

- 2017-02: AUD 3.82 per share

- 2017-03: AUD 3.96 per share

- 2017-04: AUD 4.13 per share

- 2017-05: AUD 4.28 per share

- 2017-06: AUD 4.41 per share

- 2017-07: AUD 4.15 per share

- 2017-08: AUD 3.64 per share

- 2017-09: AUD 3.60 per share

- 2017-10: AUD 3.60 per share

- 2017-11: AUD 3.54 per share

- 2017-12: AUD 3.80 per share

- 2018-01: AUD 3.76 per share

- 2018-02: AUD 3.48 per share

- 2018-03: AUD 3.77 per share

- 2018-04: AUD 3.78 per share

- 2018-05: AUD 3.81 per share

- 2018-06: AUD 3.82 per share

- 2018-07: AUD 3.97 per share

- 2018-08: AUD 4.26 per share

- 2018-09: AUD 4.43 per share

- 2018-10: AUD 4.39 per share

- 2018-11: AUD 4.47 per share

- 2018-12: AUD 4.64 per share

- 2019-01: AUD 4.68 per share

- 2019-02: AUD 4.98 per share

- 2019-03: AUD 5.60 per share

- 2019-04: AUD 5.71 per share

- 2019-05: AUD 5.43 per share

- 2019-06: AUD 5.44 per share

- 2019-07: AUD 5.27 per share

- 2019-08: AUD 4.78 per share

- 2019-09: AUD 4.63 per share

- 2019-10: AUD 4.88 per share

- 2019-11: AUD 5.61 per share

- 2019-12: AUD 5.88 per share

- 2020-01: AUD 6.31 per share

- 2020-02: AUD 6.39 per share

- 2020-03: AUD 6.61 per share

- 2020-04: AUD 6.62 per share

- 2020-05: AUD 7.01 per share

- 2020-06: AUD 6.95 per share

- 2020-07: AUD 6.89 per share

- 2020-08: AUD 7.70 per share

- 2020-09: AUD 7.92 per share

- 2020-10: AUD 7.82 per share

- 2020-11: AUD 7.69 per share

- 2020-12: AUD 7.34 per share

- 2021-01: AUD 7.87 per share

- 2021-02: AUD 7.39 per share

- 2021-03: AUD 6.34 per share

- 2021-04: AUD 6.29 per share

- 2021-05: AUD 5.91 per share

- 2021-06: AUD 5.93 per share

- 2021-07: AUD 5.83 per share

- 2021-08: AUD 6.74 per share

- 2021-09: AUD 6.40 per share

- 2021-10: AUD 6.05 per share

- 2021-11: AUD 6.39 per share

- 2021-12: AUD 6.70 per share

- 2022-01: AUD 6.44 per share

- 2022-02: AUD 6.70 per share

- 2022-03: AUD 6.76 per share

- 2022-04: AUD 6.71 per share

- 2022-05: AUD 6.48 per share

- 2022-06: AUD 6.42 per share

- 2022-07: AUD 7.16 per share

- 2022-08: AUD 7.15 per share

- 2022-09: AUD 6.59 per share

- 2022-10: AUD 7.61 per share

- 2022-11: AUD 7.41 per share

- 2022-12: AUD 7.62 per share

- 2023-01: AUD 7.72 per share

- 2023-02: AUD 7.49 per share

- 2023-03: AUD 7.80 per share

- 2023-04: AUD 8.01 per share

- 2023-05: AUD 7.68 per share

- 2023-06: AUD 7.75 per share

- 2023-07: AUD 7.95 per share

- 2023-08: AUD 7.35 per share

- 2023-09: AUD 7.07 per share

- 2023-10: AUD 6.59 per share

- 2023-11: AUD 7.11 per share

- 2023-12: AUD 7.33 per share

- 2024-01: AUD 7.50 per share

- 2024-02: AUD 7.45 per share

- 2024-03: AUD 7.00 per share

- 2024-04: AUD 6.59 per share

- 2024-05: AUD 6.91 per share

- 2024-06: AUD 7.16 per share

- 2024-07: AUD 7.20 per share

- 2024-08: AUD 7.96 per share

- 2024-09: AUD 7.95 per share

- 2024-10: AUD 8.04 per share

- 2024-11: AUD 8.12 per share

- 2024-12: AUD 7.94 per share

- 2025-01: AUD 7.82 per share

- 2025-02: AUD 7.52 per share

- 2025-03: AUD 7.31 per share

- 2025-04: AUD 7.41 per share

- 2025-05: AUD 7.55 per share

- 2025-06: AUD 7.81 per share

- 2025-07: AUD 8.02 per share

- 2025-08: AUD 8.89 per share

- 2025-09: AUD 8.36 per share

- 2025-10: AUD 8.22 per share

- 2025-11: AUD 8.06 per share

- 2025-12: AUD 8.13 per share

- 2026-01: AUD 8.20 per share

- 2026-02: AUD 8.01 per share

- 2026-03: AUD 7.80 per share

- 2026-04: AUD 8.01 per share

- 2026-05: AUD 8.07 per share

- 2026-06: AUD 8.22 per share

- 2026-07: AUD 7.89 per share

- 2026-08: AUD 7.31 per share

- 2026-09: AUD 6.81 per share

- 2026-10: AUD 6.54 per share

## Annual estimated value (AUD per share)

- FY2026: low AUD 0.72 per share, central AUD 0.79 per share, high AUD 0.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.