# Freightways Group (FRW.AU)

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

Analysis as of: 2026-10-16T07:43:15.412Z. Financial observations: FY2020–FY2026.

Listing currency: AUD. Reporting currency: NZD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 9.92 per share; close as of 2026-10-15.

Estimated value: low AUD 3.89 per share, central AUD 4.43 per share, high AUD 5.14 per share. Buy at or below the central value AUD 4.43 per share. Valuation as of 2026-10-16T07:43:15.412Z; scenarios are not confidence intervals.

Expected annual return: 6.1% at the stated quote. About 6.1% 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

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

- Financial history: 7 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2020: 0.15×

- FY2021: 0.15×

- FY2022: 0.14×

- FY2023: 0.12×

- FY2024: 0.11×

- FY2025: 0.11×

- FY2026: 0.11×

### moat: pass

- ROIC, median of available years: 15.2%

- ROIC, second-lowest year: 14.0%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 100.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: 14.0%

- FY2021: 19.4%

- FY2022: 18.9%

- FY2023: 14.1%

- FY2024: 13.8%

- FY2025: 15.2%

- FY2026: 16.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD 352M

- Net income, five-year total: NZD 390M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.0 pp

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

- FY2022: 0.67×

- FY2023: 0.63×

- FY2024: 0.78×

- FY2025: 1.19×

- FY2026: 1.14×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.9% vs 15.2%

- Per-share earnings: 0.30 to 0.45 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 1.6%

- Diluted shares, 5-year annual growth: 1.6%

- Per-share value growth: 10.5%

- Per-share value change: NZD 0.15

- Per-share value, starting three-year median: NZD 0.30

- Per-share value, ending three-year median: NZD 0.45

- Buyback history: 0 years

- ROIC, first three-year median: 18.9%

- ROIC, last three-year median: 15.2%

Chart: Earnings per share; fiscal year observations.

- FY2020: NZD 0.29

- FY2021: NZD 0.30

- FY2022: NZD 0.42

- FY2023: NZD 0.43

- FY2024: NZD 0.40

- FY2025: NZD 0.45

- FY2026: NZD 0.52

### accounting: pass

- Sloan accruals: -6.2%

- Receivables to sales index (DSRI): 1.03×

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.00×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.39×

Chart: Sloan accruals; fiscal year observations.

- FY2025: -6.8%

- FY2026: -6.2%

## Holders

## Price story

Down 20% since Jan 2026 · sales +13.5%

Story as of 2026-10-16T10:00:12.650Z; price observation 2026-10-15.

Price needs cash profits to grow 11.1% a year for ten years

### Sales · FY2025–2026

sales +13.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2020: NZD 631M 

- FY2021: NZD 801M 

- FY2022: NZD 873M 

- FY2023: NZD 1.1B 

- FY2024: NZD 1.2B 

- FY2025: NZD 1.3B 

- FY2026: NZD 1.5B 

## Owner memo

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

### How it makes money

Operates in integrated freight & logistics; annual sales are NZD 1.5 billion.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2026-06-30 (filed 2026-10-16T07:43:15.412Z); FY2026: revenue 1463645000; grossProfit 1463645000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FRW.AU: Freightways Group Limited provides express package and business mail, and information management services in New Zealand, Australia, and internationally. It operates through Express Package and Business Mail, Information Management, and Corporate and Other segments. The company provides network courier services under the New Zealand Couriers, Post Haste Couriers, Castle Parcels, Allied Express, and NOW Couriers brands; point-to-point courier services under the SUB60, Stuck, and Kiwi Express brands; and secure-logistics services under the Security Express brand. It also offers mail delivery services under the DX Mail brand; online courier solution under the Pass The Parcel brand; mailhouse-print services under the Dataprint brand; online fulfillment services under the Stocka brand; and temperature-controlled transport services under the Big Chill and ProducePronto brands, as well as operates line-haul on the arterial roads under the Parceline Express name. It also offers document destruction, eDestruction and product destruction services, such as document, e-waste, media, hard drive, archive box, purge, textile, and product destruction, as well as paper recycling, printer waste, e-waste recycling, and recycled office paper under the Shred-X brand. The company provides handling, treatment, and disposal of clinical waste and related services under the Med-X brand. It also offers general and aviation engineering services; express package linehaul services; physical storage and information management, and digital information processing services; information technology and advisory, and e-commerce freight services; and aviation-related, IT infrastructure support, group treasury management, Australian treasury, and financing and property management services. Freightways Group Limited was formerly known as Freightways Limited and changed its name to Freightways Group Limited in March 2023. The company was founded in 1964 and is based in Penrose, New Zealand.

### Why customers stay

Margins ranged from 100% to 100% during 2024–26; it earns 15.2% on its capital.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2024-06-30 (filed 2026-10-16T07:43:15.412Z); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2025-06-30 (filed 2026-10-16T07:43:15.412Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2026-06-30 (filed 2026-10-16T07:43:15.412Z); FY2026: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:15.412Z); 7-year return on capital observations [[2020,0.14020020208368222],[2021,0.1938682329926541],[2022,0.18914270549368634],[2023,0.14051141562858063],[2024,0.1376005167030355],[2025,0.15169513457078626],[2026,0.1623919356222036]]; median 0.15169513457078626. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 77.1% of cash earnings; paid dividends in 7 of 7 years.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2020-06-30 (filed 2026-10-16T07:43:15.412Z); FY2020: growth capex 0; upkeep 23631000; owner earnings 11837600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2021-06-30 (filed 2026-10-16T07:43:15.412Z); FY2021: growth capex 0; upkeep 18005000; owner earnings 33910000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2022-06-30 (filed 2026-10-16T07:43:15.412Z); FY2022: growth capex 0; upkeep 27118000; owner earnings 46839000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2023-06-30 (filed 2026-10-16T07:43:15.412Z); FY2023: growth capex 0; upkeep 37251000; cash acquisitions 128472000; owner earnings 47159400. Growth capex plus acquisitions / owner earnings = 2.7242076871207015.

- Source: https://eodhd.com/api/fundamentals/FRW.AU.json#2024-06-30 (filed 2026-10-16T07:43:15.412Z); FY2024: growth capex 0; upkeep 31437000; cash acquisitions 858000; owner earnings 55457600. Growth capex plus acquisitions / owner earnings = 0.015471278959060615.

- Source: https://api.nzx.com/public/announcement/477926/attachment/474601/477926-474601.pdf (filed 2026-10-16T07:43:15.412Z); FY2025: growth capex 0; upkeep 29544000; cash acquisitions 4813000; owner earnings 95172000. Growth capex plus acquisitions / owner earnings = 0.050571596688101544.

- Source: https://api.nzx.com/public/announcement/477926/attachment/474601/477926-474601.pdf (filed 2026-10-16T07:43:15.412Z); FY2026: growth capex 0; upkeep 33948000; cash acquisitions 82472000; owner earnings 106960000. Growth capex plus acquisitions / owner earnings = 0.7710545998504114.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:15.412Z); Dividend observations: [[2020,47456000],[2021,25702000],[2022,59678000],[2023,63465000],[2024,57181000],[2025,68098000],[2026,75365000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 6.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FRW.AU SharesStats.PercentInsiders = 6.462 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:15.412Z); Ten-year compound average after fade. Initial solved rate 0.14624853758161388. Price 9.92; FX 0.8124078517533463; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2023-10: AUD 6.88 per share

- 2023-11: AUD 7.34 per share

- 2023-12: AUD 7.61 per share

- 2024-01: AUD 7.83 per share

- 2024-02: AUD 7.87 per share

- 2024-03: AUD 7.55 per share

- 2024-04: AUD 7.50 per share

- 2024-05: AUD 7.20 per share

- 2024-06: AUD 7.22 per share

- 2024-07: AUD 7.16 per share

- 2024-08: AUD 8.57 per share

- 2024-09: AUD 8.57 per share

- 2024-10: AUD 8.77 per share

- 2024-11: AUD 8.50 per share

- 2024-12: AUD 8.50 per share

- 2025-01: AUD 8.50 per share

- 2025-02: AUD 9.20 per share

- 2025-03: AUD 9.83 per share

- 2025-04: AUD 9.59 per share

- 2025-05: AUD 9.94 per share

- 2025-06: AUD 10.30 per share

- 2025-07: AUD 10.20 per share

- 2025-08: AUD 10.70 per share

- 2025-09: AUD 12.06 per share

- 2025-10: AUD 12.22 per share

- 2025-11: AUD 12.20 per share

- 2025-12: AUD 12.22 per share

- 2026-01: AUD 12.43 per share

- 2026-02: AUD 12.38 per share

- 2026-03: AUD 10.10 per share

- 2026-04: AUD 10.00 per share

- 2026-05: AUD 10.70 per share

- 2026-06: AUD 11.41 per share

- 2026-07: AUD 11.56 per share

- 2026-08: AUD 11.20 per share

- 2026-09: AUD 10.51 per share

- 2026-10: AUD 9.94 per share

## Annual estimated value (AUD per share)

- FY2024: low AUD 2.55 per share, central AUD 2.90 per share, high AUD 3.37 per share

- FY2025: low AUD 2.93 per share, central AUD 3.34 per share, high AUD 3.87 per share

- FY2026: low AUD 3.88 per share, central AUD 4.42 per share, high AUD 5.13 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.