# Summerset Group Holdings (SNZ.AU)

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

Analysis as of: 2026-10-16T07:44:30.331Z. Financial observations: FY2011–FY2025.

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 5.36 per share; close as of 2026-10-15.

Estimated value: low AUD 15.04 per share, central AUD 17.11 per share, high AUD 19.87 per share. Buy at or below the central value AUD 17.11 per share. Valuation as of 2026-10-16T07:44:30.331Z; scenarios are not confidence intervals.

Expected annual return: 26.5% at the stated quote. About 26.5% 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: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 1.17×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.15×

- FY2018: 0.13×

- FY2019: 0.15×

- FY2020: 1.36×

- FY2021: 2.71×

- FY2022: 1.18×

- FY2023: 1.66×

- FY2024: 0.05×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 4.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.4%

- ROIC, second-lowest year: 0.3%

- Typical minus recent gross margin: 4.2 pp

- Typical gross margin (annual median): 79.6%

- Recent gross margin (lower of latest and 3-year median): 75.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 21.9%

- ROIC including acquisitions, ten-year median: 10.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 1.3%

- FY2017: 1.5%

- FY2018: 1.2%

- FY2019: 1.3%

- FY2020: 11.0%

- FY2021: 19.8%

- FY2022: 8.8%

- FY2023: 11.3%

- FY2024: 0.3%

- FY2025: 0.1%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD 1.7B

- Net income, five-year total: NZD 1.8B

- Return on incremental invested capital: -0.3%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, change between three-year averages: 11.1 pp

- Working capital / revenue, final three-year average: 9.5%

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

- FY2021: 1.00×

- FY2022: 0.98×

- FY2023: 0.87×

- FY2024: 0.99×

- FY2025: 0.81×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 1.3% vs 0.3%

- Per-share earnings: 0.66 to 1.44 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.5%

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

- Market cap gain: NZD 1.4B

- Cumulative retained earnings: NZD 2.3B

- Diluted shares, 10-year annual growth: -0.5%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.3%

- Per-share value change: NZD 0.78

- Per-share value, starting three-year median: NZD 0.66

- Per-share value, ending three-year median: NZD 1.44

- Average buyback yield: 0.4%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: NZD 8.3M

- Cumulative net income, 10 years: NZD 2.8B

- ROIC, first three-year median: 1.3%

- ROIC, last three-year median: 0.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: NZD 0.66

- FY2017: NZD 1.00

- FY2018: NZD 0.95

- FY2019: NZD 0.77

- FY2020: NZD 1.01

- FY2021: NZD 2.36

- FY2022: NZD 1.16

- FY2023: NZD 1.87

- FY2024: NZD 1.44

- FY2025: NZD 1.25

### accounting: pass

- Sloan accruals: -2.0%

- Receivables to sales index (DSRI): 0.68×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.72×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.8%

- FY2017: 0.7%

- FY2018: -0.1%

- FY2019: -1.9%

- FY2020: -0.9%

- FY2021: 10.8%

- FY2022: -0.2%

- FY2023: 0.5%

- FY2024: -1.3%

- FY2025: -2.0%

## Holders

## Price story

Down 61% since Oct 2021 · sales +13.3%

Story as of 2026-10-16T10:00:13.085Z; price observation 2026-10-15.

Price needs cash profits to shrink 14% a year for ten years

### Sales · FY2024–2025

sales +13.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: NZD 86M 

- FY2017: NZD 110M 

- FY2018: NZD 137M 

- FY2019: NZD 154M 

- FY2020: NZD 172M 

- FY2021: NZD 205M 

- FY2022: NZD 238M 

- FY2023: NZD 271M 

- FY2024: NZD 319M 

- FY2025: NZD 361M 

### Gross margin · FY2025

gross margin 75.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 17.9% 

- FY2017: 20.6% 

- FY2018: 18.8% 

- FY2019: 86.1% 

- FY2020: 85.9% 

- FY2021: 83.8% 

- FY2022: 84.3% 

- FY2023: 8.3% 

- FY2024: 90.4% 

- FY2025: 75.4% 

## Owner memo

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

### How it makes money

Operates in medical care facilities; annual sales are NZD 360.9 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2025: revenue 360921336; grossProfit 272065482; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNZ.AU: Summerset Group Holdings Limited, together with its subsidiaries, develops, owns, and operates integrated retirement villages in New Zealand and Australia. It offers living options and care services to residents. The company was founded in 1997 and is headquartered in Wellington, New Zealand. Summerset Group Holdings Limited operates as a subsidiary of New Zealand Central Securities Depository Limited.

### Why customers stay

Margins ranged from 8.3% to 90.4% during 2023–25; it earns 1.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2023: grossProfit / revenue = 8.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2024: grossProfit / revenue = 90.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2025: grossProfit / revenue = 75.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); 10-year return on capital observations [[2016,0.01305254032245336],[2017,0.014534357450786019],[2018,0.011759235552586173],[2019,0.013112250123574441],[2020,0.1102488896887754],[2021,0.19765029353546168],[2022,0.08768564387213576],[2023,0.11252784274870667],[2024,0.0031356502712468945],[2025,0.0011157077427718996]]; median 0.01382330378718023. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 34.8% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2016: growth capex 20733000; upkeep 3736000; owner earnings 145480000. Growth capex / owner earnings = 0.14251443497387958.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2017: growth capex 18813000; upkeep 4628000; owner earnings 223436000. Growth capex / owner earnings = 0.084198607207433.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2018: growth capex 17319000; upkeep 6685000; owner earnings 214503000. Growth capex / owner earnings = 0.0807401295086782.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2019: growth capex 11465000; upkeep 7833000; owner earnings 175262000. Growth capex / owner earnings = 0.06541634809599342.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2020: growth capex 19345379.567924872; upkeep 6840620.432075128; owner earnings 227569578.56792486. Growth capex / owner earnings = 0.08500863643402438.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2021: growth capex 33991000; upkeep 9178000; owner earnings 541136400. Growth capex / owner earnings = 0.06281410749674204.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2022: growth capex 37915178.15072545; upkeep 15637821.849274553; owner earnings 264225224.15072545. Growth capex / owner earnings = 0.14349567976559646.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2023: growth capex 40344973.2431608; upkeep 70608026.7568392; owner earnings 378806496.2431608. Growth capex / owner earnings = 0.10650549460815699.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2024: growth capex 65868646; upkeep 18966354; owner earnings 337462400. Growth capex / owner earnings = 0.1951881039191329.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); FY2025: growth capex 73348747.5373029; upkeep 74190917.4626971; owner earnings 210539506.5373029. Growth capex / owner earnings = 0.34838472239084084.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); Dividend observations: [[2016,13099000],[2017,19857000],[2018,17780000],[2019,19544000],[2020,19389000],[2021,23712000],[2022,28166000],[2023,34288000],[2024,33542000],[2025,32589447]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 11.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNZ.AU SharesStats.PercentInsiders = 11.451 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 14% yearly over ten years; actual growth was 10.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:30.331Z); Ten-year compound average after fade. Initial solved rate -0.20644716922315248. Price 5.36; FX 0.8124078517533463; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.38071686607705674 → FY2025 1.0096220096450101. Closing-price date 2026-10-15.

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

- 2016-10: AUD 4.35 per share

- 2016-11: AUD 4.71 per share

- 2016-12: AUD 4.71 per share

- 2017-01: AUD 4.70 per share

- 2017-02: AUD 4.70 per share

- 2017-03: AUD 5.00 per share

- 2017-04: AUD 4.66 per share

- 2017-05: AUD 4.75 per share

- 2017-06: AUD 4.62 per share

- 2017-07: AUD 4.65 per share

- 2017-08: AUD 4.62 per share

- 2017-09: AUD 4.70 per share

- 2017-10: AUD 4.38 per share

- 2017-11: AUD 4.60 per share

- 2017-12: AUD 4.74 per share

- 2018-01: AUD 4.95 per share

- 2018-02: AUD 5.14 per share

- 2018-03: AUD 6.37 per share

- 2018-04: AUD 6.40 per share

- 2018-05: AUD 6.57 per share

- 2018-06: AUD 7.09 per share

- 2018-07: AUD 7.02 per share

- 2018-08: AUD 6.90 per share

- 2018-09: AUD 7.00 per share

- 2018-10: AUD 6.05 per share

- 2018-11: AUD 6.05 per share

- 2018-12: AUD 5.96 per share

- 2019-01: AUD 5.96 per share

- 2019-02: AUD 6.19 per share

- 2019-03: AUD 6.27 per share

- 2019-04: AUD 5.37 per share

- 2019-05: AUD 5.25 per share

- 2019-06: AUD 5.20 per share

- 2019-07: AUD 5.40 per share

- 2019-08: AUD 5.59 per share

- 2019-09: AUD 6.03 per share

- 2019-10: AUD 6.12 per share

- 2019-11: AUD 7.35 per share

- 2019-12: AUD 8.69 per share

- 2020-01: AUD 8.52 per share

- 2020-02: AUD 7.82 per share

- 2020-03: AUD 5.20 per share

- 2020-04: AUD 5.65 per share

- 2020-05: AUD 5.86 per share

- 2020-06: AUD 6.00 per share

- 2020-07: AUD 7.36 per share

- 2020-08: AUD 7.81 per share

- 2020-09: AUD 8.00 per share

- 2020-10: AUD 9.79 per share

- 2020-11: AUD 10.21 per share

- 2020-12: AUD 11.88 per share

- 2021-01: AUD 11.59 per share

- 2021-02: AUD 11.99 per share

- 2021-03: AUD 11.10 per share

- 2021-04: AUD 11.31 per share

- 2021-05: AUD 11.71 per share

- 2021-06: AUD 12.25 per share

- 2021-07: AUD 12.29 per share

- 2021-08: AUD 14.52 per share

- 2021-09: AUD 14.19 per share

- 2021-10: AUD 13.75 per share

- 2021-11: AUD 12.37 per share

- 2021-12: AUD 12.77 per share

- 2022-01: AUD 11.35 per share

- 2022-02: AUD 11.00 per share

- 2022-03: AUD 10.85 per share

- 2022-04: AUD 10.71 per share

- 2022-05: AUD 9.74 per share

- 2022-06: AUD 8.81 per share

- 2022-07: AUD 9.52 per share

- 2022-08: AUD 9.87 per share

- 2022-09: AUD 9.00 per share

- 2022-10: AUD 8.69 per share

- 2022-11: AUD 8.77 per share

- 2022-12: AUD 8.30 per share

- 2023-01: AUD 9.11 per share

- 2023-02: AUD 8.38 per share

- 2023-03: AUD 8.26 per share

- 2023-04: AUD 7.75 per share

- 2023-05: AUD 8.26 per share

- 2023-06: AUD 8.84 per share

- 2023-07: AUD 9.99 per share

- 2023-08: AUD 9.31 per share

- 2023-09: AUD 8.93 per share

- 2023-10: AUD 8.98 per share

- 2023-11: AUD 8.52 per share

- 2023-12: AUD 9.33 per share

- 2024-01: AUD 10.09 per share

- 2024-02: AUD 10.22 per share

- 2024-03: AUD 10.52 per share

- 2024-04: AUD 10.47 per share

- 2024-05: AUD 9.16 per share

- 2024-06: AUD 8.63 per share

- 2024-07: AUD 10.26 per share

- 2024-08: AUD 10.00 per share

- 2024-09: AUD 10.66 per share

- 2024-10: AUD 11.25 per share

- 2024-11: AUD 11.74 per share

- 2024-12: AUD 12.00 per share

- 2025-01: AUD 11.73 per share

- 2025-02: AUD 11.00 per share

- 2025-03: AUD 10.13 per share

- 2025-04: AUD 10.55 per share

- 2025-05: AUD 10.21 per share

- 2025-06: AUD 10.44 per share

- 2025-07: AUD 10.30 per share

- 2025-08: AUD 9.94 per share

- 2025-09: AUD 9.43 per share

- 2025-10: AUD 10.20 per share

- 2025-11: AUD 10.83 per share

- 2025-12: AUD 10.52 per share

- 2026-01: AUD 9.95 per share

- 2026-02: AUD 8.78 per share

- 2026-03: AUD 7.50 per share

- 2026-04: AUD 6.65 per share

- 2026-05: AUD 6.30 per share

- 2026-06: AUD 6.91 per share

- 2026-07: AUD 7.01 per share

- 2026-08: AUD 7.05 per share

- 2026-09: AUD 5.77 per share

- 2026-10: AUD 5.60 per share

## Annual estimated value (AUD per share)

- FY2016: low AUD 3.49 per share, central AUD 3.97 per share, high AUD 4.61 per share

- FY2017: low AUD 5.40 per share, central AUD 6.14 per share, high AUD 7.13 per share

- FY2018: low AUD 8.49 per share, central AUD 9.66 per share, high AUD 11.21 per share

- FY2019: low AUD 9.56 per share, central AUD 10.86 per share, high AUD 12.60 per share

- FY2020: low AUD 10.61 per share, central AUD 12.06 per share, high AUD 13.99 per share

- FY2021: low AUD 15.50 per share, central AUD 22.13 per share, high AUD 25.99 per share

- FY2022: low AUD 15.16 per share, central AUD 21.59 per share, high AUD 25.33 per share

- FY2023: low AUD 16.93 per share, central AUD 24.16 per share, high AUD 28.38 per share

- FY2024: low AUD 16.11 per share, central AUD 18.61 per share, high AUD 21.62 per share

- FY2025: low AUD 17.04 per share, central AUD 19.39 per share, high AUD 22.52 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.