# Tower (TWR.AU)

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

Analysis as of: 2026-10-16T07:47:55.872Z. Financial observations: FY2015–FY2025.

Listing currency: AUD. Reporting currency: NZD.

## Verdict

Not a wonderful business

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

Share price: AUD 1.68 per share; close as of 2026-10-15.

Estimated value: low AUD 0.29 per share, central AUD 0.33 per share, high AUD 0.38 per share. Buy at or below the central value AUD 0.33 per share. Valuation as of 2026-10-16T07:47:55.872Z; scenarios are not confidence intervals.

Expected annual return: 3.9% at the stated quote. About 3.9% 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

- positive earnings in fewer than 8 of 10 years

- Financial history: 10 years

- Profitable years in the last ten: 6

- Required profitable years: 8

- Return on common equity variation (informational): 2.07×

Chart: Net income; fiscal year observations.

- FY2016: NZD -22M

- FY2017: NZD -8.5M

- FY2018: NZD -6.8M

- FY2019: NZD 17M

- FY2020: NZD 12M

- FY2021: NZD 19M

- FY2022: NZD 19M

- FY2023: NZD -1.2M

- FY2024: NZD 74M

- FY2025: NZD 84M

### moat: fail

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- Underwriting economics assessed through return on tangible common equity

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 6.7%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: -5.2%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: -13.1%

- FY2017: -5.2%

- FY2018: -3.3%

- FY2019: 9.0%

- FY2020: 5.2%

- FY2021: 8.2%

- FY2022: 10.2%

- FY2023: -0.6%

- FY2024: 28.2%

- FY2025: 32.5%

### economics: fail

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- book value per share plus dividends compounded below 7% annually

- Book value per share + reinvested dividends, annualized return: 5.5%

- Book return interval: 10 years

- Starting book value per share: NZD 1.27

- Ending book value per share: NZD 1.17

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: -10.4%

- FY2017: -33.9%

- FY2018: 29.3%

- FY2019: 3.1%

- FY2020: 9.1%

- FY2021: 5.2%

- FY2022: 8.1%

- FY2023: -0.7%

- FY2024: 23.7%

- FY2025: 41.4%

### management: fail

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 3.2%

- Diluted shares, 5-year annual growth: -6.6%

- Share growth excluding flagged crisis recapitalisations: 3.2%

- Five-year share growth excluding flagged crisis recapitalisations: -6.6%

- Flagged crisis recapitalisations: 0

- Book value created per share: NZD -0.10

- Earnings retained per share after dividends and buybacks: NZD -0.37

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

The price assumes profits grow 8.5% a year forever · net income +12.6%

Story as of 2026-10-16T10:00:13.754Z; price observation 2026-10-15.

The price assumes profits grow 8.5% a year forever

### Net income · FY2025

net income +12.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: NZD -22M 

- FY2017: NZD -8.5M 

- FY2018: NZD -6.8M 

- FY2019: NZD 17M 

- FY2020: NZD 12M 

- FY2021: NZD 19M 

- FY2022: NZD 19M 

- FY2023: NZD -1.2M 

- FY2024: NZD 74M 

- FY2025: NZD 84M 

## Owner memo

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

### How it makes money

Operates in insurance property & casualty; annual sales are NZD 541.6 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:55.872Z); FY2025: revenue 541558000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TWR.AU: Tower Limited provides general insurance products in New Zealand and the Pacific Islands. Its insurance products include car, house, contents, contract works and renovation cover, landlord, boat, business, travel, pet, renters, house and contents bundle, electric vehicle, motorbike and motorcycle, lifestyle block, caravan or trailer, as well as motorhome, campervan and RV insurance. It also offers multi-policy discount insurance. Tower Limited was founded in 1869 and is headquartered in Auckland, New Zealand.

### Why customers stay

It earns 6.7% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:55.872Z); 10-year return on tangible equity observations [[2016,-0.13086160716902176],[2017,-0.052188448348177936],[2018,-0.03293075449497749],[2019,0.08997045340980686],[2020,0.05230195473629978],[2021,0.08249111420182352],[2022,0.1016070810997752],[2023,-0.006087012555702609],[2024,0.28187906729656403],[2025,0.32531638187438033]]; median 0.06739653446906166. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back NZD 45.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:55.872Z); Dividend observations: [[2016,27024000],[2017,515000],[2018,10541000],[2019,10541000],[2020,41811000],[2021,10541000],[2022,20028000],[2023,15216000],[2024,11384000],[2025,52155000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:55.872Z); FY2025: cash repurchases 45548000 NZD.

### Are managers owners

Insiders own 16.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TWR.AU SharesStats.PercentInsiders = 16.524 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits grow 8.5% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:47:55.872Z); Price 1.6825; FX 0.8124078517533463; original perpetual distributable cash 0.030619366043749107; discount 0.1; growth 0.08521520749500651. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

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

- 2016-11: AUD 0.57 per share

- 2016-12: AUD 0.68 per share

- 2017-01: AUD 0.67 per share

- 2017-02: AUD 1.05 per share

- 2017-03: AUD 0.96 per share

- 2017-04: AUD 0.94 per share

- 2017-05: AUD 0.91 per share

- 2017-06: AUD 1.06 per share

- 2017-07: AUD 0.75 per share

- 2017-08: AUD 0.70 per share

- 2017-09: AUD 0.66 per share

- 2017-10: AUD 0.63 per share

- 2017-11: AUD 0.67 per share

- 2017-12: AUD 0.64 per share

- 2018-01: AUD 0.64 per share

- 2018-02: AUD 0.67 per share

- 2018-03: AUD 0.81 per share

- 2018-04: AUD 0.81 per share

- 2018-05: AUD 0.73 per share

- 2018-06: AUD 0.77 per share

- 2018-07: AUD 0.69 per share

- 2018-08: AUD 0.72 per share

- 2018-09: AUD 0.75 per share

- 2018-10: AUD 0.74 per share

- 2018-11: AUD 0.75 per share

- 2018-12: AUD 0.73 per share

- 2019-01: AUD 0.75 per share

- 2019-02: AUD 0.72 per share

- 2019-03: AUD 0.71 per share

- 2019-04: AUD 0.78 per share

- 2019-05: AUD 0.78 per share

- 2019-06: AUD 0.77 per share

- 2019-07: AUD 0.74 per share

- 2019-08: AUD 0.73 per share

- 2019-09: AUD 0.71 per share

- 2019-10: AUD 0.68 per share

- 2019-11: AUD 0.80 per share

- 2019-12: AUD 0.76 per share

- 2020-01: AUD 0.74 per share

- 2020-02: AUD 0.72 per share

- 2020-03: AUD 0.60 per share

- 2020-04: AUD 0.63 per share

- 2020-05: AUD 0.64 per share

- 2020-06: AUD 0.62 per share

- 2020-07: AUD 0.61 per share

- 2020-08: AUD 0.57 per share

- 2020-09: AUD 0.61 per share

- 2020-10: AUD 0.59 per share

- 2020-11: AUD 0.64 per share

- 2020-12: AUD 0.76 per share

- 2021-01: AUD 0.72 per share

- 2021-02: AUD 0.78 per share

- 2021-03: AUD 0.79 per share

- 2021-04: AUD 0.91 per share

- 2021-05: AUD 0.76 per share

- 2021-06: AUD 0.76 per share

- 2021-07: AUD 0.72 per share

- 2021-08: AUD 0.74 per share

- 2021-09: AUD 0.71 per share

- 2021-10: AUD 0.69 per share

- 2021-11: AUD 0.74 per share

- 2021-12: AUD 0.77 per share

- 2022-01: AUD 0.71 per share

- 2022-02: AUD 0.71 per share

- 2022-03: AUD 0.72 per share

- 2022-04: AUD 0.71 per share

- 2022-05: AUD 0.67 per share

- 2022-06: AUD 0.66 per share

- 2022-07: AUD 0.64 per share

- 2022-08: AUD 0.59 per share

- 2022-09: AUD 0.58 per share

- 2022-10: AUD 0.63 per share

- 2022-11: AUD 0.72 per share

- 2022-12: AUD 0.76 per share

- 2023-01: AUD 0.68 per share

- 2023-02: AUD 0.61 per share

- 2023-03: AUD 0.68 per share

- 2023-04: AUD 0.64 per share

- 2023-05: AUD 0.63 per share

- 2023-06: AUD 0.64 per share

- 2023-07: AUD 0.63 per share

- 2023-08: AUD 0.63 per share

- 2023-09: AUD 0.64 per share

- 2023-10: AUD 0.65 per share

- 2023-11: AUD 0.62 per share

- 2023-12: AUD 0.63 per share

- 2024-01: AUD 0.64 per share

- 2024-02: AUD 0.74 per share

- 2024-03: AUD 0.70 per share

- 2024-04: AUD 0.84 per share

- 2024-05: AUD 0.85 per share

- 2024-06: AUD 0.90 per share

- 2024-07: AUD 1.12 per share

- 2024-08: AUD 1.12 per share

- 2024-09: AUD 1.36 per share

- 2024-10: AUD 1.36 per share

- 2024-11: AUD 1.34 per share

- 2024-12: AUD 1.34 per share

- 2025-01: AUD 1.28 per share

- 2025-02: AUD 1.41 per share

- 2025-03: AUD 1.35 per share

- 2025-04: AUD 1.26 per share

- 2025-05: AUD 1.41 per share

- 2025-06: AUD 1.49 per share

- 2025-07: AUD 1.57 per share

- 2025-08: AUD 1.52 per share

- 2025-09: AUD 1.52 per share

- 2025-10: AUD 1.58 per share

- 2025-11: AUD 1.70 per share

- 2025-12: AUD 1.77 per share

- 2026-01: AUD 1.67 per share

- 2026-02: AUD 1.56 per share

- 2026-03: AUD 1.56 per share

- 2026-04: AUD 1.64 per share

- 2026-05: AUD 1.55 per share

- 2026-06: AUD 1.53 per share

- 2026-07: AUD 1.54 per share

- 2026-08: AUD 1.54 per share

- 2026-09: AUD 1.62 per share

- 2026-10: AUD 1.65 per share

## Annual estimated value (AUD per share)

- FY2016: low AUD 0.61 per share, central AUD 0.76 per share, high AUD 1.01 per share

- FY2017: low AUD 0.25 per share, central AUD 0.30 per share, high AUD 0.38 per share

- FY2018: low AUD 0.13 per share, central AUD 0.15 per share, high AUD 0.17 per share

- FY2019: low AUD 0.12 per share, central AUD 0.14 per share, high AUD 0.16 per share

- FY2020: low AUD 0.08 per share, central AUD 0.09 per share, high AUD 0.10 per share

- FY2021: low AUD 0.08 per share, central AUD 0.09 per share, high AUD 0.10 per share

- FY2022: low AUD 0.09 per share, central AUD 0.10 per share, high AUD 0.11 per share

- FY2023: low AUD 0.08 per share, central AUD 0.09 per share, high AUD 0.10 per share

- FY2024: low AUD 0.07 per share, central AUD 0.08 per share, high AUD 0.09 per share

- FY2025: low AUD 0.33 per share, central AUD 0.37 per share, high AUD 0.43 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.

## Reported holder observations