Tower Limited

TWR.AX

Insurance - Property & Casualty · Financial Services

Price

A$1.57

-0.01 (-0.63%)

Market Cap

A$539.2M

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Exceptional

Stability

Good

Valuation

Strong

Dividends

Exceptional

Track this stock — start free trial

Share count falling — buybacks

−13.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 421.6M (2021) → 363.8M (2025)

Winston Score History

The full picture

Tower Limited is an insurance company based in New Zealand that sells home, car, contents, and business insurance to everyday customers. It focuses on the Pacific region, serving policyholders in New Zealand and several Pacific Island nations including Fiji, Samoa, and Papua New Guinea. Tower is one of the smaller but well-known insurance brands in New Zealand, competing against larger players like IAG and Suncorp.

Tower makes money by collecting premiums from customers and investing those funds, paying out claims when accidents or disasters occur. The company operates almost entirely in New Zealand and the Pacific, with a market cap of around $600 million, making it a small regional insurer. Its main competitive edge is its focus on digital distribution and a simplified product range, but its key risk is exposure to natural catastrophe events — particularly earthquakes and severe weather in New Zealand — which can cause large, unexpected claims that hurt profitability, as reflected in its current negative operating margins.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-55.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

NZ$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

4.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

NZ$425M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Tower Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Profit after running costs

Operating Margin

10.8%

Modest — 10.8% operating margin

Return on the money invested

ROCE

24.9%

Exceptional — 24.9% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+16.6%

Fast-growing sales (+16.6% YoY)

Profit growth

EPS YoY

-38.7%

Earnings shrinking (-38.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

208%

Turns 208% of profit into real cash

Spare cash per sale

FCF Margin

19.3%

Converts sales into free cash efficiently (19.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

121.19x

Comfortably covers interest (121.2x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

9.5x

Attractive valuation — P/E 9.5

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+0.3

GROWING

Earnings roughly flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

11.56%

Healthy income — 11.56% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+159.7%

Dividend growing fast (159.7% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial