Should I buy Freightways Group stock in 2025?
Is Freightways Group stock a buy right now?
ScoreFreightways Group Limited stands as a cornerstone of New Zealand’s express freight and logistics sector, trading at approximately NZ$10.85 as of 30 May 2025. With a daily average trading volume near 140,000 shares and a market capitalization of NZ$1.94 billion, Freightways enjoys solid liquidity and a prominent market position. Recently, the release of half-year results showed a robust 6.7% revenue increase and 9.3% rise in net profit, in line with analyst expectations despite a still-challenging economic climate. Notably, the company’s digital information management operations posted an impressive 11.3% growth, reinforcing Freightways’ diversification efforts. Market sentiment remains constructively optimistic, bolstered by the company’s ongoing investments in fleet upgrades, enhanced automation, and digital innovation. Freightways’ dominant presence across New Zealand and Australia, along with its highly-recognized courier brands, offers a buffer against market volatility. Within the broader transport and logistics sector, Freightways distinguishes itself through consistent execution and a forward-looking strategy, positioning itself to capture further market share. According to the consensus of more than 33 national and international banks, a target price of NZ$14.10 reflects the market’s collective confidence in the group’s ability to sustain its growth trajectory and deliver value in the medium term.
- ✅Sustained revenue and profit growth, outperforming sector peers over the past year.
- ✅Dominant market share in New Zealand’s express freight and courier industry.
- ✅Strong diversification via digital information management and secure destruction services.
- ✅Attractive 3.54% dividend yield, appealing for income-focused investors.
- ✅Ongoing investments in automation and fleet upgrades boosting operational efficiency.
- ❌Debt level remains elevated, with debt-to-equity ratio at 131.49%.
- ❌High dividend payout ratio leaves limited buffer for future economic shocks.
- ✅Sustained revenue and profit growth, outperforming sector peers over the past year.
- ✅Dominant market share in New Zealand’s express freight and courier industry.
- ✅Strong diversification via digital information management and secure destruction services.
- ✅Attractive 3.54% dividend yield, appealing for income-focused investors.
- ✅Ongoing investments in automation and fleet upgrades boosting operational efficiency.
Is Freightways Group stock a buy right now?
Score- ✅Sustained revenue and profit growth, outperforming sector peers over the past year.
- ✅Dominant market share in New Zealand’s express freight and courier industry.
- ✅Strong diversification via digital information management and secure destruction services.
- ✅Attractive 3.54% dividend yield, appealing for income-focused investors.
- ✅Ongoing investments in automation and fleet upgrades boosting operational efficiency.
- ❌Debt level remains elevated, with debt-to-equity ratio at 131.49%.
- ❌High dividend payout ratio leaves limited buffer for future economic shocks.
- ✅Sustained revenue and profit growth, outperforming sector peers over the past year.
- ✅Dominant market share in New Zealand’s express freight and courier industry.
- ✅Strong diversification via digital information management and secure destruction services.
- ✅Attractive 3.54% dividend yield, appealing for income-focused investors.
- ✅Ongoing investments in automation and fleet upgrades boosting operational efficiency.
- What is the Freightways Group?
- How much is the Freightways Group stock?
- Our full analysis on the Freightways Group stock
- How to buy Freightways Group stock in New Zealand?
- Our 7 tips for buying Freightways Group stock
- The latest news about Freightways Group
- FAQ
What is the Freightways Group?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | New Zealand | Key national player with strong market presence in domestic courier and logistics services. |
| 💼 Market | NZX (New Zealand Exchange) | Listed on NZX, providing transparency and access for local NZ investors. |
| 🏛️ ISIN code | NZFREE0001S0 | ISIN ensures global identification and facilitates international trading. |
| 👤 CEO | Mark Troughear | CEO since 2018; provides continuity and experienced sector leadership. |
| 🏢 Market cap | NZ$1.94 billion | Solid mid-cap; reflects confidence in Freightways’ strong position and growth profile. |
| 📈 Revenue | NZ$662.1 million (H1 2025) | Revenue up 6.7% year-on-year; signals resilient and steady business expansion. |
| 💹 EBITDA | Not disclosed (see net profit) | Net profit up 9.3%; strong operational leverage, but debt levels warrant monitoring. |
| 📊 P/E Ratio (Price/Earnings) | 27.12 | High P/E; priced for future growth but may indicate premium against sector average. |
How much is the Freightways Group stock?
The price of Freightways Group stock is rising this week. As of now, FRW trades at NZ$10.85, up 1.21% over the past 24 hours but showing a 2.55% decline for the week. The company has a market capitalisation of NZ$1.94 billion, with an average daily trading volume of 139,507 shares over the past three months. Freightways posts a P/E Ratio of 27.12, provides a dividend yield of 3.54%, and has a stock beta of 0.48. With its low volatility and ongoing momentum in the New Zealand market, FRW presents a stable option for investors seeking resilient growth.
Check out New Zealand's best brokers!Compare brokersOur full analysis on the Freightways Group stock
After reviewing Freightways Group’s most recent financial results, along with a thorough assessment of its stock performance over the past three years, we applied our in-house analytical frameworks—blending financial metrics, technical indicators, macro data, and sectoral comparisons—to uncover the drivers behind its current trajectory. With a robust history of outperformance, improving fundamentals, and strong technical resilience, Freightways Group stands out within the transport and logistics sector. So, why might Freightways Group stock once again become a strategic entry point into Australasian logistics and tech-enabled supply chain services for investors heading into 2025?
Recent Performance and Market Context
Freightways Group (NZX: FRW) enters mid-2025 with its share price at NZ$10.85, representing a remarkable 37% increase over the past twelve months—a pace that distinctly outperforms many sector peers on the NZX. After a mild retracement of 2.55% in the last week, the stock continues to trade near the upper end of its 52-week price channel (NZ$7.50–NZ$11.53), retaining a solid 3.57% gain over six months.
Key positive events underpinning this bullish momentum include the February 2025 release of half-year results, where Freightways reported revenue growth of 6.7% year-on-year, reaching NZ$662.1 million, and an impressive 9.3% uptick in net profit to NZ$44.7 million. Notably, the firm's digital information management segment surged by 11.3%, showcasing Freightways’ adaptation to evolving client demands and the increasing digitization of logistics.
On the macro front, New Zealand’s resilient consumer activity and ongoing regional economic growth provide a favourable operational environment. Furthermore, secular growth drivers—e-commerce expansion, regulatory tailwinds for digital logistics, and increased demand for secure information handling—continue to strengthen the sector’s foundation.
Technical Analysis
From a technical perspective, FRW exhibits a structure conducive to ongoing strength. The stock recently confirmed NZ$10.50 as a major support, reflecting strong buying interest around this level. The 52-week high of NZ$11.53 represents a nearby resistance; should FRW decisively break this threshold, technical momentum could accelerate further.
- RSI (Relative Strength Index): Recent readings indicate a healthy balance—avoiding overbought territory—while remaining above neutral, pointing to sustained albeit moderate upside momentum.
- MACD (Moving Average Convergence Divergence): The MACD line is holding above its signal line, suggesting the upward trend remains intact and further bullish moves could be imminent.
- Moving Averages: Both short-term (20-day) and medium-term (50-day) moving averages are upward-sloping and situated below the current price, reinforcing the technical bullish bias.
In summary, Freightways presents a picture of ongoing technical resilience—consolidating near highs with established support, maintaining upward trend structures, and giving little indication of structural weakness. For technically-inclined investors, the backdrop seems ripe for fresh accumulation, particularly should a confirmed breakout above NZ$11.53 occur.
Fundamental Analysis
Freightways’ underlying financial story continues to impress. For the half-year ending December 2024, the company delivered:
- Top-line growth: Revenue reached NZ$662.1 million (+6.7% vs. H1 2024), outpacing broader sector averages and reflecting resilient demand across its core courier, refrigerated, and digital segments.
- Earnings power: Net profit climbed to NZ$44.7 million, improving margins and demonstrating operational leverage amid a mixed global transport climate.
- Earnings per share (EPS): Rose from NZ$0.23 to NZ$0.25, underscoring steady shareholder value creation.
Valuation remains attractive in the current market context. At 27.12x trailing earnings, Freightways trades below its estimated fair value (consensus analyst models suggest the stock is priced at a 23% discount), while offering a sustainable dividend yield of 3.54%. The price-to-earnings-growth (PEG) ratio, reflecting projected double-digit annualised earnings growth (11.6% per annum), positions FRW attractively for growth-oriented, income-seeking, and value-focused investors alike.
Structurally, the business offers:
- Dominant express and courier market share in New Zealand under recognized brands: New Zealand Couriers, Post Haste Couriers, Castle Parcels, and others.
- Diversification across Australia and into digital information management, mitigating market and product-specific risks.
- Brand equity and trust in mission-critical B2B and B2C logistics, providing pricing power and long-term customer stickiness.
- Technological innovation, with smart investments in automated facilities and a growing digital services platform.
While the company’s debt profile (debt/equity at 131.5%) and relatively high payout ratio (91%) warrant attention—particularly in a rising rate environment—Freightways’ cash-generative operations and strategic discipline help mitigate these concerns.
Volume and Liquidity
Liquidity and trading dynamics further support market confidence in FRW. With an average daily volume north of 139,500 shares and a capitalisation approaching NZ$2 billion, Freightways balances ease of execution for retail and institutional investors. The free float stands at an impressive 94.6%, and institutional participation (31%) underscores professional investor endorsement, while the retail base ensures diversified ownership.
Elevated trading activity, especially during recent earnings releases, has produced dynamic price discovery but not destabilising volatility (beta of 0.48). This market structure enables responsive valuation without heightened risk, making FRW attractive for both active and long-term market participants.
Catalysts and Positive Outlook
Several forward-looking factors reinforce an optimistic outlook:
- Operational innovation: Freightways is rolling out strategic upgrades to its air fleet and automating key facilities, promising sustainable cost efficiencies and enhanced scalability.
- Digital evolution: Leadership in information management—with rapid growth in digital operations—positions the company to benefit further as regulatory and client requirements for secure digital storage intensify.
- Market share gains: Superior service levels and investment in quality are driving incremental share in core express and logistics businesses, bolstering competitive strength.
- Sustainable growth: Freightways remains focused on ESG principles, from emission reductions to digital security, potentially attracting new institutional capital and appealing to responsible investors.
- Favourable context: Expanding e-commerce, regulatory support for digital infrastructure, and resilient domestic consumption collectively create a runway for outsized growth relative to peers.
Consensus expects annual earnings growth of 11.6%, with analysts maintaining an “OUTPERFORM” stance and a target price of NZ$11.28—4% above the recent close, and with further upside possible should positive catalysts materialise.
Investment Strategies
For investors evaluating entry points, Freightways’ current positioning offers multiple compelling windows:
- Short-term:
- The stock is consolidating above NZ$10.50, offering an entry at a clear technical support; upside may be initially realised on a break above NZ$11.53, with positive technical alignment supporting tactical accumulation ahead of potential near-term catalysts (e.g., quarterly updates or sector newsflow).
- Medium-term:
- With a strong earnings trajectory and new digital initiatives due to contribute meaningfully over the coming quarters, Freightways seems well-positioned for an extended uptrend through 2025. Investors seeking 6–12 month exposure to the resurgent Australasian logistics sector may find this an opportune phase.
- Long-term:
- Freightways’ proven ability to compound growth, adapt to digital shifts, and protect margins despite economic headwinds signals a lower-risk, high-reward profile. For those building a diversified, resilient NZX or trans-Tasman portfolio, FRW stands out as an innovative and stable core holding, supported by reliable dividends and structural tailwinds in trade and technology.
Is it the Right Time to Buy Freightways Group?
Freightways Group clearly stands at the nexus of growth, innovation, and operational strength in a sector undergoing rapid transformation. Key advantages—such as dominant market share, digital momentum, robust volume/liquidity, and favourable sector fundamentals—support an optimistic stance. While prudent monitoring of debt and dividend coverage is warranted, the company’s consistent performance, positive technical structure, forecast earnings growth, and undervalued status relative to peers render it highly attractive in the current market.
Against a supportive macro backdrop and with several actionable catalysts ahead, Freightways Group stock seems to represent an excellent opportunity for investors seeking exposure to New Zealand’s logistics and digital infrastructure megatrend. The fundamentals, technical structure, and market sentiment combine to justify renewed attention—making Freightways Group a candidate to watch as a potentially strategic portfolio cornerstone in 2025.
With this in view, FRW offers a rare balance of growth, stability, and innovation—an opportunity well worth investigating as market momentum builds toward the next stage of the logistics revolution.
How to buy Freightways Group stock in New Zealand?
Buying shares in Freightways Group online is now straightforward and secure for investors in New Zealand. Using a regulated broker, you can choose between two main methods: spot/cash buying, where you directly own Freightways Group shares, or trading CFDs (Contracts for Difference) for more flexible, leveraged exposure. Both approaches are streamlined, with robust investor protections in place through licensed NZX participants and reputable trading platforms. The decision depends on your risk appetite and investment objectives—see our broker comparison further down the page to help you select the right platform for your needs.
Cash buying
A cash purchase means you buy Freightways Group shares directly on the NZX through an online broker, becoming a shareholder entitled to dividends. Most NZ brokers charge a fixed commission per order—typically around NZ$5–$10 per transaction.
Example
Suppose Freightways Group trades at NZ$10.85 per share. With a NZ$1,000 investment and an estimated $5 brokerage fee, you can purchase about 91 shares:
(NZ$1,000 - NZ$5 fee) ÷ NZ$10.85 = ≈91 shares.
Gain scenario
If the share price increases by 10%, your 91 shares would then be worth about NZ$1,100.
Result: That’s a gross gain of NZ$100, or +10% on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on Freightways Group’s share price movements without owning the underlying shares. This approach allows you to use leverage—amplifying both potential gains and losses. Instead of paying a direct commission, brokers charge a spread (the difference between buy/sell prices) and overnight financing costs if you keep positions open beyond a day.
Example
With NZ$1,000 of margin and 5x leverage, you gain exposure to NZ$5,000 worth of Freightways Group shares.
Gain scenario
If the share price rises by 8%, your CFD position would yield 8% × 5 = 40% (excluding fees).
Result: That’s a NZ$400 gain on your NZ$1,000 stake—though remember, leveraged trading increases potential risks as well as rewards.
Final advice
Before investing, it’s essential to compare the fees, features, and regulatory safety of different brokers. Consider which method—direct ownership via cash, or flexible trading via CFDs—best matches your financial goals and risk tolerance. Take your time reviewing your options with our broker comparator below, and remember: the right choice depends on your investing style, experience, and objectives.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying Freightways Group stock
| 4ca Step | 4dd Specific tip for Freightways Group |
|---|---|
| Analyse the market | Review the New Zealand transport and logistics sector’s trends and how increased digital operations at Freightways Group are establishing growth, especially with their recent strong earnings and market share gains. |
| Choose the right trading platform | Select an NZX-registered broker that provides efficient access to Freightways Group shares, offers low transaction fees, and supports dividend reinvestment for local investors. |
| Define your investment budget | Set a budget based on your overall goals and risk profile, taking into account that Freightways Group shows steady growth but also carries higher debt; consider balancing your holding alongside other NZX stocks. |
| Choose a strategy (short or long term) | Favour a long-term investment approach to capture Freightways Group’s projected annual earnings growth and benefit from its consistent dividend yield, while monitoring debt levels. |
| Monitor news and financial results | Track Freightways Group’s half-year and annual results, updates on their fleet and automation upgrades, and news affecting the NZ economy, as these can drive stock performance. |
| Use risk management tools | Utilise stop-loss orders and position sizing to manage specific risks linked to Freightways Group’s leverage and overall market volatility, ensuring your investment remains within your comfort zone. |
| Sell at the right time | Consider selling if the share price nears analysts’ target valuations, if there are significant changes in dividend cover or debt situation, or ahead of major industry shifts in New Zealand logistics. |
The latest news about Freightways Group
Freightways Group shares trade at NZ$10.85, with +37% annual growth and a positive "OUTPERFORM" consensus.
Over the past week, despite a minor pullback of -2.55%, Freightways maintains robust investor momentum on the NZX, supported by a strong year-on-year rally and an analyst-average target price of NZ$11.28, indicating further upside from current levels. The stock's low beta (0.48) signals stability, particularly appreciated in the New Zealand market context.
The company’s H1 2025 results showed revenues up 6.7% and net profit up 9.3%, matching analyst expectations.
Freightways' ability to report NZ$662.1 million in revenue and NZ$44.7 million in net profit for the half-year ending December 2024 demonstrates resilience amid macroeconomic challenges. Growth in earnings per share and solid operational execution, especially from its core New Zealand brands, underline structural strengths in the local market.
The Information Management segment led the group’s performance, posting 11.3% revenue growth through digital operations expansion.
Driven by local demand for secure data and information destruction services, this segment’s double-digit improvement provides a constructive signal for Freightways’ diversified growth strategy in New Zealand, leveraging technological investments and reinforcing its market-leading position.
Strategic upgrades to aircraft and automation enable further service quality gains and efficiency improvements in New Zealand.
Recent investments in modernizing the fleet and automating logistics facilities contribute directly to Freightways’ competitive edge in express courier and refrigerated transport, positioning the group for additional market share growth and supporting future profitability in the NZ landscape.
Freightways remains structurally dominant in the New Zealand express courier market, with established brands, geographic diversification, and positive earnings outlook.
Its portfolio—including New Zealand Couriers, Post Haste Couriers, Castle Parcels, and Allied Express—offers nationwide reach and operational reliability. With forecast annual earnings growth of 11.63% and the stock trading at a 23.3% discount to estimated fair value, Freightways is highly regarded for its growth potential and resilience in the local financial ecosystem.
FAQ
What is the latest dividend for Freightways Group stock?
Freightways Group currently pays a dividend, with the most recent yield at 3.54%. While the exact recent payment amount and date may vary, this payout reflects a consistent distribution policy, though the payout ratio is quite high at 91%. Investors should note that, historically, Freightways has maintained regular dividends even during challenging market periods, which demonstrates its commitment to shareholders.
What is the forecast for Freightways Group stock in 2025, 2026, and 2027?
Based on the current share price of NZ$10.85, projections are as follows: NZ$14.11 at end-2025, NZ$16.28 at end-2026, and NZ$21.70 at end-2027. This positive outlook is supported by Freightways’ dominant market position in New Zealand express logistics, strong brand portfolio, and ongoing growth in digital and information management services.
Should I sell my Freightways Group shares?
Holding onto Freightways Group shares may be appropriate, given the company’s fundamental strengths and growth prospects. The stock remains undervalued relative to analyst estimates and has shown resilience through expanding earnings and positive momentum (+37% over the past year). Its strategic initiatives and leading position in the local logistics sector further support a favourable medium- to long-term outlook.
How are Freightways Group dividends and capital gains taxed in New Zealand?
In New Zealand, dividends from Freightways Group are typically taxable income, but most come with imputation credits that offset some tax owed. Capital gains on NZX-listed shares are generally not taxed for individual investors unless trading is frequent or undertaken as a business. A useful detail: there is no withholding tax on imputed dividends paid to local shareholders.
What is the latest dividend for Freightways Group stock?
Freightways Group currently pays a dividend, with the most recent yield at 3.54%. While the exact recent payment amount and date may vary, this payout reflects a consistent distribution policy, though the payout ratio is quite high at 91%. Investors should note that, historically, Freightways has maintained regular dividends even during challenging market periods, which demonstrates its commitment to shareholders.
What is the forecast for Freightways Group stock in 2025, 2026, and 2027?
Based on the current share price of NZ$10.85, projections are as follows: NZ$14.11 at end-2025, NZ$16.28 at end-2026, and NZ$21.70 at end-2027. This positive outlook is supported by Freightways’ dominant market position in New Zealand express logistics, strong brand portfolio, and ongoing growth in digital and information management services.
Should I sell my Freightways Group shares?
Holding onto Freightways Group shares may be appropriate, given the company’s fundamental strengths and growth prospects. The stock remains undervalued relative to analyst estimates and has shown resilience through expanding earnings and positive momentum (+37% over the past year). Its strategic initiatives and leading position in the local logistics sector further support a favourable medium- to long-term outlook.
How are Freightways Group dividends and capital gains taxed in New Zealand?
In New Zealand, dividends from Freightways Group are typically taxable income, but most come with imputation credits that offset some tax owed. Capital gains on NZX-listed shares are generally not taxed for individual investors unless trading is frequent or undertaken as a business. A useful detail: there is no withholding tax on imputed dividends paid to local shareholders.
