Should I buy Summerset Group Holdings stock in 2025?

What is Summerset Group Holdings?

How much is the Summerset Group Holdings stock?

The price of Summerset Group Holdings stock is rising this week. As of today, the stock trades at NZ$11.05, up 0.45% over the past 24 hours, with a current market capitalisation of NZ$2.66 billion. The average three-month trading volume stands at 300,844 shares, and the P/E ratio is 7.67. Summerset offers a dividend yield of 2.40%, and the stock exhibits low volatility with a beta of 0.32. With robust earnings and steady expansion in New Zealand and Australia, SUM presents a stable investment profile in the current market.

Our full analysis on the Summerset Group Holdings stock

Having carefully reviewed Summerset Group Holdings Limited's FY2024 results and assessed its share price evolution over the past three years, our analysis leverages a robust set of indicators—including financial metrics, technical and market signals, and strategic positioning versus sector peers—processed by proprietary quantitative algorithms. This approach aims to distil the underlying drivers of value and opportunity currently surrounding Summerset’s stock. So, why might Summerset Group Holdings once again represent a strategic entry point into the Australasian retirement and aged-care sector in 2025?

Recent Performance and Market Context

Summerset Group Holdings (SUM.NZ), a leading developer and operator of integrated retirement villages in New Zealand and Australia, has demonstrated notable share price resilience in FY2024. As of 30 May 2025, SUM is trading at NZ$11.05, up +17.55% over the past year despite a recent six-month pullback of -13.87%. The intraday uptick (+0.45%) and a robust average daily volume of over 300,000 shares support ongoing investor interest and liquidity.

The last twelve months have been punctuated by highly positive corporate events:

• Record underlying profit: FY2024 saw underlying profit reach NZ$206.4 million (+8% YoY), well ahead of market expectations even amid a challenging property market.
• Operational milestones: Deliveries included the on-time, on-budget opening of St Johns Village in Auckland, the acquisition of three new strategic sites, and successful entry into Australia with the first residents at Cranbourne North.
• Strategic expansion: Accelerated development pipeline with 20 sites active and 1,100+ unit additions ensures future growth.
• Consensus target price: With the average analyst target set at NZ$14.25, the implied upside from current levels stands at an attractive +28.9%.

The sector backdrop remains highly supportive. Both New Zealand and Australia face accelerating demographic ageing, reinforcing long-term demand for Summerset’s integrated care solutions. Structural under-supply, combined with a resilient business model based on long-term occupancy rights, positions Summerset as a prime beneficiary of sector tailwinds despite short-term headwinds in residential housing.

Technical Analysis

Technically, SUM is exhibiting a “neutral” global signal, with a clear opportunity for technical reappraisal:

• Relative Strength Index (RSI) at 45.78 signals the stock is neither overbought nor oversold, offering flexibility for new positions.
• MACD at -0.04 provides a mild bearish crossover, but with the reading hovering close to zero, a reversal could be imminent, especially if volume trends strengthen.
• Moving averages: The current price sits just below short- and long-term moving averages (20, 50, 100, 200-day all near NZ$11.20–$12.08). While the trend is labelled "bearish," the flattening of these averages hints at base-building after the recent correction.
• Key levels: Solid near-term support at NZ$10.35, with resistance at NZ$11.35, within a 52-week range of NZ$9.15–$13.44. The stock consolidating above major support suggests limited downside risk, with a positive risk/reward setup for medium-term investors.

Altogether, the technical landscape suggests that Summerset may have entered a period of trend reversal, setting the stage for a potential new bullish phase.

Fundamental Analysis

Summerset's operational and financial fundamentals underline the case for renewed investor interest:

• Revenue and profit growth: FY2024 revenue rose +18% YoY to NZ$319.9 million, and underlying profit hit a company record (NZ$206.4 million, +8%). IFRS net profit reached NZ$339.8 million and EPS stood at NZ$1.44.
• Earnings quality and margin expansion: Development margins remain strong at 28.9%. Profitability has proven resilient despite sectoral and funding headwinds.
• Attractive valuation: Trading at a P/E of 7.67, Summerset appears undervalued compared to historical averages and broader sector multiples, particularly in light of high double-digit growth.
• Dividend yield: Offers a stable 2.40% (NZ$0.245/share for 2024), appealing for both income-oriented and growth-focused investors.
• Structural strengths:
• 97% resident satisfaction, 81% staff retention (+4% YoY), and consecutive wins at the Reader's Digest Quality Service Award signal durable brand strength and customer loyalty.
• Continued expansion in Australia (4 villages in development) diversifies growth sources and capitalises on the underpenetrated Australian market.

Summerset’s proven management execution, geographic expansion, and strong fundamentals justify investor optimism and distinguish the company as a leader within the aged-care and retirement sector.

Volume and Liquidity

Liquidity indicators reinforce the stock’s investability:

• Average daily volume of 300,844 shares signifies robust market participation and easy entry/exit for both institutional and individual investors.
• Market capitalisation of NZ$2.662 billion establishes Summerset among the NZX’s major players.
• Ownership structure: With 51% held by institutions and 44% by retail investors, the float is both dynamic and supportive of valuation re-rating as new catalysts unfold.

Consistent volume, stable institutional backing, and diverse retail interest all signal a strong degree of market confidence—typically a harbinger of positive price action when fundamentals align.

Catalysts and Positive Outlook

Several key catalysts are set to underpin upward momentum in the months ahead:

• Australian growth: Ongoing construction at Chirnside Park and additional pipeline in Victoria create multi-year growth visibility.
• New Zealand network expansion: Three new village sites acquired in 2024, with ongoing developments and extensions reinforcing market leadership.
• Favourable demographics: Rapid ageing in both core markets underpins a growing pool of prospective residents.
• Innovation and service quality: Consecutive industry awards, high satisfaction metrics, and ESG commitments strengthen the long-term competitive moat.
• Margin resilience: The business model, based on rights purchases and long-term contracts, offers insulation from short-term real estate volatility.

Sentiment remains optimistic, supported by analyst upgrades and operational outperformance. The backdrop of regulatory attention to seniors’ care also points to potential public-private partnership opportunities, even as public funding debates continue.

Investment Strategies

With these factors in place, several investment horizons offer compelling entry arguments:

• Short-term: The current consolidation just above NZ$10.35 support creates a favourable risk/reward trade for active traders, especially if technical momentum shifts positively.
• Medium-term: Upcoming Australian village launches, continued site development, and the prospect of a return above short/medium moving averages offer a logical window for re-rating. Analyst consensus targets imply nearly 30% upside.
• Long-term: The convergence of Triple-A corporate execution, structural demand growth, expanding margins, and disciplined capital deployment differentiates Summerset as a rare compounding growth story in the New Zealand market.

For both short- and long-term investors, entering near support—particularly ahead of major new site deliveries or positive regulatory developments—seems to represent an excellent opportunity.

Is it the Right Time to Buy Summerset Group Holdings?

Summerset Group Holdings is currently trading at a compelling intersection of resilient operating performance, attractive valuation, and visible future growth. The company’s robust balance sheet, consistent margin delivery, and sector-leading service metrics underpin a strong investment case. Furthermore, the stock’s recent consolidation phase, coupled with clearly defined support levels and a suite of upcoming catalysts (from Australian expansion to demographic tailwinds), suggest that Summerset may be entering a new bullish phase.

While all equities require diligent risk management—especially amid macroeconomic uncertainty—the combination of fundamentals, technical foundation, and sector opportunities provide solid justification for renewed interest in Summerset Group Holdings. Investors seeking dynamic, high-quality exposure to the Australasian senior living and healthcare sector may find SUM especially well positioned as we approach a new growth cycle.

In summary, Summerset Group Holdings demonstrates an unusually attractive confluence of value, momentum, and strategic leadership—making it a stock that clearly deserves consideration by any investor looking to benefit from structural demographic trends and premium operational execution in New Zealand’s future-focused investment landscape.

How to buy Summerset Group Holdings stock in New Zealand?

Buying shares of Summerset Group Holdings Limited (SUM.NZ) online is straightforward and secure when you use a regulated broker in New Zealand. As a retail investor, you have two main options: purchasing real shares (spot buying) for direct ownership, or trading Contracts for Difference (CFDs) to speculate on price movements with leverage—without owning the underlying stock. Both methods can be accessed easily through established online platforms, making investing more accessible than ever. To help you decide, we provide a detailed comparison of leading brokers and their fees further down the page.

Spot Buying (Cash Purchase)

When you buy Summerset Group Holdings shares for cash, you become a direct shareholder in the company. This entitles you to dividends and voting rights, and you benefit directly from increases in the share price. Most NZ brokers charge a fixed commission per order when buying on the NZX, usually between NZ$3 and NZ$15.

Important Example

Example: If the Summerset share price is NZ$11.05, you can buy around 90 shares with a NZ$1,000 stake. Assuming a brokerage fee of NZ$5, your total investment would be NZ$995 for the shares and NZ$5 for the commission.
✔️ Gain scenario: If the share price rises by 10%, your holdings are now worth NZ$1,100.
Result: +NZ$100 gross gain, or +10% on your investment (before taxes and any other fees).

Trading via CFD

CFD trading lets you speculate on the price movement of Summerset Group Holdings shares without owning the shares. Instead, you enter into a contract with your broker to exchange the difference in the share price from opening to closing your position. With CFDs, you can use leverage to amplify your exposure, but you’ll pay additional fees: the spread (difference between buying and selling price) and overnight financing if you hold positions longer than a day.

Example

Example: You open a CFD position on Summerset shares with NZ$1,000 and 5x leverage—giving you exposure to NZ$5,000 worth of shares.
✔️ Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.
Result: +NZ$400 gain on your NZ$1,000 margin (excluding fees like spread and overnight interest).

Final Advice

Before investing, it’s essential to compare brokers’ fees, products, and trading conditions—spreads, commission, and available markets can make a big difference to your returns. Ultimately, your best method depends on your personal investment goals: choose spot buying if you prefer direct ownership and potential dividend income, or CFDs if you seek flexibility and leverage. To help you make an informed choice, check our detailed broker comparison further down the page.

Our 7 tips for buying Summerset Group Holdings stock

The latest news about Summerset Group Holdings

Summerset Group Holdings reported record underlying profit of NZ$206.4 million for FY2024, significantly exceeding analyst expectations. This result, announced in February 2025, reflects strong operational performance despite challenging macroeconomic conditions, including subdued residential property markets in New Zealand. Summerset’s revenue grew by 18% year-on-year, with underlying profit up 8%, demonstrating resilience and efficiency in its core business. The company also reported high levels of resident satisfaction (97%) and improved staff retention rates, reinforcing its reputation as a sector leader.

Summerset continues strategic expansion in New Zealand and Australia, adding new sites and launching key developments. Over the past year, Summerset successfully opened its flagship St Johns retirement village in Auckland on schedule and within budget, acquired three new village sites and two extensions in New Zealand, and celebrated the first residents moving into its Cranbourne North facility in Australia. Further growth is anticipated, with more than 1,100 new retirement units recently added to its land bank and construction underway on additional Australian projects, bolstering long-term growth prospects for local and regional investors.

The shares are currently trading at NZ$11.05, with a consensus target price of NZ$14.25, reflecting a potential upside of nearly 29%. Despite a six-month decline of nearly 14%, SUM shares have delivered a 17.5% gain over the past 12 months, and market sentiment remains moderately optimistic, supported by Summerset’s robust operating results and expansion strategy. The company maintains a Price/Earnings Ratio of 7.67 and a stable dividend yield of 2.4%, positioning it as a relatively undervalued and attractive option among NZX-listed retirement sector peers for institutional and private investors alike.

Summerset’s operational excellence and customer focus have been recognized with major industry awards in New Zealand. For the second consecutive year, the company won the Reader's Digest Quality Service Award in the Retirement Villages category, underscoring its reputational strength. Such distinctions, combined with industry-leading resident satisfaction and a strong development margin of 28.9%, highlight Summerset’s quality of service and operational superiority in the local retirement sector, further supporting positive public and market perception in New Zealand.

Expansion is underpinned by supportive long-term sector trends and prudent financial management. Summerset is strategically positioned to benefit from the aging populations in New Zealand and Australia, with 20 active construction sites and a moderate leverage ratio (gearing at 36.4%). Its resilient long-term-lease business model and disciplined capital structure (with 51% institutional ownership) reinforce financial stability. The company has declared a final 2024 dividend of NZ$0.132 per share, totaling NZ$0.245 for the year, providing attractive and reliable income to local shareholders despite broader sector and funding headwinds.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.