Should I Buy Tourism Holdings Stock in 2025? Expert Guide for NZ Investors

What is Tourism Holdings?

How much is the Tourism Holdings stock?

The price of Tourism Holdings stock is rising this week. As of now, the share is trading at NZ$1.38, reflecting a 1.47% gain over the past 24 hours. Over the week, the price shows a continued decline, contributing to a current market capitalisation of NZ$305.1 million. The average trading volume for the past three months stands at 180,700 shares, with a P/E ratio of 12.55 and a healthy dividend yield of 5.43%. The stock’s beta is 0.62, indicating relatively low volatility compared to the broader market. With these factors in mind, investors may find stability in Tourism Holdings, yet should remain mindful of recent downward trends and performance challenges.

Our full analysis on the Tourism Holdings stock

Following a comprehensive review of Tourism Holdings Limited’s (THL) latest financial statements and an in-depth evaluation of its stock performance over the past three years, our proprietary algorithms—blending financial, technical, and peer data—have identified a set of compelling signals. Not only does THL occupy a unique leadership position in the recreational vehicle and tourism space, but its current market dynamics and valuation metrics warrant renewed scrutiny. So, why might Tourism Holdings stock once again become a strategic entry point into the consumer cyclicals and tourism sectors in 2025?

Recent Performance and Market Context

After reaching a multi-year high in 2023, Tourism Holdings’ share price has undergone a significant retracement and now trades at NZ$1.38 as of 30 May 2025, reflecting a decline of -32.7% over the past six months and -27.4% year-on-year. While such sharp corrections might typically discourage momentum-driven investors, they often create exceptional re-entry points for those willing to look beyond near-term volatility.

Key positive events deserve attention:

• Intraday Recovery: Even within a challenging period, THL posted a 1.47% intraday increase (+NZ$0.02), implying market participants are alert to upside potential at current levels.
• Strong Dividend Yield: A projected yield of 5.43% offers meaningful income support—especially attractive amid ongoing macroeconomic uncertainty and low real interest rates.
• Favourable Sector Backdrop: Globally, post-pandemic tourism is rebounding forcefully. Domestic and international travel spending in New Zealand is on the rise, providing a robust tailwind for THL’s core activities. Industry data signals continued demand resilience as international borders remain open and consumer demand for experiential travel experiences gains traction.

While fiscal 2025’s interim results were impacted by softness in some international markets (notably the US and Canada), this is set against a backdrop of sector-wide recovery and structural tailwinds.

Technical Analysis

A close inspection of THL’s technical picture highlights a market in transition—ripe for opportunity:

• Moving Averages: The stock currently trades below both its 50-day (NZ$1.53) and 200-day (NZ$1.84) moving averages. Historically, such extended divergence from long-term averages in sector leaders often signals the late stage of a corrective phase.
• Support and Resistance: The NZ$1.29 level—also the 52-week low—forms a credible technical support, while NZ$2.30 marks a key resistance overhead. The stock’s current range of NZ$1.34–NZ$1.40 places it close to support, suggesting asymmetric risk/reward for new positions.
• Momentum Indicators: While RSI and MACD readings are not listed here, extended downtrends of this magnitude frequently correlate with oversold conditions. Volume analysis (see below) further points to accumulation at the lows.

The combined effect is a technical structure showing early, tentative signs of basing—one often seen at market inflection points ahead of bullish reversals.

Fundamental Analysis

THL’s business fundamentals continue to underscore its standing as a market leader with a defensive edge and proven growth optionality:

• Revenue Growth: Despite mid-cycle turbulence, THL posted top-line growth of +2.0% year over year (NZ$930.9m TTM), a clear sign of underlying demand resilience.
• Earnings & Profitability: Although interim net income declined by 36% (H1 2025: NZ$25.3m), the company continues to operate profitably, with an estimated 5.5% net margin. Margins are poised to recover as macro pressures abate and cost rationalisation schemes take effect.
• Attractive Valuation: With a trailing P/E of 12.55, P/S of 0.33, and a P/B of just 0.47, THL trades at a distinct discount to its peer group and long-term historic averages. The analyst consensus target of NZ$2.54 per share implies an upside of +84% from current levels—a rare valuation gap in the NZX landscape.
• Structural Strengths:
• Brand leadership: Dominant brand portfolio (Maui, Britz, Apollo, Mighty) with wide customer recognition.
• Geographic diversification: Operations span Australasia, North America, and Europe.
• Market share: Unrivaled share in New Zealand, with strategic routes capturing secular growth in self-drive tourism.

Despite elevated leverage (debt/equity ratio of 114%), operational cash flows remain robust (NZ$85.8m free cash flow TTM), and capital allocation discipline is evident in dividend continuity.

Volume and Liquidity

Trading volume analysis further amplifies the attractiveness of current price levels:

• Recent Turnover: The daily volume of 70,371 shares, while below the 3-month average of ~180,700, often typifies capitulation and early, patient accumulation by value-oriented investors at technical lows.
• Liquidity & Float: With over 186.6 million shares in the float and institutional plus insider ownership robust (totaling nearly 38%), THL’s share register is supportive of strong price re-rating dynamics if sentiment turns.

A critical element—with the stock approaching 52-week lows and liquidity tightening—further supports the hypothesis that a valuation floor may be forming, increasing the chances of a significant technical and fundamental rebound.

Catalysts and Positive Outlook

Multiple forward-looking drivers enhance the potential for upward stock re-rating:

• Sectoral Recovery: As international travel fully normalizes, pent-up demand for self-drive and RV tourism promises to accelerate in key markets, notably Australasia and the UK.
• Domestic Tourism Expansion: New Zealand’s appeal as a safe, remote, and scenic destination positions it ideally for global tourism’s next cycle.
• Innovation: Investments in fleet efficiency, digital bookings, and next-generation low-carbon vehicles align THL with evolving consumer and ESG expectations, supporting margin enhancement.
• Potential Corporate Actions: Merger activity, geographic bolt-ons, or asset-light partnerships could further unlock value and strengthen THL’s competitive moat.
• Dividend Support: A projected annual dividend of NZ$0.08 (yielding 5.43%) offers sustained cash returns despite near-term earnings pressure—appealing to both income and growth investors.

Any inflection in travel sentiment, surprise operating leverage, or regulatory tailwinds (e.g., international marketing campaigns or Green tourism initiatives) could serve as immediate catalysts for a reassessment of THL’s investment case.

Investment Strategies

The current juncture seems to offer compelling arguments for tactical and strategic entries:

• Short-Term:
• Entering near the established NZ$1.29–NZ$1.38 support zone could enable nimble investors to benefit from any technical relief rallies, particularly if further evidence emerges of bottoming price behaviour or improving sector sentiment.
• Medium-Term:
• Anticipating the full-year 2025 results or further updates on margin stabilisation presents an optimal positioning point. The stock may experience re-rating as market participants reassess near-term risks relative to deeply discounted valuation multiples and incoming dividend payments.
• Long-Term:
• For patient investors, THL offers exposure to global travel recovery, demographic tailwinds favouring recreational vehicle usage, and a credible path to cash flow normalisation. Strategic expansion, coupled with prudent leverage management, could unlock significant shareholder value over the cycle.

Across all horizons, the technical set-up (structurally undervalued at multi-year lows) and robust dividend yield represent a potential win-win scenario for diverse investor profiles.

Is It the Right Time to Buy Tourism Holdings?

Tourism Holdings Limited’s convergence of value, income, and sector leadership presents a particularly attractive scenario at today’s price. The stock’s combination of:

• multi-decade brand strength,
• unrivaled market position,
• resilient cash generation,
• and an unusually deep value discount (both on an absolute and relative basis)

all justify renewed interest at current levels. With travel demand resuming, continued innovation, and the prospect of dividend-driven total returns, THL may well be entering a new bullish phase. Investors focused on the intersection of recovery, value, and income would be well served to give this stock serious consideration at this inflection point—especially as the stock sits near strong technical support and is highly leveraged to improving sector conditions.

In summary, Tourism Holdings’ underlying strengths, high dividend yield, and deep-value status combine to make the current environment seem to represent an excellent opportunity for those seeking exposure to the next leg of the global travel resurgence. For those looking for a compelling entry into the NZ tourism and leisure sector, THL’s unique positioning and valuation gap set the stage for a potential upside re-rating as 2025 unfolds.

How to buy Tourism Holdings stock in New Zealand?

Buying shares of Tourism Holdings Limited (THL) online is both simple and secure when transacting via a regulated New Zealand broker. Investors can choose between two main methods: spot buying (also called cash purchase), which gives you direct ownership of the shares, or trading Contracts for Difference (CFDs), a derivative instrument permitting leveraged exposure to the share’s price movements. Both options can be quickly accessed online with modern platforms. Further down this page, you’ll find a detailed broker comparison to help you make the right choice for your needs.

Spot Buying

A cash purchase of Tourism Holdings shares means you directly own physical shares on the NZX, making you eligible for dividends and voting rights. Fees for this approach typically include a fixed commission per order—often between NZ$3.00 and NZ$15.00, depending on the broker, with NZ$5 being a common fee for small orders.

Important Example

Example: If the Tourism Holdings share price is NZ$1.38, a NZ$1,000 investment (net of a NZ$5 brokerage fee) lets you purchase around 720 shares:
NZ$1,000 - NZ$5 = NZ$995 available for shares
NZ$995 ÷ NZ$1.38 ≈ 720 shares

✔️ Gain scenario: If the share price rises by 10%, the total value of your 720 shares becomes NZ$1,100.
Result: +NZ$100 gross gain, a 10% increase on your investment.

Trading via CFD

CFD trading allows you to speculate on the price of Tourism Holdings shares without taking physical ownership, using leverage to amplify gains and losses. Instead of a brokerage fee, you’ll typically pay the “spread” (the small difference between buy and sell prices) and, if you hold positions overnight, a daily financing cost.

Important Example

Example: You open a CFD position on Tourism Holdings worth NZ$1,000, using 5:1 leverage. Your market exposure is NZ$5,000.
If the stock price rises by 8%, your gain is 8% × 5 (leverage) = 40%.

Result: +NZ$400 gain on your NZ$1,000 stake (excluding spread and overnight fees).

Final Advice

Before investing in Tourism Holdings, it’s important to compare the fees, features, and conditions of various local brokers. Your optimal choice depends on whether you prefer long-term ownership (spot buying) or flexible, leveraged trading (CFDs). Explore the detailed broker comparison further down this page to find the right platform for your investment objectives and confidence level. Each method offers attractive opportunities – the key is matching them with your own investing strategy.

Our 7 tips for buying Tourism Holdings stock

The latest news about Tourism Holdings

The stock price of Tourism Holdings Limited (THL) has stabilized and shows intraday gains of 1.47% on the NZX. In the latest week, THL’s share price increased by NZ$0.02 to close at NZ$1.38, indicating renewed buyer interest after a prolonged negative trend. Although the six-month and twelve-month returns remain negative, this recent uptick aligns with a broader stabilization observed on New Zealand’s equity markets, suggesting some resilience in institutional and retail sentiment towards THL at current price levels.

The dividend yield remains robust at 5.43%, reinforcing THL’s appeal for income-focused local investors. THL management confirmed a projected annual dividend of NZ$0.08, supporting an above-average yield compared to many NZX-listed consumer discretionary peers. The ex-dividend date of 20 March 2025 is now in the rear-view, meaning shares purchased today do not qualify for the latest payment, but the solid payout ratio of 87.05% signals ongoing commitment to shareholder returns amid operational challenges.

Consensus analyst target price signals a potential upside of 84% from current levels. Analyst coverage continues to highlight that the stock is deeply discounted, with the median target at NZ$2.54 versus the current price of NZ$1.38. This significant discount is anchored in anticipations of sectoral recovery, especially in New Zealand’s domestic tourism market, and THL’s maintained leadership in the RV segment, even as global markets – such as the US and Canada – present near-term headwinds.

THL’s latest semi-annual results show continued revenue growth but a decline in net profit as the company navigates international headwinds. For the half-year ended 31 December 2024, the company delivered NZ$458.4 million in revenue, a 2% annual increase and a reflection of resilient motorhome rental and sales domestically. However, net profit dropped by 36% compared to the prior year, largely due to cost pressures and weaker performance in North America. The modest growth in topline revenue amidst global uncertainty nevertheless underpins THL's strong local operations and adaptability.

THL maintains a dominant market position in New Zealand with a portfolio of well-recognized brands and steady cash flows. As the largest RV operator in the region, THL continues to benefit from high brand recognition (Maui, Britz, Apollo, Mighty) and substantial free cash flow of NZ$85.8 million (TTM), which provides confidence despite a high debt/equity ratio (114.21%). Its diversified operations and leading presence in the New Zealand tourism industry are clear structural positives, positioning the firm for participation in a likely medium-term rebound of local travel demand.

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.