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Beyond International

ASX:BYI
Snowflake Description

Adequate balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BYI
ASX
A$37M
Market Cap
  1. Media
Company description

Beyond International Limited engages in the media and content businesses in Australia, North America, Europe, and internationally. More info.


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  • Beyond International is not covered by any analysts.
SHARE PRICE
3 Month History
BYI
Industry
5yr Volatility vs Market
Competitors

Sorry, no analysis for Beyond International's competitors could be found in our database.

Value

 Is Beyond International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Beyond International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

Current Discount
Amount off the current price Beyond International is available for.
Intrinsic value
16%
Share price is A$0.6 vs Future cash flow value of A$0.71
Current Discount Checks
For Beyond International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Beyond International's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Beyond International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Beyond International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Beyond International's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Beyond International is loss making, we can't compare it's value to the AU Media industry average.
  • Beyond International is loss making, we can't compare the value of its earnings to the AU market.
Price based on expected Growth
Does Beyond International's expected growth come at a high price?
  • Unable to calculate PEG ratio for Beyond International, we can't assess if it's growth is good value.
Price based on value of assets
What value do investors place on Beyond International's assets?
  • Beyond International is good value based on assets compared to the AU Media industry average.
X
Value checks
We assess Beyond International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Media industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Media industry average (and greater than 0)? (1 check)
  5. Beyond International has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.
X
Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Beyond International is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
A$19

Terminal Value

Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = A$6 × (1 + 2.76%) ÷ (14.76% – 2.76%)

Terminal value based on the Perpetuity Method where growth (g) = 2.76%:
A$48

Present value of terminal value:
A$24

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
A$44 = A$19 + A$24

Value = Total value / Shares Outstanding (A$44 / 61)

Discount to Share Price

Value per share:
A$0.71

Current discount (share price of A$0.6): 15.53%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 14.76% = 2.76% + (1.657 * 7.24%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (A$36,802,180).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

1.657 = 1.494 (1 + (1- 30%) (15.61%))

Levered Beta used in calculation = 1.657



Assumptions
  1. The risk free rate of 2.76% is from the 10 year government bond rate in AUD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.24%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

Future Performance

 How is Beyond International expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • Beyond International is not covered by any analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
59.6%
Expected Media industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Beyond International expected to grow at an attractive rate?
  • Unable to compare Beyond International's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Beyond International's earnings growth to the AU market average as no estimate data is available.
  • Unable to compare Beyond International's revenue growth to the AU market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if Beyond International is high growth as no earnings estimate data is available.
  • Unable to determine if Beyond International is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Beyond International is expected to be perform poorly due to negative earnings.

Improvement & Relative to industry
  • Beyond International performance (ROE) can't be compared to the AU Media industry due to having negative earnings in 3 years.
  • Beyond International performance (ROE) is expected to still be negative in 3 years.
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Future performance checks
We assess Beyond International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the AU market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the AU market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Beyond International has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Beyond International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Beyond International's growth in the last year to its industry (Media).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Beyond International does not currently make a profit.
Earnings and Revenue History
Beyond International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Beyond International has negative negative earnings from operations, therefore its ROE is meaningless.
  • Beyond International had negative or no Return on Assets (ROA) last year.
  • Return based on revenue producing assets (ROCE) is negative or zero.
X
Past performance checks
We assess Beyond International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Media industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Beyond International has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Beyond International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Beyond International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Beyond International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Beyond International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Beyond International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Total debt is covered by total short term assets, assets are 8.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Beyond International's level of debt (17.9% of total debt) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 17.9% today).
  • Total debt is well covered by annual operating cash flow (102.5%, greater than 20% of total debt).
  • Beyond International is making a loss, therefore interest on debt is not well covered by earnings.
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Financial health checks
We assess Beyond International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Beyond International has a total score of 4/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Beyond International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Beyond International dividends.
If you bought A$2,000 of Beyond International shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Paying below low risk savings rate (3%).
  • Paying below markets top dividend payers (4.92%).
Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Not paying a notable dividend.
  • Not paying a notable dividend.
Current Payout to shareholders
What portion of Beyond International's earnings are paid to the shareholders as a dividend.
  • Not paying a notable dividend.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years.
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Income/ dividend checks
We assess Beyond International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Beyond International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Beyond International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Beyond International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mikael Borglund, image provided by Google.
Mikael Borglund
COMPENSATION A$941,245
AGE 61
CEO Bio

Mr. Mikael Borglund, B.Bus, CA, serves as the Chief Executive Officer of Beyond International Limited and has been its Managing Director since 1991. Mr. Borglund serves as a Managing Director of Beyond Films Limited and Beyond Television Pty. Ltd. During an outstanding career in the film and television industry he has produced a number of outstanding Australian films including KISS OR KILL and Lantana. Mr. Borglund has also been Executive Producer of hundreds of hours of television for broadcasters from around the globe. His credits include a host of internationally successful shows including BEYOND 2000. Hot ProDerty/Hot Atictions. FIRE. Stingers, Good Guys / Bad Guys, Medivac and the AFI Award winning Day Of The Roses and HAIlFA-X f p A. He serves as Non-Executive Director of Beyond Online Limited. Mr. Borglund has been Non-Executive Director of Mariner Retirement Solutions Ltd. since March 10, 1994. He has been an Executive Director of Beyond International Limited since 1990. He was Member of the Australian film and television industry, Mr. Borglund was elected to the council of the Screen Producers Association of Australia (SPAA) in 1994 and in 1997 was appointed to the board of the Australian Film Institute. He is a Charted Acountant from B Bus (credit) University of Technology Sydney.

CEO Compensation
  • Mikael's compensation has increased whilst company is loss making.
  • Mikael's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Beyond International management team in years:

8.8
Average Tenure
56.2
Average Age
  • The average tenure for the Beyond International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mikael Borglund

TITLE
MD, CEO & Executive Director
COMPENSATION
A$941K
AGE
61

Paul Wylie

TITLE
GM of Finance & Company Secretary
COMPENSATION
A$282K
TENURE
4 yrs

Peter Tehan

TITLE
General Manager of Legal & Business Affairs
COMPENSATION
A$260K
AGE
46

John Luscombe

TITLE
GM of Productions & Executive VP
COMPENSATION
A$1M
AGE
58

Tim McGee

TITLE
General Manager of Business Development
COMPENSATION
A$248K
AGE
58
TENURE
17.2 yrs

Phil Maddison

TITLE
General Manager of Home Entertainment
COMPENSATION
A$378K

Michael Murphy

TITLE
General Manager of Distribution
COMPENSATION
A$305K
TENURE
4.7 yrs

James Ward

TITLE
General Manager of Digital Marketing
COMPENSATION
A$251K
TENURE
3.6 yrs

Munia Kanna-Konsek

TITLE
Head of Sales at Beyond Distribution
AGE
58
TENURE
14.3 yrs

Jim Harper

TITLE
Head of Operations & Post Production - Beyond Distribution
Board of Directors Tenure

Average tenure and age of the Beyond International board of directors in years:

24.7
Average Tenure
62.5
Average Age
  • The average tenure for the Beyond International board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ian Ingram

TITLE
Non-Executive Chairman
COMPENSATION
A$188K
AGE
69
TENURE
31.2 yrs

Mikael Borglund

TITLE
MD, CEO & Executive Director
COMPENSATION
A$941K
AGE
61
TENURE
27.8 yrs

Anthony Lee

TITLE
Non-Executive Director
COMPENSATION
A$60K
AGE
59
TENURE
27.8 yrs

Ian Robertson

TITLE
Non-Executive Director
COMPENSATION
A$60K
AGE
61
TENURE
11.8 yrs
Recent Insider Trading
  • More shares have been bought than sold by Beyond International insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess Beyond International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Beyond International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

Company Info

Map
Description

Beyond International Limited engages in the media and content businesses in Australia, North America, Europe, and internationally. It operates through TV Production and Copyright, Film and Television Distribution, Home Entertainment, and Digital Marketing segments. The TV Production and Copyright segment is involved in the production of television programs and ownership of television product copyrights. The Film and Television Distribution segment distributes television programs and feature films. The Home Entertainment segment distributes DVDs in Australia and New Zealand. The Digital Marketing segment provides online search optimization, Website creation, development and performance, and online media sales services in Australia and New Zealand. The company was founded in 1984 and is headquartered in Dublin, Ireland.

Details
Name: Beyond International Limited
Ticker: BYI
Exchange: ASX
Founded: 1984
Market Cap: A$36,802,180
Shares outstanding: 61,336,968
Website: http://www.beyond.com.au
Address: Beyond International Limited
78 Merrion Square South,
Dublin,
2,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BYI Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
CHIA BYI Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
105
Beyond International employees.
Industry
Industry: Movies and Entertainment
Sector: Media