ASX:GTN

Stock Analysis Report

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Executive Summary

GTN Limited, together with its subsidiaries, operates broadcast media advertising platforms that supply traffic information reports to radio and/or television stations. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has GTN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GTN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

GTN

1.0%

AU Media

-0.3%

AU Market


1 Year Return

-55.4%

GTN

-48.1%

AU Media

-11.1%

AU Market

Return vs Industry: GTN underperformed the Australian Media industry which returned -48.7% over the past year.

Return vs Market: GTN underperformed the Australian Market which returned -10.6% over the past year.


Shareholder returns

GTNIndustryMarket
7 Day-5.1%1.0%-0.3%
30 Day2.7%-2.8%-4.2%
90 Day-11.8%14.3%1.6%
1 Year-54.4%-55.4%-38.8%-48.1%-7.8%-11.1%
3 Year-85.2%-87.0%-36.7%-52.4%17.1%2.1%
5 Yearn/a-18.0%-45.8%43.1%13.0%

Price Volatility Vs. Market

How volatile is GTN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GTN undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GTN (A$0.38) is trading below our estimate of fair value (A$1.57)

Significantly Below Fair Value: GTN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GTN is poor value based on its PE Ratio (259.7x) compared to the AU Media industry average (11.9x).

PE vs Market: GTN is poor value based on its PE Ratio (259.7x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: GTN is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: GTN is good value based on its PB Ratio (0.4x) compared to the AU Media industry average (1.2x).


Next Steps

Future Growth

How is GTN forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTN's forecast earnings growth (41.7% per year) is above the savings rate (2.3%).

Earnings vs Market: GTN's earnings (41.7% per year) are forecast to grow faster than the Australian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GTN's revenue (7.3% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: GTN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GTN's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has GTN performed over the past 5 years?

44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTN has a large one-off loss of A$395.0K impacting its June 30 2020 financial results.

Growing Profit Margin: GTN's current net profit margins (0.2%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: GTN has become profitable over the past 5 years, growing earnings by 44.4% per year.

Accelerating Growth: GTN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GTN had negative earnings growth (-98%) over the past year, making it difficult to compare to the Media industry average (-9.5%).


Return on Equity

High ROE: GTN's Return on Equity (0.1%) is considered low.


Next Steps

Financial Health

How is GTN's financial position?


Financial Position Analysis

Short Term Liabilities: GTN's short term assets (A$86.5M) exceed its short term liabilities (A$34.6M).

Long Term Liabilities: GTN's short term assets (A$86.5M) exceed its long term liabilities (A$83.6M).


Debt to Equity History and Analysis

Debt Level: GTN's debt to equity ratio (27.3%) is considered satisfactory.

Reducing Debt: GTN's debt to equity ratio has reduced from 33.6% to 27.3% over the past 5 years.

Debt Coverage: GTN's debt is well covered by operating cash flow (47.7%).

Interest Coverage: Insufficient data to determine if GTN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is GTN current dividend yield, its reliability and sustainability?

8.74%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GTN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GTN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GTN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GTN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GTN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GTN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

AU$2m

CEO Compensation


CEO

Bill Yde (67 yo)

15.67yrs

Tenure

AU$1,661,650

Compensation

Mr. William L. Yde, III, also known as Bill, has been Chief Executive Officer, Managing Director and President of GTN Limited since 2005. Mr. Yde has been Chairman, Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD1.17M) is above average for companies of similar size in the Australian market ($USD277.06K).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GTN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GTN Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GTN Limited
  • Ticker: GTN
  • Exchange: ASX
  • Founded: 1997
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$80.730m
  • Shares outstanding: 215.28m
  • Website: https://www.gtnetwork.com.au

Location

  • GTN Limited
  • 100 Miller Street
  • Level 42, Northpoint
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2016
GTNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2016

Biography

GTN Limited, together with its subsidiaries, operates broadcast media advertising platforms that supply traffic information reports to radio and/or television stations. The company through its advertising ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:07
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.