ASX:GTN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-13.2%

GTN

-3.4%

AU Media

1.7%

AU Market


1 Year Return

-65.5%

GTN

-19.8%

AU Media

10.3%

AU Market

Return vs Industry: GTN underperformed the Australian Media industry which returned -19.8% over the past year.

Return vs Market: GTN underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

GTNIndustryMarket
7 Day-13.2%-3.4%1.7%
30 Day-11.0%-8.4%-0.4%
90 Day-18.5%-13.5%-0.1%
1 Year-63.5%-65.5%-16.0%-19.8%16.7%10.3%
3 Year-74.9%-78.5%4.8%-16.8%36.7%18.4%
5 Yearn/a-8.5%-36.6%50.9%16.9%

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

Undervalued: GTN (A$0.73) is trading below our estimate of fair value (A$3.54)

Significantly Undervalued: GTN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GTN is good value based on its PE Ratio (10.4x) compared to the Media industry average (16.5x).

PE vs Market: GTN is good value based on its PE Ratio (10.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: GTN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: GTN is good value based on its PB Ratio (0.7x) compared to the AU Media industry average (1.3x).


Next Steps

Future Growth

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

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTN's forecast earnings growth (16.3% per year) is above the savings rate (2.3%).

Earnings vs Market: GTN's earnings (16.3% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: GTN's earnings are forecast to grow, but not significantly.

Revenue vs Market: GTN's revenue (4.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: GTN's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GTN's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has GTN performed over the past 5 years?

54.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GTN's earnings have grown significantly by 54.1% per year over the past 5 years.

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 (-36.6%) over the past year, making it difficult to compare to the Media industry average (-13.9%).


Return on Equity

High ROE: GTN's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: GTN's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: GTN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is GTN's financial position?


Financial Position Analysis

Short Term Liabilities: GTN's short term assets (A$94.8M) exceeds its short term liabilities (A$35.5M)

Long Term Liabilities: GTN's short term assets (94.8M) exceeds its long term liabilities (80.9M)


Debt to Equity History and Analysis

Debt Level: GTN's debt to equity ratio (25%) is considered satisfactory

Reducing Debt: Insufficient data to determine if GTN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GTN's debt is well covered by operating cash flow (56.7%).

Interest Coverage: GTN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GTN has a low level of unsold assets or inventory.

Debt Coverage by Assets: GTN's debt is covered by short term assets (assets are 1.607050x debt).


Next Steps

Dividend

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

8.83%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%2.5%markettop25%5.6%industryaverage5.4%forecastin3Years10.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GTN's dividend (8.83%) is higher than the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: GTN's dividend (8.83%) is in the top 25% of dividend payers in the Australian market (5.56%)

Stable Dividend: GTN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GTN has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.9%), GTN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GTN's dividends in 3 years are forecast to be covered by earnings (65.2% payout ratio).


Next Steps

Management

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

AU$1m

CEO Compensation


CEO

Bill Yde (66yo)

14.8yrs

Tenure

AU$1,394,492

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 ($USD941.46K) is about average for companies of similar size in the Australian market ($USD257.55K).

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


Insider Trading

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


Recent Insider Transactions

SellAU$9,481,32125 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares11,459,176
Max PriceAU$0.83
BuyAU$327,92425 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares397,484
Max PriceAU$0.82
SellAU$9,481,32124 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares11,459,176
Max PriceAU$0.83
BuyAU$327,92424 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares397,484
Max PriceAU$0.82
BuyAU$9,481,31823 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares11,459,176
Max PriceAU$0.83
SellAU$52,47023 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares64,856
Max PriceAU$0.81
SellAU$4,683,12820 Sep 19
ASB Group Investments Ltd.
EntityCompany
Shares4,320,051
Max PriceAU$1.08
BuyAU$894,84520 Sep 19
ASB Group Investments Ltd.
EntityCompany
Shares700,000
Max PriceAU$1.28
BuyAU$20,986,32520 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares19,050,574
Max PriceAU$2.02
SellAU$5,623,44720 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,128,645
Max PriceAU$2.24
BuyAU$2,438,01720 Sep 19
Ice Investors Pty Ltd
EntityCompany
Shares3,000,000
Max PriceAU$0.81
BuyAU$9,454,61919 Sep 19
Perennial Value Management Limited
EntityCompany
Shares11,887,208
Max PriceAU$0.81
SellAU$333,05716 Sep 19
QVG Capital Pty Ltd
EntityCompany
Shares414,426
Max PriceAU$0.80
BuyAU$65,42711 Sep 19
Robert Loewenthal
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares80,876
Max PriceAU$0.81
BuyAU$1,418,66706 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,417,035
Max PriceAU$1.31
BuyAU$2,386,17927 Jun 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares2,581,415
Max PriceAU$1.07
SellAU$3,370,87111 Jun 19
QVG Capital Pty Ltd
EntityCompany
Shares2,791,521
Max PriceAU$1.21
SellAU$3,470,90708 May 19
QVG Capital Pty Ltd
EntityCompany
Shares2,915,483
Max PriceAU$1.19
SellAU$5,032,08228 Feb 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares4,577,268
Max PriceAU$1.14
SellAU$1,646,34028 Feb 19
MAM Pty Limited
EntityCompany
Shares1,497,539
Max PriceAU$1.14
BuyAU$5,393,30127 Feb 19
Ellerston Capital Limited
EntityCompany
Shares3,215,755
Max PriceAU$2.09
BuyAU$5,163,83027 Feb 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares4,500,000
Max PriceAU$1.15
SellAU$3,036,64012 Feb 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares1,761,325
Max PriceAU$1.78
BuyAU$151,43112 Feb 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares78,348
Max PriceAU$1.93
SellAU$1,033,55212 Feb 19
MAM Pty Limited
EntityCompany
Shares596,301
Max PriceAU$1.73
BuyAU$36,30412 Feb 19
MAM Pty Limited
EntityCompany
Shares19,279
Max PriceAU$1.88
SellAU$26,67704 Feb 19
Quest Asset Partners Pty Ltd.
EntityCompany
Shares15,069
Max PriceAU$1.77
BuyAU$94,28904 Feb 19
Quest Asset Partners Pty Ltd.
EntityCompany
Shares41,363
Max PriceAU$2.28
BuyAU$4,235,05925 Jan 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares4,312,004
Max PriceAU$0.98
BuyAU$8,940,97627 Dec 18
Viburnum Funds Pty Ltd.
EntityCompany
Shares8,438,332
Max PriceAU$1.06
SellAU$8,748,44526 Dec 18
Devon Funds Management Limited
EntityCompany
Shares5,962,819
Max PriceAU$1.47
BuyAU$6,069,52426 Dec 18
Devon Funds Management Limited
EntityCompany
Shares3,070,149
Max PriceAU$1.98
SellAU$9,49821 Nov 18
Health Employees Superannuation Trust Australia
EntityCompany
Shares4,337
Max PriceAU$2.22
BuyAU$2,948,03021 Nov 18
Health Employees Superannuation Trust Australia
EntityCompany
Shares1,420,274
Max PriceAU$2.27
BuyAU$5,747,85324 Oct 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,717,059
Max PriceAU$2.12

Ownership Breakdown


Management Team

  • Gary Worobow (54yo)

    Executive Vice President of Business & Legal Affairs

    • Tenure: 0yrs
    • Compensation: AU$687.45k
  • John Quinn (62yo)

    Chief Operating Officer of United Kingdom Traffic Network

    • Tenure: 0yrs
  • Bill Yde (66yo)

    MD, CEO

    • Tenure: 14.8yrs
    • Compensation: AU$1.39m
  • Scott Cody (53yo)

    COO & CFO

    • Tenure: 0yrs
    • Compensation: AU$850.37k
  • Vic Lorusso

    Chief Operations Manager of Australian Traffic Network

    • Tenure: 0yrs
  • Anna Sandham

    Joint Company Secretary

    • Tenure: 2.4yrs
  • Patrick Quinlan

    Joint Company Secretary

    • Tenure: 0yrs

Board Members

  • David Ryan (68yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$136.67k
  • Bill Yde (66yo)

    MD, CEO

    • Tenure: 14.8yrs
    • Compensation: AU$1.39m
  • Rob Loewenthal

    Independent Non-Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: AU$176.00k
  • Corinna Keller

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$34.18k

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$172.230m
  • Shares outstanding: 223.68m
  • 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 Analysis2019/10/17 10:40
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.