ASX:HT1

Stock Analysis Report

HT&E

Market Cap

AU$470.8m

Last Updated

2019/10/21 10:31 UTC

Data Sources

Company Financials +

Executive Summary

HT&E Limited, together with its subsidiaries, operates as a media and entertainment company in Australia and Hong Kong.

Snowflake

Fundamentals

Flawless balance sheet and good value.

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Share Price & News

How has HT&E's share price performed over time and what events caused price changes?

Latest Share Price and Events

Market Performance

7 Day Return

-10.9%

HT1

-3.4%

AU Media

0.4%

AU Market

1 Year Return

-20.4%

HT1

-19.1%

AU Media

9.8%

AU Market

Return vs Industry: HT1 underperformed the Australian Media industry which returned -19.1% over the past year.

Return vs Market: HT1 underperformed the Australian Market which returned 9.8% over the past year.

Shareholder returns

HT1IndustryMarket
7 Day-10.9%-3.4%0.4%
30 Day-11.4%-6.4%-1.3%
90 Day-4.1%-13.0%-0.5%
1 Year-16.7%-20.4%-15.2%-19.1%16.1%9.8%
3 Year-25.6%-51.5%6.0%-15.8%36.1%17.9%
5 Year-49.2%-69.4%-8.9%-36.8%49.4%15.7%

Price Volatility Vs. Market

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

Simply Wall St News

6 days ago | Simply Wall St

Is Now The Time To Look At Buying HT&E Limited (ASX:HT1)?

2 weeks ago | Simply Wall St

Did HT&E Limited (ASX:HT1) Use Debt To Deliver Its ROE Of 7.2%?

3 weeks ago | Simply Wall St

Should You Worry About HT&E Limited's (ASX:HT1) CEO Pay Cheque?

Valuation

Is HT&E undervalued compared to its fair value and its price relative to the market?

33.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HT1 (A$1.64) is trading below our estimate of fair value (A$2.47)

Significantly Below Fair Value: HT1 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: HT1 is good value based on its PE Ratio (13.5x) compared to the Media industry average (16.5x).

PE vs Market: HT1 is good value based on its PE Ratio (13.5x) compared to the Australian market (18.2x).

Price to Earnings Growth Ratio

PEG Ratio: HT1 is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: HT1 is good value based on its PB Ratio (0.9x) compared to the AU Media industry average (1.3x).

Next Steps

Future Growth

How is HT&E forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HT1's forecast earnings growth (12.2% per year) is above the savings rate (2.3%).

Earnings vs Market: HT1's earnings (12.2% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: HT1's earnings are forecast to grow, but not significantly.

Revenue vs Market: HT1's revenue (1.6% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: HT1's revenue (1.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HT1's Return on Equity is forecast to be low in 3 years time (7.5%).

Next Steps

Past Performance

How has HT&E performed over the past 5 years?

17.7%

Historical annual earnings growth

Earnings and Revenue History

Past Earnings Growth Analysis

Earnings Trend: HT1's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: HT1's earnings growth over the past year (2.5%) is below its 5-year average (17.7% per year).

Earnings vs Industry: HT1 earnings growth over the past year (2.5%) exceeded the Media industry -13.9%.

Return on Equity

High ROE: HT1's Return on Equity (7.2%) is considered low.

Return on Assets

ROA vs Industry: HT1's Return on Assets is below or equal to the Media industry average last year.

Return on Capital Employed

ROCE Improving: HT1's Return on Capital Employed has declined over the past 3 years.

Next Steps

Financial Health

How is HT&E's financial position?

Financial Position Analysis

Short Term Liabilities: HT1's short term assets (A$174.1M) exceeds its short term liabilities (A$53.3M)

Long Term Liabilities: HT1's short term assets (174.1M) exceeds its long term liabilities (171.0M)

Debt to Equity History and Analysis

Debt Level: HT1 is debt free.

Reducing Debt: HT1 has no debt compared to 5 years ago when its debt to equity ratio was 82.8%.

Debt Coverage: HT1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HT1 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Inventory Level: HT1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HT1's debt is covered by short term assets.

Next Steps

Dividend

What is HT&E's current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield

Dividend Yield vs Market

company4.3%marketbottom25%2.4%markettop25%5.6%industryaverage5.4%forecastin3Years5.8%

Current dividend yield vs market & industry

Stability and Growth of Payments

Notable Dividend: HT1's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: HT1's dividend (4.27%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: HT1's dividend payments have been volatile in the past 10 years.

Growing Dividend: HT1's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.7%), HT1's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: HT1's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).

Next Steps

Management

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

0.2yrs

Average management tenure

CEO

Ciaran Davis 0

4.2yrs

Tenure

AU$2,754,226

Compensation

Mr. Ciaran Davis has been the Chief Executive Officer HT&E Limited (formerly known as APN News & Media Limited) since August 20, 2015. Mr. Davis has been Managing Director and Executive Director of HT&E Li ...

CEO Compensation Analysis

Compensation vs. Market: Ciaran's total compensation ($USD1.89M) is above average for companies of similar size in the Australian market ($USD735.92K).

Compensation vs Earnings: Ciaran's compensation has increased by more than 20% in the past year.

Management Age and Tenure

0.2yrs

Average Tenure

Experienced Management: HT1's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.

Board Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

Experienced Board: HT1's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.

Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

SellAU$268,06930 Aug 19
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Roger Amos
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Role
Member of the Board of Directors
Non-Executive Director
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Max PriceAU$1.88
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Role
Chairman of the Board
Non-Executive Chairman
Shares73,000
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BuyAU$977,50228 Dec 18
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Perennial Investment Partners Limited
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Shares850,477
Max PriceAU$2.00
BuyAU$219,40918 Nov 18
Perennial Investment Partners Limited
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Shares108,883
Max PriceAU$2.02
SellAU$9,491,22114 Nov 18
Perpetual Limited
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Shares3,691,813
Max PriceAU$2.57
BuyAU$1,173,69914 Nov 18
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Shares600,737
Max PriceAU$1.95

Ownership Breakdown

Management Team

  • Yvette Lamont

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: AU$800.90k

  • Ciaran Davis

    CEO, MD & Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$2.75m

  • Jeff Howard

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: AU$1.76m

  • Andy Nye

    Chief Financial Officer

    • Tenure: 0.2yrs

  • Jeremy Child

    Company Secretary & Group Taxation Manager

    • Tenure: 0.2yrs

Board Members

  • Hamish McLennan (53yo)

    Non-Executive Chairman

    • Tenure: 1yrs
    • Compensation: AU$49.68k

  • Roger Amos (71yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$11.62k

  • Ciaran Davis

    CEO, MD & Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$2.75m

  • Paul Connolly (59yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$121.34k

  • Belinda Rowe

    Non-Executive Director

    • Tenure: 0.7yrs

Company Information

HT&E Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: HT&E Limited
  • Ticker: HT1
  • Exchange: ASX
  • Founded:
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: AU$470.814m
  • Shares outstanding: 284.48m
  • Website: https://www.htande.com.au

Location

  • HT&E Limited
  • 100 William Street
  • Level 4
  • Sydney
  • New South Wales
  • 2011
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HT1ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1992
PNHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1992
HT1CHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1992

Biography

HT&E Limited, together with its subsidiaries, operates as a media and entertainment company in Australia and Hong Kong. It operates through three segments: Australian Radio Network, HK Outdoor, and Digital ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:31
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.