Nine Entertainment Holdings (ASX:NEC) - Share price, News & Analysis

NEC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	2/6

NEC Stock Overview

Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia.

Rewards

Trading at 65% below our estimate of its fair value

Earnings are forecast to grow 8.11% per year

Became profitable this year

Risk Analysis

Dividend of 6.14% is not well covered by earnings

Large one-off items impacting financial results

Nine Entertainment Holdings Competitors

Seven West Media

ASX:SWM

AU$906.4m

HT&E

ASX:HT1

AU$458.9m

Southern Cross Media Group

ASX:SXL

AU$375.8m

Sports Entertainment Group

ASX:SEG

AU$57.8m

Price History & Performance

Summary of all time highs, changes and price drops for Nine Entertainment Holdings
Historical stock prices
Current Share Price	AU$2.28
52 Week High	AU$3.15
52 Week Low	AU$2.27
Beta	0.87
1 Month Change	-17.39%
3 Month Change	-17.69%
1 Year Change	-22.18%
3 Year Change	8.06%
5 Year Change	72.73%
Change since IPO	15.15%

Recent News & Updates

May 25

What Does Nine Entertainment Co. Holdings Limited's (ASX:NEC) Share Price Indicate?

Nine Entertainment Co. Holdings Limited ( ASX:NEC ), might not be a large cap stock, but it received a lot of attention...

Feb 02

Is Now An Opportune Moment To Examine Nine Entertainment Co. Holdings Limited (ASX:NEC)?

While Nine Entertainment Co. Holdings Limited ( ASX:NEC ) might not be the most widely known stock at the moment, it...

Jan 07

Nine Entertainment Co. Holdings Limited's (ASX:NEC) Intrinsic Value Is Potentially 95% Above Its Share Price

In this article we are going to estimate the intrinsic value of Nine Entertainment Co. Holdings Limited ( ASX:NEC ) by...

Nov 24

Nine Entertainment Holdings (ASX:NEC) Has A Rock Solid Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Nov 03

At AU$2.83, Is It Time To Put Nine Entertainment Co. Holdings Limited (ASX:NEC) On Your Watch List?

Nine Entertainment Co. Holdings Limited ( ASX:NEC ), is not the largest company out there, but it saw a double-digit...

Shareholder Returns

	NEC	AU Media	AU Market
7D	-5.4%	-3.8%	-0.4%
1Y	-22.2%	-11.4%	-1.1%

Return vs Industry: NEC underperformed the Australian Media industry which returned -11.4% over the past year.

Return vs Market: NEC underperformed the Australian Market which returned -1.1% over the past year.

Price Volatility

Is NEC's price volatile compared to industry and market?
NEC volatility
NEC Average Weekly Movement	3.9%
Media Industry Average Movement	6.9%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: NEC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NEC's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1956	n/a	Mike Sneesby	https://www.nineforbrands.com.au

Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. It operates through Broadcasting, Digital and Publishing, Domain Group, and Stan segments. The company provides television services under the brands, including Channel 9, 9Gem, 9Go!, 9Life, and 9Rush; video on demand platform under 9Now brand; radio stations under 2GB, 3AW, 4BC, 6PR, 2UE, 4BH, 6GT, Magic1278 brands; and publishes newspapers, news-inserted magazines, and events, as well as nine.com.au, a site of news, lifestyle, sport, and entertainment content.

Nine Entertainment Holdings Fundamentals Summary

How do Nine Entertainment Holdings's earnings and revenue compare to its market cap?
NEC fundamental statistics
Market Cap	AU$3.99b
Earnings (TTM)	AU$201.47m
Revenue (TTM)	AU$2.52b

19.3x

P/E Ratio

1.5x

P/S Ratio

Is NEC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEC income statement (TTM)
Revenue	AU$2.52b
Cost of Revenue	AU$1.91b
Gross Profit	AU$605.41m
Other Expenses	AU$403.93m
Earnings	AU$201.47m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	0.12
Gross Margin	24.02%
Net Profit Margin	7.99%
Debt/Equity Ratio	20.6%

How did NEC perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

106%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Nine Entertainment Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEC's forecast earnings growth (8.1% per year) is above the savings rate (1.8%).

Earnings vs Market: NEC's earnings (8.1% per year) are forecast to grow faster than the Australian market (6.4% per year).

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

Revenue vs Market: NEC's revenue (3.7% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: NEC's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NEC's Return on Equity is forecast to be low in 3 years time (17.4%).

Past Performance

How has Nine Entertainment Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEC has a large one-off loss of A$101.0M impacting its December 31 2021 financial results.

Growing Profit Margin: NEC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NEC has become profitable over the past 5 years, growing earnings by -5.3% per year.

Accelerating Growth: NEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (29.6%).

Return on Equity

High ROE: NEC's Return on Equity (10.5%) is considered low.

Financial Health

How is Nine Entertainment Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NEC's short term assets (A$897.7M) exceed its short term liabilities (A$747.6M).

Long Term Liabilities: NEC's short term assets (A$897.7M) do not cover its long term liabilities (A$1.2B).

Debt to Equity History and Analysis

Debt Level: NEC's net debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: NEC's debt to equity ratio has reduced from 23.1% to 20.6% over the past 5 years.

Debt Coverage: NEC's debt is well covered by operating cash flow (98.4%).

Interest Coverage: NEC's interest payments on its debt are well covered by EBIT (16.4x coverage).

Balance Sheet

Dividend

What is Nine Entertainment Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NEC's dividend (6.14%) is higher than the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: NEC's dividend (6.14%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

Stability and Growth of Payments

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

Growing Dividend: NEC's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (105.8%), NEC's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (70.7%), NEC's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure

CEO

Mike Sneesby

1.08yrs

Tenure

AU$1,903,503

Compensation

Mr. Michael John Sneesby, also known as Mike, serves as the Non-Executive and the Non-Independent Director at Domain Holdings Australia Limited since April 21, 2021. He serves as the Managing Director and...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.35M) is below average for companies of similar size in the Australian market ($USD1.97M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.

Leadership Team

Experienced Management: NEC's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: NEC's board of directors are considered experienced (3.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: NEC 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30