Executive Summary
Nine Entertainment Co. Holdings Limited engages in broadcasting and program production businesses across free to air television and metropolitan radio networks in Australia.
Snowflake Analysis
Very undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Nine Entertainment Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NEC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
25.0%
NEC
4.2%
AU Media
13.4%
AU Market
1 Year Return
-39.8%
NEC
-50.3%
AU Media
-18.8%
AU Market
Return vs Industry: NEC exceeded the Australian Media industry which returned -50.5% over the past year.
Return vs Market: NEC underperformed the Australian Market which returned -22.9% over the past year.
Shareholder returns
| NEC | Industry | Market | |
|---|---|---|---|
| 7 Day | 25.0% | 4.2% | 13.4% |
| 30 Day | -33.8% | -42.0% | -20.7% |
| 90 Day | -41.3% | -49.5% | -24.4% |
| 1 Year | -36.2%-39.8% | -46.4%-50.3% | -15.2%-18.8% |
| 3 Year | -0.7%-16.0% | -45.2%-55.4% | -2.8%-15.9% |
| 5 Year | -30.8%-50.7% | -48.6%-64.0% | 9.3%-15.3% |
Price Volatility Vs. Market
How volatile is Nine Entertainment Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is Nine Entertainment Holdings's (ASX:NEC) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
How Does Nine Entertainment Holdings's (ASX:NEC) P/E Compare To Its Industry, After The Share Price Drop?1 month ago | Simply Wall St
Nine Entertainment Co. Holdings Limited (ASX:NEC) Pays A AU$0.05 Dividend In Just 3 DaysValuation
Is Nine Entertainment Holdings 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: NEC (A$1.05) is trading below our estimate of fair value (A$2.7)
Significantly Below Fair Value: NEC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEC is good value based on its PE Ratio (12.1x) compared to the Media industry average (14.2x).
PE vs Market: NEC is good value based on its PE Ratio (12.1x) compared to the Australian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: NEC is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: NEC is good value based on its PB Ratio (0.7x) compared to the AU Media industry average (1x).
Next Steps
Future Growth
How is Nine Entertainment Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
16.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEC's forecast earnings growth (16.8% per year) is above the savings rate (1.1%).
Earnings vs Market: NEC's earnings (16.8% per year) are forecast to grow faster than the Australian market (9.7% per year).
High Growth Earnings: NEC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NEC's revenue (1.7% per year) is forecast to grow slower than the Australian market (4% per year).
High Growth Revenue: NEC's revenue (1.7% 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 (8.1%).
Next Steps
Past Performance
How has Nine Entertainment Holdings performed over the past 5 years?
60.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEC has a large one-off loss of A$54.9M impacting its December 31 2019 financial results.
Growing Profit Margin: NEC's current net profit margins (6.3%) are lower than last year (14.6%).
Past Earnings Growth Analysis
Earnings Trend: NEC's earnings have grown significantly by 60.6% per year over the past 5 years.
Accelerating Growth: NEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NEC had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Media industry average (-37.7%).
Return on Equity
High ROE: NEC's Return on Equity (5.6%) is considered low.
Next Steps
Financial Health
How is Nine Entertainment Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: NEC's short term assets (A$920.3M) exceed its short term liabilities (A$888.1M).
Long Term Liabilities: NEC's short term assets (A$920.3M) do not cover its long term liabilities (A$941.4M).
Debt to Equity History and Analysis
Debt Level: NEC's debt to equity ratio (20%) is considered satisfactory.
Reducing Debt: NEC's debt to equity ratio has reduced from 31.5% to 20% over the past 5 years.
Debt Coverage: NEC's debt is well covered by operating cash flow (51.1%).
Interest Coverage: NEC's interest payments on its debt are well covered by EBIT (11.6x coverage).
Balance Sheet
Inventory Level: NEC has a low level of unsold assets or inventory.
Debt Coverage by Assets: NEC's debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Nine Entertainment Holdings's current dividend yield, its reliability and sustainability?
9.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEC's dividend (9.52%) is higher than the bottom 25% of dividend payers in the Australian market (3.35%).
High Dividend: NEC's dividend (9.52%) is in the top 25% of dividend payers in the Australian market (8.5%)
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (115.6%), NEC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NEC's dividends in 3 years are forecast to be covered by earnings (79.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Hugh Marks
4.33s
Tenure
AU$3,248,084
Compensation
Mr. Hugh John Marks is a Director at Macquarie Media Limited since October 2019. Mr. Marks serves as the Chief Executive Officer of Media Venture Partners, a media strategy and investment business. Mr. Mar ...
CEO Compensation Analysis
Compensation vs Market: Hugh's total compensation ($USD1.99M) is above average for companies of similar size in the Australian market ($USD1.08M).
Compensation vs Earnings: Hugh's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.33yrs | AU$3.25m | 0.13% A$2.1m | |
| Chief Sales Officer | 4yrs | AU$1.36m | 0.0088% A$140.4k | |
| Chief Financial Officer | 0.50yr | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | no data | no data | no data | |
| Director of Communications | no data | no data | no data | |
| Managing Director of Radio | 0.33yr | no data | no data | |
| Group Financial Controller | no data | no data | no data |
2.3yrs
Average Tenure
Experienced Management: NEC's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.33yrs | AU$3.25m | 0.13% A$2.1m | |
| Independent Non-Executive Deputy Chairman | 1.25yrs | AU$226.21k | 0.023% A$372.4k | |
| Independent Non-Executive Director | 1.25yrs | AU$157.88k | 0.0043% A$69.2k | |
| Independent Non-Executive Chairman | 4yrs | AU$340.00k | 0.018% A$283.7k | |
| Independent Non-Executive Director | 1.25yrs | AU$75.52k | 0.0047% A$75.2k | |
| Non-Executive Independent Director | 3yrs | AU$180.00k | 0.0035% A$56.4k | |
| Independent Non-Executive Director | 3.83yrs | AU$180.00k | 0.0024% A$37.6k |
3.0yrs
Average Tenure
58yo
Average Age
Experienced Board: NEC's board of directors are considered experienced (3 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 been substantially diluted in the past year, with total shares outstanding growing by 83.9%.
Top Shareholders
Company Information
Nine Entertainment Co. Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nine Entertainment Co. Holdings Limited
- Ticker: NEC
- Exchange: ASX
- Founded: 1956
- Industry: Broadcasting
- Sector: Media
- Market Cap: AU$1.594b
- Shares outstanding: 1.70b
- Website: https://www.nineentertainmentco.com.au
Number of Employees
Location
- Nine Entertainment Co. Holdings Limited
- 24 Artarmon Road
- Willoughby
- New South Wales
- 2068
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEC | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2013 |
| NEC | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2013 |
| NEE | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Dec 2013 |
| NEE | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | Dec 2013 |
Biography
Nine Entertainment Co. Holdings Limited engages in broadcasting and program production businesses across free to air television and metropolitan radio networks in Australia. It operates through Broadcasting, Digital and Publishing, Domain Group, and Stan segments. The company is involved in the creation and distribution of content. It also provides advertising services on television, digital platforms, and newspapers; newspapers, magazines, and other publications circulation and subscription services; demand video streaming subscription services; and real estate media and technology services. The company offers its services under the Nine Network Television brand, including Channel 9 and 9HD, as well as 9Go!, 9Gem, 9Life, and 9NOW. It also provides its services under Nine digital brand comprising nine.com.au network, an online source of news, sport, entertainment, and lifestyle content; and 9Honey for women. In addition, the company sells Microsoft's suite of advertising products across Australia and New Zealand. Nine Entertainment Co. Holdings Limited was founded in 1956 and is based in Willoughby, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 10:39 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.