ASX:NEC

Stock Analysis Report

Nine Entertainment Holdings

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

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


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


Market Performance


7 Day Return

-0.3%

NEC

1.3%

AU Media

0.1%

AU Market


1 Year Return

-1.4%

NEC

-21.2%

AU Media

11.9%

AU Market

Return vs Industry: NEC exceeded the Australian Media industry which returned -21.2% over the past year.

Return vs Market: NEC underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

NECIndustryMarket
7 Day-0.3%1.3%0.1%
30 Day-9.8%-8.8%-1.1%
90 Day-10.5%-14.4%-1.4%
1 Year4.1%-1.4%-17.7%-21.2%18.5%11.9%
3 Year147.3%106.9%-1.9%-17.1%36.4%18.1%
5 Year19.9%-13.5%-20.3%-42.6%50.9%16.7%

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

Valuation

Is Nine Entertainment Holdings undervalued compared to its fair value and its price relative to the market?

11.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEC (A$1.79) is trading above our estimate of fair value (A$1.56)

Significantly Below Fair Value: NEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEC is good value based on its PE Ratio (11.1x) compared to the Media industry average (13.5x).

PE vs Market: NEC is good value based on its PE Ratio (11.1x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: NEC is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Nine Entertainment Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEC's forecast earnings growth (5.3% per year) is above the savings rate (2.3%).

Earnings vs Market: NEC's earnings (5.3% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: NEC's revenue (7.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: NEC's revenue (7.5% 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 (9.7%).


Next Steps

Past Performance

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

45.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NEC's earnings have grown significantly by 45.1% per year over the past 5 years.

Accelerating Growth: NEC's earnings growth over the past year (3.3%) is below its 5-year average (45.1% per year).

Earnings vs Industry: NEC earnings growth over the past year (3.3%) exceeded the Media industry -30.3%.


Return on Equity

High ROE: NEC's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: NEC has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Nine Entertainment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NEC's short term assets (A$1.1B) exceeds its short term liabilities (A$865.4M)

Long Term Liabilities: NEC's short term assets (1.1B) exceeds its long term liabilities (770.4M)


Debt to Equity History and Analysis

Debt Level: NEC's debt to equity ratio (18.5%) is considered satisfactory

Reducing Debt: NEC's debt to equity ratio has reduced from 33% to 18.5% over the past 5 years.

Debt Coverage: NEC's debt is well covered by operating cash flow (43.3%).

Interest Coverage: NEC's interest payments on its debt are well covered by EBIT (22.2x 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 2.1x debt).


Next Steps

Dividend

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

5.59%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.4%markettop25%5.6%industryaverage6.0%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NEC's dividend (5.59%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: NEC's dividend (5.59%) is in the top 25% of dividend payers in the Australian market (5.58%)

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.8%), NEC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEC's dividends in 3 years are forecast to be covered by earnings (71.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Hugh Marks 0

3.9yrs

Tenure

AU$3,248,084

Compensation

Mr. Hugh John Marks serves as the Chief Executive Officer of Media Venture Partners, a media strategy and investment business. Mr. Marks serves as a Partner of Media Venture Partners Pty Ltd. He has been t ...


CEO Compensation Analysis

Compensation vs. Market: Hugh's total compensation ($USD2.23M) is about average for companies of similar size in the Australian market ($USD1.43M).

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


Management Age and Tenure

3.6yrs

Average Tenure

Experienced Management: NEC's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: NEC's board of directors are not considered experienced ( 2.6 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

BuyAU$211,06714 Oct 19
JBWere Limited
EntityCompany
Shares105,298
Max PriceAU$2.00
BuyAU$3,627,26614 Oct 19
MLC Investments Limited
EntityCompany
Shares1,800,234
Max PriceAU$2.01
BuyAU$334,58414 Oct 19
MLC Investment Management Limited
EntityCompany
Shares164,095
Max PriceAU$2.04
BuyAU$3,243,96114 Oct 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,680,221
Max PriceAU$1.93
SellAU$2,417,71922 Aug 19
The Vanguard Group, Inc.
EntityCompany
Shares1,178,656
Max PriceAU$2.05
BuyAU$3,298,21722 Aug 19
The Vanguard Group, Inc.
EntityCompany
Shares1,608,886
Max PriceAU$2.05
SellAU$3,105,24225 Jul 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,597,437
Max PriceAU$1.94
BuyAU$1,223,09125 Jul 19
JBWere Limited
EntityCompany
Shares612,715
Max PriceAU$2.00
BuyAU$19,51525 Jul 19
MLC Investments Limited
EntityCompany
Shares9,833
Max PriceAU$1.98
SellAU$738,65725 Jul 19
JBWere Limited
EntityCompany
Shares388,999
Max PriceAU$1.90
SellAU$31,74425 Jul 19
MLC Investment Management Limited
EntityCompany
Shares16,816
Max PriceAU$1.89
SellAU$110,93925 Jul 19
MLC Investments Limited
EntityCompany
Shares56,126
Max PriceAU$1.98
BuyAU$67,11303 Jul 19
MLC Investments Limited
EntityCompany
Shares35,410
Max PriceAU$1.90
SellAU$1,846,81826 Jun 19
The Vanguard Group, Inc.
EntityCompany
Shares924,291
Max PriceAU$2.02
BuyAU$954,47626 Jun 19
The Vanguard Group, Inc.
EntityCompany
Shares481,585
Max PriceAU$2.07
SellAU$13,710,50825 Jun 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares6,909,554
Max PriceAU$1.98
BuyAU$23,94425 Jun 19
MLC Investments Limited
EntityCompany
Shares11,842
Max PriceAU$2.02
BuyAU$20,01125 Jun 19
MLC Investment Management Limited
EntityCompany
Shares10,178
Max PriceAU$1.97
BuyAU$10,56704 Jun 19
MLC Investment Management Limited
EntityCompany
Shares5,200
Max PriceAU$2.03
SellAU$282,59202 Jun 19
The Vanguard Group, Inc.
EntityCompany
Shares140,042
Max PriceAU$2.04
BuyAU$99,90702 Jun 19
The Vanguard Group, Inc.
EntityCompany
Shares49,957
Max PriceAU$2.05
BuyAU$6,618,69226 May 19
The Vanguard Group, Inc.
EntityCompany
Shares3,718,164
Max PriceAU$1.88
SellAU$1,916,60326 May 19
The Vanguard Group, Inc.
EntityCompany
Shares1,141,877
Max PriceAU$1.69
SellAU$60,90209 May 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares32,562
Max PriceAU$1.87
BuyAU$93,98909 May 19
MLC Investment Management Limited
EntityCompany
Shares50,000
Max PriceAU$1.88
BuyAU$305,63407 May 19
MLC Investments Limited
EntityCompany
Shares176,975
Max PriceAU$1.73
SellAU$61,13229 Apr 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares35,605
Max PriceAU$1.72
BuyAU$161,10929 Apr 19
JBWere Limited
EntityCompany
Shares94,242
Max PriceAU$1.71
BuyAU$75,06829 Apr 19
MLC Investments Limited
EntityCompany
Shares42,805
Max PriceAU$1.76
BuyAU$25,404,92924 Apr 19
MLC Investments Limited
EntityCompany
Shares14,901,138
Max PriceAU$1.70
BuyAU$206,75224 Apr 19
MLC Investment Management Limited
EntityCompany
Shares125,256
Max PriceAU$1.65
BuyAU$30,861,51824 Apr 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares18,264,010
Max PriceAU$1.69
SellAU$009 Apr 19
FIL Limited
EntityCompany
Shares435,891
Max PriceAU$1.70
BuyAU$009 Apr 19
FIL Limited
EntityCompany
Shares10,944,535
Max PriceAU$1.70
BuyAU$34,410,39607 Mar 19
FIL Limited
EntityCompany
Shares19,591,427
Max PriceAU$1.76
SellAU$263,84628 Feb 19
FIL Limited
EntityCompany
Shares175,651
Max PriceAU$1.50
BuyAU$32,855,56128 Feb 19
FIL Limited
EntityCompany
Shares19,859,497
Max PriceAU$1.65
SellAU$89,32214 Feb 19
BlackRock, Inc.
EntityCompany
Shares6,877,974
Max PriceAU$1.59
BuyAU$297,49814 Feb 19
BlackRock, Inc.
EntityCompany
Shares4,127,813
Max PriceAU$1.64
BuyAU$31,679,18005 Feb 19
FIL Limited
EntityCompany
Shares17,050,152
Max PriceAU$1.86
BuyAU$30,543,74825 Jan 19
Birketu Pty. Ltd.
EntityCompany
Shares19,118,272
Max PriceAU$1.64
BuyAU$1,283,54121 Jan 19
MLC Investments Limited
EntityCompany
Shares881,564
Max PriceAU$1.46
BuyAU$42921 Jan 19
MLC Investment Management Limited
EntityCompany
Shares305
Max PriceAU$1.41
BuyAU$480,07521 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares343,764
Max PriceAU$1.40
BuyAU$29,777,49421 Jan 19
Birketu Pty. Ltd.
EntityCompany
Shares19,118,272
Max PriceAU$1.60
BuyAU$27,483,91715 Jan 19
Birketu Pty. Ltd.
EntityCompany
Shares19,118,272
Max PriceAU$1.47
BuyAU$40,552,32810 Jan 19
Pendal Group Limited
EntityCompany
Shares28,291,148
Max PriceAU$1.44
SellAU$13,318,22410 Jan 19
Pendal Group Limited
EntityCompany
Shares8,908,657
Max PriceAU$1.50
SellAU$295,59410 Jan 19
MLC Investment Management Limited
EntityCompany
Shares200,000
Max PriceAU$1.48
BuyAU$1,038,28410 Jan 19
MLC Investments Limited
EntityCompany
Shares705,853
Max PriceAU$1.47
BuyAU$306,62910 Jan 19
MLC Investment Management Limited
EntityCompany
Shares208,530
Max PriceAU$1.47
SellAU$7,344,97810 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares4,891,887
Max PriceAU$1.50
SellAU$11,198,11610 Jan 19
MLC Investments Limited
EntityCompany
Shares7,334,404
Max PriceAU$1.53
BuyAU$10,571,81710 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares6,686,774
Max PriceAU$1.58
BuyAU$25,864,02309 Jan 19
Birketu Pty. Ltd.
EntityCompany
Shares19,118,272
Max PriceAU$1.39
BuyAU$009 Jan 19
Deutsche Bank, Private Banking and Investment Banking Investments
EntityCompany
Shares23,941,520
Max PriceAU$1.65
SellAU$009 Jan 19
Deutsche Bank, Private Banking and Investment Banking Investments
EntityCompany
Shares37,685,942
Max PriceAU$1.63
SellAU$14,13909 Jan 19
Deutsche Asset & Wealth Management
EntityCompany
Shares10,246
Max PriceAU$1.38
BuyAU$2,57909 Jan 19
Deutsche Asset & Wealth Management
EntityCompany
Shares1,869
Max PriceAU$1.38
BuyAU$29,225,77320 Dec 18
Legg Mason, Inc.
EntityCompany
Shares19,452,322
Max PriceAU$1.74
SellAU$774,89214 Dec 18
Legg Mason, Inc.
EntityCompany
Shares404,479
Max PriceAU$1.92
BuyAU$15,612,19614 Dec 18
Legg Mason, Inc.
EntityCompany
Shares9,917,092
Max PriceAU$1.57
SellAU$13,21913 Dec 18
Deutsche Asset & Wealth Management
EntityCompany
Shares8,277
Max PriceAU$1.70
SellAU$212,76512 Dec 18
MLC Investments Limited
EntityCompany
Shares130,931
Max PriceAU$1.63
BuyAU$36,45412 Dec 18
MLC Investments Limited
EntityCompany
Shares21,850
Max PriceAU$1.67
BuyAU$163,75212 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares98,150
Max PriceAU$1.67
BuyAU$17,550,61912 Dec 18
Pendal Group Limited
EntityCompany
Shares10,544,532
Max PriceAU$1.68
BuyAU$125,93711 Dec 18
BlackRock, Inc.
EntityCompany
Shares14,315,512
Max PriceAU$2.41
BuyAU$71,51306 Dec 18
MLC Investments Limited
EntityCompany
Shares40,425
Max PriceAU$1.77
BuyAU$5,598,73406 Dec 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,021,100
Max PriceAU$1.85
SellAU$83,631,99627 Nov 18
UBS Asset Management
EntityCompany
Shares45,466,761
Max PriceAU$1.84
BuyAU$84,446,77527 Nov 18
UBS Asset Management
EntityCompany
Shares46,430,293
Max PriceAU$1.82
BuyAU$14,531,12620 Nov 18
Pendal Group Limited
EntityCompany
Shares8,347,912
Max PriceAU$1.75

Ownership Breakdown


Management Team

  • Hugh Marks

    CEO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$3.25m
  • Nola Hodgson

    Head of Investor Relations

    • Tenure: 0yrs
  • Michael Stephenson

    Chief Sales Officer

    • Tenure: 3.6yrs
    • Compensation: AU$1.36m
  • Rachel Launders

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Paul Koppelman

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Victoria Buchan

    Director of Communications

    • Tenure: 0yrs

Board Members

  • Nick Falloon (62yo)

    Independent Non-Executive Deputy Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$226.21k
  • Patrick Newton Allaway (58yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$157.88k
  • Peter Costello

    Independent Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: AU$340.00k
  • Hugh Marks

    CEO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$3.25m
  • Mickie Rosen (51yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$75.52k
  • Sam Lewis

    Non-Executive Independent Director

    • Tenure: 2.6yrs
    • Compensation: AU$180.00k
  • Catherine West

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$180.00k

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$3.099b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NECASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2013
NECCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2013
NEEBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 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 Broadcastin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:34
End of Day Share Price2019/10/23 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.