Executive Summary
Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television and metropolitan radio networks in Australia. More Details
Rewards
Risk Analysis
No risks detected for NEC from our risk checks.
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NEC's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0%
NEC
0.5%
AU Media
-0.3%
AU Market
1 Year Return
19.8%
NEC
-25.0%
AU Media
-1.8%
AU Market
Return vs Industry: NEC exceeded the Australian Media industry which returned -25% over the past year.
Return vs Market: NEC exceeded the Australian Market which returned -1.8% over the past year.
Shareholder returns
| NEC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 0.5% | -0.3% |
| 30 Day | -2.9% | 1.2% | 1.6% |
| 90 Day | 11.8% | 20.4% | 9.9% |
| 1 Year | 25.2%19.8% | -13.4%-25.0% | 1.5%-1.8% |
| 3 Year | 78.3%54.8% | -15.5%-34.9% | 26.2%10.7% |
| 5 Year | 92.5%40.1% | 0.8%-32.1% | 69.0%35.8% |
Long-Term 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
5 days ago | Simply Wall St
Shareholders Of Nine Entertainment Holdings (ASX:NEC) Must Be Happy With Their 79% Return3 weeks ago | Simply Wall St
Is There An Opportunity With Nine Entertainment Co. Holdings Limited's (ASX:NEC) 22% Undervaluation?1 month ago | Simply Wall St
Who Has Been Buying Nine Entertainment Co. Holdings Limited (ASX:NEC) Shares?Valuation
Is Nine Entertainment Holdings undervalued compared to its fair value and its price relative to the market?
13.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEC (A$2.36) is trading below our estimate of fair value (A$2.72)
Significantly Below Fair Value: NEC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NEC is unprofitable, so we can't compare its PE Ratio to the AU Media industry average.
PE vs Market: NEC is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NEC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NEC is overvalued based on its PB Ratio (2.3x) compared to the AU Media industry average (1.4x).
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?
58.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: NEC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NEC's is expected to become profitable in the next 3 years.
Revenue vs Market: NEC's revenue (3.8% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: NEC's revenue (3.8% 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 (12.5%).
Next Steps
Past Performance
How has Nine Entertainment Holdings performed over the past 5 years?
46.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEC is currently unprofitable.
Growing Profit Margin: NEC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NEC is unprofitable, but has reduced losses over the past 5 years at a rate of 46.1% per year.
Accelerating Growth: Unable to compare NEC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NEC is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-3.5%).
Return on Equity
High ROE: NEC has a negative Return on Equity (-26.98%), as it is currently unprofitable.
Next Steps
Financial Health
How is Nine Entertainment Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: NEC's short term assets (A$718.6M) exceed its short term liabilities (A$648.5M).
Long Term Liabilities: NEC's short term assets (A$718.6M) do not cover its long term liabilities (A$1.1B).
Debt to Equity History and Analysis
Debt Level: NEC's debt to equity ratio (31%) is considered satisfactory.
Reducing Debt: NEC's debt to equity ratio has reduced from 51.8% to 31% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable NEC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NEC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9% per year.
Next Steps
Dividend
What is Nine Entertainment Holdings's current dividend yield, its reliability and sustainability?
1.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NEC's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).
High Dividend: NEC's dividend (1.69%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).
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 has only been paying a dividend for 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: NEC is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: NEC's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Hugh Marks
5.17yrs
Tenure
AU$2,324,799
Compensation
Mr. Hugh John Marks is a Director at Macquarie Media Limited since October 2019. Mr. Marks serves as the Chief Executive Officer of Media Venture Partners, a media strategy and investment business. Mr. Mar...
CEO Compensation Analysis
Compensation vs Market: Hugh's total compensation ($USD1.79M) is about average for companies of similar size in the Australian market ($USD1.98M).
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 | 5.17yrs | AU$2.32m | 0.16% A$ 6.3m | |
| Chief Sales Officer | 4.83yrs | AU$1.00m | 0.030% A$ 1.2m | |
| Chief Financial Officer | 0.42yr | 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 | 1.17yrs | no data | no data |
3.0yrs
Average Tenure
Experienced Management: NEC's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.17yrs | AU$2.32m | 0.16% A$ 6.3m | |
| Independent Non-Executive Deputy Chairman | 2.08yrs | AU$381.73k | 0.023% A$ 935.0k | |
| Independent Non-Executive Director | 2.08yrs | AU$231.31k | 0.0043% A$ 173.7k | |
| Independent Non-Executive Chairman | 4.83yrs | AU$340.00k | 0.018% A$ 712.3k | |
| Independent Non-Executive Director | 2.08yrs | AU$135.00k | 0.0047% A$ 188.9k | |
| Non-Executive Independent Director | 3.83yrs | AU$180.00k | 0.0035% A$ 141.5k | |
| Independent Non-Executive Director | 4.67yrs | AU$180.00k | 0.0059% A$ 236.0k |
3.8yrs
Average Tenure
59yo
Average Age
Experienced Board: NEC's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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.
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$4.020b
- Shares outstanding: 1.70b
- Website: https://www.nineforbrands.com.au
Number of Employees
Location
- Nine Entertainment Co. Holdings Limited
- 1 Denison Street
- Level 9
- North Sydney
- New South Wales
- 2060
- 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 |
Biography
Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television and metropolitan radio networks in Australia. It operates through Broadca...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 07:06 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.