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Nine Entertainment Holdings

Market Cap

AU$5.0b

Last Updated

2021/04/21 08:07 UTC

Data Sources

Company Financials +

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


Snowflake Analysis

Adequate 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 +/- 6% a week.

Volatility Over Time: NEC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0%

NEC

0.4%

AU Media

-0.4%

AU Market


1 Year Return

151.1%

NEC

134.5%

AU Media

41.0%

AU Market

Return vs Industry: NEC exceeded the Australian Media industry which returned 129.2% over the past year.

Return vs Market: NEC exceeded the Australian Market which returned 41.7% over the past year.


Shareholder returns

NECIndustryMarket
7 Day0%0.4%-0.4%
30 Day-1.0%-1.0%3.5%
90 Day20.8%12.6%2.2%
1 Year158.3%151.1%139.8%134.5%45.3%41.0%
3 Year45.8%27.2%-14.7%-32.9%32.8%16.9%
5 Year245.7%161.3%13.2%-22.8%63.1%31.4%

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

Valuation

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

10.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEC (A$2.9) is trading below our estimate of fair value (A$3.24)

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 (2.6x) compared to the AU Media industry average (1.8x).


Future Growth

How is Nine Entertainment Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.4%

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 (4.4% per year) is forecast to grow slower than the Australian market (5.7% per year).

High Growth Revenue: NEC's revenue (4.4% 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 (14%).


Past Performance

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

-3.4%

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, and losses have increased over the past 5 years at a rate of 3.4% 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 (-0.4%).


Return on Equity

High ROE: NEC has a negative Return on Equity (-21.07%), as it is currently unprofitable.


Financial Health

How is Nine Entertainment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NEC's short term assets (A$773.2M) exceed its short term liabilities (A$693.2M).

Long Term Liabilities: NEC's short term assets (A$773.2M) do not cover its long term liabilities (A$1.2B).


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 increased from 0.2% to 18.5% 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 25.5% per year.


Dividend

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

2.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEC's dividend (2.41%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: NEC's dividend (2.41%) is low compared to the top 25% of dividend payers in the Australian market (5.29%).


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 7 years.


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 (75.6% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Mike Sneesby

no data

Tenure

Mr. Michael Sneesby also known as Mike, serves as Managing Director and Chief Executive Officer at Nine Entertainment Co. Holdings Limited since April 1, 2021 and also serves as its Director since April 1,...


Leadership Team

Experienced Management: NEC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: NEC's board of directors are considered experienced (4.1 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$5.029b
  • 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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/21 08:07
End of Day Share Price2021/04/21 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.