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NEC

Nine Entertainment HoldingsASX:NEC Stock Report

Last Price

AU$2.62

Market Cap

AU$4.5b

7D

-4.7%

1Y

8.7%

Updated

24 Jan, 2022

Data

Company Financials +
NEC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends2/6

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.

Nine Entertainment Holdings Competitors

Seven West Media

ASX:SWM

AU$985.9m

HT&E

ASX:HT1

AU$550.3m

Southern Cross Media Group

ASX:SXL

AU$488.8m

PRT

ASX:PRT

AU$164.8m

Price History & Performance

Summary of all time highs, changes and price drops for Nine Entertainment Holdings
Historical stock prices
Current Share PriceAU$2.62
52 Week HighAU$3.16
52 Week LowAU$2.32
Beta0.84
1 Month Change-6.76%
3 Month Change-6.76%
1 Year Change8.71%
3 Year Change69.03%
5 Year Change163.32%
Change since IPO32.32%

Recent News & Updates

Jan 07
Nine Entertainment Co. Holdings Limited's (ASX:NEC) Intrinsic Value Is Potentially 95% Above Its Share Price

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

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?

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

NECAU MediaAU Market
7D-4.7%-2.0%-2.8%
1Y8.7%11.5%5.8%

Return vs Industry: NEC underperformed the Australian Media industry which returned 11.5% over the past year.

Return vs Market: NEC exceeded the Australian Market which returned 5.8% over the past year.

Price Volatility

Is NEC's price volatile compared to industry and market?
NEC volatility
NEC Average Weekly Movement3.5%
Media Industry Average Movement10.3%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.4%
10% least volatile stocks in AU Market3.7%

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

Volatility Over Time: NEC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1956n/aMike Sneesbyhttps://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 CapAU$4.46b
Earnings (TTM)AU$169.36m
Revenue (TTM)AU$2.34b

26.4x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEC income statement (TTM)
RevenueAU$2.34b
Cost of RevenueAU$1.79b
Gross ProfitAU$554.66m
ExpensesAU$385.29m
EarningsAU$169.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 23, 2022

Earnings per share (EPS)0.099
Gross Margin23.68%
Net Profit Margin7.23%
Debt/Equity Ratio21.5%

How did NEC perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

106%

Payout Ratio

Valuation

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$2.62) is trading below our estimate of fair value (A$5.51)

Significantly Below Fair Value: NEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEC is poor value based on its PE Ratio (26.4x) compared to the Australian Media industry average (20.4x).

PE vs Market: NEC is poor value based on its PE Ratio (26.4x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NEC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NEC's PB Ratio (2.5x) is in line with the AU Media industry average.


Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEC's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).

Earnings vs Market: NEC's earnings (13.6% per year) are forecast to grow faster than the Australian market (10.9% per year).

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

Revenue vs Market: NEC's revenue (4.7% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: NEC's revenue (4.7% 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 (16.6%).


Past Performance

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

-17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEC has a large one-off loss of A$94.6M impacting its June 30 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 -17.8% 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 (35.2%).


Return on Equity

High ROE: NEC's Return on Equity (9.4%) is considered low.


Financial Health

How is Nine Entertainment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NEC's short term assets (A$849.8M) exceed its short term liabilities (A$837.4M).

Long Term Liabilities: NEC's short term assets (A$849.8M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: NEC's net debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: NEC's debt to equity ratio has increased from 15.2% to 21.5% over the past 5 years.

Debt Coverage: NEC's debt is well covered by operating cash flow (94.4%).

Interest Coverage: NEC's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


Dividend

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

4.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEC's dividend (4.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.25%).

High Dividend: NEC's dividend (4.01%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


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: With its high payout ratio (105.7%), 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 (69.3% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mike Sneesby

0.75

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 ($USD1.37M) is about average for companies of similar size in the Australian market ($USD1.71M).

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


Leadership Team

Experienced Management: NEC's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: NEC's board of directors are considered experienced (3.1 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 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
  • Implied Market Cap: AU$4.464b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/24 15:50
End of Day Share Price2022/01/24 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.