ASX:NZM

Stock Analysis Report

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Executive Summary

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has NZME's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NZM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

NZM

2.1%

AU Media

-0.4%

AU Market


1 Year Return

57.3%

NZM

-27.4%

AU Media

-7.0%

AU Market

Return vs Industry: NZM exceeded the Australian Media industry which returned -27.4% over the past year.

Return vs Market: NZM exceeded the Australian Market which returned -7% over the past year.


Shareholder returns

NZMIndustryMarket
7 Day7.3%2.1%-0.4%
30 Day37.2%22.5%4.3%
90 Day156.5%40.3%4.3%
1 Year57.3%57.3%-16.5%-27.4%-3.8%-7.0%
3 Year-14.9%-24.4%-24.5%-42.7%17.0%2.3%
5 Yearn/a-4.0%-36.0%42.9%14.3%

Price Volatility Vs. Market

How volatile is NZME's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NZME 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: NZM (A$0.59) is trading below our estimate of fair value (A$5.36)

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


Price To Earnings Ratio

PE vs Industry: NZM is unprofitable, so we can't compare its PE Ratio to the AU Media industry average.

PE vs Market: NZM 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 NZM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NZM is good value based on its PB Ratio (1x) compared to the AU Media industry average (1.2x).


Next Steps

Future Growth

How is NZME forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

82.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: NZM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NZM's is expected to become profitable in the next 3 years.

Revenue vs Market: NZM's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: NZM's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZM's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has NZME performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZM is currently unprofitable.

Growing Profit Margin: NZM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NZM is unprofitable, and losses have increased over the past 5 years at a rate of 26.5% per year.

Accelerating Growth: Unable to compare NZM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NZM is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-8.9%).


Return on Equity

High ROE: NZM has a negative Return on Equity (-137.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is NZME's financial position?


Financial Position Analysis

Short Term Liabilities: NZM's short term assets (NZ$65.8M) exceed its short term liabilities (NZ$58.6M).

Long Term Liabilities: NZM's short term assets (NZ$65.8M) do not cover its long term liabilities (NZ$160.9M).


Debt to Equity History and Analysis

Debt Level: NZM's debt to equity ratio (67.4%) is considered high.

Reducing Debt: NZM's debt to equity ratio has increased from 34.5% to 67.4% 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 NZM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NZM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 24.7% per year.


Next Steps

Dividend

What is NZME current dividend yield, its reliability and sustainability?

3.57%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NZM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NZM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NZM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NZM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NZM is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NZM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Michael Boggs

4.58yrs

Tenure

NZ$1,034,907

Compensation

Mr. Michael Raymond Boggs, CA had been the Chief Executive Officer of NZME Limited at HT&E Limited (Formerly known as APN News & Media Limited) since March 2016. Mr. Boggs served as the Chief Financial Off ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD690.21K) is above average for companies of similar size in the Australian market ($USD277.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Boggs
Chief Executive Officer4.58yrsNZ$1.03m0.24%
NZ$ 280.8k
David Mackrell
Chief Financial Officer1.58yrsno datano data
Matthew Wilson
Chief Operating Officer3.83yrsno datano data
Paddy Walker
Investor Relations Managerno datano datano data
Allison Whitney
General Counsel & Company Secretaryno datano datano data
Cliff Joiner
General Manager of Communicationsno datano datano data
Katie Mills
Chief Marketing Officer1.83yrsno datano data
Shayne Currie
Managing Editorno datano datano data
Laura Maxwell-Hansen
Chief Digital Officer3.17yrsno datano data
Wendy Palmer
Chief Radio & Commercial Officer0.92yrno datano data
Paul Hancox
Chief Revenue Officer1.75yrsno datano data

1.8yrs

Average Tenure

Experienced Management: NZM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sussan Turner
Independent Director2.25yrsNZ$120.00kno data
Barbara Chapman
Independent Chairman0.33yrNZ$130.00k0.025%
NZ$ 29.5k
Carol Campbell
Independent Director4.33yrsNZ$120.00k0.076%
NZ$ 88.6k
David Edward Gibson
Independent Director2.83yrsNZ$130.00k0.025%
NZ$ 29.5k

2.5yrs

Average Tenure

Experienced Board: NZM's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

NZME Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NZME Limited
  • Ticker: NZM
  • Exchange: ASX
  • Founded: 2001
  • Industry: Publishing
  • Sector: Media
  • Market Cap: NZ$123.830m
  • Listing Market Cap: NZ$116.125m
  • Shares outstanding: 196.56m
  • Website: https://www.nzme.co.nz

Location

  • NZME Limited
  • 2 Graham Street
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZMNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 2016
NZMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2016
NZMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2016
NZME.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016

Biography

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand. It offers its products through 39 print publications and 9 radio channels. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 10:36
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.