ASX:OML

Stock Analysis Report

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Executive Summary

oOh!media Limited operates as an out of home media company in Australia and New Zealand.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has oOh!media's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.9%

OML

12.3%

AU Media

5.0%

AU Market


1 Year Return

-74.5%

OML

-56.0%

AU Media

-10.3%

AU Market

Return vs Industry: OML underperformed the Australian Media industry which returned -56% over the past year.

Return vs Market: OML underperformed the Australian Market which returned -10.3% over the past year.


Shareholder returns

OMLIndustryMarket
7 Day5.9%12.3%5.0%
30 Day4.3%21.1%8.8%
90 Day-61.4%-37.0%-9.9%
1 Year-67.5%-74.5%-47.1%-56.0%-6.6%-10.3%
3 Year-66.2%-75.5%-38.1%-54.3%11.1%-3.5%
5 Year-35.3%-55.7%-29.2%-54.1%28.9%1.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is oOh!media undervalued compared to its fair value and its price relative to the market?

6.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OML (A$1.08) is trading below our estimate of fair value (A$1.15)

Significantly Below Fair Value: OML is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OML is poor value based on its PE Ratio (19.2x) compared to the Media industry average (16.3x).

PE vs Market: OML is poor value based on its PE Ratio (19.2x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: OML is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: OML is good value based on its PB Ratio (0.4x) compared to the AU Media industry average (1x).


Next Steps

Future Growth

How is oOh!media forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OML's forecast earnings growth (44.1% per year) is above the savings rate (2.3%).

Earnings vs Market: OML's earnings (44.1% per year) are forecast to grow faster than the Australian market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OML's revenue (1.6% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: OML's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OML's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has oOh!media performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OML has a large one-off loss of A$13.6M impacting its December 31 2019 financial results.

Growing Profit Margin: OML's current net profit margins (2.1%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: OML has become profitable over the past 5 years, growing earnings by 27.6% per year.

Accelerating Growth: OML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OML had negative earnings growth (-53.8%) over the past year, making it difficult to compare to the Media industry average (-47.8%).


Return on Equity

High ROE: OML's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is oOh!media's financial position?


Financial Position Analysis

Short Term Liabilities: OML's short term assets (A$234.0M) do not cover its short term liabilities (A$257.3M).

Long Term Liabilities: OML's short term assets (A$234.0M) do not cover its long term liabilities (A$1.2B).


Debt to Equity History and Analysis

Debt Level: OML's debt to equity ratio (64.4%) is considered high.

Reducing Debt: OML's debt to equity ratio has increased from 33.7% to 64.4% over the past 5 years.

Debt Coverage: OML's debt is well covered by operating cash flow (55.3%).

Interest Coverage: OML's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is oOh!media's current dividend yield, its reliability and sustainability?

10.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OML's dividend (10.19%) is higher than the bottom 25% of dividend payers in the Australian market (2.61%).

High Dividend: OML's dividend (10.19%) is in the top 25% of dividend payers in the Australian market (6.69%)


Stability and Growth of Payments

Stable Dividend: OML has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OML's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (195.9%), OML's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OML's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Brendon Cook

no data

Tenure

AU$1,083,355

Compensation

Mr. Brendon Jon Cook serves as the Chief Executive Officer and Managing Director at oOh!media Limited and has been its Executive Director since July 10, 2014. Mr. Cook has been the Chief Executive Officer, ...


CEO Compensation Analysis

Compensation vs Market: Brendon's total compensation ($USD719.26K) is about average for companies of similar size in the Australian market ($USD766.95K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brendon Cook
CEO, MD & Executive Directorno dataAU$1.08m0.39% A$2.5m
Sheila Lines
Chief Financial Officer2.17yrsAU$527.38k0.0014% A$9.3k
Noel Cook
Chief Commercial & Operations Officer1.5yrsno datano data
Maria Polczynski
Company Secretary & General Counsel2yrsno datano data
Steve Reid
Chief People & Culture Officer5.92yrsno datano data
Robbie Dery
Chief Commercial & Product Officer1.5yrsno datano data
John Purcell
Head of Production and Commercial Director of Operations & Technologyno datano datano data
Melissa Jones
Company Secretary(Leave of Absence)0.17yrno datano data

1.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Brendon Cook
CEO, MD & Executive Directorno dataAU$1.08m0.39% A$2.5m
Marco Hellman
Non-Executive Director0.083yrno datano data
Darren Smorgon
Board Observer0.083yrAU$167.50k0.015% A$99.0k
Philippa Kelly
Independent Non-Executive Director0.67yrAU$38.57k0.0084% A$54.0k
Timothy Miles
Independent Non-Executive Director1yrAU$104.21k0.036% A$228.9k
Tony Faure
Non-Executive Chairman2.67yrsAU$335.00k0.052% A$331.2k
Joanne Crewes
Independent Non-Executive Director2.67yrsAU$145.00k0.012% A$77.2k
David Wiadrowski
Lead Independent Director0.17yrAU$11.77k0.0084% A$54.0k

0.8yrs

Average Tenure

57yo

Average Age

Experienced Board: OML's board of directors are not considered experienced ( 0.8 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: OML insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 147.3%.


Top Shareholders

Company Information

oOh!media Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: oOh!media Limited
  • Ticker: OML
  • Exchange: ASX
  • Founded: 1989
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$639.131m
  • Shares outstanding: 591.79m
  • Website: https://www.oohmedia.com.au

Number of Employees


Location

  • oOh!media Limited
  • 76 Berry Street
  • Level 2
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2014
OMLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2014
0OHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2014

Biography

oOh!media Limited operates as an out of home media company in Australia and New Zealand. The company’s portfolio includes large format classic and digital roadside screens; classic and digital signs in shopping centers, airport terminals, and lounges, as well as in cafes, pubs, universities, office buildings, and gyms; classic and digital street furniture signs; classic and digital rail, and classic format advertising in public transportation corridors, including rail; and online sites for millennials, students, flyers, small businesses, and city-based audiences. It also engages in content production and digital printing operations. oOh!media Limited was founded in 1989 and is based in North Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 11:36
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.