ASX:OML

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


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

1.4%

OML

-1.8%

AU Media

-1.0%

AU Market


1 Year Return

-28.5%

OML

-16.1%

AU Media

16.2%

AU Market

Return vs Industry: OML underperformed the Australian Media industry which returned -16.1% over the past year.

Return vs Market: OML underperformed the Australian Market which returned 16.2% over the past year.


Shareholder returns

OMLIndustryMarket
7 Day1.4%-1.8%-1.0%
30 Day13.3%-2.0%-0.2%
90 Day-2.3%-10.1%2.2%
1 Year-26.1%-28.5%-12.2%-16.1%21.9%16.2%
3 Year-22.1%-30.5%2.1%-13.4%36.3%17.7%
5 Yearn/a-24.5%-45.7%52.7%18.3%

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?

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OML (A$2.98) is trading below our estimate of fair value (A$4.25)

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 (32.5x) compared to the Media industry average (13.4x).

PE vs Market: OML is poor value based on its PE Ratio (32.5x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: OML is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: OML is good value based on its PB Ratio (1.1x) compared to the AU Media industry average (1.3x).


Next Steps

Future Growth

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

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OML's forecast earnings growth (18% per year) is above the savings rate (2.3%).

Earnings vs Market: OML's earnings (18% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: OML's revenue (3.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: OML'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: OML's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

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

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OML has large one-off items impacting its financial results.

Growing Profit Margin: OML's current net profit margins (3.8%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: OML has become profitable over the past 5 years, growing earnings by 47.5% 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 (-31.5%) over the past year, making it difficult to compare to the Media industry average (-30.3%).


Return on Equity

High ROE: OML's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is oOh!media's financial position?


Financial Position Analysis

Short Term Liabilities: OML's short term assets (A$202.9M) do not cover its short term liabilities (A$254.6M)

Long Term Liabilities: OML's short term assets (A$202.9M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: OML's debt to equity ratio (68.4%) is considered high.

Reducing Debt: OML's debt to equity ratio has reduced from 251.5% to 68.4% over the past 5 years.

Debt Coverage: OML's debt is well covered by operating cash flow (28.7%).

Interest Coverage: OML's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: OML has a high level of physical assets or inventory.

Debt Coverage by Assets: OML's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

3.69%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.4%markettop25%5.6%industryaverage6.2%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: OML's dividend (3.69%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: OML's dividend (3.69%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (120.1%), 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 covered by earnings (57.6% payout ratio).


Next Steps

Management

What is the CEO of oOh!media's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Brendon Cook 0

0yrs

Tenure

AU$1,578,064

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 ($USD1.07M) is above average for companies of similar size in the Australian market ($USD705.75K).

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


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: OML's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

52yo

Average Age

Experienced Board: OML's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 45.9%.


Management Team

  • Brendon Cook

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.58m
  • Sheila Lines

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: AU$624.06k
  • Noel Cook

    Chief Commercial & Operations Officer

    • Tenure: 1yrs
  • Robbie Dery

    Chief Commercial & Product Officer

    • Tenure: 1yrs
  • David Scribner

    Chief Customer Officer

    • Tenure: 1.1yrs
  • Steve Reid

    Chief People & Culture Officer

    • Tenure: 5.4yrs
  • John Purcell

    Head of Production and Commercial Director of Operations & Technology

    • Tenure: 0yrs
  • Melissa Jones

    Company Secretary

    • Tenure: 1.8yrs
  • Maria Polczynski

    Joint Company Secretary & General Counsel

    • Tenure: 1.5yrs
  • Andy McQuarrie

    Chief Technology Officer

    • Tenure: 2.8yrs

Board Members

  • Darren Smorgon

    Independent Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$144.50k
  • Philippa Kelly

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Brendon Cook

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.58m
  • Tim Miles (61yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Tony Faure

    Non-Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: AU$315.01k
  • Debbie Goodin (52yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: AU$157.72k
  • Joanne Crewes (52yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$120.34k

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$722.310m
  • Shares outstanding: 242.39m
  • 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 sho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 10:38
End of Day Share Price2019/11/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.