ASX:QMS

Stock Analysis Report

Executive Summary

QMS Media Limited, an outdoor media company, provides out-of-home advertising and media services primarily in Australia and New Zealand.

Snowflake

Fundamentals

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

QMS

-3.9%

AU Media

2.5%

AU Market


1 Year Return

-9.1%

QMS

-18.9%

AU Media

11.1%

AU Market

Return vs Industry: QMS exceeded the Australian Media industry which returned -18.9% over the past year.

Return vs Market: QMS underperformed the Australian Market which returned 11.1% over the past year.


Shareholder returns

QMSIndustryMarket
7 Day-2.2%-3.9%2.5%
30 Day3.4%-8.8%0.7%
90 Day7.1%-13.0%1.4%
1 Year-6.5%-9.1%-15.0%-18.9%17.5%11.1%
3 Year-20.2%-25.6%5.3%-16.3%37.8%19.4%
5 Yearn/a-9.0%-36.9%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is QMS Media undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: QMS (A$0.9) is trading below our estimate of fair value (A$1.83)

Significantly Undervalued: QMS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QMS is poor value based on its PE Ratio (33.3x) compared to the Media industry average (16.6x).

PE vs Market: QMS is poor value based on its PE Ratio (33.3x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: QMS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: QMS is overvalued based on its PB Ratio (1.4x) compared to the AU Media industry average (1.3x).


Next Steps

Future Growth

How is QMS Media forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QMS's forecast earnings growth (31.5% per year) is above the savings rate (2.3%).

Earnings vs Market: QMS's earnings (31.5% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: QMS's revenue (22.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: QMS's revenue (22.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: QMS's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has QMS Media performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QMS's earnings have grown significantly by 26.7% per year over the past 5 years.

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

Earnings vs Industry: QMS had negative earnings growth (-30.3%) over the past year, making it difficult to compare to the Media industry average (-13.9%).


Return on Equity

High ROE: QMS's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: QMS's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: QMS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is QMS Media's financial position?


Financial Position Analysis

Short Term Liabilities: QMS's short term assets (A$205.9M) exceeds its short term liabilities (A$171.6M)

Long Term Liabilities: QMS's short term assets (205.9M) do not cover its long term liabilities (318.0M)


Debt to Equity History and Analysis

Debt Level: QMS's debt to equity ratio (80%) is considered high

Reducing Debt: Insufficient data to determine if QMS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: QMS's debt is not well covered by operating cash flow (3%).

Interest Coverage: QMS's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: QMS's debt is covered by short term assets (assets are 1.212350x debt).


Next Steps

Dividend

What is QMS Media's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.5%markettop25%5.6%industryaverage5.3%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QMS's dividend (2.44%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: QMS's dividend (2.44%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: Whilst dividend payments have been stable, QMS has been paying a dividend for less than 10 years.

Growing Dividend: QMS's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.4%), QMS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QMS's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).


Next Steps

Management

What is the CEO of QMS Media's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Barclay Nettlefold 0

0yrs

Tenure

AU$959,748

Compensation

Mr. Barclay David Nettlefold serves as the Chief Executive Officer and Managing Director at QMS Media Limited. Mr. Nettlefold is Co-Founder of Nettlefold Advertising (outdoor advertising) which was sold to ...


CEO Compensation Analysis

Compensation vs. Market: Barclay's total compensation ($USD647.95K) is about average for companies of similar size in the Australian market ($USD450.00K).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: QMS's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

Experienced Board: QMS's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: QMS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$42,67202 Sep 19
Ian Rowden
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceAU$0.85
BuyAU$19,43502 Sep 19
Robert Alexander
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares23,000
Max PriceAU$0.84
SellAU$951,17016 Jul 19
Regal Funds Management Pty Limited
EntityCompany
Shares1,325,235
Max PriceAU$0.74
BuyAU$3,796,20816 Jul 19
Regal Funds Management Pty Limited
EntityCompany
Shares4,720,735
Max PriceAU$0.81
SellAU$545,81012 May 19
BlackRock, Inc.
EntityCompany
Shares566,548
Max PriceAU$0.96
BuyAU$6,048,20812 May 19
BlackRock, Inc.
EntityCompany
Shares5,305,444
Max PriceAU$1.14
BuyAU$1,997,76307 Apr 19
Burgundy Asset Management Ltd.
EntityCompany
Shares2,861,899
Max PriceAU$0.70
BuyAU$3,105,12301 Apr 19
Burgundy Asset Management Ltd.
EntityCompany
Shares3,854,153
Max PriceAU$0.81
BuyAU$2,774,99711 Feb 19
Regal Funds Management Pty Limited
EntityCompany
Shares3,000,000
Max PriceAU$0.92
SellAU$5,376,28201 Nov 18
Greencape Capital Pty Ltd
EntityCompany
Shares5,122,105
Max PriceAU$1.05

Ownership Breakdown


Management Team

  • Sara Lappage

    Chief Marketing Officer

    • Tenure: 4.3yrs
    • Compensation: AU$5.20k
  • John O'Neill

    Chief Executive Officer of QMS Australia

    • Tenure: 1.8yrs
    • Compensation: AU$616.69k
  • Mal Pearce

    COO & Company Secretary

    • Tenure: 5.3yrs
    • Compensation: AU$6.11k
  • Wayne Chapman

    Group Chief Executive Officer of QMS New Zealand

    • Tenure: 1.8yrs
    • Compensation: AU$403.72k
  • Barclay Nettlefold

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: AU$959.75k
  • David Edmonds

    Director of Corporate & Legal and Executive Director (Leave of Absence)

    • Tenure: 4.9yrs
    • Compensation: AU$588.92k
  • Adam Trevena

    Chief Commercial Officer

    • Tenure: 4.3yrs
    • Compensation: AU$7.91k
  • Steve Danaher

    Chief Strategic Sales Officer

    • Tenure: 0yrs
    • Compensation: AU$6.45k
  • Mark Rowswell

    General Manager of Development

    • Tenure: 0yrs
    • Compensation: AU$4.50k
  • Kate Solomon

    Group Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Ian Rowden (59yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Wayne Stevenson (60yo)

    Independent Non-Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: AU$157.68k
  • Bob Alexander

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$98.55k
  • Barclay Nettlefold

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: AU$959.75k
  • Anne Parsons

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$93.08k
  • David Edmonds

    Director of Corporate & Legal and Executive Director (Leave of Absence)

    • Tenure: 4.9yrs
    • Compensation: AU$588.92k

Company Information

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


Key Information

  • Name: QMS Media Limited
  • Ticker: QMS
  • Exchange: ASX
  • Founded: 2014
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$304.887m
  • Shares outstanding: 344.50m
  • Website: https://www.qmsmedia.com

Location

  • QMS Media Limited
  • 214 Park Street
  • South Melbourne
  • Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QMSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2015
46MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
QMSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2015

Biography

QMS Media Limited, an outdoor media company, provides out-of-home advertising and media services primarily in Australia and New Zealand. The company offers digital and static billboards, street furniture,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:39
End of Day Share Price2019/10/17 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.