ASX:SKT

Stock Analysis Report

SKY Network Television

Executive Summary

SKY Network Television Limited, an entertainment company, provides sport and entertainment media services in New Zealand.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has SKY Network Television's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

SKT

-3.5%

AU Media

0.7%

AU Market


1 Year Return

-50.5%

SKT

-17.2%

AU Media

11.0%

AU Market

Return vs Industry: SKT underperformed the Australian Media industry which returned -17.2% over the past year.

Return vs Market: SKT underperformed the Australian Market which returned 11% over the past year.


Shareholder returns

SKTIndustryMarket
7 Day-3.4%-3.5%0.7%
30 Day-4.7%-8.0%-0.2%
90 Day-9.5%-11.9%-0.1%
1 Year-47.2%-50.5%-13.2%-17.2%17.4%11.0%
3 Year-71.4%-77.5%7.2%-14.7%36.3%18.0%
5 Year-72.8%-81.5%-7.4%-35.7%51.4%17.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SKY Network Television undervalued compared to its fair value and its price relative to the market?

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SKT (A$1.01) is trading below our estimate of fair value (A$1.82)

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


Price To Earnings Ratio

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

PE vs Market: SKT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SKT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKT is good value based on its PB Ratio (1.2x) compared to the AU Media industry average (1.3x).


Next Steps

Future Growth

How is SKY Network Television forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

96.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

High Growth Earnings: SKT's loss is forecast to worsen by 0% next year.

Revenue vs Market: SKT's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: SKT's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SKT's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has SKY Network Television performed over the past 5 years?

-63.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKT is unprofitable, and losses have increased over the past 5 years at a rate of -63.1% per year.

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

Earnings vs Industry: SKT is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-13.9%).


Return on Equity

High ROE: SKT has a negative Return on Equity (-172.89%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SKT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SKT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is SKY Network Television's financial position?


Financial Position Analysis

Short Term Liabilities: SKT's short term assets (NZ$160.8M) do not cover its short term liabilities (NZ$205.9M)

Long Term Liabilities: SKT's short term assets (160.8M) do not cover its long term liabilities (213.8M)


Debt to Equity History and Analysis

Debt Level: SKT's debt to equity ratio (54.4%) is considered high

Reducing Debt: SKT's debt to equity ratio has increased from 30.3% to 54.4% over the past 5 years.

Debt Coverage: SKT's debt is well covered by operating cash flow (93.1%).

Interest Coverage: SKT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: SKT's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is SKY Network Television's current dividend yield, its reliability and sustainability?

2.83%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage5.3%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of SKY Network Television's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Martin Stewart (55yo)

0.7yrs

Tenure

NZ$1,750,000

Compensation

Mr. Martin David Stewart serves as an Executive Director at SKY Network Television Limited since April 18, 2019. He has been Chief Executive Officer of SKY Network Television Limited since February 21, 201 ...


CEO Compensation Analysis

Compensation vs. Market: Martin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

0.4yrs

Average Tenure

Experienced Management: SKT's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: SKT's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyNZ$6,293,60723 Sep 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares6,045,245
Max PriceNZ$1.05
SellNZ$319,72223 Sep 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares274,395
Max PriceNZ$1.17
BuyNZ$24,97228 Aug 19
Geraldine McBride
EntityIndividual
Role
Member of the Board of Directors
Director
Shares23,016
Max PriceNZ$1.09
SellNZ$6,379,24811 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares6,059,977
Max PriceNZ$1.09
BuyNZ$832,13104 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares370,595
Max PriceNZ$2.25
SellNZ$5,379,66304 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares4,103,202
Max PriceNZ$1.96
BuyNZ$10,577,39322 Mar 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares6,928,419
Max PriceNZ$1.53
SellNZ$3,064,48122 Mar 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares1,566,368
Max PriceNZ$2.04

Ownership Breakdown


Management Team

  • Martin Stewart (55yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: NZ$1.75m
  • Martin Wrigley

    Director of Operations

    • Tenure: 17.8yrs
  • Steve Bayliss

    Chief Marketing Officer

    • Tenure: 0.4yrs
  • Blair Woodbury

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Sophie Moloney

    Chief Legal

    • Tenure: 0yrs
  • Chaz Savage

    Chief Revenue Officer

    • Tenure: 0yrs
  • Prabhu Singh

    Director of Technology

    • Tenure: 0.2yrs

Board Members

  • Martin Stewart (55yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: NZ$1.75m
  • Joan Withers (66yo)

    Director

    • Tenure: 0.08yrs
  • Peter Macourt

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: NZ$187.00k
  • Susan Paterson (62yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: NZ$132.00k
  • Mike Darcy (54yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: NZ$100.00k
  • Geraldine McBride (58yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: NZ$100.00k
  • Derek Handley

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: NZ$117.00k
  • Philip Bowman

    Independent Chairman

    • Tenure: 0.08yrs

Company Information

SKY Network Television Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SKY Network Television Limited
  • Ticker: SKT
  • Exchange: ASX
  • Founded: 2005
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: NZ$443.221m
  • Listing Market Cap: NZ$412.044m
  • Shares outstanding: 414.23m
  • Website: https://www.sky.co.nz

Number of Employees


Location

  • SKY Network Television Limited
  • 10 Panorama Road
  • Mt Wellington
  • Auckland
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 1997
SKTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1997
SKTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1997
SYKW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1997

Biography

SKY Network Television Limited, an entertainment company, provides sport and entertainment media services in New Zealand. It offers sports, drama, music, movies, and on-demand content. The company also off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 10:33
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.