SKY Network Television (ASX:SKT) - Share price, News & Analysis

SKT fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

SKT Stock Overview

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

Rewards

Trading at 43.8% below our estimate of its fair value

Earnings are forecast to grow 16.37% per year

Became profitable this year

Risk Analysis

No risks detected for SKT from our risk checks.

SKY Network Television Peers

Southern Cross Media Group

ASX:SXL

AU$416.2m

HT&E

ASX:HT1

AU$514.9m

IVE Group

ASX:IGL

AU$245.4m

Enero Group

ASX:EGG

AU$284.4m

Price History & Performance

Summary of all time highs, changes and price drops for SKY Network Television
Historical stock prices
Current Share Price	NZ$2.25
52 Week High	NZ$2.70
52 Week Low	NZ$1.45
Beta	1.19
1 Month Change	-11.07%
3 Month Change	-3.02%
1 Year Change	38.46%
3 Year Change	-80.69%
5 Year Change	-93.06%
Change since IPO	-95.91%

Shareholder Returns

	SKT	AU Media	AU Market
7D	-2.2%	2.6%	0.5%
1Y	38.5%	-3.4%	-0.2%

Return vs Industry: SKT exceeded the Australian Media industry which returned -3.4% over the past year.

Return vs Market: SKT exceeded the Australian Market which returned -0.2% over the past year.

Price Volatility

Is SKT's price volatile compared to industry and market?
SKT volatility
SKT Average Weekly Movement	6.3%
Media Industry Average Movement	6.8%
Market Average Movement	9.4%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: SKT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SKT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	n/a	Sophie Moloney	https://www.sky.co.nz

SKY Network Television Limited, an entertainment company, provides sports and entertainment media services and telecommunications services in New Zealand and internationally. The company provides commercial music, broadcasting services, entertainment quizzes, and streaming and management services, as well as data analytics services for sports. It offers sport, movies, shows, documentaries, music, news, and kid’s content.

SKY Network Television Fundamentals Summary

How do SKY Network Television's earnings and revenue compare to its market cap?
SKT fundamental statistics
Market Cap	NZ$436.72m
Earnings (TTM)	NZ$36.09m
Revenue (TTM)	NZ$726.04m

12.1x

P/E Ratio

0.6x

P/S Ratio

Is SKT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKT income statement (TTM)
Revenue	NZ$726.04m
Cost of Revenue	NZ$529.80m
Gross Profit	NZ$196.23m
Other Expenses	NZ$160.14m
Earnings	NZ$36.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.21
Gross Margin	27.03%
Net Profit Margin	4.97%
Debt/Equity Ratio	0.4%

How did SKT perform over the long term?

See historical performance and comparison

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is SKY Network Television forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKT's forecast earnings growth (16.4% per year) is above the savings rate (1.8%).

Earnings vs Market: SKT's earnings (16.4% per year) are forecast to grow faster than the Australian market (6.2% per year).

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

Revenue vs Market: SKT's revenue is expected to decline over the next 3 years (-0.09% per year).

High Growth Revenue: SKT's revenue is forecast to decline over the next 3 years (-0.09% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SKT's Return on Equity is forecast to be low in 3 years time (10.4%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-14.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SKT has high quality earnings.

Growing Profit Margin: SKT became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SKT has become profitable over the past 5 years, growing earnings by -14.4% per year.

Accelerating Growth: SKT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SKT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (32.7%).

Return on Equity

High ROE: SKT's Return on Equity (7.9%) is considered low.

Financial Health

How is SKY Network Television's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKT's short term assets (NZ$262.9M) exceed its short term liabilities (NZ$207.3M).

Long Term Liabilities: SKT's short term assets (NZ$262.9M) exceed its long term liabilities (NZ$28.8M).

Debt to Equity History and Analysis

Debt Level: SKT has more cash than its total debt.

Reducing Debt: SKT's debt to equity ratio has reduced from 26.2% to 0.4% over the past 5 years.

Debt Coverage: SKT's debt is well covered by operating cash flow (8145.7%).

Interest Coverage: SKT's interest payments on its debt are well covered by EBIT (6.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.88%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SKT'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 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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SKT has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

0.7yrs

Average management tenure

CEO

Sophie Moloney

1.42yrs

Tenure

NZ$1,168,416

Compensation

Ms. Sophie Moloney serves as the Chief Executive Officer at SKY Network Television Limited since December 01, 2020. She served as the Chief Commercial Officer at SKY Network Television Limited since 2020 u...

CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD733.01K) is about average for companies of similar size in the Australian market ($USD568.17K).

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

Leadership Team

Experienced Management: SKT's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: SKT's board of directors are not considered experienced ( 2.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30