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Southern Cross Media Group

Market Cap

AU$504.6m

Last Updated

2021/05/18 08:17 UTC

Data Sources

Company Financials +

Executive Summary

Southern Cross Media Group Limited, together with its subsidiaries, engages in the creation and broadcasting of content on free-to-air commercial radio, television (TV), and online media platforms. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SXL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

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


Market Performance


7 Day Return

2.7%

SXL

-2.9%

AU Media

-2.2%

AU Market


1 Year Return

26.3%

SXL

86.9%

AU Media

33.8%

AU Market

Return vs Industry: SXL underperformed the Australian Media industry which returned 86.9% over the past year.

Return vs Market: SXL underperformed the Australian Market which returned 33.8% over the past year.


Shareholder returns

SXLIndustryMarket
7 Day2.7%-2.9%-2.2%
30 Day-5.7%-4.0%-1.0%
90 Day-22.7%-5.3%1.0%
1 Year26.3%26.3%92.9%86.9%38.1%33.8%
3 Year-74.4%-83.5%-20.4%-38.5%30.2%14.7%
5 Year-73.2%-84.6%0.7%-32.7%63.5%31.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Southern Cross Media Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SXL (A$1.9) is trading below our estimate of fair value (A$4.14)

Significantly Below Fair Value: SXL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SXL's PE Ratio (11.1x) is in line with the Australian Media industry average.

PE vs Market: SXL is good value based on its PE Ratio (11.1x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: SXL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SXL is good value based on its PB Ratio (0.8x) compared to the AU Media industry average (1.8x).


Future Growth

How is Southern Cross Media Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXL's forecast earnings growth (12.1% per year) is above the savings rate (1.9%).

Earnings vs Market: SXL's earnings (12.1% per year) are forecast to grow slower than the Australian market (12.8% per year).

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

Revenue vs Market: SXL's revenue (3.9% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: SXL's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SXL's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Southern Cross Media Group performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXL has high quality earnings.

Growing Profit Margin: SXL's current net profit margins (7.6%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: SXL has become profitable over the past 5 years, growing earnings by 4.4% per year.

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

Earnings vs Industry: SXL had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Media industry average (2.8%).


Return on Equity

High ROE: SXL's Return on Equity (5.9%) is considered low.


Financial Health

How is Southern Cross Media Group's financial position?


Financial Position Analysis

Short Term Liabilities: SXL's short term assets (A$333.8M) exceed its short term liabilities (A$120.2M).

Long Term Liabilities: SXL's short term assets (A$333.8M) do not cover its long term liabilities (A$761.4M).


Debt to Equity History and Analysis

Debt Level: SXL's debt to equity ratio (49%) is considered high.

Reducing Debt: SXL's debt to equity ratio has reduced from 59.1% to 49% over the past 5 years.

Debt Coverage: SXL's debt is well covered by operating cash flow (44.9%).

Interest Coverage: SXL's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

What is Southern Cross Media Group current dividend yield, its reliability and sustainability?

4.31%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SXL'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 SXL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Grant Blackley (54 yo)

5.92yrs

Tenure

AU$788,641

Compensation

Mr. Grant Blackley has been the Chief Executive Officer, Managing Director and Executive Director of Southern Cross Austereo Pty Limited since June 29, 2015. Mr. Blackley has been the Chief Executive Offic...


CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD611.97K) is about average for companies of similar size in the Australian market ($USD690.63K).

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


Leadership Team

Experienced Management: SXL's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: SXL's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SXL 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.


Top Shareholders

Company Information

Southern Cross Media Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southern Cross Media Group Limited
  • Ticker: SXL
  • Exchange: ASX
  • Founded: 2005
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: AU$504.649m
  • Shares outstanding: 264.21m
  • Website: https://www.southerncrossaustereo.com.au

Number of Employees


Location

  • Southern Cross Media Group Limited
  • 257 Clarendon Street
  • Level 2
  • Melbourne
  • Victoria
  • 3205
  • Australia

Listings


Biography

Southern Cross Media Group Limited, together with its subsidiaries, engages in the creation and broadcasting of content on free-to-air commercial radio, television (TV), and online media platforms. It oper...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 08:17
End of Day Share Price2021/05/18 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.