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.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued average dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-32.7%
SXL
-7.2%
AU Media
0.1%
AU Market
1 Year Return
-85.9%
SXL
-51.7%
AU Media
-22.8%
AU Market
Return vs Industry: SXL underperformed the Australian Media industry which returned -51.7% over the past year.
Return vs Market: SXL underperformed the Australian Market which returned -22.8% over the past year.
Shareholder returns
| SXL | Industry | Market | |
|---|---|---|---|
| 7 Day | -32.7% | -7.2% | 0.1% |
| 30 Day | -76.9% | -47.2% | -28.8% |
| 90 Day | -80.5% | -51.8% | -30.1% |
| 1 Year | -84.8%-85.9% | -49.2%-51.7% | -19.4%-22.8% |
| 3 Year | -85.6%-88.2% | -46.9%-55.4% | -9.5%-21.7% |
| 5 Year | -78.9%-84.7% | -50.8%-64.8% | 2.1%-20.8% |
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
1 week ago | Simply Wall St
How Much Did Southern Cross Media Group Limited's (ASX:SXL) CEO Pocket Last Year?1 month ago | Simply Wall St
Southern Cross Media Group Limited (ASX:SXL) Will Pay A AU$0.028 Dividend In 4 Days3 months ago | Simply Wall St
Is Southern Cross Media Group Limited (ASX:SXL) A Smart Choice For Dividend Investors?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$0.17) is trading below our estimate of fair value (A$1.12)
Significantly Below Fair Value: SXL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SXL is good value based on its PE Ratio (2.6x) compared to the Media industry average (14.2x).
PE vs Market: SXL is good value based on its PE Ratio (2.6x) compared to the Australian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: SXL is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: SXL is good value based on its PB Ratio (0.3x) compared to the AU Media industry average (1x).
Next Steps
Future Growth
How is Southern Cross Media Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SXL's forecast earnings growth (13.7% per year) is above the savings rate (1.1%).
Earnings vs Market: SXL's earnings (13.7% per year) are forecast to grow faster than the Australian market (10% per year).
High Growth Earnings: SXL's earnings are forecast to grow, but not significantly.
Revenue vs Market: SXL's revenue (1% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: SXL's revenue (1% 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 (14.9%).
Next Steps
Past Performance
How has Southern Cross Media Group performed over the past 5 years?
36.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SXL has high quality earnings.
Growing Profit Margin: SXL became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SXL has become profitable over the past 5 years, growing earnings by 36.1% per year.
Accelerating Growth: SXL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SXL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-37.7%).
Return on Equity
High ROE: SXL's Return on Equity (11.4%) is considered low.
Next Steps
Financial Health
How is Southern Cross Media Group's financial position?
Financial Position Analysis
Short Term Liabilities: SXL's short term assets (A$149.1M) exceed its short term liabilities (A$81.1M).
Long Term Liabilities: SXL's short term assets (A$149.1M) do not cover its long term liabilities (A$825.6M).
Debt to Equity History and Analysis
Debt Level: SXL's debt to equity ratio (84.9%) is considered high.
Reducing Debt: SXL's debt to equity ratio has increased from 52% to 84.9% over the past 5 years.
Balance Sheet
Inventory Level: SXL has a low level of unsold assets or inventory.
Debt Coverage by Assets: SXL's debt is not covered by short term assets (assets are 0.4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SXL is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: SXL is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Southern Cross Media Group's current dividend yield, its reliability and sustainability?
40.91%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SXL's dividend (40.91%) is higher than the bottom 25% of dividend payers in the Australian market (3.37%).
High Dividend: SXL's dividend (40.91%) is in the top 25% of dividend payers in the Australian market (8.57%)
Stability and Growth of Payments
Stable Dividend: SXL's dividend payments have been volatile in the past 10 years.
Growing Dividend: SXL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (106.5%), SXL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SXL's dividends in 3 years are forecast to be covered by earnings (77% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Grant Blackley (53yo)
4.75s
Tenure
AU$1,869,156
Compensation
Mr. Grant Blackley has been the Chief Executive Officer, Managing Director and Executive Director of Southern Cross Austereo Pty Limited since June 29, 2015. Mr. Blackley has been the Chief Executive Offic ...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD1.15M) is above average for companies of similar size in the Australian market ($USD242.11K).
Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.75yrs | AU$1.87m | 0.084% A$106.9k | |
| Chief Financial Officer | 5.5yrs | AU$795.94k | 0.024% A$30.8k | |
| Chief Operating Officer | 4.08yrs | AU$831.75k | 0.0038% A$4.9k | |
| Chief Technology Officer | 1.67yrs | AU$465.97k | 0.00098% A$1.2k | |
| Chief Sales Officer | 4.67yrs | AU$764.59k | 0.0091% A$11.6k | |
| Head of Legal & Corporate Affairs and Company Secretary | 4.5yrs | no data | no data | |
| Manager of Corporate Communications | no data | no data | no data | |
| Secretary of MMIL | no data | no data | no data |
4.6yrs
Average Tenure
Experienced Management: SXL's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.75yrs | AU$1.87m | 0.084% A$106.9k | |
| Chairman | 5.08yrs | AU$273.00k | 0.017% A$21.4k | |
| Non-Executive Director | 5.5yrs | AU$158.50k | 0.019% A$24.3k | |
| Non-Executive Deputy Chairman & Lead Independent Director | 14.5yrs | AU$176.00k | 0.15% A$195.6k | |
| Non-Executive Director | 3.83yrs | AU$170.50k | 0.019% A$24.5k | |
| Independent Chairman of MMIL | 14.08yrs | no data | no data | |
| Independent Deputy Chairman of MMIL | 14.08yrs | no data | no data | |
| Non-Executive Director | 5.5yrs | AU$163.00k | 0.023% A$29.1k | |
| Non-Executive Independent Director | 4.92yrs | AU$179.50k | 0.014% A$17.3k |
5.5yrs
Average Tenure
54.5yo
Average Age
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$126.887m
- Shares outstanding: 769.01m
- Website: https://www.southerncrossaustereo.com.au
Number of Employees
Location
- Southern Cross Media Group Limited
- 257 Clarendon Street
- Level 2
- South Melbourne
- Victoria
- 3205
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 6MM | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2006 |
| SXL | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2006 |
| SXL | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2006 |
| SXL | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2006 |
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 operates through two segments, Regional and Metro. The company owns 78 radio stations and 8 digital radio stations across metropolitan and regional Australia, as well as 34 regional radio stations; and broadcasts 86 free to air TV signals in regional Australia primarily under the Nine Network brand. It also provides audio and visual services, including social media, live events, video, online, and mobile assets that deliver national and local entertainment, and news content. The company was formerly known as Macquarie Media Group. Southern Cross Media Group Limited was incorporated in 2005 and is based in South Melbourne, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 10:40 |
| End of Day Share Price | 2020/03/23 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.