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SXL

Southern Cross Media GroupASX:SXL Stock Report

Market Cap

AU$533.7m

7D

-6.0%

1Y

-15.1%

Updated

28 Nov, 2021

Data

Company Financials +
SXL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends3/6

SXL Stock Overview

Southern Cross Media Group Limited, together with its subsidiaries, engages in the creation of audio content for distribution on broadcast and digital networks.

Southern Cross Media Group Competitors

Nine Entertainment Holdings

ASX:NEC

AU$5.0b

Seven West Media

ASX:SWM

AU$951.8m

HT&E

ASX:HT1

AU$484.3m

Prime Media Group

ASX:PRT

AU$157.5m

Price History & Performance

Summary of all time highs, changes and price drops for Southern Cross Media Group
Historical stock prices
Current Share PriceAU$2.02
52 Week HighAU$2.64
52 Week LowAU$1.75
Beta1.76
1 Month Change-12.93%
3 Month Change-6.91%
1 Year Change-15.13%
3 Year Change-81.30%
5 Year Change-85.36%
Change since IPO-95.81%

Recent News & Updates

Jun 02
Some Investors May Be Worried About Southern Cross Media Group's (ASX:SXL) Returns On Capital

Some Investors May Be Worried About Southern Cross Media Group's (ASX:SXL) Returns On Capital

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Apr 12
Should You Think About Buying Southern Cross Media Group Limited (ASX:SXL) Now?

Should You Think About Buying Southern Cross Media Group Limited (ASX:SXL) Now?

Southern Cross Media Group Limited ( ASX:SXL ), is not the largest company out there, but it saw significant share...

Mar 16
Are Investors Undervaluing Southern Cross Media Group Limited (ASX:SXL) By 37%?

Are Investors Undervaluing Southern Cross Media Group Limited (ASX:SXL) By 37%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Southern Cross Media...

Shareholder Returns

SXLAU MediaAU Market
7D-6.0%-4.1%-1.6%
1Y-15.1%28.1%11.8%

Return vs Industry: SXL underperformed the Australian Media industry which returned 28.1% over the past year.

Return vs Market: SXL underperformed the Australian Market which returned 11.8% over the past year.

Price Volatility

Is SXL's price volatile compared to industry and market?
SXL volatility
SXL Average Weekly Movement4.5%
Media Industry Average Movement10.3%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

Stable Share Price: SXL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SXL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aGrant Blackleyhttps://www.southerncrossaustereo.com.au

Southern Cross Media Group Limited, together with its subsidiaries, engages in the creation of audio content for distribution on broadcast and digital networks. It operates in two segments, Audio and Television. The company owns 99 radio stations in FM, AM, and DAB+ radio, as well as 23 regional radio stations; broadcasts 92 free to air TV signals in regional Australia; operates LiSTNR, an audio destination for consumers housing radio, podcasts, music, and news; and offers sales representation for open audio platform SoundCloud and Sonos Radio.

Southern Cross Media Group Fundamentals Summary

How do Southern Cross Media Group's earnings and revenue compare to its market cap?
SXL fundamental statistics
Market CapAU$533.71m
Earnings (TTM)AU$48.10m
Revenue (TTM)AU$528.65m

11.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXL income statement (TTM)
RevenueAU$528.65m
Cost of RevenueAU$178.98m
Gross ProfitAU$349.67m
ExpensesAU$301.58m
EarningsAU$48.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin66.14%
Net Profit Margin9.10%
Debt/Equity Ratio20.0%

How did SXL perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

27%

Payout Ratio

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$2.02) is trading below our estimate of fair value (A$4.88)

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 (11.1x) compared to the Australian Media industry average (18x).

PE vs Market: SXL is good value based on its PE Ratio (11.1x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SXL is poor value based on its PEG Ratio (1.2x)


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 (2.4x).


Future Growth

How is Southern Cross Media Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXL's forecast earnings growth (9.1% per year) is above the savings rate (1.9%).

Earnings vs Market: SXL's earnings (9.1% per year) are forecast to grow slower than the Australian market (11.6% per year).

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

Revenue vs Market: SXL's revenue (2.9% per year) is forecast to grow slower than the Australian market (5.2% per year).

High Growth Revenue: SXL's revenue (2.9% 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 (7.8%).


Past Performance

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

-22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SXL has a large one-off gain of A$41.0M impacting its June 30 2021 financial results.

Growing Profit Margin: SXL's current net profit margins (9.1%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: SXL has become profitable over the past 5 years, growing earnings by -22.1% per year.

Accelerating Growth: SXL's earnings growth over the past year (91.6%) exceeds its 5-year average (-22.1% per year).

Earnings vs Industry: SXL earnings growth over the past year (91.6%) exceeded the Media industry 33%.


Return on Equity

High ROE: SXL's Return on Equity (7.5%) 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$174.1M) exceed its short term liabilities (A$97.3M).

Long Term Liabilities: SXL's short term assets (A$174.1M) do not cover its long term liabilities (A$587.0M).


Debt to Equity History and Analysis

Debt Level: SXL's net debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: SXL's debt to equity ratio has reduced from 78.6% to 20% over the past 5 years.

Debt Coverage: SXL's debt is well covered by operating cash flow (90.2%).

Interest Coverage: SXL's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SXL's dividend (2.48%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: SXL's dividend (2.48%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.5%), SXL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SXL's dividends in 3 years are forecast to be covered by earnings (68.9% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Grant Blackley (55 yo)

6.42yrs

Tenure

AU$1,692,269

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 ($USD1.20M) is above average for companies of similar size in the Australian market ($USD771.52K).

Compensation vs Earnings: Grant's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SXL's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: SXL's board of directors are considered experienced (6 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 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$533.712m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 07:05
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.