Southern Cross Media Group (ASX:SXL) - Share price, News & Analysis

SXL fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

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.

Rewards

Trading at 8.4% below our estimate of its fair value

Earnings are forecast to grow 20.21% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Southern Cross Media Group Peers

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AU$518.0m

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AU$985.9m

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AU$170.3m

Sports Entertainment Group

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AU$57.8m

Price History & Performance

Summary of all time highs, changes and price drops for Southern Cross Media Group
Historical stock prices
Current Share Price	AU$1.60
52 Week High	AU$2.39
52 Week Low	AU$1.51
Beta	1.64
1 Month Change	-7.54%
3 Month Change	-21.04%
1 Year Change	-16.49%
3 Year Change	-87.19%
5 Year Change	-86.60%
Change since IPO	-96.69%

Recent News & Updates

Mar 24

Does Southern Cross Media Group (ASX:SXL) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Feb 27

Southern Cross Media Group (ASX:SXL) Has Some Difficulty Using Its Capital Effectively

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? Businesses...

Feb 09

At AU$2.15, Is It Time To Put Southern Cross Media Group Limited (ASX:SXL) On Your Watch List?

Southern Cross Media Group Limited ( ASX:SXL ), is not the largest company out there, but it received a lot of...

Shareholder Returns

	SXL	AU Media	AU Market
7D	2.9%	-2.5%	-2.1%
1Y	-16.5%	-3.3%	0.5%

Return vs Industry: SXL underperformed the Australian Media industry which returned -3.3% over the past year.

Return vs Market: SXL underperformed the Australian Market which returned 0.5% over the past year.

Price Volatility

Is SXL's price volatile compared to industry and market?
SXL volatility
SXL Average Weekly Movement	6.2%
Media Industry Average Movement	6.7%
Market Average Movement	9.4%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: SXL is less volatile than 75% 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.

About the Company

Founded	Employees	CEO	Website
2005	n/a	Grant Blackley	https://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 Cap	AU$421.66m
Earnings (TTM)	AU$32.41m
Revenue (TTM)	AU$529.80m

12.8x

P/E Ratio

0.8x

P/S Ratio

Is SXL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SXL income statement (TTM)
Revenue	AU$529.80m
Cost of Revenue	AU$166.91m
Gross Profit	AU$362.90m
Other Expenses	AU$330.49m
Earnings	AU$32.41m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 22, 2022

Earnings per share (EPS)	0.12
Gross Margin	68.50%
Net Profit Margin	6.12%
Debt/Equity Ratio	19.7%

How did SXL perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

77%

Payout Ratio

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

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

20.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXL's forecast earnings growth (20.2% per year) is above the savings rate (1.8%).

Earnings vs Market: SXL's earnings (20.2% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SXL's revenue (2.7% per year) is forecast to grow slower than the Australian market (4.8% per year).

High Growth Revenue: SXL's revenue (2.7% 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 (6.6%).

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

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

-11.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SXL has a large one-off gain of A$40.4M impacting its December 31 2021 financial results.

Growing Profit Margin: SXL's current net profit margins (6.1%) 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 -11.3% 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 (-12.8%) over the past year, making it difficult to compare to the Media industry average (29.8%).

Return on Equity

High ROE: SXL's Return on Equity (5%) is considered low.

Financial Health

How is Southern Cross Media Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: SXL's short term assets (A$164.8M) exceed its short term liabilities (A$77.6M).

Long Term Liabilities: SXL's short term assets (A$164.8M) do not cover its long term liabilities (A$607.6M).

Debt to Equity History and Analysis

Debt Level: SXL's net debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: SXL's debt to equity ratio has reduced from 43.2% to 19.7% over the past 5 years.

Debt Coverage: SXL's debt is well covered by operating cash flow (40.5%).

Interest Coverage: SXL's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

5.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SXL's dividend (5.64%) is higher than the bottom 25% of dividend payers in the Australian market (2.57%).

High Dividend: SXL's dividend (5.64%) is low compared to the top 25% of dividend payers in the Australian market (6.13%).

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.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.2%), SXL's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (70.3%), SXL's dividend payments are covered by cash flows.

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?

6.5yrs

Average management tenure

CEO

Grant Blackley (55 yo)

6.92yrs

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 ($USD1.17M) is above average for companies of similar size in the Australian market ($USD559.51K).

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

Leadership Team

Experienced Management: SXL's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: SXL's board of directors are considered experienced (7 years average tenure).

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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30