ASX:SXL

Stock Analysis Report

Southern Cross Media Group

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.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

-0.4%

ASX:SXL

-0.5%

AU Media

0.7%

AU Market


1 Year Return

-0.4%

ASX:SXL

-18.7%

AU Media

6.2%

AU Market

SXL outperformed the Media industry which returned -18.7% over the past year.

SXL underperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

SXLIndustryMarket
7 Day-0.4%-0.5%0.7%
30 Day11.3%7.4%3.8%
90 Day-1.5%-6.8%0.4%
1 Year6.1%-0.4%-14.3%-18.7%12.4%6.2%
3 Year-3.0%-19.7%11.3%-10.7%40.9%21.9%
5 Year74.8%29.3%-4.4%-33.0%49.8%16.3%

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 based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Southern Cross Media Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Southern Cross Media Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Southern Cross Media Group is loss making, we can't compare its value to the AU Media industry average.

Southern Cross Media Group is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Southern Cross Media Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Southern Cross Media Group is overvalued based on assets compared to the AU Media industry average.


Next Steps

Future Growth

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

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Southern Cross Media Group's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Southern Cross Media Group's earnings are expected to grow significantly at over 20% yearly.

Southern Cross Media Group's revenue growth is positive but not above the Australia market average.

Southern Cross Media Group's earnings growth is expected to exceed the Australia market average.

Southern Cross Media Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Southern Cross Media Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

39.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Southern Cross Media Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Southern Cross Media Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Southern Cross Media Group's 1-year growth to the AU Media industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Southern Cross Media Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Southern Cross Media Group has efficiently used its assets last year compared to the AU Media industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Southern Cross Media Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Southern Cross Media Group's financial position?


Financial Position Analysis

Southern Cross Media Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Southern Cross Media Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Southern Cross Media Group's level of debt (76.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (54% vs 76.2% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x 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.

Whilst loss making Southern Cross Media Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Southern Cross Media Group has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.6% per year.


Next Steps

Dividend

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

6.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Southern Cross Media Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.47%).

Southern Cross Media Group's dividend is above the markets top 25% of dividend payers in Australia (5.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Southern Cross Media Group's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Grant Blackley (53yo)

4.3yrs

Tenure

AU$2,196,406

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

Grant's remuneration is higher than average for companies of similar size in Australia.

Grant's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.1yrs

Average Tenure

The tenure for the Southern Cross Media Group management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

54.5yo

Average Age

The tenure for the Southern Cross Media Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Southern Cross Media Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$466,89109 Sep 19
Grant Blackley
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares379,412
Max PriceAU$1.23
BuyAU$20,846,70130 Jul 19
Vinva Investment Management
EntityCompany
Shares16,686,019
Max PriceAU$1.25
SellAU$627,24130 Jul 19
Vinva Investment Management
EntityCompany
Shares514,330
Max PriceAU$1.22
SellAU$9,870,34016 Jul 19
Investors Mutual Limited
EntityCompany
Shares8,473,196
Max PriceAU$1.16
BuyAU$303,07816 Jul 19
Investors Mutual Limited
EntityCompany
Shares236,700
Max PriceAU$1.28
SellAU$13,119,90304 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares10,351,043
Max PriceAU$1.28
BuyAU$3,149,94204 Jul 19
Orbis Investment Management Limited
EntityCompany
Shares2,530,075
Max PriceAU$1.24
SellAU$8,919,11623 May 19
Orbis Investment Management Limited
EntityCompany
Shares7,261,705
Max PriceAU$1.25
SellAU$106,35417 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares2,612,004
Max PriceAU$1.21
BuyAU$017 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares797,274
Max PriceAU$1.21
BuyAU$777,05503 Apr 19
Investors Mutual Limited
EntityCompany
Shares783,500
Max PriceAU$0.99
SellAU$475,57610 Jan 19
The Vanguard Group, Inc.
EntityCompany
Shares490,285
Max PriceAU$0.97
BuyAU$15,87210 Jan 19
The Vanguard Group, Inc.
EntityCompany
Shares16,200
Max PriceAU$0.99
BuyAU$7,217,57109 Jan 19
Ubique Asset Management Pty Ltd
EntityCompany
Shares6,776,538
Max PriceAU$1.07
SellAU$304,70608 Jan 19
Orbis Investment Management Limited
EntityCompany
Shares206,136
Max PriceAU$2.23
BuyAU$7,493,21508 Jan 19
Orbis Investment Management Limited
EntityCompany
Shares8,195,455
Max PriceAU$1.05
SellAU$760,62902 Jan 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares585,100
Max PriceAU$1.30
BuyAU$1,946,33202 Jan 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares1,697,675
Max PriceAU$1.33
BuyAU$11,763,21724 Dec 18
Investors Mutual Limited
EntityCompany
Shares11,551,814
Max PriceAU$1.02
SellAU$273,80524 Dec 18
Investors Mutual Limited
EntityCompany
Shares223,000
Max PriceAU$1.23
SellAU$1,184,18523 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,149,694
Max PriceAU$1.03
BuyAU$1,230,25323 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,072,984
Max PriceAU$1.15
BuyAU$20,02920 Dec 18
Grant Blackley
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares20,304
Max PriceAU$0.99
BuyAU$7,49713 Nov 18
Helen Elizabeth Nash
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares6,676
Max PriceAU$1.12
BuyAU$2,793,02907 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares2,024,450
Max PriceAU$1.40
SellAU$415,58307 Nov 18
The Vanguard Group, Inc.
EntityCompany
Shares305,930
Max PriceAU$1.39
SellAU$21,521,63219 Oct 18
Challenger Limited
EntityCompany
Shares18,159,488
Max PriceAU$1.19

Ownership Breakdown


Management Team

  • Grant Blackley (53yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$2.20m
  • John Kelly

    Chief Operating Officer

    • Tenure: 3.6yrs
    • Compensation: AU$844.94k
  • Tony Hudson

    Head of Legal & Corporate Affairs and Company Secretary

    • Tenure: 4yrs
  • Lynniece Robinson

    Secretary of MMIL

    • Tenure: 0yrs
  • Nick McKechnie

    Chief Financial Officer

    • Tenure: 5yrs
    • Compensation: AU$890.60k
  • Brian Gallagher

    Chief Sales Officer

    • Tenure: 4.2yrs
    • Compensation: AU$849.94k
  • Stephen Haddad

    Chief Technology Officer

    • Tenure: 1.2yrs
  • Rochelle Burbury

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Grant Blackley (53yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$2.20m
  • PH Bush (68yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: AU$273.00k
  • Rob Murray (54yo)

    Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$161.94k
  • Leon Pasternak (64yo)

    Non-Executive Deputy Chairman & Lead Independent Director

    • Tenure: 14yrs
    • Compensation: AU$176.00k
  • Melanie Victoria Willis (54yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$170.50k
  • Michael Hamer (67yo)

    Independent Chairman of MMIL

    • Tenure: 13.6yrs
  • Bob Richards

    Independent Deputy Chairman of MMIL

    • Tenure: 13.6yrs
  • Glen Boreham (55yo)

    Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$159.33k
  • Helen Elizabeth Nash (47yo)

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: AU$177.67k

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$984.338m
  • Shares outstanding: 769.01m
  • Website: https://www.southerncrossaustereo.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6MMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2006
SXLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2006
SXLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 10:35
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.