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%

SXL

-0.1%

AU Media

1.0%

AU Market


1 Year Return

-0.9%

SXL

-13.8%

AU Media

11.7%

AU Market

Return vs Industry: SXL exceeded the Australian Media industry which returned -13.8% over the past year.

Return vs Market: SXL underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

SXLIndustryMarket
7 Day0%-0.1%1.0%
30 Day-11.2%-5.3%-0.2%
90 Day-10.1%-10.3%0.3%
1 Year5.6%-0.9%-9.6%-13.8%18.1%11.7%
3 Year-9.1%-24.8%9.5%-13.0%37.4%19.0%
5 Year80.6%33.5%-2.4%-32.5%51.7%17.6%

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?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SXL (A$1.16) is trading below our estimate of fair value (A$1.94)

Significantly Undervalued: SXL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SXL is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: SXL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SXL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SXL is overvalued based on its PB Ratio (2x) compared to the AU Media industry average (1.3x).


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?

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SXL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: SXL is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: SXL's loss is forecast to worsen by 0% next year.

Revenue vs Market: SXL's revenue (0.4% per year) is forecast to grow slower than the Australian market (3.5% per year).

High Growth Revenue: SXL's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SXL's Return on Equity is forecast to be low in 3 years time (16.8%).


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

Earnings Trend: SXL is unprofitable, but has reduced losses over the past 5 years at a rate of 39.7% per year.

Accelerating Growth: Unable to compare SXL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SXL is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-13.9%).


Return on Equity

High ROE: SXL has a negative Return on Equity (-21.04%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SXL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SXL is currently unprofitable, so its Return on Capital Employed is negative.


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$184.9M) exceeds its short term liabilities (A$89.9M)

Long Term Liabilities: SXL's short term assets (184.9M) do not cover its long term liabilities (693.4M)


Debt to Equity History and Analysis

Debt Level: SXL's debt to equity ratio (76.2%) is considered high

Reducing Debt: SXL's debt to equity ratio has increased from 54% to 76.2% 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 0.6x 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.

Stable Cash Runway: Whilst unprofitable SXL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SXL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -34.6% per year.


Next Steps

Dividend

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

6.71%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%2.5%markettop25%5.6%industryaverage5.1%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SXL's dividend (6.71%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: SXL's dividend (6.71%) is in the top 25% of dividend payers in the Australian market (5.58%)

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: SXL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SXL's dividends in 3 years are forecast to be covered by earnings (76.1% payout ratio).


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?

4.2yrs

Average management tenure


CEO

Grant Blackley (53yo)

4.3yrs

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 ($USD1.26M) is about average for companies of similar size in the Australian market ($USD991.55K).

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


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: SXL's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: SXL's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: SXL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$3,16006 Oct 19
The Vanguard Group, Inc.
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Max PriceAU$1.18
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Vinva Investment Management
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Max PriceAU$1.28
BuyAU$632,16223 Sep 19
Vinva Investment Management
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Shares529,065
Max PriceAU$1.19
BuyAU$466,89109 Sep 19
Grant Blackley
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares379,412
Max PriceAU$1.23
SellAU$627,24130 Jul 19
Vinva Investment Management
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Shares514,330
Max PriceAU$1.22
BuyAU$20,846,70130 Jul 19
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Max PriceAU$1.25
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Max PriceAU$1.24
SellAU$8,919,11623 May 19
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Shares7,261,705
Max PriceAU$1.25
BuyAU$017 Apr 19
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Shares797,274
Max PriceAU$1.21
SellAU$106,35417 Apr 19
The Vanguard Group, Inc.
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Shares2,612,004
Max PriceAU$1.21
BuyAU$777,05503 Apr 19
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Shares783,500
Max PriceAU$0.99
SellAU$475,57610 Jan 19
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Max PriceAU$1.05
SellAU$304,70608 Jan 19
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Shares206,136
Max PriceAU$2.23
BuyAU$1,946,33202 Jan 19
Dimensional Fund Advisors L.P.
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Shares1,697,675
Max PriceAU$1.33
BuyAU$11,763,21724 Dec 18
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Max PriceAU$1.02
SellAU$1,184,18523 Dec 18
The Vanguard Group, Inc.
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BuyAU$1,230,25323 Dec 18
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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
SellAU$415,58307 Nov 18
The Vanguard Group, Inc.
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Shares305,930
Max PriceAU$1.39
BuyAU$2,793,02907 Nov 18
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SellAU$21,521,63219 Oct 18
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Max PriceAU$1.19

Ownership Breakdown


Management Team

  • Grant Blackley (53yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$1.87m
  • John Kelly

    Chief Operating Officer

    • Tenure: 3.7yrs
    • Compensation: AU$831.75k
  • Tony Hudson

    Head of Legal & Corporate Affairs and Company Secretary

    • Tenure: 4.1yrs
  • Lynniece Robinson

    Secretary of MMIL

    • Tenure: 0yrs
  • Nick McKechnie

    Chief Financial Officer

    • Tenure: 5.1yrs
    • Compensation: AU$795.94k
  • Brian Gallagher

    Chief Sales Officer

    • Tenure: 4.3yrs
    • Compensation: AU$764.59k
  • Stephen Haddad

    Chief Technology Officer

    • Tenure: 1.3yrs
    • Compensation: AU$465.97k
  • Rochelle Burbury

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Grant Blackley (53yo)

    CEO, MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$1.87m
  • PH Bush (68yo)

    Chairman

    • Tenure: 4.7yrs
    • Compensation: AU$273.00k
  • Rob Murray (54yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$158.50k
  • Leon Pasternak (64yo)

    Non-Executive Deputy Chairman & Lead Independent Director

    • Tenure: 14.1yrs
    • Compensation: AU$176.00k
  • Melanie Victoria Willis (54yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$170.50k
  • Michael Hamer (67yo)

    Independent Chairman of MMIL

    • Tenure: 13.7yrs
  • Bob Richards

    Independent Deputy Chairman of MMIL

    • Tenure: 13.7yrs
  • Glen Boreham (55yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$163.00k
  • Helen Elizabeth Nash (47yo)

    Non-Executive Independent Director

    • Tenure: 4.5yrs
    • Compensation: AU$179.50k

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$888.211m
  • 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
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 Analysis2019/10/15 10:34
End of Day Share Price2019/10/14 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.