Seven West Media (CHIA:SWM) - Share price, News & Analysis

SWM fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

SWM Stock Overview

Seven West Media Limited, together with its subsidiaries, operates as an integrated media company in Australia and internationally.

Rewards

Trading at 55.9% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 8.1% per year for the next 3 years

High level of non-cash earnings

Has a high level of debt

Shareholders have been diluted in the past year

Seven West Media Competitors

Nine Entertainment Holdings

ASX:NEC

AU$4.1b

HT&E

ASX:HT1

AU$497.7m

Southern Cross Media Group

ASX:SXL

AU$394.0m

PRT

ASX:PRT

AU$170.3m

Price History & Performance

Summary of all time highs, changes and price drops for Seven West Media
Historical stock prices
Current Share Price	AU$0.64
52 Week High	AU$0.81
52 Week Low	AU$0.38
Beta	1.77
1 Month Change	-7.58%
3 Month Change	4.92%
1 Year Change	49.71%
3 Year Change	24.88%
5 Year Change	-7.91%
Change since IPO	-64.93%

Shareholder Returns

	SWM	AU Media	AU Market
7D	1.2%	-0.9%	1.1%
1Y	49.7%	-7.3%	1.5%

Return vs Industry: SWM exceeded the Australian Media industry which returned -7.3% over the past year.

Return vs Market: SWM exceeded the Australian Market which returned 1.5% over the past year.

Price Volatility

Is SWM's price volatile compared to industry and market?
SWM volatility
SWM Average Weekly Movement	6.4%
Media Industry Average Movement	6.4%
Market Average Movement	9.5%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: SWM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SWM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1991	n/a	James Warburton	https://www.sevenwestmedia.com.au

Seven West Media Limited, together with its subsidiaries, operates as an integrated media company in Australia and internationally. The company operates through three segments: Television; The West; and Other Business and New Ventures. It produces and operates commercial television programming and stations; and distributes programming content.

Seven West Media Fundamentals Summary

How do Seven West Media's earnings and revenue compare to its market cap?
SWM fundamental statistics
Market Cap	AU$1.01b
Earnings (TTM)	AU$321.74m
Revenue (TTM)	AU$1.44b

3.1x

P/E Ratio

0.7x

P/S Ratio

Is SWM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWM income statement (TTM)
Revenue	AU$1.44b
Cost of Revenue	AU$987.95m
Gross Profit	AU$455.87m
Other Expenses	AU$134.14m
Earnings	AU$321.74m

Last Reported Earnings

Dec 25, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.20
Gross Margin	31.57%
Net Profit Margin	22.28%
Debt/Equity Ratio	166.3%

How did SWM perform over the long term?

See historical performance and comparison

Valuation

Is Seven West Media undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SWM (A$0.64) is trading below our estimate of fair value (A$1.45)

Significantly Below Fair Value: SWM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SWM is good value based on its PE Ratio (3.1x) compared to the Australian Media industry average (20.6x).

PE vs Market: SWM is good value based on its PE Ratio (3.1x) compared to the Australian market (16.2x).

Price to Earnings Growth Ratio

PEG Ratio: SWM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: SWM is overvalued based on its PB Ratio (4.6x) compared to the AU Media industry average (1.4x).

Future Growth

How is Seven West Media forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

-8.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWM's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: SWM's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: SWM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SWM's revenue (3.7% per year) is forecast to grow slower than the Australian market (4.7% per year).

High Growth Revenue: SWM's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SWM's Return on Equity is forecast to be high in 3 years time (27.5%)

Past Performance

How has Seven West Media performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

40.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SWM has a high level of non-cash earnings.

Growing Profit Margin: SWM became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SWM has become profitable over the past 5 years, growing earnings by 40.3% per year.

Accelerating Growth: SWM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SWM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (29.6%).

Return on Equity

High ROE: Whilst SWM's Return on Equity (147.29%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Seven West Media's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: SWM's short term assets (A$635.9M) exceed its short term liabilities (A$580.4M).

Long Term Liabilities: SWM's short term assets (A$635.9M) do not cover its long term liabilities (A$820.3M).

Debt to Equity History and Analysis

Debt Level: SWM's net debt to equity ratio (53.4%) is considered high.

Reducing Debt: SWM's debt to equity ratio has increased from 70% to 166.3% over the past 5 years.

Debt Coverage: SWM's debt is well covered by operating cash flow (53.8%).

Interest Coverage: SWM's interest payments on its debt are well covered by EBIT (6.2x coverage).

Balance Sheet

Dividend

What is Seven West Media current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

2.38%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SWM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SWM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SWM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SWM's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SWM is not paying a notable dividend for the Australian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SWM has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure

CEO

James Warburton (51 yo)

2.75yrs

Tenure

AU$4,571,574

Compensation

Mr. James R. Warburton serves as Managing Director, Chief Executive Officer and Director at Seven West Media Limited since August 16, 2019. He was the Chief Executive Officer and Managing Director of APN O...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD3.21M) is above average for companies of similar size in the Australian market ($USD1.04M).

Compensation vs Earnings: Insufficient data to compare James's compensation with company performance.

Leadership Team

Experienced Management: SWM's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: SWM's board of directors are considered experienced (6.9 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 been diluted in the past year, with total shares outstanding growing by 3.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/22 00:00
Earnings	2021/12/25
Annual Earnings	2021/06/26