TSX:DHX

Stock Analysis Report

Executive Summary

DHX Media Ltd. develops, produces, distributes, broadcasts, and licenses television and film programs for conventional and specialty terrestrial and cable/satellite television broadcasters worldwide.

Snowflake

Fundamentals

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

How has DHX Media's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.5%

DHX

-2.1%

CA Entertainment

-0.2%

CA Market


1 Year Return

-9.1%

DHX

-25.9%

CA Entertainment

1.5%

CA Market

Return vs Industry: DHX exceeded the Canadian Entertainment industry which returned -25.9% over the past year.

Return vs Market: DHX underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

DHXIndustryMarket
7 Day-9.5%-2.1%-0.2%
30 Day22.7%-6.7%-3.5%
90 Day-1.0%3.1%-1.8%
1 Year-9.1%-9.1%-21.7%-25.9%5.1%1.5%
3 Yearn/a-41.8%-49.8%13.3%3.2%
5 Yearn/a-29.3%-41.8%25.2%7.2%

Price Volatility Vs. Market

How volatile is DHX Media's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DHX (CA$2) is trading below our estimate of fair value (CA$3.37)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DHX is good value based on its PB Ratio (1.1x) compared to the CA Entertainment industry average (1.1x).


Next Steps

Future Growth

How is DHX Media forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

2.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DHX's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if DHX's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: DHX's revenue (2.9% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: DHX'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: Insufficient data to determine if DHX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DHX Media performed over the past 5 years?

-65.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DHX is unprofitable, and losses have increased over the past 5 years at a rate of -65.6% per year.

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

Earnings vs Industry: DHX is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (12%).


Return on Equity

High ROE: DHX has a negative Return on Equity (-15.64%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is DHX Media's financial position?


Financial Position Analysis

Short Term Liabilities: DHX's short term assets (CA$461.5M) exceeds its short term liabilities (CA$271.2M)

Long Term Liabilities: DHX's short term assets (461.5M) do not cover its long term liabilities (547.7M)


Debt to Equity History and Analysis

Debt Level: DHX's debt to equity ratio (123.6%) is considered high

Reducing Debt: DHX's debt to equity ratio has increased from 50.4% to 123.6% over the past 5 years.

Debt Coverage: DHX's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: DHX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: DHX has a low level of unsold assets or inventory.

Debt Coverage by Assets: DHX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is DHX Media's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: DHX is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DHX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Eric Ellenbogen (61yo)

0.2yrs

Tenure

0

Mr. Eric Ellenbogen has been serves as Chief Executive Officer and Vice Chairman of the Board at DHX Media Ltd since August 29, 2019 and served as its Non-Executive Independent Director since Decemeber 1 ...


Management Age and Tenure

0.8yrs

Average Tenure

58yo

Average Age

Experienced Management: DHX's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

Experienced Board: DHX's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: DHX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$126,01729 Jul 19
Michael Donovan
EntityIndividual
Shares63,256
Max PriceCA$2.03
BuyCA$6,754,88025 Jun 19
Fine Capital Partners, L.P.
EntityCompany
Shares3,562,198
Max PriceCA$1.92
BuyCA$67,20112 Apr 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares35,000
Max PriceCA$1.95
BuyCA$145,82005 Apr 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares71,290
Max PriceCA$2.20
BuyCA$24,42829 Mar 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceCA$1.64
BuyCA$102,47022 Feb 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares47,000
Max PriceCA$2.21
BuyCA$1,553,21008 Feb 19
EastBay Asset Management LLC
EntityCompany
Shares663,500
Max PriceCA$2.43
BuyCA$63,55617 Jan 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares26,500
Max PriceCA$2.44
BuyCA$90,98015 Jan 19
Eric Ellenbogen
EntityIndividual
Role
Chief Executive Officer
CEO & Vice Chairman of the Board
Shares50,000
Max PriceCA$1.82
BuyCA$16,24004 Jan 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,250
Max PriceCA$2.24
BuyCA$21,83501 Jan 19
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceCA$2.18
BuyCA$42,32725 Dec 18
Jonathan Whitcher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares17,500
Max PriceCA$2.51
BuyCA$1,765,78614 Dec 18
Fine Capital Partners, L.P.
EntityCompany
Shares562,070
Max PriceCA$3.32
BuyCA$1,634,86807 Dec 18
Fine Capital Partners, L.P.
EntityCompany
Shares475,000
Max PriceCA$3.53
BuyCA$5,750,39803 Dec 18
Fine Capital Partners, L.P.
EntityCompany
Shares1,647,800
Max PriceCA$3.61
BuyCA$6,635,17029 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares2,026,300
Max PriceCA$3.47
BuyCA$3,891,51327 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares1,192,900
Max PriceCA$3.32
BuyCA$4,115,56221 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares1,352,600
Max PriceCA$3.11
BuyCA$3,038,92020 Nov 18
Fine Capital Partners, L.P.
EntityCompany
Shares1,026,600
Max PriceCA$2.99

Ownership Breakdown


Management Team

  • Nancy Chan-Palmateer

    Director of Investor Relations

    • Tenure: 0yrs
  • Steven DeNure (60yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CA$2.59m
  • Doug Lamb (56yo)

    • Tenure: 0.08yrs
    • Compensation: CA$454.40k
  • Aaron Ames (49yo)

    Chief Financial Officer

    • Tenure: 0.08yrs
    • Compensation: CA$920.65k
  • Anne Loi

    Chief Commercial Officer

    • Tenure: 9.7yrs
    • Compensation: CA$870.65k
  • Josh Scherba

    President

    • Tenure: 1.5yrs
    • Compensation: CA$882.76k
  • Shaun Smith

    Director of Corporate & Trade Communications

    • Tenure: 0yrs
  • Roz Nowicki

    Executive Vice President of Peanuts Worldwide

    • Tenure: 1yrs
    • Compensation: CA$1.32m
  • Eric Ellenbogen (61yo)

    CEO & Vice Chairman of the Board

    • Tenure: 0.2yrs
  • Danielle Neath

    Executive VP Finance & Chief Accounting Officer

    • Tenure: 0.8yrs

Board Members

  • Alan Hibben (66yo)

    Non-Executive Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$55.50k
  • Don Wright (71yo)

    Non-Executive Chairman

    • Tenure: 0.2yrs
    • Compensation: CA$358.61k
  • David Colville (74yo)

    Non-Executive Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$155.36k
  • D. Machum (59yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CA$288.61k
  • Deborah Drisdell (56yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CA$157.11k
  • Jonathan Whitcher (39yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CA$30.75k
  • Amanda Cupples (37yo)

    Non-Executive Independent Director

    • Tenure: 0.8yrs
  • Eric Ellenbogen (61yo)

    CEO & Vice Chairman of the Board

    • Tenure: 0.2yrs
  • Steven Landry (45yo)

    Non-Executive Independent Director

    • Tenure: 0.8yrs

Company Information

DHX Media Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DHX Media Ltd.
  • Ticker: DHX
  • Exchange: TSX
  • Founded: 2004
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: CA$270.010m
  • Shares outstanding: 135.00m
  • Website: https://www.dhxmedia.com

Number of Employees


Location

  • DHX Media Ltd.
  • 5657 Spring Garden Road
  • Suite 505
  • Halifax
  • Nova Scotia
  • B3J 3R4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
D6XVDB (Deutsche Boerse AG)Variable Voting SharesDEEUROct 2014
DHXTSX (The Toronto Stock Exchange)YesCommon Variable Voting SharesCACADMay 2018
DHXMNasdaqGS (Nasdaq Global Select)YesCommon Variable Voting SharesUSUSDMay 2018

Biography

DHX Media Ltd. develops, produces, distributes, broadcasts, and licenses television and film programs for conventional and specialty terrestrial and cable/satellite television broadcasters worldwide. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:56
End of Day Share Price2019/10/21 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.