DB:HLG

Stock Analysis Report

Highlight Communications

Executive Summary

Highlight Communications AG operates as a strategic and financial holding company worldwide.


Snowflake Analysis

Very undervalued established dividend payer.

Share Price & News

How has Highlight Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

HLG

-6.7%

DE Entertainment

-4.7%

DE Market


1 Year Return

-4.0%

HLG

25.9%

DE Entertainment

8.3%

DE Market

Return vs Industry: HLG underperformed the German Entertainment industry which returned 25.9% over the past year.

Return vs Market: HLG underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

HLGIndustryMarket
7 Day0.9%-6.7%-4.7%
30 Day-1.8%-10.2%-4.0%
90 Day6.4%-2.1%-1.4%
1 Year-0.004%-4.0%27.6%25.9%11.7%8.3%
3 Year-7.9%-21.3%32.9%26.5%11.4%1.6%
5 Year39.9%14.7%96.5%80.9%15.1%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Highlight Communications undervalued compared to its fair value and its price relative to the market?

18.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLG (€4.3) is trading below our estimate of fair value (€5.88)

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


Price To Earnings Ratio

PE vs Industry: HLG is good value based on its PE Ratio (18x) compared to the Entertainment industry average (40.3x).

PE vs Market: HLG is good value based on its PE Ratio (18x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: HLG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HLG is good value based on its PB Ratio (1.3x) compared to the DE Entertainment industry average (1.3x).


Next Steps

Future Growth

How is Highlight Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.9%

Forecasted Media industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLG's forecast earnings growth (21.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: HLG's earnings (21.5% per year) are forecast to grow faster than the German market (13% per year).

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

Revenue vs Market: HLG's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: HLG's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLG's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Highlight Communications performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: HLG's current net profit margins (2.1%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: HLG's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: HLG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HLG had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Entertainment industry average (14.9%).


Return on Equity

High ROE: HLG's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Highlight Communications's financial position?


Financial Position Analysis

Short Term Liabilities: HLG's short term assets (CHF210.0M) do not cover its short term liabilities (CHF363.3M).

Long Term Liabilities: HLG's short term assets (CHF210.0M) exceed its long term liabilities (CHF69.3M).


Debt to Equity History and Analysis

Debt Level: HLG's debt to equity ratio (81.7%) is considered high.

Reducing Debt: HLG's debt to equity ratio has reduced from 106.1% to 81.7% over the past 5 years.

Debt Coverage: HLG's debt is well covered by operating cash flow (59.9%).

Interest Coverage: HLG's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: HLG's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Highlight Communications's current dividend yield, its reliability and sustainability?

4.31%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HLG's dividend (4.32%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: HLG's dividend (4.32%) is in the top 25% of dividend payers in the German market (3.73%)


Stability and Growth of Payments

Stable Dividend: HLG's dividend payments have been volatile in the past 10 years.

Growing Dividend: HLG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78%), HLG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLG's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

Bernhard Burgener (62yo)

11.4yrs

Tenure

CHF1,688,600

Compensation

Mr. Bernhard Burgener serves as the President of Highlight Communications Ag. Mr. Burgener has been the Chief Executive Officer of Highlight Event and Entertainment AG June 13, 2016. He serves as Managing  ...


CEO Compensation Analysis

Compensation vs Market: Bernhard's total compensation ($USD1.73M) is above average for companies of similar size in the German market ($USD626.29K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bernhard Burgener
Chairman11.4yrsCHF1.69mno data
Peter Büren
CFO, Head of IT4.7yrsCHF815.60kno data
Paul Graf
MD, Head of Mergers & Acquisitions and Secretary0yrsno data0.088% CHF218.0k
Franz Woodtli
MD of Rainbow Home Entertainment Member of Cinema & Home Entertainment-Constantin Film Segment16.1yrsno datano data
Hanns Beese
Chief Financial Officer of Film Division16.1yrsno datano data
Simon Crouch
COO - Sports & Event Mktg Segment and MD of Sports & Event Mktg Segment8.1yrsno datano data
Jan Werner
CFO of Sports & Event Marketing Segment9.1yrsno datano data
Tom Houseman
Managing Director of Legal & Business Affairs - Sports & Event Marketing Segment7.1yrsno datano data
Kerstin Lutz
Managing Director of Sponsorship- Sports & Event Marketing Segment5.1yrsno datano data
Matthias Kirschenhofer
Chief Financial Officer of Sports Segment - Constantin Medien0yrsno datano data

10.3yrs

Average Tenure

63yo

Average Age

Experienced Management: HLG's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernhard Burgener
Chairman11.4yrsCHF1.69mno data
Peter Büren
CFO, Head of IT4.7yrsCHF815.60kno data
Martin Hellstern
Non-Executive Director16.1yrsCHF51.70k0.35% CHF872.0k
René Camenzind
Non-Executive Director16.1yrsCHF51.70k1.11% CHF2.7m
Oliver Berben
Board Member of TV3.1yrsno datano data

16.1yrs

Average Tenure

66yo

Average Age

Experienced Board: HLG's board of directors are seasoned and experienced ( 16.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Highlight Communications AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highlight Communications AG
  • Ticker: HLG
  • Exchange: DB
  • Founded: 1983
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: €247.397m
  • Shares outstanding: 56.74m
  • Website: https://www.highlight-communications.ch

Number of Employees


Location

  • Highlight Communications AG
  • Netzibodenstrasse 23b
  • Pratteln
  • Basel-Landschaft
  • 4133
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLGDB (Deutsche Boerse AG)YesBearer SharesDEEURAug 2003
HLGXTRA (XETRA Trading Platform)YesBearer SharesDEEURAug 2003
0GVELSE (London Stock Exchange)YesBearer SharesGBEURAug 2003
HLGDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURAug 2003

Biography

Highlight Communications AG operates as a strategic and financial holding company worldwide. The company operates through Film, and Sports-and Event-Marketing segments. The Film segment is involved in the production and distribution of movies, television, and video productions; and the production and exploitation of fictional and non-fictional products for TV broadcasters. It also engages in distribution of theatrical, DVD/Blu-ray, and TV movies; exploitation of its video rights for in-house and licensed films; and provision of entertainment and media services. The Sports-and Event-Marketing segment markets various international sports events, including the UEFA Champions League, the UEFA Europa League, and the UEFA Super Cup. The company was founded in 1983 and is headquartered in Pratteln, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:04
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.