DB:VCXA

Stock Analysis Report

Executive Summary

Viacom Inc. operates media brands that create entertainment content worldwide.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

VCXA

-10.2%

DE Entertainment

-6.8%

DE Market


1 Year Return

-16.6%

VCXA

22.9%

DE Entertainment

6.5%

DE Market

Return vs Industry: VCXA underperformed the German Entertainment industry which returned 44.2% over the past year.

Return vs Market: VCXA underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

VCXAIndustryMarket
7 Day1.7%-10.2%-6.8%
30 Day3.4%-10.4%-3.7%
90 Day-4.2%-4.8%-3.6%
1 Year-14.4%-16.6%24.6%22.9%9.8%6.5%
3 Year-35.4%-39.7%28.1%21.9%6.8%-2.6%
5 Year-53.8%-59.0%93.6%78.2%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCXA (€24) is trading below our estimate of fair value (€48.7)

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


Price To Earnings Ratio

PE vs Industry: VCXA is good value based on its PE Ratio (6.4x) compared to the Entertainment industry average (44.2x).

PE vs Market: VCXA is good value based on its PE Ratio (6.4x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: VCXA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VCXA is good value based on its PB Ratio (1.2x) compared to the DE Entertainment industry average (1.4x).


Next Steps

Future Growth

How is Viacom forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCXA's forecast earnings growth (3.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: VCXA's earnings (3.8% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: VCXA's earnings are forecast to grow, but not significantly.

Revenue vs Market: VCXA's revenue (1.9% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: VCXA's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VCXA's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Viacom performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCXA has high quality earnings.

Growing Profit Margin: VCXA's current net profit margins (11.9%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: VCXA's earnings have declined by -5.7% per year over the past 5 years.

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

Earnings vs Industry: VCXA had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Entertainment industry average (15.3%).


Return on Equity

High ROE: VCXA's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Viacom's financial position?


Financial Position Analysis

Short Term Liabilities: VCXA's short term assets ($5.3B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: VCXA's short term assets ($5.3B) do not cover its long term liabilities ($11.1B).


Debt to Equity History and Analysis

Debt Level: VCXA's debt to equity ratio (99.7%) is considered high.

Reducing Debt: VCXA's debt to equity ratio has reduced from 320.6% to 99.7% over the past 5 years.

Debt Coverage: VCXA's debt is not well covered by operating cash flow (18%).

Interest Coverage: VCXA's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: VCXA's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCXA's dividend (3.3%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: VCXA's dividend (3.3%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: VCXA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VCXA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), VCXA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VCXA's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Bob Bakish (55yo)

3.1yrs

Tenure

US$24,350,958

Compensation

Mr. Robert Marc Bakish, also known as Bob, has been the Chief Executive Officer and President of Viacom, Inc. since December 12, 2016. Mr. Bakish has been President and Chief Executive Officer of the Viaco ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD24.35M) is above average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bakish
President3.1yrsUS$24.35m0.045% $3.9m
Wade Davis
Executive VP & CFO7.1yrsUS$7.92m0.032% $2.8m
Christa D'Alimonte
Executive VP2.7yrsUS$3.61m0.0066% $573.2k
Julia Phelps
Executive Vice President of Communications2.7yrsUS$1.81m0.0022% $186.7k
Doretha Lea
Executive Vice President of Global Government Affairs14.1yrsUS$2.88m0.012% $1.1m
Sumner Redstone
Founder & Chairman Emeritus3.8yrsUS$2.01mno data
Katherine Gill-Charest
Senior VP9.2yrsno data0.0039% $336.3k
David Kline
CTO & Executive VP1.6yrsno datano data
James Bombassei
Senior Vice President13.9yrsno datano data
Henry T. Moniz
Chief Compliance Officer0yrsno datano data

5.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: VCXA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Bakish
President3.1yrsUS$24.35m0.045% $3.9m
Sumner Redstone
Founder & Chairman Emeritus3.8yrsUS$2.01mno data
Irwin Robinson
Chairman of Famous Music and Chief Executive Officer of Famous Music 0yrsno datano data
Thomas May
Independent Non-Executive Chairman3.3yrsUS$647.00kno data
Ronald Nelson
Independent Director3.3yrsUS$449.00k0.0063% $543.8k
Judith McHale
Independent Director3.3yrsUS$458.00k0.0037% $319.9k
Shari Redstone
Non-Executive Vice Chair13.9yrsUS$375.00k0.00037% $32.0k
Charles Phillips
Independent Director13.9yrsUS$294.70k0.0010% $88.2k
Nicole Seligman
Independent Director3.3yrsUS$461.00k0.00012% $10.4k
Cristiana Falcone Sorrell
Independent Director6.8yrsUS$291.06kno data

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: VCXA's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Viacom Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Viacom Inc.
  • Ticker: VCXA
  • Exchange: DB
  • Founded: 2005
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$9.587b
  • Listing Market Cap: US$8.645b
  • Shares outstanding: 403.41m
  • Website: https://www.viacom.com

Number of Employees


Location

  • Viacom Inc.
  • 1515 Broadway
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIANasdaqGS (Nasdaq Global Select)Class A Common StockUSUSDDec 2005
VCXADB (Deutsche Boerse AG)Class A Common StockDEEURDec 2005
0LPFLSE (London Stock Exchange)Class A Common StockGBUSDDec 2005
VIABNasdaqGS (Nasdaq Global Select)YesClass B Common StockUSUSDDec 2005
VCXDB (Deutsche Boerse AG)YesClass B Common StockDEEURDec 2005
VIABWBAG (Wiener Boerse AG)YesClass B Common StockATEURDec 2005
0LPGLSE (London Stock Exchange)YesClass B Common StockGBUSDDec 2005
VCXETLX (Eurotlx)YesClass B Common StockITEURDec 2005
VIABBASE (Buenos Aires Stock Exchange)NEW CEDEAR REP 1 B NON-VTG USD0.01ARARSApr 2009
VIAM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM CL B NON-VTG USD0.001BRBRLApr 2019

Biography

Viacom Inc. operates media brands that create entertainment content worldwide. It operates in two segments, Media Networks and Filmed Entertainment. The Media Networks segment offers entertainment content, services, and related branded products to advertisers, content distributors, and retailers through approximately 320 locally programmed and operated television channels, including Nickelodeon, MTV, BET, Comedy Central, Paramount Network, Nick Jr., VH1, TV Land, CMT, Logo, Channel 5, Milkshake!, Telefe, COLORS, Paramount Channel, TeenNick, Nicktoons, Nick Music, MTV2, MTV Classic, MTV Live, BET Her, BET Gospel, and BET Hip Hop, as well as through online, mobile, and apps. The Filmed Entertainment segment develops, produces, finances, acquires, and distributes films, television programming, and other entertainment content under the Paramount Pictures, Paramount Players, Paramount Animation, Paramount Television, Nickelodeon Movies, MTV Films, and BET Films brands. This segment exhibits films theatrically through home entertainment, licensing to television and digital platforms, and ancillary activities. The company releases its content through DVDs, Blu-ray discs, syndication and transactional video-on-demand, subscription video-on-demand, over-the-top distributors, pay television, cable television, free television, and free video-on-demand, as well as airlines and hotels. Viacom Inc. was incorporated in 2005 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:08
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.