AIM:XLM

Stock Analysis Report

Executive Summary

XLMedia PLC, an online performance marketing company, attracts paying users from various online and mobile channels and directs them to online businesses in Scandinavia, other European countries, North America, Asia, Oceania, and internationally.

Rewards

PE ratio (7.6x) is below the UK market (18.5x)

Risk Analysis

Earnings are forecast to decline by an average of -40.6% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 3 more risks


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: XLM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-21.3%

XLM

5.0%

GB Interactive Media and Services

-0.5%

GB Market


1 Year Return

-49.5%

XLM

23.1%

GB Interactive Media and Services

12.4%

GB Market

Return vs Industry: XLM underperformed the UK Interactive Media and Services industry which returned 21% over the past year.

Return vs Market: XLM underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

XLMIndustryMarket
7 Day-21.3%5.0%-0.5%
30 Day-17.3%5.0%0.2%
90 Day-30.7%12.6%6.0%
1 Year-44.6%-49.5%24.3%23.1%18.3%12.4%
3 Year-59.6%-66.4%54.4%49.7%22.6%6.9%
5 Year-11.7%-33.3%102.4%96.5%40.9%8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XLM (£0.47) is trading above our estimate of fair value (£0.28)

Significantly Below Fair Value: XLM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: XLM is good value based on its PE Ratio (7.6x) compared to the Interactive Media and Services industry average (29.8x).

PE vs Market: XLM is good value based on its PE Ratio (7.6x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: XLM is good value based on its PB Ratio (0.8x) compared to the GB Interactive Media and Services industry average (2.6x).


Next Steps

Future Growth

How is XLMedia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XLM's earnings are forecast to decline over the next 3 years (-40.6% per year).

Earnings vs Market: XLM's earnings are forecast to decline over the next 3 years (-40.6% per year).

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

Revenue vs Market: XLM's revenue is expected to decline over the next 3 years (-7.9% per year).

High Growth Revenue: XLM's revenue is forecast to decline over the next 3 years (-7.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if XLM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has XLMedia performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XLM has a large one-off loss of $9.9M impacting its June 30 2019 financial results.

Growing Profit Margin: XLM's current net profit margins (15.1%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: XLM's earnings have grown by 14.7% per year over the past 5 years.

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

Earnings vs Industry: XLM had negative earnings growth (-43.6%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (11.9%).


Return on Equity

High ROE: XLM's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is XLMedia's financial position?


Financial Position Analysis

Short Term Liabilities: XLM's short term assets ($61.7M) exceed its short term liabilities ($29.5M).

Long Term Liabilities: XLM's short term assets ($61.7M) exceed its long term liabilities ($9.1M).


Debt to Equity History and Analysis

Debt Level: XLM's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if XLM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: XLM's debt is well covered by operating cash flow (1000.6%).

Interest Coverage: XLM's interest payments on its debt are well covered by EBIT (48.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: XLM's debt is covered by short term assets (assets are 14.6x debt).


Next Steps

Dividend

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

14.45%

Current Dividend Yield


Dividend Yield vs Market

company14.4%marketbottom25%1.8%markettop25%5.0%industryaverage1.1%forecastin3Years7.3%

Current dividend yield vs market & industry

Notable Dividend: XLM's dividend (11.49%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: XLM's dividend (11.49%) is in the top 25% of dividend payers in the UK market (4.95%)


Stability and Growth of Payments

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

Growing Dividend: XLM's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.7%), XLM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XLM's dividends in 3 years are forecast to be well covered by earnings (50% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Stuart Antony Simms (49yo)

0.3yrs

Tenure

0

Mr. Stuart Antony Bridge Simms has been Group Chief Executive Officer of XLMedia PLC. since joining October 2, 2019 and has been its Director since October 04, 2019. Mr. Simms was Chief Operating Officer o ...


Management Age and Tenure

0.6yrs

Average Tenure

45yo

Average Age

Experienced Management: XLM's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

49yo

Average Age

Experienced Board: XLM's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£44,50002 Jan 20
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares100,000
Max PriceUK£0.45
BuyUK£26,25031 Oct 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares50,000
Max PriceUK£0.53
BuyUK£131,25030 Oct 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares250,000
Max PriceUK£0.53
BuyUK£155,10107 Oct 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares265,811
Max PriceUK£0.58
BuyUK£14,50007 Oct 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares25,000
Max PriceUK£0.58
BuyUK£199,99927 Sep 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares330,661
Max PriceUK£0.60
BuyUK£198,88024 Sep 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares324,000
Max PriceUK£0.62
SellUK£105,00009 Aug 19
Inbal Lavi
EntityIndividual
Shares140,000
Max PriceUK£0.75
SellUK£7,60008 Aug 19
Inbal Lavi
EntityIndividual
Shares10,000
Max PriceUK£0.76
SellUK£58,65630 Jul 19
Inbal Lavi
EntityIndividual
Shares74,122
Max PriceUK£0.80
SellUK£217,46129 Jul 19
Inbal Lavi
EntityIndividual
Shares271,250
Max PriceUK£0.80
BuyUK£199,60707 May 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares392,156
Max PriceUK£0.51
BuyUK£148,51403 May 19
Ory Weihs
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-executive Director
Shares297,029
Max PriceUK£0.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Liat Hellman (44yo)

    Interim Group Chief Financial Officer

    • Tenure: 0.3yrs
  • Sheila Kagan

    Chief Executive Officer of Webpals

    • Tenure: 0.3yrs
  • Ory Weihs (38yo)

    Co-Founder & Non-executive Director

    • Compensation: US$635.00k
  • Yehuda Dahan (46yo)

    Company Secretary & Director

    • Tenure: 2yrs
  • Michal Badhav

    Group General Counsel

    • Tenure: 2yrs
  • Shaun O'Neill

    Head of Sales

    • Tenure: 0.8yrs
  • Stuart Antony Simms (49yo)

    Group CEO & Director

    • Tenure: 0.3yrs

Board Members

  • Chris Bell (61yo)

    Independent Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$146.00k
  • Amit Ben-Yehuda (55yo)

    Non-Executive Director

    • Tenure: 3.8yrs
  • Ory Weihs (38yo)

    Co-Founder & Non-executive Director

    • Compensation: US$635.00k
  • Richard Rosenberg (63yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$87.00k
  • Yehuda Dahan (46yo)

    Company Secretary & Director

    • Tenure: 2yrs
  • Jonas Martensson (42yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Stuart Antony Simms (49yo)

    Group CEO & Director

    • Tenure: 0.3yrs

Company Information

XLMedia PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: XLMedia PLC
  • Ticker: XLM
  • Exchange: AIM
  • Founded: 2008
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: UK£67.849m
  • Shares outstanding: 183.37m
  • Website: https://www.xlmedia.com

Number of Employees


Location

  • XLMedia PLC
  • 6 Agias Marinas Street
  • Germasogia
  • Limassol
  • 4044
  • Cyprus

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XLMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2014
7X3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2014
XLMD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2014

Biography

XLMedia PLC, an online performance marketing company, attracts paying users from various online and mobile channels and directs them to online businesses in Scandinavia, other European countries, North America, Asia, Oceania, and internationally. It operates through Publishing, Media, and Other segments. The company owns approximately 2,300 informational Websites in 18 languages. It also acquires online and mobile advertising targeted at potential online traffic with the objective of directing it to the customers, as well as buys advertising space on search engines, Websites, mobile and social networks, and places adverts referring potential users to the customers’ Websites or to its own Websites; and manages networks of marketing partners. The company was formerly known as Webpals Marketing Systems Ltd. and changed its name to XLMedia PLC in 2008. XLMedia PLC was founded in 2008 and is headquartered in Limassol, Cyprus. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 22:13
End of Day Share Price2020/01/22 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.