LSE:ETO

Stock Analysis Report

Executive Summary

Entertainment One Ltd. engages in the acquisition, development, production, financing, distribution, and sale of family, television (TV), music, and film content rights across various media worldwide.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ETO

5.1%

GB Entertainment

10.0%

GB Market


1 Year Return

56.2%

ETO

-26.1%

GB Entertainment

-23.0%

GB Market

Return vs Industry: ETO exceeded the UK Entertainment industry which returned 8.4% over the past year.

Return vs Market: ETO exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

ETOIndustryMarket
7 Day0%5.1%10.0%
30 Day0.2%-22.2%-17.6%
90 Day-1.2%-30.8%-27.3%
1 Year56.8%56.2%-21.2%-26.1%-18.9%-23.0%
3 Year145.1%141.9%-15.7%-60.4%-12.9%-24.2%
5 Year111.0%80.7%2.0%-51.0%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ETO (£5.57) is trading above our estimate of fair value (£4.87)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ETO is overvalued based on its PB Ratio (3.5x) compared to the GB Entertainment industry average (2.4x).


Next Steps

Future Growth

How is Entertainment One forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: ETO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ETO's is expected to become profitable in the next 3 years.

Revenue vs Market: ETO's revenue (9.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ETO's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETO's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Entertainment One performed over the past 5 years?

-14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETO is currently unprofitable.

Growing Profit Margin: ETO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ETO is unprofitable, and losses have increased over the past 5 years at a rate of -14.7% per year.

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

Earnings vs Industry: ETO is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (23.2%).


Return on Equity

High ROE: ETO has a negative Return on Equity (-2.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Entertainment One's financial position?


Financial Position Analysis

Short Term Liabilities: ETO's short term assets (£947.8M) exceed its short term liabilities (£617.2M).

Long Term Liabilities: ETO's short term assets (£947.8M) exceed its long term liabilities (£757.9M).


Debt to Equity History and Analysis

Debt Level: ETO's debt to equity ratio (86.7%) is considered high.

Reducing Debt: ETO's debt to equity ratio has reduced from 97.9% to 86.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ETO's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ETO has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: ETO has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETO's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: ETO's dividend (0.27%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: ETO is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: ETO is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ETO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Darren Throop (54yo)

16.42s

Tenure

UK£1,860,000

Compensation

Mr. Darren D. Throop has been the Chief Executive Officer and President of Entertainment One Ltd. since July 2003. Mr. Throop has over 20 years of executive management experience in the entertainment indus ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD2.25M).

Compensation vs Earnings: Darren's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Darren Throop
CEO, President & Director16.42yrsUK£1.86m1.44% £39.9m
Joseph Sparacio
CFO & Executive Director2.08yrsUK£203.00k0.013% £362.0k
Margaret O'Brien
Chief Corporate Development & Administrative Officer2.17yrsUK£362.00kno data
Taylor Battye
Chief Information Officerno datano datano data
Patrick Yau
Head of Investor Relationsno datano datano data
Mark Trachuk
General Counsel1.92yrsUK£24.00kno data
Jackie Rubin
Senior Vice President of Corporate Communications1.25yrsno datano data
Terrence Stevens
Senior VP & GM15.92yrsno datano data
Alex Hamilton
Managing Director of Film for EMEAno datano datano data
Katie Rollings
Head of UK Licensing - eOne Family & eOne Licensing3.25yrsno datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: ETO's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Throop
CEO, President & Director16.42yrsUK£1.86m1.44% £39.9m
Joseph Sparacio
CFO & Executive Director2.08yrsUK£203.00k0.013% £362.0k
Mark Opzoomer
Senior Independent Director12.75yrsUK£132.00k0.0050% £139.2k
Martin Kovnats
Trustee of ROW Commercial Trustno datano datano data
Robert McFarlane
Non-Executive Director2.08yrsUK£21.00k0.0081% £226.1k
Allan Leighton
Non-Executive Chairman5.75yrsUK£246.00kno data
Michael Friisdahl
Non-Executive Director2.08yrsUK£21.00kno data
Linda Robinson
Non-Executive Director5.75yrsUK£105.00kno data
Mitzi Reaugh
Non-Executive Director3.08yrsUK£90.00k0.0014% £38.9k
Scott Lawrence
Non-Executive Director3.92yrsUK£58.00kno data

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: ETO's board of directors are considered experienced (3.9 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 6%.


Top Shareholders

Company Information

Entertainment One Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Entertainment One Ltd.
  • Ticker: ETO
  • Exchange: LSE
  • Founded: 1973
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: UK£2.778b
  • Shares outstanding: 498.79m
  • Website: https://www.entertainmentone.com

Number of Employees


Location

  • Entertainment One Ltd.
  • 134 Peter Street
  • Suite 700
  • Toronto
  • Ontario
  • M5V 2H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETOLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2007
ENTM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2007
ETOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2007
EO0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2007

Biography

Entertainment One Ltd. engages in the acquisition, development, production, financing, distribution, and sale of family, television (TV), music, and film content rights across various media worldwide. The company operates through Family & Brands; and Film, Television & Music segments. It distributes and sells films on screens in theatres and digitally, on DVDs and Blu-rays, and on TV; develops, produces, and distributes TV content across genres, platforms, and territories; and records, distributes, and licenses albums and songs. The company is also involved in the merchandise sales activities, as well as in the distribution of music and video. Entertainment One Ltd. was founded in 1973 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/30 21:12
End of Day Share Price2019/12/30 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.