NSEI:ZEEL

Stock Analysis Report

Zee Entertainment Enterprises

Executive Summary

Zee Entertainment Enterprises Limited, together with its subsidiaries, engages in broadcasting satellite television channels.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

7.6%

ZEEL

4.1%

IN Media

-0.07%

IN Market


1 Year Return

-42.7%

ZEEL

-31.4%

IN Media

9.5%

IN Market

Return vs Industry: ZEEL underperformed the Indian Media industry which returned -31.4% over the past year.

Return vs Market: ZEEL underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

ZEELIndustryMarket
7 Day7.6%4.1%-0.07%
30 Day-8.5%-1.4%-0.7%
90 Day-25.3%-9.2%3.2%
1 Year-42.1%-42.7%-30.4%-31.4%11.5%9.5%
3 Year-49.5%-50.5%-48.5%-50.1%23.6%16.7%
5 Year-24.0%-26.4%-36.3%-39.2%35.4%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZEEL (₹256.8) is trading above our estimate of fair value (₹214.27)

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


Price To Earnings Ratio

PE vs Industry: ZEEL is poor value based on its PE Ratio (15.6x) compared to the Media industry average (11.6x).

PE vs Market: ZEEL is poor value based on its PE Ratio (15.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: ZEEL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ZEEL is overvalued based on its PB Ratio (2.6x) compared to the IN Media industry average (1.1x).


Next Steps

Future Growth

How is Zee Entertainment Enterprises forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEEL's forecast earnings growth (13% per year) is above the savings rate (6.5%).

Earnings vs Market: ZEEL's earnings (13% per year) are forecast to grow slower than the Indian market (20.5% per year).

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

Revenue vs Market: ZEEL's revenue (9.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ZEEL's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZEEL's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Zee Entertainment Enterprises performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ZEEL's current net profit margins (19.3%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: ZEEL's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: ZEEL's earnings growth over the past year (5.2%) is below its 5-year average (14.8% per year).

Earnings vs Industry: ZEEL earnings growth over the past year (5.2%) underperformed the Media industry 6.5%.


Return on Equity

High ROE: ZEEL's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zee Entertainment Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: ZEEL's short term assets (₹110.3B) exceed its short term liabilities (₹28.5B).

Long Term Liabilities: ZEEL's short term assets (₹110.3B) exceed its long term liabilities (₹9.0B).


Debt to Equity History and Analysis

Debt Level: ZEEL's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: ZEEL's debt to equity ratio has increased from 0.03% to 11.5% over the past 5 years.

Debt Coverage: ZEEL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ZEEL's interest payments on its debt are well covered by EBIT (34.7x coverage).


Balance Sheet

Inventory Level: ZEEL has a high level of physical assets or inventory.

Debt Coverage by Assets: ZEEL's debt is covered by short term assets (assets are 10.1x debt).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%0.6%markettop25%2.6%industryaverage2.7%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: ZEEL's dividend (1.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ZEEL's dividend (1.36%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: ZEEL's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Punit Goenka (44yo)

11.6yrs

Tenure

₹82,950,000

Compensation

Mr. Punit Goenka, BCom. has been Chairman of the Board of Zee Media Corporation Limited since March 31, 2019. Mr. Goenka has been the Chairman of the Board of Broadcast Audience Research Council since Janu ...


CEO Compensation Analysis

Compensation vs Market: Punit's total compensation ($USD1.15M) is above average for companies of similar size in the Indian market ($USD757.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Punit Goenka
MD, CEO & Whole Time Director11.6yrs₹82.95mno data
Rohit Gupta
Chief Financial Officer1.5yrsno datano data
Viresh Dhaibar
Chief Legal Counsel1yrsno datano data
Animesh Kumar
Chief People Officer1.6yrsno datano data
Laxmi Shetty
Chief Sales Strategy & Maximisation Officer1.8yrsno datano data
Sanjoy Chatterjee
Principal Cluster Head of Sales1.8yrsno datano data
Anurag Bedi
Cluster Head of Niche Channels & Business Head of Zee Music Company13yrsno datano data
Vijay Sanil
President of Sales - Zee Network1.8yrsno datano data
Siju Prabhakaran
Cluster Head of South15.4yrsno datano data
Gunjarav Nayak
Principal Cluster Head of Sales1.8yrsno datano data

1.8yrs

Average Tenure

47yo

Average Age

Experienced Management: ZEEL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Punit Goenka
MD, CEO & Whole Time Director11.6yrs₹82.95mno data
Adesh Gupta
Independent Director4.2yrs₹3.48mno data
Ashok Kurien
Non-Executive Director0yrs₹3.33mno data
Subhash Chandra
Non-Executive Director0yrs₹3.15mno data
Manish Chokhani
Independent Director4.8yrs₹3.39m0.010% 25.7m
R. Gopalan
Additional Independent Director0.3yrsno datano data
Surendra Singh
Additional Independent Director0.3yrsno datano data
Aparajita Jain
Independent Director0.3yrsno datano data

2.2yrs

Average Tenure

63yo

Average Age

Experienced Board: ZEEL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

Zee Entertainment Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zee Entertainment Enterprises Limited
  • Ticker: ZEEL
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: ₹246.652b
  • Shares outstanding: 960.48m
  • Website: https://www.zeeentertainment.com

Number of Employees


Location

  • Zee Entertainment Enterprises Limited
  • Marathon Futurex
  • 18th Floor, A Wing
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505537BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1999
ZEELNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1999
717503BSE (Mumbai Stock Exchange)6% CUMULATIVE REDEEMABLE NON-CONV PREF SININRMar 2014
ZEELP1NSEI (National Stock Exchange of India)6% CUMULATIVE REDEEMABLE NON-CONV PREF SININRMar 2014

Biography

Zee Entertainment Enterprises Limited, together with its subsidiaries, engages in broadcasting satellite television channels. The company broadcasts channels, including Hindi entertainment channels, such as Zee TV, Zee TV HD, &tv, &tv HD, Zing, BIG Magic, and Zee Anmol; Hindi movie channels comprising Zee Anmol Cinema, Zee Cinema, Zee Action, Zee Classic, &pictures, and Zee Bollywood, as well as Zee Cinema HD and &pictures HD; and regional entertainment channels, including Zee Marathi, Zee Yuva, Zee Bangla, Zee Tamil, Zee Telegu, Zee Kannada, Zee Sarthak, Big Ganga, Zee Talkies, Zee Bangla Cinema, Zee Cinemalu, Zee Marathi HD, Zee Talkies HD, Zee Telugu HD, and Zee Bangla HD. It also broadcasts niche channels comprising Zee Café, Zee Café HD, &privé HD, Zee Studio, &flix, &flix HD, and Zee ETC Bollywood; ZEE LIVE and Zee Theatre channels; and ZEE5, India.com, TheHealthSite.com, Bollywoodlife.com, and BGR.in for audiences on digital mediums, as well as broadcasts 39 channels in the international markets. In addition, the company operates as a space selling agent for other satellite television channels; and sells media content, which include programs/film rights/feeds/music rights. It has a library housing of approximately 250,000 hours of television content; and rights to approximately 4,800 movie titles. The company has approximately 1.3 billion viewers in 173 countries worldwide. The company was formerly known as Zee Telefilms Limited and changed its name to Zee Entertainment Enterprises Limited in January 2007. Zee Entertainment Enterprises Limited was founded in 1982 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:06
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
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.