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NZM

NZMENZSE:NZM Stock Report

Market Cap

NZ$221.3m

7D

-0.9%

1Y

77.8%

Updated

22 Oct, 2021

Data

Company Financials +
NZM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends4/6

NZM Overview

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand.

NZME Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NZME
Historical stock prices
Current Share PriceNZ$1.12
52 Week HighNZ$0.58
52 Week LowNZ$1.18
Beta1.32
1 Month Change17.90%
3 Month Change10.89%
1 Year Change77.78%
3 Year Change83.61%
5 Year Change67.16%
Change since IPO40.00%

Recent News & Updates

Aug 20
Returns Are Gaining Momentum At NZME (NZSE:NZM)

Returns Are Gaining Momentum At NZME (NZSE:NZM)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Jul 02
Is Now The Time To Look At Buying NZME Limited (NZSE:NZM)?

Is Now The Time To Look At Buying NZME Limited (NZSE:NZM)?

While NZME Limited ( NZSE:NZM ) might not be the most widely known stock at the moment, it saw a double-digit share...

May 04
NZME (NZSE:NZM) Is Looking To Continue Growing Its Returns On Capital

NZME (NZSE:NZM) Is Looking To Continue Growing Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

NZMNZ MediaNZ Market
7D-0.9%-0.5%0.7%
1Y77.8%37.5%2.4%

Return vs Industry: NZM exceeded the NZ Media industry which returned 37.5% over the past year.

Return vs Market: NZM exceeded the NZ Market which returned 2.4% over the past year.

Price Volatility

Is NZM's price volatile compared to industry and market?
NZM volatility
NZM Beta1.32
Industry Beta1.31
Market Beta1

Stable Share Price: NZM is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NZM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aMichael Boggshttps://www.nzme.co.nz

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand. It offers its products through 32 print publications, 9 radio channels, and 19 real estate publications, as well as websites. The company was formerly known as Wilson & Horton Limited.

NZME Fundamentals Summary

How do NZME's earnings and revenue compare to its market cap?
NZM fundamental statistics
Market CapNZ$221.28m
Earnings (TTM)NZ$17.05m
Revenue (TTM)NZ$345.38m

13.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NZM income statement (TTM)
RevenueNZ$345.38m
Cost of RevenueNZ$271.72m
Gross ProfitNZ$73.66m
ExpensesNZ$56.61m
EarningsNZ$17.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.086
Gross Margin21.33%
Net Profit Margin4.94%
Debt/Equity Ratio21.3%

How did NZM perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is NZME 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: NZM (NZ$1.12) is trading below our estimate of fair value (NZ$2.73)

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


Price To Earnings Ratio

PE vs Industry: NZM is good value based on its PE Ratio (13x) compared to the Oceanic Media industry average (13.2x).

PE vs Market: NZM is good value based on its PE Ratio (13x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: NZM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: NZM is good value based on its PB Ratio (1.6x) compared to the XO Media industry average (1.9x).


Future Growth

How is NZME forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZM's forecast earnings growth (7.1% per year) is above the savings rate (2.1%).

Earnings vs Market: NZM's earnings (7.1% per year) are forecast to grow slower than the NZ market (9.3% per year).

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

Revenue vs Market: NZM's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: NZM's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NZM's Return on Equity is forecast to be low in 3 years time (17%).


Past Performance

How has NZME performed over the past 5 years?

-8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NZM has a large one-off loss of NZ$6.7M impacting its June 30 2021 financial results.

Growing Profit Margin: NZM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NZM has become profitable over the past 5 years, growing earnings by -8.9% per year.

Accelerating Growth: NZM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NZM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (28.9%).


Return on Equity

High ROE: NZM's Return on Equity (12.1%) is considered low.


Financial Health

How is NZME's financial position?


Financial Position Analysis

Short Term Liabilities: NZM's short term assets (NZ$57.9M) do not cover its short term liabilities (NZ$63.5M).

Long Term Liabilities: NZM's short term assets (NZ$57.9M) do not cover its long term liabilities (NZ$119.8M).


Debt to Equity History and Analysis

Debt Level: NZM's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: NZM's debt to equity ratio has reduced from 40.1% to 21.3% over the past 5 years.

Debt Coverage: NZM's debt is well covered by operating cash flow (173.3%).

Interest Coverage: NZM's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is NZME current dividend yield, its reliability and sustainability?

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NZM's dividend (5.36%) is higher than the bottom 25% of dividend payers in the NZ market (2.41%).

High Dividend: NZM's dividend (5.36%) is in the top 25% of dividend payers in the NZ market (4.86%)


Stability and Growth of Payments

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

Growing Dividend: NZM has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.9%), NZM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NZM's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Michael Boggs

5.58yrs

Tenure

NZ$1,776,221

Compensation

Mr. Michael Raymond Boggs, CA had been the Chief Executive Officer of NZME Limited at HT&E Limited (Formerly known as APN News & Media Limited) since March 2016. Mr. Boggs served as the Chief Financial Off...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.28M) is above average for companies of similar size in the NZ market ($USD529.11K).

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


Leadership Team

Experienced Management: NZM's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: NZM'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

NZME Limited's employee growth, exchange listings and data sources


Key Information

  • Name: NZME Limited
  • Ticker: NZM
  • Exchange: NZSE
  • Founded: 2014
  • Industry: Publishing
  • Sector: Media
  • Market Cap: NZ$221.278m
  • Shares outstanding: 197.57m
  • Website: https://www.nzme.co.nz

Location

  • NZME Limited
  • 2 Graham Street
  • Auckland
  • 1010
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:32
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.