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NZM

NZME NZSE:NZM Stock Report

Last Price

NZ$1.26

Market Cap

NZ$237.1m

7D

5.0%

1Y

28.6%

Updated

15 Aug, 2022

Data

Company Financials +
NZM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends4/6

NZM Stock Overview

NZME Limited, together with its subsidiaries, engages in the integrated media and entertainment business 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$1.26
52 Week HighNZ$1.79
52 Week LowNZ$0.86
Beta1.01
1 Month Change2.44%
3 Month Change-10.00%
1 Year Change28.57%
3 Year Change133.33%
5 Year Change31.25%
Change since IPO57.50%

Recent News & Updates

Mar 25
NZME (NZSE:NZM) Might Have The Makings Of A Multi-Bagger

NZME (NZSE:NZM) Might Have The Makings Of A Multi-Bagger

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Shareholder Returns

NZMNZ MediaNZ Market
7D5.0%3.0%0.02%
1Y28.6%-16.6%-11.3%

Return vs Industry: NZM exceeded the NZ Media industry which returned -16.6% over the past year.

Return vs Market: NZM exceeded the NZ Market which returned -11.3% over the past year.

Price Volatility

Is NZM's price volatile compared to industry and market?
NZM volatility
NZM Average Weekly Movement5.5%
Media Industry Average Movement7.1%
Market Average Movement4.5%
10% most volatile stocks in NZ Market8.1%
10% least volatile stocks in NZ Market3.0%

Stable Share Price: NZM is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NZM's weekly volatility (6%) has been stable over the past year.

About the Company

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

NZME Limited, together with its subsidiaries, engages in the integrated media and entertainment business in New Zealand. It offers its products through 10 audio brands, 32 print publications, and 12 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$237.08m
Earnings (TTM)NZ$34.65m
Revenue (TTM)NZ$348.56m

7.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NZM income statement (TTM)
RevenueNZ$348.56m
Cost of RevenueNZ$276.66m
Gross ProfitNZ$71.90m
Other ExpensesNZ$37.25m
EarningsNZ$34.65m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 22, 2022

Earnings per share (EPS)0.18
Gross Margin20.63%
Net Profit Margin9.94%
Debt/Equity Ratio0%

How did NZM perform over the long term?

See historical performance and comparison

Dividends

7.9%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NZM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NZM?

Other financial metrics that can be useful for relative valuation.

NZM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA6.3x
PEG Ratio-3x

Price to Earnings Ratio vs Peers

How does NZM's PE Ratio compare to its peers?

NZM PE Ratio vs Peers
The above table shows the PE ratio for NZM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.7x
SKT SKY Network Television
12.1x-7.5%NZ$443.7m
AMARIN Amarin Printing and Publishing
16.4xn/a฿6.3b
CED Caltagirone Editore
5.3xn/a€110.0m
CAT Caxton and CTP Publishers and Printers
8.7xn/aR3.3b
NZM NZME
7.2x-2.4%NZ$237.1m

Price-To-Earnings vs Peers: NZM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (10.7x).


Price to Earnings Ratio vs Industry

How does NZM's PE Ratio compare vs other companies in the Global Media Industry?

Price-To-Earnings vs Industry: NZM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Oceanic Media industry average (12.9x)


Price to Earnings Ratio vs Fair Ratio

What is NZM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NZM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: NZM is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).


Share Price vs Fair Value

What is the Fair Price of NZM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NZM (NZ$1.26) is trading below our estimate of fair value (NZ$3.6)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NZM's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: NZM's earnings are forecast to decline over the next 3 years (-2.4% per year).

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

Revenue vs Market: NZM's revenue (0.3% per year) is forecast to grow slower than the NZ market (5.8% per year).

High Growth Revenue: NZM's revenue (0.3% per year) is forecast to grow slower than 20% 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 (17.4%).


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Past Performance

How has NZME performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NZM has a large one-off gain of NZ$10.0M impacting its December 31 2021 financial results.

Growing Profit Margin: NZM's current net profit margins (9.9%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: NZM has become profitable over the past 5 years, growing earnings by -9.4% per year.

Accelerating Growth: NZM's earnings growth over the past year (134.3%) exceeds its 5-year average (-9.4% per year).

Earnings vs Industry: NZM earnings growth over the past year (134.3%) exceeded the Media industry 15%.


Return on Equity

High ROE: NZM's Return on Equity (21.9%) is considered high.


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Financial Health

How is NZME's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NZM's short term assets (NZ$60.6M) do not cover its short term liabilities (NZ$69.8M).

Long Term Liabilities: NZM's short term assets (NZ$60.6M) do not cover its long term liabilities (NZ$85.4M).


Debt to Equity History and Analysis

Debt Level: NZM is debt free.

Reducing Debt: NZM has no debt compared to 5 years ago when its debt to equity ratio was 39.3%.

Debt Coverage: NZM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NZM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NZM's dividend (7.94%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: NZM's dividend (7.94%) is in the top 25% of dividend payers in the NZ market (5.81%)


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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.6%), NZM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.6%), NZM's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure


CEO

Michael Boggs

6.42yrs

Tenure

NZ$1,365,070

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 ($USD878.42K) is about average for companies of similar size in the NZ market ($USD695.03K).

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 (3.4 years average tenure).


Board Members

Experienced Board: NZM's board of directors are considered experienced (4.3 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
  • Implied Market Cap: NZ$237.084m
  • 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 Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.