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Trade Me Group

NZSE:TME
Snowflake Description

Acceptable track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TME
NZSE
NZ$3B
Market Cap
  1. Home
  2. NZ
  3. Retail
Company description

Trade Me Group Limited, together with its subsidiaries, operates and manages an online marketplace and classified advertising platform in New Zealand. The last earnings update was 72 days ago. More info.


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TME Share Price and Events
7 Day Returns
0%
NZSE:TME
-0.6%
Oceania Online Retail
0.6%
NZ Market
1 Year Returns
34.5%
NZSE:TME
13.8%
Oceania Online Retail
10.1%
NZ Market
TME Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Trade Me Group (TME) 0% 0% 0.9% 34.5% 39.5% 72.8%
Oceania Online Retail -0.6% 3.4% 14.7% 13.8% 56% 264.6%
NZ Market 0.6% 3.4% 7.5% 10.1% 25.3% 50%
1 Year Return vs Industry and Market
  • TME outperformed the Online Retail industry which returned 13.8% over the past year.
  • TME outperformed the Market in New Zealand which returned 10.1% over the past year.
Price Volatility
TME
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Trade Me Group's competitors could be found in our database.

TME Value

 Is Trade Me Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Trade Me Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Trade Me Group.

NZSE:TME Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:TME
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.669 (1 + (1- 28%) (8.87%))
1.52
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.52
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.52 * 5.96%)
11.43%

Discounted Cash Flow Calculation for NZSE:TME using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Trade Me Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:TME DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 11.43%)
2019 105.00 Analyst x1 94.23
2020 113.00 Analyst x1 91.01
2021 112.19 Est @ -0.71% 81.09
2022 112.43 Est @ 0.21% 72.93
2023 113.40 Est @ 0.86% 66.01
2024 114.89 Est @ 1.31% 60.02
2025 116.76 Est @ 1.63% 54.74
2026 118.92 Est @ 1.85% 50.04
2027 121.31 Est @ 2.01% 45.81
2028 123.87 Est @ 2.12% 41.98
Present value of next 10 years cash flows NZ$657.86
NZSE:TME DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$123.87 × (1 + 2.37%) ÷ (11.43% – 2.37%)
NZ$1,399.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$1,399.96 ÷ (1 + 11.43%)10
NZ$474.43
NZSE:TME Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$657.86 + NZ$474.43
NZ$1,132.29
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$1,132.29 / 396.83
NZ$2.85
NZSE:TME Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$2.85
Current discount Discount to share price of NZ$6.43
= -1 x (NZ$6.43 - NZ$2.85) / NZ$2.85
-125.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Trade Me Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Trade Me Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Trade Me Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:TME PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.24
NZSE:TME Share Price ** NZSE (2019-05-02) in NZD NZ$6.43
Global Online Retail Industry PE Ratio Median Figure of 70 Publicly-Listed Online Retail Companies 27.61x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 17.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Trade Me Group.

NZSE:TME PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:TME Share Price ÷ EPS (both in NZD)

= 6.43 ÷ 0.24

26.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Me Group is good value based on earnings compared to the Global Online Retail industry average.
  • Trade Me Group is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Trade Me Group's expected growth come at a high price?
Raw Data
NZSE:TME PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
12.3%per year
Global Online Retail Industry PEG Ratio Median Figure of 43 Publicly-Listed Online Retail Companies 1.97x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NZSE:TME PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.99x ÷ 12.3%

2.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Me Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Trade Me Group's assets?
Raw Data
NZSE:TME PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$1.66
NZSE:TME Share Price * NZSE (2019-05-02) in NZD NZ$6.43
Oceania Online Retail Industry PB Ratio Median Figure of 11 Publicly-Listed Online Retail Companies 3.15x
New Zealand Market PB Ratio Median Figure of 125 Publicly-Listed Companies 1.53x
NZSE:TME PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:TME Share Price ÷ Book Value per Share (both in NZD)

= 6.43 ÷ 1.66

3.87x

* Primary Listing of Trade Me Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Me Group is overvalued based on assets compared to the Oceania Online Retail industry average.
X
Value checks
We assess Trade Me Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Online Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Online Retail industry average (and greater than 0)? (1 check)
  5. Trade Me Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TME Future Performance

 How is Trade Me Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Trade Me Group expected to grow at an attractive rate?
  • Trade Me Group's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Trade Me Group's earnings growth is expected to exceed the New Zealand market average.
  • Trade Me Group's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:TME Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:TME Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 12.3%
NZSE:TME Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.8%
Oceania Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 27.3%
Oceania Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 5.8%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:TME Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:TME Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 299 1
2020-06-30 287 143 115 2
2019-06-30 269 133 106 2
NZSE:TME Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 259 146 95
2018-09-30 255 143 96
2018-06-30 250 140 97
2018-03-31 247 137 96
2017-12-31 243 134 95
2017-09-30 239 132 95
2017-06-30 235 130 94
2017-03-31 231 129 88
2016-12-31 227 128 83
2016-09-30 223 125 79
2016-06-30 218 123 75
2016-03-31 213 119 78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Trade Me Group's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
  • Trade Me Group's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:TME Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Trade Me Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:TME Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30
2020-06-30 0.29 0.29 0.29 1.00
2019-06-30 0.27 0.27 0.27 1.00
NZSE:TME Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.24
2018-09-30 0.24
2018-06-30 0.24
2018-03-31 0.24
2017-12-31 0.24
2017-09-30 0.24
2017-06-30 0.24
2017-03-31 0.22
2016-12-31 0.21
2016-09-30 0.20
2016-06-30 0.19
2016-03-31 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Trade Me Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Trade Me Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Trade Me Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TME Past Performance

  How has Trade Me Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Trade Me Group's growth in the last year to its industry (Online Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Trade Me Group's year on year earnings growth rate has been positive over the past 5 years.
  • Trade Me Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Trade Me Group's 1-year earnings growth is negative, it can't be compared to the Global Online Retail industry average.
Earnings and Revenue History
Trade Me Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Trade Me Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:TME Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 259.37 94.58 13.11
2018-09-30 254.86 95.57 13.25
2018-06-30 250.36 96.57 13.39
2018-03-31 247.00 95.79 13.68
2017-12-31 243.17 94.68 13.97
2017-09-30 239.02 94.53 14.01
2017-06-30 234.88 94.38 14.05
2017-03-31 231.12 88.45 14.13
2016-12-31 227.36 82.51 14.22
2016-09-30 222.70 78.73 14.07
2016-06-30 218.05 74.94 13.91
2016-03-31 213.21 77.61 13.96
2015-12-31 208.37 80.27 14.00
2015-09-30 204.03 80.22 13.23
2015-06-30 199.69 80.17 12.46
2015-03-31 195.52 80.35 11.07
2014-12-31 191.35 80.53 9.68
2014-09-30 185.73 80.32 9.24
2014-06-30 180.10 80.11 8.80
2014-03-31 174.74 79.68 7.42
2013-12-31 169.39 79.25 6.05
2013-09-30 166.75 78.92 5.08
2013-06-30 164.11 78.60 4.11
2013-03-31 159.38 77.60 3.81
2012-12-31 154.65 76.60 3.51
2012-09-30 148.55 76.09 3.54
2012-06-30 142.46 75.59 3.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Trade Me Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Trade Me Group used its assets more efficiently than the Global Online Retail industry average last year based on Return on Assets.
  • Trade Me Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Trade Me Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Online Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Trade Me Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TME Health

 How is Trade Me Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Trade Me Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Trade Me Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Trade Me Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Trade Me Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Trade Me Group Company Filings, last reported 4 months ago.

NZSE:TME Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 659.34 226.36 64.87
2018-09-30 659.34 226.36 64.87
2018-06-30 746.98 136.29 72.11
2018-03-31 746.98 136.29 72.11
2017-12-31 732.42 136.70 55.26
2017-09-30 732.42 136.70 55.26
2017-06-30 725.69 136.73 52.83
2017-03-31 725.69 136.73 52.83
2016-12-31 711.21 146.89 47.51
2016-09-30 711.21 146.89 47.51
2016-06-30 700.55 137.88 34.11
2016-03-31 700.55 137.88 34.11
2015-12-31 695.66 167.04 47.24
2015-09-30 695.66 167.04 47.24
2015-06-30 690.83 167.24 48.28
2015-03-31 690.83 167.24 48.28
2014-12-31 679.61 165.83 41.21
2014-09-30 679.61 165.83 41.21
2014-06-30 674.47 165.78 41.75
2014-03-31 674.47 165.78 41.75
2013-12-31 662.41 165.74 25.99
2013-09-30 662.41 165.74 25.99
2013-06-30 657.07 165.88 48.86
2013-03-31 657.07 165.88 48.86
2012-12-31 645.50 166.25 36.02
2012-09-30 645.50 166.25 36.02
2012-06-30 638.58 165.76 39.14
  • Trade Me Group's level of debt (34.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25% vs 34.3% today).
  • Debt is well covered by operating cash flow (64.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 34.1x coverage).
X
Financial health checks
We assess Trade Me Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Trade Me Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TME Dividends

 What is Trade Me Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Trade Me Group dividends. Estimated to be 3.58% next year.
If you bought NZ$2,000 of Trade Me Group shares you are expected to receive NZ$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Trade Me Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Trade Me Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:TME Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 1.6%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 74 Stocks 3.8%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 1.9%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:TME Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.26 1.00
2020-06-30 0.23 2.00
2019-06-30 0.22 2.00
NZSE:TME Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.000 0.000
2018-08-21 0.196 3.492
2017-08-24 0.185 4.009
2017-08-23 0.185 3.958
2016-08-18 0.168 3.261
2016-08-17 0.168 3.190
2016-02-16 0.163 3.527
2015-08-20 0.162 4.248
2015-08-19 0.162 5.136
2014-09-18 0.160 4.400
2014-03-19 0.159 4.332
2013-08-21 0.166 3.909
2013-03-07 0.150 3.102
2012-09-19 0.078 1.864

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Trade Me Group has not reported any payouts.
  • Unable to verify if Trade Me Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Trade Me Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Trade Me Group has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Trade Me Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Trade Me Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Trade Me Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TME Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jon Macdonald
COMPENSATION NZ$1,266,284
TENURE AS CEO 11.3 years
CEO Bio

Mr. Jon Macdonald, BE (Hons), is Interim Chief Executive Officer of Trade ME Group Limited since December 2018 and was its Chief Executive Officer since 2008 until December 2018. He serves as an Independent Director of Contact Energy Limited since November 1, 2018. Mr. Macdonald served as the Chief Executive Officer of Trade Me at Fairfax Media Limited. He joined Trade ME in 2003, where he took the position as Head of Technology, before being appointed as General Manager in 2007. Prior to joining Trade Me, he worked in London for HSBC Investment Bank in a variety of technical and management positions. He has also worked for Deloitte Consulting, focusing on the telecommunications and financial services industries. He has been an Independent Director of NZX Ltd. since May 3, 2013. Mr. Macdonald has a Bachelor of Engineering with Honours from the University of Canterbury.

CEO Compensation
  • Jon's compensation has increased by more than 20% in the past year.
  • Jon's remuneration is lower than average for companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Trade Me Group management team in years:

2.8
Average Tenure
  • The tenure for the Trade Me Group management team is about average.
Management Team

Jon Macdonald

TITLE
Interim Chief Executive Officer
COMPENSATION
NZ$1M
TENURE
11.3 yrs

Caroline Rawlinson

TITLE
Chief Financial Officer
TENURE
2.8 yrs

Simon Young

TITLE
Chief Product & Technology Officer
TENURE
0.8 yrs

Annie Brown

TITLE
Chief People Officer
TENURE
1.9 yrs

Nigel Jeffries

TITLE
Head of Property
AGE
54
TENURE
5.1 yrs

Stuart McLean

TITLE
Head of Marketplace
TENURE
4.3 yrs

Alan Clark

TITLE
Head of Motors
TENURE
2.3 yrs

Jeremy Wade

TITLE
Head of Jobs
TENURE
2.9 yrs

Regan Savage

TITLE
Acting Chief Customer Officer
TENURE
0.3 yrs

Sarah Hard

TITLE
Company Secretary
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Trade Me Group board of directors in years:

4.7
Average Tenure
50
Average Age
  • The tenure for the Trade Me Group board of directors is about average.
Board of Directors

David Kirk

TITLE
Independent Chairman
COMPENSATION
NZ$215K
AGE
57

Joanna Mary Perry

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$130K
AGE
61
TENURE
7.6 yrs

Paul McCarney

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$105K
AGE
50
TENURE
6.5 yrs

Katrina Johnson

TITLE
Independent Non Executive Director
COMPENSATION
NZ$105K
AGE
42
TENURE
2.9 yrs

Simon West

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$105K
AGE
43
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
07. May 19 Sell UBS Asset Management Company 02. May 19 03. May 19 -9,829,396 NZ$6.45 NZ$-63,386,817
03. May 19 Sell Pinnacle Fund Services Limited Company 11. Apr 19 01. May 19 -3,041,092 NZ$6.42 NZ$-19,513,346
03. May 19 Sell Pinnacle Investment Management Limited Company 11. Apr 19 01. May 19 -17,112,336 NZ$6.42 NZ$-109,802,311
02. May 19 Buy UBS Asset Management Company 30. Apr 19 30. Apr 19 32,311 NZ$6.43 NZ$207,850
02. May 19 Sell Hyperion Asset Management Limited Company 30. Apr 19 30. Apr 19 -6,000,299 NZ$6.42 NZ$-38,494,621
01. May 19 Sell Hyperion Asset Management Limited Company 02. Apr 19 29. Apr 19 -6,696,714 NZ$6.50 NZ$-43,064,303
29. Apr 19 Sell UBS Asset Management Company 02. Apr 19 24. Apr 19 -2,376,468 NZ$6.43 NZ$-15,282,644
29. Apr 19 Buy UBS Asset Management Company 01. Apr 19 24. Apr 19 6,505,976 NZ$6.43 NZ$41,831,465
04. Apr 19 Sell Pinnacle Investment Management Limited Company 21. Feb 19 03. Apr 19 -9,279,362 NZ$6.43 NZ$-59,652,758
02. Apr 19 Sell UBS Asset Management Company 11. Mar 19 27. Mar 19 -363,714 NZ$6.44 NZ$-2,343,420
02. Apr 19 Buy UBS Asset Management Company 07. Mar 19 29. Mar 19 4,778,700 NZ$6.42 NZ$30,582,277
03. Apr 19 Sell First State Super Company 20. Feb 19 01. Apr 19 -3,559,297 NZ$6.42 NZ$-22,825,423
03. Apr 19 Sell Hyperion Asset Management Limited Company 20. Feb 19 01. Apr 19 -3,053,835 NZ$6.43 NZ$-19,626,859
10. Mar 19 Sell UBS Asset Management Company 07. Nov 18 06. Mar 19 -17,230,303 NZ$6.29 NZ$-101,500,618
10. Mar 19 Buy UBS Asset Management Company 07. Nov 18 06. Mar 19 22,572,090 NZ$6.33 NZ$139,647,010
22. Feb 19 Sell Pinnacle Investment Management Limited Company 19. Oct 18 19. Feb 19 -5,795,404 NZ$5.42 NZ$-31,391,113
22. Feb 19 Buy Pinnacle Investment Management Limited Company 19. Nov 18 10. Jan 19 912,675 NZ$6.16 NZ$5,622,439
18. Feb 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 15. Oct 18 13. Feb 19 7,100,950 NZ$5.86 NZ$41,642,665
21. Feb 19 Sell Hyperion Asset Management Limited Company 25. Oct 18 19. Feb 19 -4,512,676 NZ$6.39 NZ$-26,293,670
09. Jan 19 Sell Schroder Investment Management Limited Company 05. Oct 17 09. Jan 19 -4,382,072 NZ$4.94 NZ$-21,647,433
09. Jan 19 Buy Schroder Investment Management Limited Company 05. Oct 17 09. Jan 19 1,276,496 NZ$4.94 NZ$6,305,889
09. Jan 19 Sell Schroder Investment Management North America Inc. Company 05. Oct 17 09. Jan 19 -1,307,989 NZ$4.94 NZ$-6,461,465
22. Nov 18 Sell Investors Mutual Limited Company 10. Oct 18 20. Nov 18 -423,606 NZ$5.17 NZ$-2,153,739
22. Nov 18 Buy Investors Mutual Limited Company 02. Nov 18 02. Nov 18 56,800 NZ$4.85 NZ$275,379
26. Oct 18 Sell Hyperion Asset Management Limited Company 23. Mar 17 24. Oct 18 -5,641,869 NZ$4.86 NZ$-22,993,402
26. Oct 18 Buy Hyperion Asset Management Limited Company 23. Mar 17 24. Oct 18 1,393,695 NZ$4.35 NZ$6,056,941
22. Oct 18 Buy Pinnacle Investment Management Limited Company 11. Apr 18 15. Oct 18 3,225,812 NZ$4.52 NZ$14,591,116
05. Oct 18 Buy Investors Mutual Limited Company 03. Jul 18 03. Oct 18 813,055 NZ$5.19 NZ$3,942,366
X
Management checks
We assess Trade Me Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Trade Me Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TME News

Simply Wall St News

A Close Look At Trade Me Group Limited’s (NZSE:TME) 16% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Trade Me Group Limited's (NZSE:TME) Most Important Factor To Consider

I will take you through Trade Me Group’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Trade Me Group generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Trade Me Group’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Here's What Trade Me Group Limited's (NZSE:TME) P/E Ratio Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Trade Me Group Limited's (NZSE:TME) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Should Investors React To Trade Me Group Limited's (NZSE:TME) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jon Macdonald's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Jon Macdonald is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

A Note On Trade Me Group Limited's (NZSE:TME) ROE and Debt To Equity

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every NZ$1 worth of equity in the company, it was able to earn NZ$0.13. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What’s Installed For Trade Me Group Limited (NZSE:TME)?

is a retail company operating in an industry … Pure-play online retailers have benefits from the lower barriers to entry, enabling brands to build profitable and lean businesses much earlier in their lifecycle, which changed the retail environment and dynamics between customers and retailers … Retail analysts are forecasting for the entire industry,

Simply Wall St -

Who Are The Major Shareholders In Trade Me Group Limited (NZSE:TME)?

Today, I will be analyzing Trade Me Group Limited’s (NZSE:TME) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … NZSE:TME Ownership Summary August 20th 18

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Trade Me Group Limited (NZSE:TME)'s Return on Capital

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Trade Me Group is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

What You Need To Know About Trade Me Group Limited’s (NZSE:TME) Cash Situation

I will take you through Trade Me Group’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Trade Me Group generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Trade Me Group’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow.

Simply Wall St -

Is Trade Me Group Limited (NZSE:TME) A Financially Sound Company?

Trade Me Group Limited (NZSE:TME) is a small-cap stock with a market capitalization of NZ$1.88b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

TME Company Info

Description

Trade Me Group Limited, together with its subsidiaries, operates and manages an online marketplace and classified advertising platform in New Zealand. It operates through Classifieds, General Items, and Other segments. The Classifieds segment operates classified advertising sites for motors, property, and jobs. The General Items segment engages in the online marketplace business. The Other segment offers advertising, dating, payments gateway, life and health insurance comparison, and general insurance services. The company also provides new and used goods marketplace, real estate and employment, and other ancillary online services. Trade Me Group Limited was founded in 1999 and is headquartered in Wellington, New Zealand.

Details
Name: Trade Me Group Limited
TME
Exchange: NZSE
Founded: 1999
NZ$2,551,644,767
396,834,334
Website: http://www.trademe.co.nz
Address: Trade Me Group Limited
2 Market Lane,
Level 5,
Wellington,
6011,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE TME Ordinary Shares New Zealand Stock Exchange NZ NZD 13. Dec 2011
OTCPK TRME.F Ordinary Shares Pink Sheets LLC US USD 13. Dec 2011
DB 8TM Ordinary Shares Deutsche Boerse AG DE EUR 13. Dec 2011
ASX TME Ordinary Shares Australian Securities Exchange AU AUD 13. Dec 2011
CHIA TME Ordinary Shares Chi-X Australia AU AUD 13. Dec 2011
Number of employees
Current staff
Staff numbers
601
Trade Me Group employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/10 06:23
End of day share price update: 2019/05/02 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.