OM:CTM

Stock Analysis Report

Executive Summary

Catena Media plc, together with its subsidiaries, owns and develops Websites serving customers in the iGaming and finance markets.

Rewards

Trading at 73.1% below its fair value

Earnings are forecast to grow 10.88% per year

Earnings grew by 35.2% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with solid track record.

Share Price & News

How has Catena Media's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

CTM

5.0%

SE Interactive Media and Services

2.5%

SE Market


1 Year Return

-52.3%

CTM

-40.9%

SE Interactive Media and Services

21.8%

SE Market

Return vs Industry: CTM underperformed the Swedish Interactive Media and Services industry which returned -40.9% over the past year.

Return vs Market: CTM underperformed the Swedish Market which returned 21.8% over the past year.


Shareholder returns

CTMIndustryMarket
7 Day5.0%5.0%2.5%
30 Day-0.06%5.7%4.0%
90 Day-18.4%0.9%9.7%
1 Year-52.3%-52.3%-40.8%-40.9%26.8%21.8%
3 Year-67.4%-67.4%-62.3%-64.9%38.0%17.1%
5 Yearn/a-31.8%-41.3%46.9%15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Catena Media 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: CTM (SEK35.06) is trading below our estimate of fair value (SEK130.57)

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


Price To Earnings Ratio

PE vs Industry: CTM is good value based on its PE Ratio (5.9x) compared to the Interactive Media and Services industry average (35.9x).

PE vs Market: CTM is good value based on its PE Ratio (5.9x) compared to the Swedish market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: CTM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CTM is good value based on its PB Ratio (1.1x) compared to the SE Interactive Media and Services industry average (3.6x).


Next Steps

Future Growth

How is Catena Media forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTM's forecast earnings growth (10.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: CTM's earnings (10.9% per year) are forecast to grow faster than the Swedish market (8.4% per year).

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

Revenue vs Market: CTM's revenue (10.3% per year) is forecast to grow faster than the Swedish market (4.6% per year).

High Growth Revenue: CTM's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTM's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Catena Media performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTM has high quality earnings.

Growing Profit Margin: CTM's current net profit margins (31.9%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: CTM's earnings have grown significantly by 33.3% per year over the past 5 years.

Accelerating Growth: CTM's earnings growth over the past year (35.2%) exceeds its 5-year average (33.3% per year).

Earnings vs Industry: CTM earnings growth over the past year (35.2%) exceeded the Interactive Media and Services industry 11.9%.


Return on Equity

High ROE: CTM's Return on Equity (18.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Catena Media's financial position?


Financial Position Analysis

Short Term Liabilities: CTM's short term assets (€34.6M) exceed its short term liabilities (€33.4M).

Long Term Liabilities: CTM's short term assets (€34.6M) do not cover its long term liabilities (€158.2M).


Debt to Equity History and Analysis

Debt Level: CTM's debt to equity ratio (83.8%) is considered high.

Reducing Debt: Insufficient data to determine if CTM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CTM's debt is well covered by operating cash flow (27.1%).

Interest Coverage: CTM's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTM's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Catena Media's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.2%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CTM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CTM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CTM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CTM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CTM is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Per Hellberg (51yo)

1.7yrs

Tenure

€489,234

Compensation

Mr. Per Hellberg has been the CEO of Readly International AB and Readly AB since 2013. Mr. Hellberg served as Marketing Director of Sony Nordic. Mr. Hellberg served as the Chief Executive Officer of Nordic ...


CEO Compensation Analysis

Compensation vs Market: Per's total compensation ($USD530.45K) is above average for companies of similar size in the Swedish market ($USD386.28K).

Compensation vs Earnings: Insufficient data to compare Per's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Per Hellberg
Chief Executive Officer1.7yrs€489.23k0.12% 2.5m
Erik Edeen
Interim Group Chief Financial Officer1.1yrsno datano data
Oscar Karlsten
Chief Information Officer0yrsno datano data
Åsa Hillsten
Head of IR & Corporate Communications2.1yrsno data0.0017% 35.1k
Klas Winberg
Vice President Sales & Marketing0yrsno datano data
Fiona Ewins-Brown
Chief Human Resource Officer1.1yrsno data0.059% 1.2m
Johannes Bergh
Deputy Chief Executive Officer1.1yrsno data0.027% 547.4k
Jan Steffen
Head of BayBets0yrsno datano data

1.1yrs

Average Tenure

46yo

Average Age

Experienced Management: CTM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kathryn Baker
Chairwoman of the Board3.7yrs€83.07kno data
Mats Alders
Independent Director4.4yrs€45.91k0.17% 3.4m
Göran Blomberg
Director0.8yrsno datano data
Öystein Engebretsen
Director1.4yrs€10.13k0.052% 1.1m
Cecilia Qvist
Director1.8yrs€23.88kno data
Per Widerstrom
Director0.8yrsno datano data
Theodore Bergquist
Director0.8yrsno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Board: CTM's board of directors are not considered experienced ( 1.4 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: CTM 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 7.8%.


Top Shareholders

Company Information

Catena Media plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Catena Media plc
  • Ticker: CTM
  • Exchange: OM
  • Founded: 2008
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: kr2.055b
  • Shares outstanding: 58.61m
  • Website: https://www.catenamedia.com

Number of Employees


Location

  • Catena Media plc
  • Quantum Place
  • Triq ix-Xatt
  • Gzira
  • GZR 1052
  • Malta

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTMOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKFeb 2016
97CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2016
0RUELSE (London Stock Exchange)YesOrdinary SharesGBSEKFeb 2016
CTTM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2016
CTMSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKFeb 2016

Biography

Catena Media plc, together with its subsidiaries, owns and develops Websites serving customers in the iGaming and finance markets. It also attracts consumers through online marketing techniques, such as search engine optimization and pay-per-click. The company operates in Sweden, the United Kingdom, Germany, Italy, the United States, Japan, and Australia. Catena Media plc was founded in 2008 and is headquartered in Gzira, Malta. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:27
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.