Nielsen Holdings (NYSE:NLSN) - Share price, News & Analysis

NLSN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

NLSN Stock Overview

Nielsen Holdings plc, together with its subsidiaries, operates as a measurement and data analytics company worldwide.

Rewards

Trading at 58.7% below our estimate of its fair value

Earnings are forecast to grow 9.06% per year

Earnings grew by 126.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Nielsen Holdings Competitors

CoStar Group

NasdaqGS:CSGP

US$22.8b

TransUnion

NYSE:TRU

US$15.7b

ICF International

NasdaqGS:ICFI

US$1.8b

Meta Platforms

NasdaqGS:FB

US$490.6b

Price History & Performance

Summary of all time highs, changes and price drops for Nielsen Holdings
Historical stock prices
Current Share Price	US$25.54
52 Week High	US$27.79
52 Week Low	US$16.02
Beta	1.41
1 Month Change	-4.77%
3 Month Change	53.76%
1 Year Change	-5.27%
3 Year Change	12.86%
5 Year Change	-34.39%
Change since IPO	2.16%

Recent News & Updates

Apr 11

Merger Arbitrage Mondays - WindAcre Doubles Its Stake In Nielsen Holdings

WindAcre opposes Nielsen Holdings' agreement to be taken private and doubles its stake in the company. Change Healthcare and UnitedHealth Group extend their merger agreement. Change Healthcare to pay a special cash dividend to its shareholders. Spirit Airlines receives an unsolicited proposal from JetBlue Airways.

Shareholder Returns

	NLSN	US Professional Services	US Market
7D	-1.2%	-2.2%	-4.0%
1Y	-5.3%	-17.2%	-13.2%

Return vs Industry: NLSN exceeded the US Professional Services industry which returned -17.3% over the past year.

Return vs Market: NLSN exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is NLSN's price volatile compared to industry and market?
NLSN volatility
NLSN Average Weekly Movement	11.3%
Professional Services Industry Average Movement	6.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NLSN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: NLSN's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1923	14,500	David Kenny	https://www.nielsen.com

Nielsen Holdings plc, together with its subsidiaries, operates as a measurement and data analytics company worldwide. The company provides viewership and listening data, and analytics principally to media publishers and marketers, and advertising agencies for television, computer, mobile, CTV, digital, and listening platforms. It also offers television audience measurement services; digital audience measurement services; video advertising services; and independent measurement and consumer research primarily servicing radio, advertisers, and advertising agencies in the audio industry.

Nielsen Holdings Fundamentals Summary

How do Nielsen Holdings's earnings and revenue compare to its market cap?
NLSN fundamental statistics
Market Cap	US$9.19b
Earnings (TTM)	US$546.00m
Revenue (TTM)	US$3.51b

16.8x

P/E Ratio

2.6x

P/S Ratio

Is NLSN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NLSN income statement (TTM)
Revenue	US$3.51b
Cost of Revenue	US$1.25b
Gross Profit	US$2.27b
Other Expenses	US$1.72b
Earnings	US$546.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.52
Gross Margin	64.46%
Net Profit Margin	15.54%
Debt/Equity Ratio	154.3%

How did NLSN perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

16%

Payout Ratio

Does NLSN pay a reliable dividends?

See NLSN dividend history and benchmarks

When do you need to buy NLSN by to receive an upcoming dividend?
Nielsen Holdings dividend dates
Ex Dividend Date	Jun 01 2022
Dividend Pay Date	Jun 16 2022
Days until Ex dividend	7 days
Days until Dividend pay date	22 days

Does NLSN pay a reliable dividends?

See NLSN dividend history and benchmarks

Valuation

Is Nielsen Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NLSN ($25.54) is trading below our estimate of fair value ($61.84)

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

Price To Earnings Ratio

PE vs Industry: NLSN's Price-To-Earnings Ratio (16.8x) is in line with the US Professional Services industry average.

PE vs Market: NLSN is poor value based on its Price-To-Earnings Ratio (16.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: NLSN is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: NLSN's Price-To-Book Ratio (2.7x) is in line with the US Professional Services industry average.

Future Growth

How is Nielsen Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLSN's forecast earnings growth (9.1% per year) is above the savings rate (1.9%).

Earnings vs Market: NLSN's earnings (9.1% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: NLSN's revenue (4.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: NLSN's revenue (4.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NLSN's Return on Equity is forecast to be low in 3 years time (18.9%).

Past Performance

How has Nielsen Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NLSN has high quality earnings.

Growing Profit Margin: NLSN's current net profit margins (15.5%) are higher than last year (7.1%).

Past Earnings Growth Analysis

Earnings Trend: NLSN's earnings have declined by 1.7% per year over the past 5 years.

Accelerating Growth: NLSN's earnings growth over the past year (126.6%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: NLSN earnings growth over the past year (126.6%) exceeded the Professional Services industry 32.6%.

Return on Equity

High ROE: NLSN's Return on Equity (15.6%) is considered low.

Financial Health

How is Nielsen Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NLSN's short term assets ($1.3B) exceed its short term liabilities ($655.0M).

Long Term Liabilities: NLSN's short term assets ($1.3B) do not cover its long term liabilities ($6.6B).

Debt to Equity History and Analysis

Debt Level: NLSN's net debt to equity ratio (140.9%) is considered high.

Reducing Debt: NLSN's debt to equity ratio has reduced from 189.2% to 154.3% over the past 5 years.

Debt Coverage: NLSN's debt is not well covered by operating cash flow (16.8%).

Interest Coverage: NLSN's interest payments on its debt are well covered by EBIT (3.1x coverage).

Balance Sheet

Dividend

What is Nielsen Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.94%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NLSN's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NLSN's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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

Growing Dividend: NLSN has only been paying a dividend for 9 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (15.8%), NLSN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.5%), NLSN's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

David Kenny (59 yo)

3.42yrs

Tenure

US$13,798,346

Compensation

Mr. David W. Kenny is the Trustee of The Paley Center for Media. He has been an Independent Director at Best Buy Co., Inc. since September 27, 2013. Mr. Kenny has been Chief Executive Officer and Director...

CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD13.80M) is above average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: NLSN's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: NLSN's board of directors are considered experienced (3.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31