NYSE:NLSN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Nielsen Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NLSN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.8%

NLSN

-6.6%

US Professional Services

-7.6%

US Market


1 Year Return

-22.6%

NLSN

18.9%

US Professional Services

10.2%

US Market

Return vs Industry: NLSN underperformed the US Professional Services industry which returned 18.9% over the past year.

Return vs Market: NLSN underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

NLSNIndustryMarket
7 Day-8.8%-6.6%-7.6%
30 Day-2.6%-3.4%-4.5%
90 Day3.8%3.9%-0.6%
1 Year-18.7%-22.6%19.8%18.9%12.5%10.2%
3 Year-49.0%-55.0%49.5%45.5%37.1%28.3%
5 Year-46.1%-54.7%70.1%62.1%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NLSN ($20.29) is trading below our estimate of fair value ($29.08)

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


Price To Earnings Ratio

PE vs Industry: NLSN is unprofitable, so we can't compare its PE Ratio to the Professional Services industry average.

PE vs Market: NLSN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NLSN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NLSN is overvalued based on its PB Ratio (3.4x) compared to the US Professional Services industry average (2.6x).


Next Steps

Future Growth

How is Nielsen Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

52.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLSN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: NLSN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NLSN's is expected to become profitable in the next 3 years.

Revenue vs Market: NLSN's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NLSN's revenue (1.8% 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 high in 3 years time (27.2%)


Next Steps

Past Performance

How has Nielsen Holdings performed over the past 5 years?

-44.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLSN is currently unprofitable.

Growing Profit Margin: NLSN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NLSN is unprofitable, and losses have increased over the past 5 years at a rate of -44.6% per year.

Accelerating Growth: Unable to compare NLSN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NLSN is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (20.1%).


Return on Equity

High ROE: NLSN has a negative Return on Equity (-52.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nielsen Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NLSN's short term assets ($1.9B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: NLSN's short term assets ($1.9B) do not cover its long term liabilities ($10.2B).


Debt to Equity History and Analysis

Debt Level: NLSN's debt to equity ratio (356.1%) is considered high.

Reducing Debt: NLSN's debt to equity ratio has increased from 116.4% to 356.1% over the past 5 years.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NLSN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: NLSN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.18%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nielsen Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%4.0%industryaverage1.0%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: NLSN's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: NLSN's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: NLSN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NLSN's dividends in 3 years are forecast to be thoroughly covered by earnings (12.4% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

David Kenny (57yo)

1.2yrs

Tenure

US$19,804,677

Compensation

Mr. David W. Kenny has been an Independent Director at Best Buy Co., Inc. since September 27, 2013. Mr. Kenny had been the Chief Executive Officer of The Weather Channel Inc. of Weather Underground, Inc. s ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD19.80M) is above average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Attwood
Executive Chairman4.1yrsUS$390.00k0.0056% $405.7k
David Kenny
CEO, Chief Diversity Officer & Director1.2yrsUS$19.80m0.17% $12.2m
John Tavolieri
Chief Product & Technology Officer of Nielsen Global Connect1.1yrsUS$4.38mno data
David Rawlinson
CEO of Global Connect Business & Director3yrsUS$240.00kno data
Linda Zukauckas
Chief Financial Officer0yrsno datano data
Christopher Taft
Controller & Chief Accounting Officer0.2yrsno data0.0050% $363.9k
Sara Gubins
Senior Vice President of Investor Relations0yrsno datano data
George Callard
Chief Legal & Corporate Affairs Officer1.1yrsno datano data
Emily Epstein
Senior VP0yrsno datano data
Laura Nelson
Chief Communications Officer5.9yrsno datano data

1.1yrs

Average Tenure

55.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
James Attwood
Executive Chairman4.1yrsUS$390.00k0.0056% $405.7k
David Kenny
CEO, Chief Diversity Officer & Director1.2yrsUS$19.80m0.17% $12.2m
David Rawlinson
CEO of Global Connect Business & Director3yrsUS$240.00kno data
Mick Den Boogert
Vice Chairman of Stichting VNU and Secretary of Stichting VNU0yrsno datano data
Javier Garcia Teruel Herroz
Director9.5yrsUS$240.00k0.0025% $177.6k
Karen Hoguet
Independent Director9.3yrsUS$265.00k0.0011% $80.9k
Peter Kalff
Chairman of Stichting VNU0yrsno datano data
Robert Pozen
Independent Director9.8yrsUS$255.00k0.056% $4.0m
Harish Manwani
Independent Director5.1yrsUS$260.00kno data
P. Van Dun
Chairman of VNU BV0yrsUS$8.75kno data

5.1yrs

Average Tenure

67yo

Average Age

Experienced Board: NLSN's board of directors are considered experienced (5.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nielsen Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nielsen Holdings plc
  • Ticker: NLSN
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$7.219b
  • Shares outstanding: 355.81m
  • Website: https://www.nielsen.com

Number of Employees


Location

  • Nielsen Holdings plc
  • 85 Broad Street
  • New York
  • New York
  • 10004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLSNNYSE (New York Stock Exchange)YesNew Common StockUSUSDJan 2011
NHLDB (Deutsche Boerse AG)YesNew Common StockDEEURJan 2011
0XI7LSE (London Stock Exchange)YesNew Common StockGBUSDJan 2011
NLSN NBMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNJan 2011
N1LS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Nielsen Holdings plc, together with its subsidiaries, operates as a measurement and data analytics company. It operates in two segments, Buy and Watch. The Buy segment provides retail transactional measurement data, consumer behavior information, and analytics primarily to businesses in the consumer packaged goods industry. This segment offers data on retail measurement services, such as market share, competitive sales volumes, and insights into activities, such as distribution, pricing, merchandising, and promotion; consumer panel measurement, which offers insight into shopper behavior comprising trial and repeat purchase for new products, brand or retailer loyalty, and customer segmentation; and consumer intelligence and analytical services that help clients in taking business decisions in product development and marketing cycles. The Watch segment provides viewership and listening data, and analytics principally to the media and advertising industries covering television, radio, print, online, digital, mobile viewing, and listening platforms. This segment offers television audience measurement services; audio audience measurement services; digital audience measurement services, such as digital media and market research, audience analytics, and social media measurement; mobile measurement services comprising measurement and consumer research for telecom and media companies; and total audience measurement services. Nielsen Holdings plc provides media and marketing information, analytics, and manufacturer and retailer expertise about what and where consumers buy, read, watch, and listen. The company has a strategic partnership with Quotient Technology to create new industry omni-channel data sets. The company was formerly known as Nielsen N.V. and changed its name to Nielsen Holdings plc in August 2015. Nielsen Holdings plc was founded in 1923 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:10
End of Day Share Price2020/02/26 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.