NasdaqGS:CETV

Stock Analysis Report

Central European Media Enterprises

Executive Summary

Central European Media Enterprises Ltd. operates as a media and entertainment company in Bulgaria, the Czech Republic, Romania, the Slovak Republic, and Slovenia.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

15.2%

CETV

9.1%

US Media

12.5%

US Market


1 Year Return

-20.3%

CETV

-14.9%

US Media

-12.7%

US Market

Return vs Industry: CETV underperformed the US Media industry which returned -14.9% over the past year.

Return vs Market: CETV underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CETVIndustryMarket
7 Day15.2%9.1%12.5%
30 Day-28.2%-18.1%-14.7%
90 Day-29.8%-25.4%-21.5%
1 Year-20.3%-20.3%-13.7%-14.9%-10.9%-12.7%
3 Year6.0%6.0%-13.7%-17.2%12.6%5.4%
5 Year18.7%18.7%0.1%-7.6%31.9%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Central European Media Enterprises 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: CETV ($3.18) is trading below our estimate of fair value ($9.28)

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


Price To Earnings Ratio

PE vs Industry: CETV is poor value based on its PE Ratio (10x) compared to the Media industry average (10x).

PE vs Market: CETV is good value based on its PE Ratio (10x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CETV is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CETV is overvalued based on its PB Ratio (2.4x) compared to the US Media industry average (0.9x).


Next Steps

Future Growth

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

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CETV's forecast earnings growth (27.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CETV's earnings (27.8% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CETV's revenue (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CETV's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CETV's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Central European Media Enterprises performed over the past 5 years?

62.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CETV has high quality earnings.

Growing Profit Margin: CETV's current net profit margins (12.1%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: CETV has become profitable over the past 5 years, growing earnings by 62.2% per year.

Accelerating Growth: CETV's earnings growth over the past year (96.1%) exceeds its 5-year average (62.2% per year).

Earnings vs Industry: CETV earnings growth over the past year (96.1%) exceeded the Media industry 6%.


Return on Equity

High ROE: CETV's Return on Equity (19.5%) is considered low.


Next Steps

Financial Health

How is Central European Media Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: CETV's short term assets ($350.0M) exceed its short term liabilities ($156.0M).

Long Term Liabilities: CETV's short term assets ($350.0M) do not cover its long term liabilities ($680.3M).


Debt to Equity History and Analysis

Debt Level: CETV's debt to equity ratio (96.6%) is considered high.

Reducing Debt: CETV's debt to equity ratio has reduced from 176.9% to 96.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CETV's debt is not covered by short term assets (assets are 0.6x 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: CETV is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CETV is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Central European Media Enterprises's current dividend yield, its reliability and sustainability?

6.45%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CETV'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 CETV's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Michael Del Nin (48yo)

6.5s

Tenure

US$4,833,496

Compensation

Mr. Michael Del Nin has been Co-Chief Executive Officer of Central European Media Enterprises Ltd since September 16, 2013. From October 2009 to September 16, 2013 he was a member of Central European Media ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD4.83M) is above average for companies of similar size in the US market ($USD3.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Del Nin
Co-Chief Executive Officer6.5yrsUS$4.83m0.38% $3.1m
Christoph Mainusch
Co-Chief Executive Officer6.5yrsUS$4.79m0.38% $3.1m
David Sturgeon
Executive VP6.42yrsUS$2.47m0.19% $1.5m
Daniel Penn
Executive VP16.17yrsUS$2.56m0.17% $1.3m
Mark Kobal
Head of Investor Relationsno datano datano data
Sergey Demyanchuk
Head of Television for Studio 1+111.58yrsno datano data

6.5yrs

Average Tenure

51yo

Average Age

Experienced Management: CETV's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alfred Langer
Independent Director20.17yrsUS$183.75k0.077% $624.3k
John Billock
Independent Non-Executive Chairman of the Board5.92yrsUS$212.50k0.072% $577.5k
Kelli Turner
Independent Director8.83yrsUS$190.00k0.077% $624.9k
Parminder Sandhu
Independent Director10.5yrsUS$196.25k0.12% $997.8k
Peter Knag
Director0.50yrno datano data
Trey Turner
Director1.25yrsno datano data

7.4yrs

Average Tenure

51yo

Average Age

Experienced Board: CETV's board of directors are considered experienced (7.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

Company Information

Central European Media Enterprises Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central European Media Enterprises Ltd.
  • Ticker: CETV
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$806.470m
  • Shares outstanding: 253.61m
  • Website: https://www.cme.net

Number of Employees


Location

  • Central European Media Enterprises Ltd.
  • O'Hara House
  • 3 Bermudiana Road
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CETVNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDOct 1994
CMEDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 1994
CETVSEP (The Stock Exchange Prague Co. Ltd.)YesClass A Common StockCZCZKOct 1994
0K8LLSE (London Stock Exchange)YesClass A Common StockGBCZKOct 1994
CETVKBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Common StockGBCZKOct 1994

Biography

Central European Media Enterprises Ltd. operates as a media and entertainment company in Bulgaria, the Czech Republic, Romania, the Slovak Republic, and Slovenia. It broadcasts a total of 30 television channels, including general entertainment and other channels. The company also develops and produces content for television channels; provides television content through various platforms, including Voyo, a subscription video-on-demand service; and advertising supported catch-up services on its Websites, as well as operates a portfolio of digital media products that complements its news programming and other television station-related brands. Central European Media Enterprises Ltd. was founded in 1994 and is based in Hamilton, Bermuda. Central European Media Enterprises Ltd. is a subsidiary of Warner Media, LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:52
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.