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

Fundamentals

Solid track record with adequate balance sheet.


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


Market Performance


7 Day Return

8.5%

CETV

0.3%

US Media

0.07%

US Market


1 Year Return

39.9%

CETV

20.8%

US Media

8.9%

US Market

Return vs Industry: CETV exceeded the US Media industry which returned 20.8% over the past year.

Return vs Market: CETV exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CETVIndustryMarket
7 Day8.5%0.3%0.07%
30 Day8.9%0.2%-0.3%
90 Day6.1%-0.6%-1.6%
1 Year39.9%39.9%22.3%20.8%11.3%8.9%
3 Year111.7%111.7%30.6%25.3%46.3%36.8%
5 Year108.1%108.1%41.0%29.7%62.1%44.3%

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?

47.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CETV ($4.87) is trading below our estimate of fair value ($9.35)

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 (14.7x) compared to the Media industry average (13x).

PE vs Market: CETV is good value based on its PE Ratio (14.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CETV is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CETV is overvalued based on its PB Ratio (4.7x) compared to the US Media industry average (1.3x).


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?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CETV's forecast earnings growth (14.4% per year) is above the savings rate (2.7%).

Earnings vs Market: CETV's earnings (14.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CETV's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CETV's revenue (3.6% 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 (19.1%).


Next Steps

Past Performance

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

59.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CETV has become profitable over the past 5 years, growing earnings by 59.9% per year.

Accelerating Growth: CETV's earnings growth over the past year (349.5%) exceeds its 5-year average (59.9% per year).

Earnings vs Industry: CETV earnings growth over the past year (349.5%) exceeded the Media industry -35.1%.


Return on Equity

High ROE: Whilst CETV's Return on Equity (23.45%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: CETV has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: CETV has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Central European Media Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: CETV's short term assets ($279.6M) exceeds its short term liabilities ($145.3M)

Long Term Liabilities: CETV's short term assets (279.6M) do not cover its long term liabilities (659.3M)


Debt to Equity History and Analysis

Debt Level: CETV's debt to equity ratio (107.1%) is considered high

Reducing Debt: CETV's debt to equity ratio has reduced from 129% to 107.1% over the past 5 years.

Debt Coverage: CETV's debt is well covered by operating cash flow (31.6%).

Interest Coverage: CETV's interest payments on its debt are well covered by EBIT (6.1x coverage).


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 0.5x debt).


Next Steps

Dividend

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

3.70%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Central European Media Enterprises's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Christoph Mainusch (56yo)

6.1yrs

Tenure

US$4,789,367

Compensation

Mr. Christoph Mainusch has been the Co-Chief Executive Officer of Central European Media Enterprises Ltd. since September 16, 2013. Mr. Mainusch serves as Chief Executive Officer and Executive Director of  ...


CEO Compensation Analysis

Compensation vs. Market: Christoph's total compensation ($USD4.79M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

6.1yrs

Average Tenure

51yo

Average Age

Experienced Management: CETV's management team is seasoned and experienced (6.1 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: CETV's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Daniel Penn (53yo)

    Executive VP

    • Tenure: 15.8yrs
    • Compensation: US$2.56m
  • Christoph Mainusch (56yo)

    Co-Chief Executive Officer

    • Tenure: 6.1yrs
    • Compensation: US$4.79m
  • Sergey Demyanchuk

    Head of Television for Studio 1+1

    • Tenure: 11.2yrs
  • Dave Sturgeon (49yo)

    Executive VP

    • Tenure: 6yrs
    • Compensation: US$2.47m
  • Michael Del Nin (48yo)

    Co-Chief Executive Officer

    • Tenure: 6.1yrs
    • Compensation: US$4.83m
  • Mark Kobal

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Alfred Langer (69yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$183.75k
  • John Billock (69yo)

    Non-Executive Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$212.50k
  • Kelli Turner (48yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$190.00k
  • Christoph Mainusch (56yo)

    Co-Chief Executive Officer

    • Tenure: 6.1yrs
    • Compensation: US$4.79m
  • Parm Sandhu (51yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$196.25k
  • Peter Knag

    Director

    • Tenure: 0.08yrs
  • Trey Turner (44yo)

    Director

    • Tenure: 0.8yrs

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$1.235b
  • 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
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 31 television cha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:45
End of Day Share Price2019/10/22 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.