NYSE:FENG

Stock Analysis Report

Executive Summary

Phoenix New Media Limited provides content on an integrated Internet platform in the People’s Republic of China.

Rewards

Trading at 76.9% below its fair value

Revenue is forecast to grow 9.69% per year

Became profitable this year

Risk Analysis

Earnings have declined by -21.08% per year over past 5 years

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap ($86M)



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.6%

FENG

-1.9%

US Interactive Media and Services

-2.8%

US Market


1 Year Return

-73.5%

FENG

-14.8%

US Interactive Media and Services

-15.9%

US Market

Return vs Industry: FENG underperformed the US Interactive Media and Services industry which returned -14.8% over the past year.

Return vs Market: FENG underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

FENGIndustryMarket
7 Day-5.6%-1.9%-2.8%
30 Day-33.8%-16.7%-18.8%
90 Day-40.7%-24.5%-24.0%
1 Year-23.3%-73.5%-14.8%-14.8%-14.2%-15.9%
3 Year-3.6%-66.8%16.1%15.9%9.9%2.8%
5 Year-46.4%-81.5%64.5%64.1%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Phoenix New 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: FENG ($1.18) is trading below our estimate of fair value ($5.1)

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


Price To Earnings Ratio

PE vs Industry: FENG is good value based on its PE Ratio (0.8x) compared to the Interactive Media and Services industry average (22.9x).

PE vs Market: FENG is good value based on its PE Ratio (0.8x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FENG is good value based on its PB Ratio (0.2x) compared to the US Interactive Media and Services industry average (1.8x).


Next Steps

Future Growth

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

9.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FENG's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if FENG's earnings are forecast to grow faster than the US market

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

Revenue vs Market: FENG's revenue (9.7% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: FENG's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FENG's Return on Equity is forecast to be low in 3 years time (1%).


Next Steps

Past Performance

How has Phoenix New Media performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FENG has a large one-off gain of CN¥1.1B impacting its December 31 2019 financial results.

Growing Profit Margin: FENG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FENG's earnings have declined by -21.1% per year over the past 5 years.

Accelerating Growth: FENG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FENG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (5.5%).


Return on Equity

High ROE: FENG's Return on Equity (20.4%) is considered high.


Next Steps

Financial Health

How is Phoenix New Media's financial position?


Financial Position Analysis

Short Term Liabilities: FENG's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: FENG's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥275.4M).


Debt to Equity History and Analysis

Debt Level: FENG is debt free.

Reducing Debt: FENG had no debt 5 years ago.

Debt Coverage: FENG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FENG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if FENG's debt is covered by short term assets.


Next Steps

Dividend

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

29.04%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if FENG'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 FENG'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?

1.8yrs

Average management tenure


CEO

Shuang Liu (50yo)

12.42s

Tenure

Mr. Shuang Liu has been the Chief Operating Officer of Phoenix Satellite Television Holdings Ltd. since February 18, 2014. Mr. Liu is responsible for strategizing, overseeing and allocating resources to im ...


Leadership Team

NamePositionTenureCompensationOwnership
Shuang Liu
CEO & Director12.42yrsno data2.86% CN¥2.5m
Xiaojing Lu
Chief Financial Officer0.42yrno datano data
Qing Liu
Investor Relations Managerno datano datano data
Ming Zou
VP & Chief Editorno datano datano data
Xiaoyan Chi
Senior VP & Directorno datano datano data
Chun Liu
Senior Vice President1.5yrsno datano data

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: FENG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shuang Liu
CEO & Director12.42yrsno data2.86% CN¥2.5m
Xiaoyan Chi
Senior VP & Directorno datano datano data
Carson Wen
Independent Director8.92yrsno datano data
Keung Chui
Chairman of the Board of Directors12.42yrsno datano data
Ka Keung Yeung
Director8.92yrsno datano data
Daguang He
Director11.25yrsno datano data
Jerry Zhang
Independent Director8.92yrsno datano data

10.1yrs

Average Tenure

60yo

Average Age

Experienced Board: FENG's board of directors are seasoned and experienced ( 10.1 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

Phoenix New Media Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Phoenix New Media Limited
  • Ticker: FENG
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$85.893m
  • Shares outstanding: 72.79m
  • Website: https://www.ifeng.com

Number of Employees


Location

  • Phoenix New Media Limited
  • Sinolight Plaza
  • Floor 16
  • Beijing
  • 100102
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FENGNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDMay 2011

Biography

Phoenix New Media Limited provides content on an integrated Internet platform in the People’s Republic of China. The company operates in two segments, Net Advertising Services and Paid Services. It offers content and services through three channels, including PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its Website, ifeng.com, provides approximately 40 interest-based verticals, such as news, finance, fashion, entertainment, automobiles, live broadcasting, we-media, military affairs, sports, history, and PC digital reading; offers interactive services, including comments posting and user surveys; and operates play.ifeng.com, a third-party developed Web-based game platform and v.ifeng.com, a free online video on demand vertical. Its mobile channel consists of ifeng News, a news application that provides news feeds and other contents in the form of text, image, live broadcasting, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet Website; and Fanyue Novel and Tadu digital reading applications that provide fee-based Internet literatures. In addition, the company offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services comprising SMS-based, music, IVR-based, MMS-based, and animation services. The company was incorporated in 2007 and is based in Beijing, the People’s Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I) Holding Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 07:22
End of Day Share Price2020/04/03 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.