NYSE:MDP

Stock Analysis Report

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Market Cap

US$2.0b

Last Updated

2021/08/01 22:26 UTC

Data Sources

Company Financials +

Executive Summary

Meredith Corporation operates as a diversified media company primarily in the United States. More Details


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MDP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MDP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

MDP

0.7%

US Media

-0.4%

US Market


1 Year Return

203.9%

MDP

37.9%

US Media

35.9%

US Market

Return vs Industry: MDP exceeded the US Media industry which returned 38.2% over the past year.

Return vs Market: MDP exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

MDPIndustryMarket
7 Day3.3%0.7%-0.4%
30 Day4.3%-0.9%-0.3%
90 Day23.9%2.7%3.1%
1 Year203.9%203.9%39.5%37.9%38.0%35.9%
3 Year-10.7%-18.6%68.9%61.8%62.9%52.7%
5 Year-2.8%-17.7%82.5%69.4%121.3%96.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDP ($43.64) is trading below our estimate of fair value ($83.85)

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


Price To Earnings Ratio

PE vs Industry: MDP is poor value based on its PE Ratio (25x) compared to the US Media industry average (14x).

PE vs Market: MDP is poor value based on its PE Ratio (25x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MDP is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: MDP is overvalued based on its PB Ratio (2.9x) compared to the US Media industry average (2x).


Future Growth

How is Meredith forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDP's forecast earnings growth (7.9% per year) is above the savings rate (2%).

Earnings vs Market: MDP's earnings (7.9% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: MDP's revenue (2.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MDP's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDP's Return on Equity is forecast to be high in 3 years time (39.7%)


Past Performance

How has Meredith performed over the past 5 years?

-56.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDP has high quality earnings.

Growing Profit Margin: MDP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MDP's earnings have declined by 56.1% per year over the past 5 years.

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

Earnings vs Industry: MDP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (56.9%).


Return on Equity

High ROE: Whilst MDP's Return on Equity (39.79%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Meredith's financial position?


Financial Position Analysis

Short Term Liabilities: MDP's short term assets ($1.0B) exceed its short term liabilities ($746.6M).

Long Term Liabilities: MDP's short term assets ($1.0B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: MDP's debt to equity ratio (395.5%) is considered high.

Reducing Debt: MDP's debt to equity ratio has increased from 69.8% to 395.5% over the past 5 years.

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

Interest Coverage: MDP's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

What is Meredith current dividend yield, its reliability and sustainability?

0.46%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MDP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDP's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MDP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MDP'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?

3.5yrs

Average management tenure


CEO

Tom Harty (58 yo)

3.42yrs

Tenure

US$7,204,149

Compensation

Mr. Thomas H. Harty, also known as Tom, has been the Chief Executive Officer of Meredith Corporation since February 1, 2018 and serves as its President since August 11, 2016. He has been the Chairman of th...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD7.20M) is above average for companies of similar size in the US market ($USD3.71M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MDP's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: MDP's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Meredith Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meredith Corporation
  • Ticker: MDP
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$1.974b
  • Shares outstanding: 45.66m
  • Website: https://www.meredith.com

Number of Employees


Location

  • Meredith Corporation
  • 1716 and 1615 Locust Street
  • Des Moines
  • Iowa
  • 50309-3023
  • United States

Listings


Biography

Meredith Corporation operates as a diversified media company primarily in the United States. It operates in two segments, National Media and Local Media. The National Media segment offers national consumer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:26
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.