NYSE:MDP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

MDP

-3.7%

US Media

-5.3%

US Market


1 Year Return

-71.1%

MDP

-3.2%

US Media

10.4%

US Market

Return vs Industry: MDP underperformed the US Media industry which returned -3.7% over the past year.

Return vs Market: MDP underperformed the US Market which returned 12% over the past year.


Shareholder returns

MDPIndustryMarket
7 Day-11.8%-3.7%-5.3%
30 Day-14.7%-6.0%-2.1%
90 Day-23.4%-0.4%1.7%
1 Year-70.0%-71.1%-1.7%-3.2%12.9%10.4%
3 Year-75.7%-78.5%19.9%14.8%34.3%25.4%
5 Year-71.5%-76.6%37.9%27.9%73.7%54.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDP ($11) is trading below our estimate of fair value ($61.93)

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


Price To Earnings Ratio

PE vs Industry: MDP is unprofitable, so we can't compare its PE Ratio to the US Media industry average.

PE vs Market: MDP 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 MDP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDP's PB Ratio (1.3x) is in line with the US Media industry average.


Next Steps

Future Growth

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

94.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: MDP's revenue (1.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MDP'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: Insufficient data to determine if MDP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Meredith performed over the past 5 years?

-48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDP is currently unprofitable.

Growing Profit Margin: MDP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDP is unprofitable, and losses have increased over the past 5 years at a rate of 48.7% per year.

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

Earnings vs Industry: MDP is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-18.6%).


Return on Equity

High ROE: MDP has a negative Return on Equity (-53.84%), as it is currently unprofitable.


Next Steps

Financial Health

How is Meredith's financial position?


Financial Position Analysis

Short Term Liabilities: MDP's short term assets ($884.8M) exceed its short term liabilities ($731.7M).

Long Term Liabilities: MDP's short term assets ($884.8M) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: MDP's debt to equity ratio (769.2%) is considered high.

Reducing Debt: MDP's debt to equity ratio has increased from 83.9% to 769.2% over the past 5 years.

Debt Coverage: MDP's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: MDP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

10.82%

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?

2.8yrs

Average management tenure


CEO

Tom Harty (57 yo)

2.58yrs

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 as its President since August 11, 2016. Mr. Harty served as Chief Operating O ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD7.20M) is above average for companies of similar size in the US market ($USD2.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Harty
President2.58yrsUS$7.20m0.19%
$ 1.3m
Jason Frierott
Chief Financial Officer0.58yrUS$2.10mno data
John Zieser
Chief Development Officer21.75yrsUS$4.27m0.021%
$ 138.5k
Patrick McCreery
President of Local Media Group2.75yrsUS$2.39m0.032%
$ 215.6k
Mike Lovell
Director of Investor Relations6.75yrsno datano data
Art Slusark
Chief Communications Officerno datano datano data
Michael Brownstein
Chief Revenue Officer and Executive VP of Corporate Sales & Marketingno datano datano data
Nancy Weber
Executive Vice President of Marketing & Integrated Communications0.83yrno datano data
Dina Nathanson
Senior Vice President of Human Resources2.83yrsno datano data
Matthew Petersen
Senior Vice President of The Foundry & Strategic Contentno datano datano data
Doug Lowe
Executive Vice President of Broadcast Group20.75yrsno datano data
Bill Murphy
Senior Vice President16.25yrsno datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: MDP's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Harty
President2.58yrsUS$7.20m0.19%
$ 1.3m
Gregory Coleman
Independent Director0.17yrno data0.053%
$ 356.5k
Stephen Lacy
Non-Executive Chairman10.58yrsUS$382.26k0.29%
$ 2.0m
Elizabeth Tallett
Independent Director12.17yrsUS$271.99k0.041%
$ 273.1k
Beth Kaplan
Independent Director3.75yrsUS$249.64k0.011%
$ 73.2k
D. Mell Frazier
Independent Vice Chairman of the Board10.58yrsUS$269.84k5.65%
$ 38.0m
Donald Berg
Independent Director7.83yrsUS$274.84k0.086%
$ 582.1k
Paula Kerger
Independent Director1.83yrsUS$253.08k0.0094%
$ 63.5k
Donald Baer
Lead Independent Director0.58yrUS$204.84k0.020%
$ 133.9k
Christopher Roberts
Independent Director1.58yrsUS$244.35k0.0068%
$ 46.0k

3.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: MDP's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

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$673.113m
  • Shares outstanding: 45.47m
  • Website: https://www.meredith.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDPNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
MEZDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0K0JLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
MDPE.BOTCPK (Pink Sheets LLC)Class B SharesUSUSDOct 2003

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 Analysis2020/10/31 00:43
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.