OTCPK:NZME.F

Stock Analysis Report

Executive Summary

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • NZME's last earnings update was 184 days ago.
  • NZME is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NZME.F

3.0%

US Media

2.9%

US Market


1 Year Return

n/a

OTCPK:NZME.F

15.7%

US Media

0.2%

US Market

No trading data on NZME.F.

No trading data on NZME.F.


Share holder returns

NZME.FIndustryMarket
7 Day0%3.0%2.9%
30 Dayn/a-3.5%-2.3%
90 Dayn/a1.3%3.1%
1 Yearn/a17.2%15.7%2.4%0.2%
3 Yearn/a25.5%20.3%41.7%32.4%
5 Yearn/a31.8%21.4%55.1%37.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is NZME undervalued based on future cash flows and its price relative to the stock market?

8.85x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NZME's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NZME's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

NZME is good value based on earnings compared to the US Media industry average.

NZME is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

NZME is poor value based on expected growth next year.


Price Based on Value of Assets

NZME is good value based on assets compared to the US Media industry average.


Next Steps

Future Growth

How is NZME expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NZME's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

NZME's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

NZME's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

NZME's earnings growth is positive but not above the United States of America market average.

NZME's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NZME is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has NZME performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NZME's year on year earnings growth rate has been positive over the past 5 years.

NZME's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NZME's 1-year earnings growth is negative, it can't be compared to the US Media industry average.


Return on Equity

NZME has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NZME used its assets less efficiently than the US Media industry average last year based on Return on Assets.


Return on Capital Employed

NZME has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NZME's financial position?


Financial Position Analysis

NZME is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NZME's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NZME's level of debt (38.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (26.2% vs 38.4% today).

Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is NZME's current dividend yield, its reliability and sustainability?

4.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate NZME's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NZME's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NZME has not reported any payouts.

Unable to verify if NZME's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NZME has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

What is the CEO of NZME's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Michael Boggs 0

3.3yrs

Tenure

NZ$1,326,872

Compensation

Mr. Michael Raymond Boggs, CA had been the Chief Executive Officer of NZME Limited at HT&E Limited (Formerly known as APN News & Media Limited) since April 8, 2016 until June 29, 2016. Mr. Boggs served as  ...


CEO Compensation Analysis

Michael's remuneration is higher than average for companies of similar size in United States of America.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.2yrs

Average Tenure

The average tenure for the NZME management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

The average tenure for the NZME board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyNZ$649,47702 Jul 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares1,994,426
Max PriceNZ$0.34
BuyNZ$36,65303 Jun 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares106,185
Max PriceNZ$0.35
BuyNZ$3,402,41101 May 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares9,479,951
Max PriceNZ$0.36
BuyNZ$1,599,59830 Oct 18
Auscap Asset Management Limited
EntityCompany
Shares2,722,980
Max PriceNZ$0.59
SellNZ$6,07621 Sep 18
UBS Asset Management
EntityCompany
Shares13,788
Max PriceNZ$0.45
SellNZ$148,24607 Sep 18
UBS Asset Management
EntityCompany
Shares293,105
Max PriceNZ$0.51
BuyNZ$1,568,20405 Sep 18
Renaissance Smaller Companies Pty Ltd
EntityCompany
Shares3,653,000
Max PriceNZ$0.43
SellNZ$2,262,35405 Sep 18
Orbis Investment Management Limited
EntityCompany
Shares5,300,000
Max PriceNZ$0.43
SellNZ$2,918,43104 Sep 18
Orbis Investment Management Limited
EntityCompany
Shares6,592,506
Max PriceNZ$0.49

Ownership Breakdown


Management Team

  • Michael Boggs

    Chief Executive Officer

    • Tenure: 3.3yrs
    • Compensation: NZ$1.33m
  • Laura Maxwell-Hansen

    Chief Digital Officer

    • Tenure: 0.0yrs
  • David Mackrell

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Shayne Currie

    Managing Editor

    • Tenure: 0.0yrs
  • Allison Whitney

    General Counsel & Company Secretary

    • Tenure: 0.0yrs
  • Matt Wilson

    Chief Operating Officer

    • Tenure: 0.0yrs
  • Matt Headland

    Chief Commercial Officer

    • Tenure: 1.8yrs
  • Alexa Preston

    General Manager of Corporate Finance & Investor Relations

    • Tenure: 0.0yrs
  • Katie Mills

    Chief Marketing Officer

    • Tenure: 0.7yrs

Board Members

  • Sussan Turner

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: NZ$55.26k
  • Barbara Chapman (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: NZ$85.20k
  • Peter Cullinane

    Chairman of the Board

    • Tenure: 1.7yrs
    • Compensation: NZ$171.48k
  • Carol Campbell

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: NZ$124.75k
  • David Edward Gibson

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: NZ$128.53k

Company Information

NZME Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NZME Limited
  • Ticker: NZME.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Publishing
  • Sector: Media
  • Market Cap: NZ$103.886m
  • Listing Market Cap: NZ$66.581m
  • Shares outstanding: 196.01m
  • Website: https://www.nzme.co.nz

Location

  • NZME Limited
  • 2 Graham Street
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NZMNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 2016
NZMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2016
NZMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2016
NZME.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016

Biography

NZME Limited, together with its subsidiaries, operates as an integrated media and entertainment company in New Zealand. It is involved in the provision of advertising on various platforms, including includ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:37
End of Day Share Price2019/08/08 00:00
Earnings2018/12/31
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.