company background image
AME

African Media EntertainmentJSE:AME Stock Report

Market Cap

R222.0m

7D

0%

1Y

19.2%

Updated

21 Oct, 2021

Data

Company Financials
AME fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends1/6

AME Overview

African Media Entertainment Limited, together with its subsidiaries, engages in radio broadcasting business in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for African Media Entertainment
Historical stock prices
Current Share PriceR28.02
52 Week HighR15.01
52 Week LowR94.99
Beta0.19
1 Month Change3.78%
3 Month Change4.36%
1 Year Change19.23%
3 Year Change-47.53%
5 Year Change-62.64%
Change since IPO47.58%

Recent News & Updates

Oct 04
Be Wary Of African Media Entertainment (JSE:AME) And Its Returns On Capital

Be Wary Of African Media Entertainment (JSE:AME) And Its Returns On Capital

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Jul 05
Returns On Capital At African Media Entertainment (JSE:AME) Paint A Concerning Picture

Returns On Capital At African Media Entertainment (JSE:AME) Paint A Concerning Picture

If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...

Shareholder Returns

AMEZA MediaZA Market
7D0%2.6%-0.7%
1Y19.2%-1.8%19.0%

Return vs Industry: AME exceeded the ZA Media industry which returned -1.7% over the past year.

Return vs Market: AME matched the ZA Market which returned 19.9% over the past year.

Price Volatility

Is AME's price volatile compared to industry and market?
AME volatility
AME Beta0.19
Industry Beta1.05
Market Beta1

Stable Share Price: AME is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: AME's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
1997208Dave Tiltmannhttps://ame.co.za

African Media Entertainment Limited, together with its subsidiaries, engages in radio broadcasting business in South Africa. It operates through Radio Broadcasters and Media Services segments. The company’s radio stations include Algoa FM, which broadcasts from the Garden Route to the Wild Coast; and OFM, the glue that connects radio listeners across the central and northern regions of South Africa.

African Media Entertainment Fundamentals Summary

How do African Media Entertainment's earnings and revenue compare to its market cap?
AME fundamental statistics
Market CapR222.01m
Earnings (TTM)R282.00k
Revenue (TTM)R200.10m

787.3x

P/E Ratio

1.1x

P/S Ratio


Dividends

3.6%

Current Dividend Yield

2,810%

Payout Ratio

Valuation

Is African Media Entertainment undervalued compared to its fair value and its price relative to the market?

787.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AME (ZAR28.02) is trading above our estimate of fair value (ZAR16.76)

Significantly Below Fair Value: AME is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AME is poor value based on its PE Ratio (787.3x) compared to the African Media industry average (14.7x).

PE vs Market: AME is poor value based on its PE Ratio (787.3x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AME is overvalued based on its PB Ratio (0.9x) compared to the XF Media industry average (0.6x).


Future Growth

How is African Media Entertainment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.2%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as African Media Entertainment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has African Media Entertainment performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AME has a large one-off loss of ZAR9.1M impacting its March 31 2021 financial results.

Growing Profit Margin: AME's current net profit margins (0.1%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: AME's earnings have declined by 14.2% per year over the past 5 years.

Accelerating Growth: AME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AME had negative earnings growth (-99.1%) over the past year, making it difficult to compare to the Media industry average (-17.3%).


Return on Equity

High ROE: AME's Return on Equity (1%) is considered low.


Financial Health

How is African Media Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: AME's short term assets (ZAR119.1M) exceed its short term liabilities (ZAR43.1M).

Long Term Liabilities: AME's short term assets (ZAR119.1M) exceed its long term liabilities (ZAR4.2M).


Debt to Equity History and Analysis

Debt Level: AME is debt free.

Reducing Debt: AME has not had any debt for past 5 years.

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

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


Balance Sheet


Dividend

What is African Media Entertainment current dividend yield, its reliability and sustainability?

3.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AME's dividend (3.57%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: AME's dividend (3.57%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

Stable Dividend: AME has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AME has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2809.6%), AME's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Dave Tiltmann (56 yo)

2.83yrs

Tenure

R3,185,000

Compensation

Mr. David M. Tiltmann, also known as Dave, has been the Group Chief Executive Officer of African Media Entertainment Limited since December 1, 2018 and serves as its Executive Director. Mr. Tiltmann served...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Dave's total compensation is reasonable compared to companies of similar size in the ZA market.

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


Leadership Team

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


Board Members

Experienced Board: AME's board of directors are seasoned and experienced ( 11.1 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

African Media Entertainment Limited's employee growth, exchange listings and data sources


Key Information

  • Name: African Media Entertainment Limited
  • Ticker: AME
  • Exchange: JSE
  • Founded: 1997
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: R222.006m
  • Shares outstanding: 7.92m
  • Website: https://ame.co.za

Number of Employees


Location

  • African Media Entertainment Limited
  • AME House
  • Block A, Oxford Office Park
  • Johannesburg
  • Gauteng
  • 2198
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:56
End of Day Share Price2021/10/21 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.