Southern Cross Media Group Ltd
SXL: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$5.10 | Pnth | Drzdqkqv |
Southern Cross Shares Remain Undervalued Amid a Takeover Approach
Business Strategy and Outlook
The impact of COVID-19 on Southern Cross was material, given the financial pressure that most advertising clients were under. But with the AUD 169 million capital raising in April 2020, Southern Cross' balance sheet was sufficiently replenished to weather the storm. This has been augmented by management's heightened cost and cash flow discipline. In fact, net debt/EBITDA has reduced significantly, to just 1.5 by the end of June 2023.