Amid economic uncertainties, we are impressed by Nine Entertainment's progress on factors within its control. The balance sheet is solid, and TV ratings, advertising market shares, and pricing are improving. Critically, management has fundamentally restructured the cost base.
Nine Entertainment commands a strong position in the Australian free-to-air television industry, with number-two ratings and revenue share positions.
Nine Entertainment's recent increase in ratings and revenue share has come at the expense of Ten Network. There is a risk of mean-reversion as Ten Network recovers from its current all-time low position.
|
Metric
|
NEC
|
SXL
|
SWM
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.57 | 26.15 | 3.46 |
Price/Book Value | 1.48 | 0.50 | 0.69 |
Price/Sales | 0.95 | 0.44 | 0.22 |
Price/Cash Flow | 6.34 | 5.05 | 5.90 |
|
Metric
|
NEC
|
SXL
|
SWM
|
|---|---|---|---|
Quick Ratio | 0.58 | 1.64 | 0.83 |
Current Ratio | 1.09 | 1.67 | 1.41 |
Interest Coverage | 3.66 | 1.52 | 3.82 |
|
Metric
|
NEC
|
SXL
|
SWM
|
|---|---|---|---|
Return on Assets (Normalized) | 5.42% | 0.64% | 5.69% |
Return on Equity (Normalized) | 12.66% | 1.52% | 21.86% |
Return on Invested Capital (Normalized) | 11.28% | 2.81% | 12.79% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
NFLX
| Netflix Inc | Zlbqlbwwgr | Ljcncq | $263.1 Bil | |
DIS
| The Walt Disney Co | Tpmlnhykp | Cdx | $206.2 Bil | |
LYV
| Live Nation Entertainment Inc | Cvhyszmxhj | Zndggfp | $20.7 Bil | |
WBD
| Warner Bros. Discovery Inc Ordinary Shares - Class A | Trcbfthp | Yzjqs | $20.3 Bil | |
WMG
| Warner Music Group Corp Ordinary Shares - Class A | Rcsdswsth | Qlxmqmm | $17.1 Bil | |
FOX
| Fox Corp Class B | Kcssnnmq | Mwvw | $14.0 Bil | |
FOXA
| Fox Corp Class A | Wvwhhbqs | Qwsqs | $13.9 Bil | |
NWS
| News Corp Class B | Bsykbgkx | Cfmsz | $13.8 Bil | |
NWSA
| News Corp Class A | Ctwstpbc | Whlbk | $13.8 Bil | |
SIRI
| Sirius XM Holdings Inc | Gvfyrqny | Mhgkfvc | $11.8 Bil |
