Seven West Media Ltd SWM

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A$0.22 +0.01 (2.38%)

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As of Apr 23, 2024 6:10am Delayed Price Closed

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Company Report

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Seven West Media's No-Moat Rating Reiterated

Brian Han Mar 28, 2024

Seven West Media, which generates the majority of its earnings through Seven Network's free-to-air TV and broadcast video on demand units, offers exposure to the AUD 3.6 billion total Australian linear and digital television advertising market. Free-to-air TV is a media segment that is declining. This has been caused by growing digital media alternatives, rapidly changing entertainment consumption habits, and increasing high-speed broadband adoption.

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Price vs Fair Value

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SWM is trading at a 48% discount.

Price

A$0.21

Apr 23, 2024

Fair Value

A$3.50

Feb 12, 2024

Uncertainty

High

1-Star Price: A$3.67
5-Star Price: A$6.24
Economic Moat: Hplbx
Capital Allocation: Nmlkk

Bulls Say, Bears Say

Bulls

Seven West Media commands a strong position in the Australian free-to-air television industry, with leading ratings and revenue shares.

Bears

The free-to-air television industry is a structurally challenged one, with proliferating entertainment choices for consumers. Consequently, viewers are declining and advertisers will increasingly follow eyeballs elsewhere.

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Trading Information

Previous Close Price: A$0.21
Day Range: A$0.21–0.22
52-Week Range: A$0.18–0.42
Bid/Ask: A$0.21 / A$0.21
Market Cap: A$330.92 Mil
Volume/Avg: 1.3 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized): 3.81
Price/Sales: 0.24
Dividend Yield (Trailing): —
Dividend Yield (Forward): —
Total Yield: 3.80%

Company Profile

Seven West Media operates Seven Network, a free-to-air television network spread across five capital cities of Australia, as well as many regional markets via Prime. It also owns most of the newspapers circulating in Western Australia (including the monopoly Perth masthead, The West Australian). In the Australian online space, Seven West Media operates broadcast video on demand, or BVOD, streaming service called 7plus.

Sector: Communication Services
Industry: Entertainment
Stock Style Box: Small Value
Total Number of Employees: 4,597
Website: https://www.sevenwestmedia.com.au

Competitors

Valuation

Metric	SWM	NWS	NEC
Price/Earnings (Normalized)	3.81	39.25	9.60
Price/Book Value	0.76	1.83	1.48
Price/Sales	0.24	1.47	0.95
Price/Cash Flow	6.50	11.52	6.36

Price/Earnings

SWM

NWS

NEC

Financial Strength

Metric	SWM	NWS	NEC
Quick Ratio	0.83	1.16	0.58
Current Ratio	1.41	1.44	1.09
Interest Coverage	3.82	5.69	3.66

Quick Ratio

SWM

NWS

NEC

Profitability

Metric	SWM	NWS	NEC
Return on Assets (Normalized)	5.69%	2.17%	5.42%
Return on Equity (Normalized)	21.86%	4.53%	12.66%
Return on Invested Capital (Normalized)	12.79%	3.18%	11.28%

Return on Assets

SWM

NWS

NEC

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