Southern Cross Media Group Ltd SXL

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A$0.95 +0.04 (4.40%)

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As of Apr 26, 2024 6:10am Delayed Price Closed

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Company Report

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Southern Cross Media's No-Moat Rating Reiterated

Brian Han Mar 28, 2024

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.

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Price vs Fair Value

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SXL is trading at a 24% discount.

Price

A$0.91

Apr 24, 2024

Fair Value

A$6.30

Mar 18, 2024

Uncertainty

High

1-Star Price: A$9.79
5-Star Price: A$3.98
Economic Moat: Vzmlk
Capital Allocation: Gjdxdtg

Bulls Say, Bears Say

Bulls

Southern Cross Media commands a solid position in the Australian regional television and radio space, and upside operating leverage may be significant when ratings recover.

Bears

The Nine affiliation, struck in 2016, carries higher revenue but ended at the end of fiscal 2021 and has been replaced by lower-rating Ten Network programs.

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Trading Information

Previous Close Price: A$0.91
Day Range: A$0.91–0.95
52-Week Range: A$0.71–1.08
Bid/Ask: A$0.94 / A$0.95
Market Cap: A$227.90 Mil
Volume/Avg: 400,205 / 332,367

Key Statistics

Price/Earnings (Normalized): 27.60
Price/Sales: 0.47
Dividend Yield (Trailing): 3.52%
Dividend Yield (Forward): 2.20%
Total Yield: 12.71%

Company Profile

Southern Cross Media broadcasts TV and radio content across Australia, and generates revenue and earnings from sales of airtime to advertisers. In metropolitan areas, it runs two linear terrestrial radio networks (Hit and Triple M). In regional areas, the company operates a portfolio of linear terrestrial radio and television stations. The group is also investing in fast-growing digital audio and LiSTNR, a curated, personalised, and free app offering a variety of radio, podcasts, music, and news, via streaming and download.

Sector: Communication Services
Industry: Entertainment
Stock Style Box: Small Value
Total Number of Employees: —
Website: https://www.southerncrossaustereo.com.au

Competitors

Valuation

Metric	SXL	NWS	NEC
Price/Earnings (Normalized)	27.60	39.25	9.23
Price/Book Value	0.53	1.83	1.42
Price/Sales	0.47	1.47	0.91
Price/Cash Flow	5.33	11.52	6.11

Price/Earnings

SXL

NWS

NEC

Financial Strength

Metric	SXL	NWS	NEC
Quick Ratio	1.64	1.16	0.58
Current Ratio	1.67	1.44	1.09
Interest Coverage	1.52	5.69	3.66

Quick Ratio

SXL

NWS

NEC

Profitability

Metric	SXL	NWS	NEC
Return on Assets (Normalized)	0.64%	2.17%	5.42%
Return on Equity (Normalized)	1.52%	4.53%	12.66%
Return on Invested Capital (Normalized)	2.81%	3.18%	11.28%

Return on Assets

SXL

NWS

NEC

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