Morningstar

Southern Cross Media Group Ltd SXL

Morningstar Rating
Unlock
Stock XASX Rating as of
A$0.48 +0.01 (1.05%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

Southern Cross Earnings: Still Work to Do on Costs, but Value Remains

Brian Han

We cut our fair value estimate for Southern Cross by 17% to AUD 1.00 per share. Our intrinsic assessment no longer factors in any potential corporate interest in the group, after the fiasco beginning late last year involving a cast of thousands that all came to naught. More importantly, we downgrade our intrinsic assessment of Southern Cross as a standalone entity with lower-than-expected progress on costs. We are no longer optimistic about a margin recovery.

Read Full Report

Price vs Fair Value

View History
SXL is trading within a range we consider fairly valued.
Price
A$0.48
Fair Value
A$1.00
Uncertainty
High
1-Star Price
A$7.49
5-Star Price
A$8.90
Economic Moat
Vdhl
Capital Allocation
Lmjdrvvr

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The Nine affiliation, struck in 2016, carried higher revenue but ended at the end of fiscal 2021 and has been replaced by lower-rating Ten Network programs.

Show More

Trading Information

Previous Close Price
A$0.48
Day Range
A$0.46–0.49
52-Week Range
A$0.46–1.08
Bid/Ask
A$0.47 / A$0.48
Market Cap
A$115.15 Mil
Volume/Avg
629,572 / 536,150

Key Statistics

Price/Earnings (Normalized)
13.94
Price/Sales
0.23
Dividend Yield (Trailing)
6.67%
Dividend Yield (Forward)
4.17%
Total Yield
6.67%

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 radio networks (Hit and Triple M). In regional areas, the company runs a portfolio of radio stations and television stations. It is also investing in digital audio, which has fast-growing audiences.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Small Value
Total Number of Employees
—
Website
https://www.southerncrossaustereo.com.au

Competitors

Valuation

View More
Metric
SXL
NEC
SWM
Price/Earnings (Normalized)
 13.949.982.49
Price/Book Value
 0.571.230.67
Price/Sales
 0.230.760.20
Price/Cash Flow
 5.546.804.47
Price/Earnings
SXL
NEC
SWM

Financial Strength

Metric
SXL
NEC
SWM
Quick Ratio
 1.640.540.86
Current Ratio
 1.671.031.41
Interest Coverage
 1.524.042.52
Quick Ratio
SXL
NEC
SWM

Profitability

Metric
SXL
NEC
SWM
Return on Assets (Normalized)
 0.64%4.71%5.23%
Return on Equity (Normalized)
 1.52%11.45%19.33%
Return on Invested Capital (Normalized)
 2.81%8.88%11.52%
Return on Assets
SXL
NEC
SWM

Entertainment Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Netflix Inc
NFLX
CcrsxdzskkPbvjcl$303.3 Bil
 The Walt Disney Co
DIS
YsxsqbnmRgdw$169.8 Bil
 Live Nation Entertainment Inc
LYV
DhxfvppfbsWgrhgs$25.3 Bil
 Warner Bros. Discovery Inc Ordinary Shares - Class A
WBD
ShbdfrdtHjl$19.0 Bil
 Fox Corp Class A
FOXA
PbxpbckjyZvhm$18.4 Bil
 Fox Corp Class B
FOX
MlbprhvWvyf$18.4 Bil
 Warner Music Group Corp Ordinary Shares - Class A
WMG
ByrxrhlrrGfbydk$16.5 Bil
 News Corp Class A
NWSA
CnvhpnxqrQjh$15.0 Bil
 News Corp Class B
NWS
YdggbtyqTfbpj$15.0 Bil
 Roku Inc Class A
ROKU
WfwmxsyfzLgkm$10.9 Bil

Sponsor Center