Sunday, November 22, 2015

One Page Summary for Seven West Media

Seven West Media Ltdswm.axprice:$0.71fwd p/e:4.42div yield:11.27%
Capital Structure (m)2010201120122013201420152016 (e)
Total Debt874.7Due Date$1.91$2.37$2.28$1.64$1.59$1.70$1.82Sales/sh
LT debt874.7LT interest 64.2 $0.49-$3.01$0.54$0.31$0.15$0.25CF/sh
Interest Coverage3.6$0.45$0.38$0.26-$0.06$0.13-$1.81$0.16eps
Leases 214contracts908$0.20$0.45$0.45$0.12$0.12$0.12$0.08div /sh
Pension Asset - capex /sh
Pension Obligations - 0.618.193.082.512.451.15book value /sh
Pfd stock - 5.8310.208.4910.049.877.84EV / EBIT
common stock 1,042 5.159.085.236.186.354.39EV / EBITDA
market cap (m)#N/A 409 726 1,937 1,867 1,885 1,771 1,720 Sales (m)
Current Position (m)20132014201538.91%33.89%16.71%16.29%16.74%13.01%16.00%Operating Margin
Cash25769142 21 30 202 190 175 181 Depreciation (m)
Receivables27827827230.00%30.00%30.00%30.00%30.00%30.00%Income Tax Rate
Inventories11814215223.52%15.86%11.49%-3.81%7.91%-106.69%8.80%Net Profit Margin
Other0458 34 (254) 25 (43) 64 21 Working Capital (m)
Current Assets658534574 261 1,926 1,930 1,498 1,227 875 LT debt (m)
Accts Payable32030429827.59%3.54%4.68%4.78%5.04%7.17%ROIC
Debt Due000WACC
Other20253345.40%1.67%4.12%-6.66%1.01%-168.16%Ret to Common Equity
Current Liab.444400412 214 307 850 1,139 1,185 1,042 942 Diluted Shares
Notes
Expect normalised operating margins at 16% in 2016
Small decline in revenues, constant cost margins
Should have an increase in cash from operations due to lower cash interest paid
Currently a very high dividend and should have enough cash flows to pay out dividends (unless there is an acquisition)
Any surprise increase in revenues, will have a large impact on valuation to the upside
Return on Invested Capital (ROIC) indicates a competitve environment, although the current trend is increasing
Seven Media merged with Western Australian Newspaper in 2011, margins dropping from 30% to 16%
Using p/e multiple of 7x to 10x on 0.16eps, is $1.12 ~ $1.60
The two times eps was negative in 2013 and 2015, were due to large writedowns in intangibles