Nine Entertainment Co. Holdings Limited
Nine Entertainment Co. Holdings Limited Fundamental Analysis
Nine Entertainment Co. Holdings Limited (NEC.AX) shows weak financial fundamentals with a PE ratio of 329.50, profit margin of 0.19%, and ROE of 0.28%. The company generates $2.3B in annual revenue with weak year-over-year growth of 2.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEC.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakNEC.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEC.AX shows balanced valuation metrics.
Growth Score
WeakNEC.AX faces weak or negative growth trends.
Financial Health Score
ExcellentNEC.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateNEC.AX maintains healthy but balanced margins.
Key Financial Metrics
Is NEC.AX Expensive or Cheap?
P/E Ratio
NEC.AX trades at 329.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NEC.AX's PEG of -3.46 indicates potential undervaluation.
Price to Book
The market values Nine Entertainment Co. Holdings Limited at 0.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.86 times EBITDA. This is generally considered low.
How Well Does NEC.AX Make Money?
Net Profit Margin
For every $100 in sales, Nine Entertainment Co. Holdings Limited keeps $0.19 as profit after all expenses.
Operating Margin
Core operations generate 13.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.28 in profit for every $100 of shareholder equity.
ROA
Nine Entertainment Co. Holdings Limited generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nine Entertainment Co. Holdings Limited generates limited operating cash flow of $46.12M, signaling weaker underlying cash strength.
Free Cash Flow
Nine Entertainment Co. Holdings Limited generates weak or negative free cash flow of $15.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.01 in free cash annually.
FCF Yield
NEC.AX converts 1.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
329.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.003
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How NEC.AX Stacks Against Its Sector Peers
| Metric | NEC.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 329.50 | 23.58 | Worse (Expensive) |
| ROE | 0.28% | 1003.00% | Weak |
| Net Margin | 0.19% | -70972.00% (disorted) | Weak |
| Debt/Equity | 0.31 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 1.65 | Neutral |
| ROA | 0.16% | -7187.00% (disorted) | Weak |
NEC.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nine Entertainment Co. Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.41%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
121.31%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
9.03%
Industry Style: Growth, Technology, Streaming
Growing