Nine Entertainment Co. Holdings Limited (NEC) AI Stock Analysis

• Market Cap: AU$1.79B
• Dividend Yield: 4.83%
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.70
• Revenue Growth: 2.18%
• EPS Growth: -4.23%
• Country: AU
• Employees: 3,350
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.01
• Shares Outstanding: 1,585,762,100
• 10 Day Avg. Volume: 5,600,448
• 30 Day Avg. Volume: 7,761,384
• PEG Ratio: -5.51
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 7.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.24
• Price Target Upside: 11.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: AU$1.00 ▼(-9.91% Downside)

The overall stock score of 60 reflects a stable financial performance with strong cash flow generation, offset by bearish technical indicators and a relatively high P/E ratio. The attractive dividend yield provides some support, but the stock's current downward trend and valuation concerns weigh on the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Balanced Leverage

A balanced leverage ratio ensures financial stability, reducing risk and providing a solid foundation for long-term growth and investment.

Stable Gross Profit Margins

Stable gross profit margins indicate consistent cost management and pricing power, supporting sustainable profitability over time.

Negative Factors

Decline in Profitability

A decline in profitability can impact investor confidence and reduce the company's ability to reinvest in business growth and innovation.

Decreased Net Profit Margins

Decreasing net profit margins may indicate rising costs or pricing pressures, potentially affecting long-term earnings sustainability.

Pressure on Operational Efficiency

A decline in EBITDA margin suggests challenges in maintaining operational efficiency, which could impact future profitability and competitiveness.

Nine Entertainment Co. Holdings Limited Business Overview & Revenue Model

Company Description

Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production businesses across free to air television, video on demand, and metropolitan radio networks in Australia. It operates through Broadcasting, Digital and Publishing, Domain Group, and Stan segments. The company provides television services under the brands, including 9Network, Channel 9, 9Gem, 9Go!, 9Life, and 9Rush; video on demand platform under 9Now brand; radio stations under 2GB, 3AW, 4BC, and 6PR brands; and publishes newspapers, news-inserted magazines, digital, and events, as well as nine.com.au, a site of news, lifestyle, sport, and entertainment content. It also offers mastheads under The Sydney Morning Herald, The Age, The Australian Financial Review, Brisbane Times, WAtoday, The Sun-Herald, and The Sunday Age brands. In addition, the company provides real estate media and technology services. Nine Entertainment Co. Holdings Limited was founded in 1956 and is headquartered in North Sydney, Australia.

How the Company Makes Money

Nine Entertainment Co. generates revenue through multiple streams primarily focused on advertising, subscription services, and content production. The company's core revenue comes from advertising sales across its television network, where it attracts significant viewership and premium rates for ad placements. Additionally, NEC earns income from its digital platforms, leveraging online advertising and partnerships to monetize its extensive digital content. The company also generates revenue through subscription services related to its streaming offerings, providing audiences with access to exclusive content. Strategic partnerships, such as collaborations with major sports leagues for broadcasting rights, further enhance NEC's revenue potential by attracting large audiences and advertisers. Overall, NEC's diverse revenue model enables it to capitalize on both traditional and digital media landscapes.

Nine Entertainment Co. Holdings Limited Financial Statement Overview

Summary

Nine Entertainment Co. Holdings Limited demonstrates a stable financial position with moderate revenue growth and strong cash flow generation. While profitability metrics have shown some decline, the company maintains a healthy balance sheet with manageable leverage. The entertainment industry context suggests potential for growth, but the company should focus on improving profitability margins to enhance overall financial health.

Income Statement

Nine Entertainment Co. Holdings Limited has shown moderate revenue growth with a 1.54% increase in the latest year. Gross profit margins are stable at 18.38%, but net profit margins have slightly decreased to 3.86%. The EBIT margin is healthy at 12.51%, indicating efficient core operations. However, the EBITDA margin has slightly declined to 14.30%, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.67, indicating a balanced approach to leveraging. Return on equity has decreased to 6.61%, reflecting a decline in profitability. The equity ratio stands at 39.67%, showing a solid equity base. Overall, the balance sheet remains stable with manageable debt levels.

Cash Flow

Free cash flow has grown significantly by 27.44%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.79, suggesting robust cash flow relative to earnings. The free cash flow to net income ratio is high at 93.46%, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69B	2.69B	2.62B	2.69B	2.69B	2.33B
Gross Profit	495.06M	495.06M	321.63M	598.39M	531.09M	363.82M
EBITDA	385.23M	385.23M	405.45M	479.31M	610.60M	460.03M
Net Income	103.89M	103.89M	110.90M	181.81M	297.14M	169.36M
Balance Sheet
Total Assets	3.97B	3.97B	4.00B	4.02B	4.14B	3.91B
Cash, Cash Equivalents and Short-Term Investments	141.67M	141.67M	92.86M	119.68M	153.46M	171.93M
Total Debt	1.06B	1.06B	1.08B	1.01B	860.65M	850.43M
Total Liabilities	2.19B	2.19B	2.22B	2.14B	2.07B	1.95B
Stockholders Equity	1.57B	1.57B	1.59B	1.68B	1.88B	1.81B
Cash Flow
Free Cash Flow	354.77M	354.77M	156.42M	253.94M	412.46M	304.40M
Operating Cash Flow	379.60M	379.60M	293.42M	351.78M	487.23M	398.16M
Investing Cash Flow	-128.71M	-127.30M	-135.95M	-114.83M	-301.23M	-84.23M
Financing Cash Flow	-202.09M	-203.49M	-184.28M	-270.74M	-204.46M	-329.40M

Nine Entertainment Co. Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NEC, the sentiment is Positive. The current price of 1.11 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.12, and below the 200-day MA of 1.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NEC.

Nine Entertainment Co. Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWS	67 Neutral	AU$23.18B	36.32	5.85%	0.69%	-14.40%	31.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NEC	60 Neutral	AU$1.79B	17.23	6.58%	4.83%	2.18%	-4.23%
EVT	60 Neutral	AU$2.04B	61.12	3.49%	2.90%	0.55%	591.92%
OML	58 Neutral	AU$724.66M	37.26	2.70%	4.29%	9.25%	-42.79%
SWM	50 Neutral	AU$192.39M	11.57	4.22%	―	-5.13%	-63.27%
A1N	44 Neutral	AU$124.79M	-9.20	-0.27%	―	―	―

Nine Entertainment Co. Holdings Limited Corporate Events

Nine Entertainment Cancels 67,026 Lapsed Performance Rights

Nine Entertainment Co. Holdings Limited has notified the market that 67,026 performance rights (ASX code: NECAI) have lapsed as of 31 December 2025, after the conditions attached to these conditional rights were not met or became incapable of being satisfied. The cessation of these performance rights marginally reduces the company’s pool of potential equity-based remuneration, reflecting performance or hurdle outcomes under its incentive schemes and resulting in a slight adjustment to its issued capital structure.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Change in Substantial Holding at Nine Entertainment Co.

Nine Entertainment Co. Holdings Limited, a media and entertainment company, has noted a change in the substantial holding structure as a key shareholder, a subsidiary of State Street Corporation, has ceased to be a substantial holder in the company as of December 16, 2025. This development may affect the voting and governance dynamics within the company, carrying potential implications for decision-making and stakeholder engagement moving forward.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Issues New Performance Rights to Employees

Nine Entertainment Co. Holdings Limited announced the issuance of 879,010 unquoted performance rights under an employee incentive scheme. This move is part of the company’s strategy to motivate and retain key personnel, potentially impacting its operational efficiency and competitive positioning in the media industry.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Announces Director’s Increased Stake

Nine Entertainment Co. Holdings Limited announced a change in the director’s interest, with Matthew Stanton acquiring 879,010 performance rights as part of the company’s Long Term Incentive Plan. This change, approved at the Annual General Meeting, reflects the company’s commitment to aligning executive incentives with long-term performance goals, potentially impacting stakeholder perceptions and the company’s strategic direction.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Co. Releases Investor Update

Nine Entertainment Co. has released an investor update presentation, authorized by the CEO, to provide insights into the company’s current operations and strategic direction. This update is significant for stakeholders as it reflects Nine’s commitment to transparency and its efforts to maintain a strong position in the competitive media landscape.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Announces Director Departure and Interest Update

Nine Entertainment Co. Holdings Limited announced that Catherine West has ceased to be a director as of November 7, 2025. The final director’s interest notice reveals that Ms. West holds no securities as a registered holder but is a beneficiary of a trust holding 144,000 fully paid ordinary shares. This change could impact the company’s governance and stakeholder interests, as it marks a shift in the board’s composition.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Co. Passes All Resolutions at 2025 AGM

At the 2025 Annual General Meeting of Nine Entertainment Co. Holdings Limited, all resolutions were passed by the required majority. The meeting included the re-election and election of directors and the approval of performance rights for the CEO. These decisions reflect the company’s ongoing commitment to strengthen its leadership and incentivize its executive team, which could impact its strategic direction and stakeholder confidence.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Co. Reports Robust 2025 Financial Performance and Strategic Divestment

Nine Entertainment Co. Holdings Limited reported a strong performance in the 2025 financial year, with significant growth in audiences and digital subscriptions despite a challenging economic environment. The company strategically divested its 60% stake in Domain to CoStar Group, generating significant shareholder value and focusing on its competitive media assets, resulting in a total shareholder return of over 55% for the period.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Nine Entertainment Reports Growth Amid Advertising Market Challenges

Nine Entertainment has reported continued growth in digital subscription revenue and anticipates further EBITDA growth for FY26, driven by the Premier League deal and cost efficiencies. Despite challenges in the advertising market and the absence of the Paris Summer Olympics, Nine is implementing cost initiatives and strategic investments to mitigate these impacts and enhance its market position.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.

Yarra Capital Management Becomes Substantial Holder in Nine Entertainment

Yarra Capital Management Limited and its associated entities have become substantial holders in Nine Entertainment Co. Holdings Limited, a major player in the entertainment industry. The group now holds a 5.43% voting power in the company, having acquired a significant number of shares over the past four months. This development indicates a strategic investment move by Yarra Capital Management, potentially impacting Nine Entertainment’s shareholder dynamics and market positioning.

The most recent analyst rating on (AU:NEC) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Nine Entertainment Co. Holdings Limited stock, see the AU:NEC Stock Forecast page.