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Nine Entertainment Co. Holdings Limited (AU:NEC)
ASX:NEC

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

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AU:NEC

Nine Entertainment Co. Holdings Limited

(Sydney:NEC)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
AU$1.00
▼(-10.71% 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 (NEC) vs. iShares MSCI Australia ETF (EWA)

Nine Entertainment Co. Holdings Limited Business Overview & Revenue Model

Company DescriptionNine 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 MoneyNine 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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.69B2.69B2.62B2.69B2.69B2.33B
Gross Profit495.06M495.06M321.63M598.39M531.09M363.82M
EBITDA385.23M385.23M405.45M479.31M610.60M460.03M
Net Income103.89M103.89M110.90M181.81M297.14M169.36M
Balance Sheet
Total Assets3.97B3.97B4.00B4.02B4.14B3.91B
Cash, Cash Equivalents and Short-Term Investments141.67M141.67M92.86M119.68M153.46M171.93M
Total Debt1.06B1.06B1.08B1.01B860.65M850.43M
Total Liabilities2.19B2.19B2.22B2.14B2.07B1.95B
Stockholders Equity1.57B1.57B1.59B1.68B1.88B1.81B
Cash Flow
Free Cash Flow354.77M354.77M156.42M253.94M412.46M304.40M
Operating Cash Flow379.60M379.60M293.42M351.78M487.23M398.16M
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 Price1.12
Price Trends
50DMA
1.14
Negative
100DMA
1.16
Negative
200DMA
1.12
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
49.97
Neutral
STOCH
38.01
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 1.12 is above the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.14, and above the 200-day MA of 1.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 38.01 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
AU$23.14B36.505.85%0.68%-14.40%31.97%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
AU$1.78B17.156.58%4.87%2.18%-4.23%
60
Neutral
AU$2.18B65.303.49%2.83%0.55%591.92%
58
Neutral
AU$700.42M36.012.70%4.41%9.25%-42.79%
50
Neutral
AU$192.39M11.574.22%-5.13%-63.27%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NEC
Nine Entertainment Co. Holdings Limited
1.12
0.27
31.76%
AU:SWM
Seven West Media Limited
0.13
-0.02
-16.67%
AU:A1N
HT&E Ltd
0.42
-0.26
-38.24%
AU:EVT
Event Hospitality & Entertainment Ltd.
13.42
2.37
21.45%
AU:OML
oOh media Ltd
1.30
0.17
15.04%
AU:NWS
News Corporation Shs B Chess Depository Interests repr 1 Sh
45.35
-5.00
-9.93%

Nine Entertainment Co. Holdings Limited Corporate Events

Nine Entertainment Issues New Performance Rights to Employees
Nov 26, 2025

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.

Nine Entertainment Announces Director’s Increased Stake
Nov 26, 2025

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.

Nine Entertainment Co. Releases Investor Update
Nov 12, 2025

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.

Nine Entertainment Announces Director Departure and Interest Update
Nov 10, 2025

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.

Nine Entertainment Co. Passes All Resolutions at 2025 AGM
Nov 7, 2025

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.

Nine Entertainment Co. Reports Robust 2025 Financial Performance and Strategic Divestment
Nov 7, 2025

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.

Nine Entertainment Reports Growth Amid Advertising Market Challenges
Nov 6, 2025

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.

Yarra Capital Management Becomes Substantial Holder in Nine Entertainment
Oct 20, 2025

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.

Nine Entertainment Co. Announces 2025 AGM Details
Sep 26, 2025

Nine Entertainment Co. has announced the details for its 2025 Annual General Meeting, scheduled for November 7, 2025, in North Sydney and virtually. The release includes various documents for the meeting, such as the Notice of Meeting and Voting Form, which are also available on the company’s website. This announcement ensures transparency and accessibility for shareholders, reflecting the company’s commitment to stakeholder engagement.

Leadership Transition at Nine Entertainment Co.
Sep 24, 2025

Nine Entertainment Co. has announced that Catherine West will retire as Chair and Non-Executive Director, with Peter Tonagh set to take over the role following the 2025 Annual General Meeting. West’s leadership saw Nine undergo significant transformation, including strategic shifts and divestments, positioning the company for future growth. Tonagh, with extensive experience in media and technology, aims to continue driving shareholder value and sustain the company’s success.

Pinnacle Investment Management Ceases Substantial Holding in Nine Entertainment
Sep 17, 2025

Pinnacle Investment Management Group Limited has ceased to be a substantial holder in Nine Entertainment Co. Holdings Limited as of September 12, 2025. This change in substantial holding could potentially impact the company’s shareholder composition and influence in the market, although no specific implications for stakeholders were detailed in the release.

Director Increases Stake in Nine Entertainment Co.
Sep 15, 2025

Nine Entertainment Co. Holdings Limited announced a change in the director’s interest, with Director Mandy Pattinson acquiring 20,000 additional ordinary shares, bringing her total to 70,000 shares. This on-market purchase reflects a significant increase in her stake, potentially indicating confidence in the company’s future prospects, which may impact stakeholder perceptions and market positioning.

Nine Entertainment Co. Unveils 2025 Annual Report
Sep 11, 2025

Nine Entertainment Co. has released its 2025 Annual Report, highlighting its commitment to cultural influence and community engagement. The report includes various sections such as corporate governance, financial statements, and shareholder information, reflecting the company’s comprehensive approach to transparency and accountability. This release underscores Nine Entertainment’s strategic focus on maintaining its leadership in the media industry and its dedication to fostering strong relationships with stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025