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

• Market Cap: AU$1.58B
• Dividend Yield: 4.83%
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): 355.4
• Beta (1Y): 0.63
• Revenue Growth: 2.18%
• EPS Growth: -4.23%
• Country: AU
• Employees: 3,350
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.56
• 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$1.26
• Price Target Upside: 13.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): AU$2.19B

• Rating: 66 Neutral
• Price Target: AU$1.00 ▼(-9.91% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by solid financial quality (especially strong cash flow and a stable balance sheet) and a constructive earnings outlook focused on cost savings and synergy delivery. Offsetting these strengths, technical indicators show clear bearish momentum, keeping the overall score in the mid-range despite reasonable valuation and a high dividend yield.

Positive Factors

Cash Generation & FCF

Strong free cash flow growth and a high operating-cash-to-income ratio indicate durable cash generation. This supports ongoing investment in content, funds M&A and dividends, and provides flexibility to de-lever post‑transactions, insulating the business from cyclical ad-market swings over the next 2–3 years.

Cost Savings & Margin Recovery

A material multi‑year cost program with meaningful delivery already improves operating leverage and margin sustainability. Continued savings reduce break‑even sensitivity to advertising cycles, accelerate de‑leveraging targets and provide structural margin tailwinds even if top‑line growth is uneven.

Streaming & Digital Subscriber Growth

Record streaming profitability and ARPU gains show the subscription arm scaling sustainably. Growth in sports subscribers and higher ARPU strengthen recurring revenue mix, diversifying dependence on advertising and supporting long‑term margin resilience and predictable cashflows.

Negative Factors

Advertising Market Weakness

A structurally weak ad market materially pressures the company's core broadcast and BVOD revenues. Given advertising remains a large revenue source, prolonged softness risks slower top‑line recovery, requires sustained cost discipline, and limits organic reinvestment capacity over the medium term.

BVOD Monetization Lag

Persistent gaps between audience growth and digital/video monetization constrain scalable revenue conversion from viewers. This structural monetization lag demands product, programmatic or pricing changes; until resolved, digital viewership gains may not meaningfully improve margins.

Regulatory & Content Cost Risk

Policy uncertainty and potential local‑content obligations could raise content costs or alter competitive dynamics for streamers. Increased compliance or mandated spend would inflate long‑run content budgets and compress margins, complicating forecasting and strategic investment decisions.

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

Overall fundamentals are solid, led by strong cash generation (free cash flow up 27.44% and operating cash flow well above net income). The balance sheet is stable with manageable leverage (debt-to-equity 0.67), though profitability is only moderate with slightly softer net and EBITDA margins and lower ROE (6.61%).

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.35B	2.69B	2.62B	2.69B	2.69B	2.33B
Gross Profit	359.73M	495.06M	321.63M	598.39M	531.09M	363.82M
EBITDA	337.05M	385.23M	405.45M	479.31M	610.60M	460.03M
Net Income	4.47M	103.89M	110.90M	181.81M	297.14M	169.36M
Balance Sheet
Total Assets	2.87B	3.97B	4.00B	4.02B	4.14B	3.91B
Cash, Cash Equivalents and Short-Term Investments	158.55M	141.67M	92.86M	119.68M	153.46M	171.93M
Total Debt	511.09M	1.06B	1.08B	1.01B	860.65M	850.43M
Total Liabilities	1.22B	2.19B	2.22B	2.14B	2.07B	1.95B
Stockholders Equity	1.65B	1.57B	1.59B	1.68B	1.88B	1.81B
Cash Flow
Free Cash Flow	15.63M	354.77M	156.42M	253.94M	412.46M	304.40M
Operating Cash Flow	46.07M	379.60M	293.42M	351.78M	487.23M	398.16M
Investing Cash Flow	1.50B	-127.30M	-135.95M	-114.83M	-301.23M	-84.23M
Financing Cash Flow	-1.54B	-203.49M	-184.28M	-270.74M	-204.46M	-329.40M

Nine Entertainment Co. Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NEC, the sentiment is Negative. The current price of 1.11 is above the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.12, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 27.10 is Positive, neither overbought nor oversold. The STOCH value of 9.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
NEC	66 Neutral	AU$1.58B	355.36	6.58%	4.83%	2.18%	-4.23%
NWS	61 Neutral	AU$19.39B	31.08	5.85%	0.69%	-14.40%	31.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVT	60 Neutral	AU$2.08B	51.86	3.49%	2.90%	0.55%	591.92%
OML	50 Neutral	AU$538.78M	31.65	2.70%	4.29%	9.25%	-42.79%
A1N	44 Neutral	AU$107.64M	22.12	-0.27%	―	―	―

Nine Entertainment Co. Holdings Limited Corporate Events

Nine Entertainment Declares Interim Dividend for Half-Year to December 2025

Nine Entertainment Co. Holdings Limited has declared an interim dividend of A$0.045 per ordinary fully paid share, relating to the six-month period ended 31 December 2025. The dividend will trade ex on 9 March 2026, with a record date of 10 March 2026 and payment scheduled for 23 April 2026, providing income to shareholders and signalling ongoing returns from the company’s media operations.

The most recent analyst rating on (AU:NEC) stock is a Hold 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.

State Street Ceases to Be Substantial Holder in Nine Entertainment

State Street Corporation, through several of its asset management and banking subsidiaries, has lodged a notice that it has ceased to be a substantial shareholder in Nine Entertainment Co. Holdings Limited as of 30 January 2026. The change reflects a reduction in State Street’s relevant voting interest in Nine below the substantial holding threshold, signaling a shift in the register away from this major institutional investor, which may modestly alter Nine’s shareholder base composition but does not in itself indicate any change to the media group’s operations or strategy.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.22 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 pivots to digital with QMS deal and exit from radio

Nine Entertainment Co. has unveiled a major reshaping of its asset portfolio, highlighted by the A$850 million acquisition of digital outdoor advertising operator QMS Media, the planned divestment of its broadcast radio assets, and the shift of regional TV station NBN in Northern NSW to an affiliate model under WIN Network. The move is designed to accelerate Nine’s ‘Nine2028’ transformation strategy, lifting the share of digital growth businesses to more than 60% of group revenue by FY27, enhancing its cross-platform offering for advertisers, and improving operational efficiency and earnings. The company expects around A$178 million in one-off cash tax benefits, largely offsetting prior capital gains tax from the Domain sale, and projects a net investment of about A$601 million to generate pro forma EBITDA of A$113 million at an implied multiple of 5.3 times. The QMS deal adds a fast-growing, largely digital outdoor network with long-dated contracts, is forecast to deliver double‑digit EBITDA growth and meaningful cost synergies, and is expected to be earnings accretive from FY26, while Nine’s leverage is projected to remain moderate and trend down towards 1.0–1.5 times by FY27.

The most recent analyst rating on (AU:NEC) stock is a Hold with a A$1.24 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 Sets Date for FY26 Interim Results and Investor Briefing

Nine Entertainment Co. has announced it will release its FY26 interim financial results on Tuesday, 24 February 2026, with Chief Executive Officer Matt Stanton and Chief Financial Officer Martyn Roberts set to brief investors via a teleconference and webcast at 9:30am Eastern Daylight Time. The scheduled investor presentation underscores Nine’s ongoing engagement with the market and provides a key upcoming event for shareholders and analysts to assess the company’s financial performance and strategic progress in a shifting media landscape.

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 Sets Preliminary 2026 Financial and AGM Timetable

Nine Entertainment Co. has released its preliminary corporate calendar for 2026, setting out planned dates for key financial disclosures and governance events. The company intends to publish its half-year FY26 results on 24 February 2026 and its full-year FY26 results on 26 August 2026, with 17 September 2026 marked as the deadline for director nominations ahead of its annual general meeting, which is scheduled for 6 November 2026. These early signals provide investors and other stakeholders with a framework for monitoring Nine’s financial performance and governance milestones in 2026, though the company notes that all dates remain subject to change.

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 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.