Seven West Media Limited (SWM) AI Stock Analysis

• Market Cap: €223.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.50
• Revenue Growth: -6.10%
• EPS Growth: -90.04%
• Country: AU
• Employees: 4,528
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.11
• Shares Outstanding: 1,539,140,500
• 10 Day Avg. Volume: 977,927
• 30 Day Avg. Volume: 1,157,600
• PEG Ratio: -0.14
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.32
• 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: €0.14
• Price Target Upside: 1.50% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Seven West Media Limited's overall stock score reflects its strong profitability and cash flow generation capabilities, despite challenges with declining revenue and high leverage. Technical analysis suggests a stable market condition, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Seven West Media Limited Business Overview & Revenue Model

Company Description

Seven West Media Limited, together with its subsidiaries, operates as an integrated media company, engages in the air television broadcasting and digital streaming in Australia and internationally. The company operates through three segments: Television; The West; and Other Business and New Ventures. It produces and operates commercial television programming and stations; and distributes programming content. The company also involved in the publishing of newspapers and insert magazines, colourpress, West Australian, Community Newspaper Group, and digital publishing. Seven West Media Limited was incorporated in 1991 and is based in Perth, Australia.

How the Company Makes Money

Seven West Media Limited generates revenue primarily through advertising sales across its television, print, and digital platforms. The company's television network, Channel 7, attracts significant advertising revenue due to its wide reach and popular programming, including news, entertainment, and sports. Additionally, SWM earns money from subscription fees and content licensing agreements, particularly through its digital platforms and partnerships. The company's newspapers and magazines also contribute to its revenue through both advertising and subscription sales. Strategic partnerships and acquisitions further enhance SWM's market position and revenue potential.

Seven West Media Limited Financial Statement Overview

Summary

Overall, Seven West Media Limited presents a mixed financial performance with strong profit margins but declining revenue. The balance sheet shows moderate leverage and improving equity ratios, while cash flow metrics indicate robust cash generation capabilities. The company faces challenges with revenue growth and debt management but benefits from strong profitability and cash flow generation.

Income Statement

Seven West Media's income statement shows commendable profitability with a gross profit margin of 22.95% and a net profit margin of 3.28% for the latest fiscal year. However, the company has experienced a decline in total revenue over the last three years, with a revenue growth rate of -5.14% from 2023 to 2024. The EBIT margin stands at 8.31%, reflecting a decrease in operational efficiency compared to previous years. EBITDA margin of 17.53% indicates healthy earnings before accounting for depreciation and amortization.

Balance Sheet

The balance sheet reflects a moderate financial structure, with a debt-to-equity ratio of 1.28, indicating a significant reliance on debt financing. The return on equity is 11.23%, showing the company's ability to generate earnings from shareholders' equity. The equity ratio is 27.30%, suggesting a substantial portion of the company's assets is financed by equity, though the company has seen improvements in equity from negative figures in earlier years.

Cash Flow

Seven West Media's cash flow statement reveals a stable operating cash flow to net income ratio of 1.33, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.78, showing room for improvement in cash retained after capital expenditures. The recent year shows a decrease in free cash flow, but overall, the company maintains a positive cash flow position.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.36B	1.38B	1.46B	1.52B	1.25B	1.20B
	Gross Profit
119.40M	1.38B	409.21M	470.73M	325.80M	208.93M
	EBIT
80.87M	114.88M	216.25M	294.12M	247.37M	32.83M
	EBITDA
108.14M	242.29M	355.76M	453.49M	618.08M	-117.88M
	Net Income Common Stockholders
8.51M	45.30M	145.75M	211.05M	318.09M	-162.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.77M	54.53M	57.40M	37.94M	253.33M	352.02M
	Total Assets
1.48B	1.48B	1.50B	1.38B	1.52B	1.42B
	Total Debt
469.32M	515.66M	497.83M	492.81M	697.63M	973.85M
	Net Debt
412.56M	461.12M	440.43M	454.87M	444.30M	621.83M
	Total Liabilities
1.05B	1.07B	1.12B	1.12B	1.44B	1.66B
	Stockholders Equity
429.70M	403.49M	378.83M	263.69M	83.26M	-245.55M
Cash Flow		Free Cash Flow
30.17M	35.25M	37.93M	132.86M	127.52M	26.04M
	Operating Cash Flow
40.05M	60.31M	77.43M	160.23M	143.21M	41.37M
	Investing Cash Flow
-25.86M	-92.63M	-39.45M	-141.17M	28.17M	132.54M
	Financing Cash Flow
-25.78M	29.45M	-18.52M	-234.46M	-270.07M	87.66M

Seven West Media Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SWM, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SWM.

Seven West Media Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWM	65 Neutral	€223.18M	26.36	1.98%	―	-6.10%	-90.04%
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
6MM		€76.98M	―	-71.41%	5.44%	―	―
NEC	67 Neutral	AU$2.53B	27.60	5.56%	4.39%	-0.92%	-3.83%
A1N		AU$154.43M	39.29	1.44%	4.65%	―	―
OML	74 Outperform	AU$929.40M	25.22	4.91%	4.06%	0.27%	6.59%
NWS	68 Neutral	AU$25.97B	38.12	5.74%	0.63%	-4.85%	135.33%

Seven West Media Limited Corporate Events

Seven West Media Expands Reach with Strategic Acquisition of Southern Cross Media Assets

Seven West Media has announced a binding agreement to acquire television licenses and associated assets from Southern Cross Media Group in several regions, including Tasmania and Darwin. This strategic acquisition will complete SWM’s national broadcast network, enhance its digital and live television offerings, and is expected to be earnings accretive by FY26. The move will allow Seven to reach nearly 100% of Australia’s population, providing new opportunities for revenue and audience engagement across both broadcast and digital platforms.

Seven West Media Issues New Performance Rights

Seven West Media Limited has announced the issuance of 2,619,515 unquoted performance rights as part of an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and stakeholder relations.