NZME Limited (NZM.AX), mcap=A$192m, price A$1.01 vs A$2.23

$NZM.AX pitch:
– Dominant media company in NZ, owning half the print market; 40% of the radio market; & a quarter of the digital display market.
– Trades at 6x FCF.
– History of material buybacks/dividends.
– Expected to return half the mcap to shareholders over the next 3 years.
– Capital allocation risks have been reduced over the past 18 months.

$NZM.AX valuation:
– Trades at 6x FCF.
– Could trade at double the current price (11x-12x).
– The gains will likely come as the company returns FCF to shareholders and the market cap grows LSD.

Exp. gain: 20% IRR.

Full NZM.AX write-up (free guest account required):

Leave a Comment