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Nine Entertainment Co. Holdings Limited
Communication Services · Entertainment
Updated just now
$0.96
MARKET CAP
$1.53B
P/E RATIO
14.6
DIV. YIELD
8.8%
FRANKING
92%
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.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$1.58
Discounted cash flow estimate
$2.92
For 6% dividend yield
Business quality and balance-sheet durability.
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$245M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $245M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
How much the company owes vs. what it owns
Profit after production costs, before overhead
Short-term assets vs. short-term debts
Price versus estimated intrinsic value and required return thresholds.
How current price compares with estimated intrinsic value
How efficiently the company turns money into profit
Is the business growing — and is debt being managed responsibly?
Debt growing with stable revenue — check whether new borrowing is productive or a warning sign for dividend sustainability.
Current Snapshot
Revenue Change
-0.5%
Debt Change
+23.0%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by -0.5% across the displayed period, while debt changed by +23.0%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Debt growing with stable revenue — check whether new borrowing is productive or a warning sign for dividend sustainability.
Sources
Annual dividends as percentage of stock price
18.13% yield significantly exceeds Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
18.1%
6% Requirement
6.0%
Gross Yield
25.3%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.17 and a share price of $0.96, the Barsi yield is 18.1%. The minimum requirement is 6%. Including franking credits, the gross yield is 25.3%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Very high yields can signal trouble — the stock price may have dropped because the market expects a dividend cut. Verify the payout ratio is sustainable and the company can maintain this level of distributions before relying on this income.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 9 Mar 2026Interim | 23 Apr 2026 | $0.04 | 0% | $0.04 | $0.00 |
| ~10 Sept 2026Est | ~9 Oct 2026 | ~$0.09 | 0% | ~$0.09 | $0.00 |
Highest price to lock in 6% yield
Industry category of the business
Telecom is an essential service sector with stable, predictable cash flows - ideal for dividend investing.
Current Snapshot
Industry
Entertainment
BESST Match
Yes
Score Impact
+3 points
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Entertainment (Communication Services sector). It matches the Telecom category — an essential service sector with stable demand, earning a +3 point scoring advantage.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (111%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
111.3%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.57 dividend / $0.07 EPS equals 856.1% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (111%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
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. The company operates through Broadcasting, Publishing, Domain Group, and Stan segments. It offers 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.
The company also provides mastheads under The Sydney Morning Herald, The Age, Brisbane Times, The Australian Financial Review and magzine, WA Today, Fin Magzine, Good Food, Good Weekend, Sunday Life, Traveller, Leisure and Life, AFR weekend, The Guide/Green Guide, Wide World Of Sports,9Honey, 9Travel, 9Travel Reviews, Domain Group, Drive, Fututre Women, The Sun-Herald, The Sunday Age, Drive, and Pedestrian group brands. In addition, it offers real estate media and technology services. Nine Entertainment Co. Holdings Limited was founded in 1956 and is headquartered in North Sydney, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
The people running this company own a large chunk of it (24.6%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Current Snapshot
Insider %
24.6%
Institutional %
53.0%
Float %
22.4%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 24.6% and institutions own 53.0%, public float is 22.4%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
The people running this company own a large chunk of it (24.6%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 26 Mar 2026 | Halios-Lewis (Chris) Non Independent Director | Unknown | 40K | — |
| 12 Mar 2026 | Stanton (Matthew) Chief Executive Officer | Purchase at price 0.61 per share. | 100K | $61K |
| 9 Mar 2026 | Longstaff (Timothy) Independent Non-Executive Director | Purchase at price 0.66 per share. | 53K | $35K |
| 9 Mar 2026 | Tonagh (Peter) Independent Non-Executive Director | Purchase at price 0.66 per share. | 213K | $141K |
| 25 Feb 2026 | Longstaff (Timothy) Independent Non-Executive Director | Purchase at price 0.76 per share. | 47K | $36K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
11.3% average is below the 18% threshold. This suggests the business may lack a durable competitive advantage. Note: COVID-19 Pandemic year(s) excluded — ROE recovered to 108% of target.
Current Snapshot
10Y Avg
11.3%
Threshold
18.0%
Worst Year
5.7%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 11.3%, meaning each $1 of shareholder equity generates $0.11 in annual profit. The threshold is 18%, and the worst single year was 5.7%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
Lower ROE means your investment compounds more slowly. At 11.3%, this business needs more capital to generate the same returns as competitors. Consider whether other strengths (yield, stability) compensate for weaker profitability.
Sources
Debt-to-equity of 0.67 is 1.3x over Buffett's limit. High leverage increases risk during downturns.
Current Snapshot
Current D/E
0.67x
Industry Limit
0.50x
Headroom
-0.17x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.67, meaning it carries 67 cents of debt for every $1 of equity. The digital platforms & media limit is 0.50, leaving it 0.17 over the limit.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
High debt means interest payments come before dividends. During recessions, heavily indebted companies often cut dividends first to preserve cash. This adds risk to your income stream.
Sources
Healthy 40.5% average margin suggests sustainable competitive advantage.
Current Snapshot
10Y Avg
40.5%
Threshold
40%
Worst Year
39.1%
Why It Matters
Gross margin indicates how much room a business has to absorb costs and still generate profit.
Formula
(Revenue - Cost of Goods Sold) / Revenue x 100Method
Assess both the long-term average and the weakest year. The framework checks for both level and consistency.
Worked Example
This company's 4-year average gross margin is 40.5% — it keeps 40 cents of every revenue dollar after production costs. The threshold is 40%, and the weakest year was 39.1%.
How to Interpret
Sustained high margins usually support durability. Sharp margin swings can signal weaker control or cyclical pressure.
Strong margins mean the company has pricing power. They can maintain profitability even if costs rise - protecting the dividend during inflationary periods.
Sources
Current ratio of 0.98 is below 1.0 - company may struggle to pay short-term obligations.
Current Snapshot
Current Ratio
0.98x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 0.98x — it has $0.98 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Tight liquidity means the company may need to borrow or sell assets to pay bills. Dividends are often the first expense cut when cash runs low.
Sources
Stock is trading 13% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
38.6%
Industry Threshold
30%
Status
13% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $1.58 per share, current price is $0.96, and margin of safety is 38.6%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price is below your required threshold, so you retain a margin-of-safety buffer against normal valuation error and market volatility.
Sources
What percentage of the stock price comes back as earnings each year
6.8% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
6.8%
Required Yield
7.5%
Spread
-0.7pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.07 and a share price of $0.96, earnings yield is 6.8%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
6.9% ROIC is below the 11.0% threshold. Company may not be earning enough to justify the money invested in it.
Current Snapshot
5Y Avg
6.9%
Threshold
11.0%
WACC Delta
-2.1pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 6.9%, with a cost of capital (WACC) of 9.0%. The -2.1pp gap below WACC suggests it may be destroying value on each dollar invested.
How to Interpret
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Returns below the cost of borrowing mean the business destroys value over time. This can erode the foundation that supports dividends — proceed with caution.
Sources
Consistency of profits over time
1 loss year(s) found with only 4 years of data. Limited data requires 100% positive EPS - industry exemptions don't apply.
Current Snapshot
Positive Years
8/4
Allowed Losses
0 (limited)
EPS CAGR
-21.8%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 8 of the last 4 years, with 1 loss year. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is -21.8%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Loss years signal unpredictable earnings. During loss periods, companies often cut dividends to preserve cash. Your income could be at risk in the next downturn.
Sources
How much earnings are consumed by capital expenditure
CapEx consumes 64% of cumulative earnings — above the 25% threshold. This business requires heavy reinvestment just to maintain operations.
Current Snapshot
10Y CapEx Intensity
64%
Threshold
25%
Buffer
-39%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 64% of this company's cumulative earnings were consumed by capital expenditure. The digital platforms & media threshold is 25%, leaving a buffer of -39% (over threshold).
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
High capital intensity means most earnings go back into equipment and infrastructure rather than dividends or growth. Buffett prefers businesses like See's Candies that generate cash without needing much reinvestment.
Sources
Years of earnings needed to retire all long-term debt
Would take 4.7 years of earnings to pay off long-term debt — above the 3-year threshold. Heavy debt relative to earnings.
Current Snapshot
Payoff Years
4.7yr
Target Years
3yr
Gap
-1.7yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $624M in long-term debt and $132M in average annual earnings (3yr), it would take 4.7 years of earnings to pay off all debt. The digital platforms & media threshold is 3 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
High debt relative to earnings means interest payments compete with dividends for available cash. If earnings dip, the dividend is at risk because debt must be serviced first.
Sources
Percentage of revenue that becomes profit after all expenses
3.9% net margin is below the 25% threshold. Thin margins suggest weak competitive position or high costs.
Current Snapshot
Current Margin
3.9%
Threshold
25.0%
Relative Position
-21.1%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 3.9% — it keeps 4 cents of every revenue dollar as profit after all expenses. The digital platforms & media threshold is 25%, putting it 21.1% below the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Thin margins mean a small increase in costs or drop in prices could eliminate profits entirely. This puts dividends at risk because there's no buffer to absorb shocks.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 11 Sept 2025Final | 9 Oct 2025 | $0.53 | 0% | $0.53 | $0.00 |
| 10 Mar 2025Interim | 7 Apr 2025 | $0.04 | 0% | $0.04 | $0.00 |
| 12 Sept 2024Final | 10 Oct 2024 | $0.04 | 0% | $0.04 | $0.00 |
| 8 Mar 2024Interim | 5 Apr 2024 | $0.04 | 0% | $0.04 | $0.00 |
| 8 Sept 2023Final | 6 Oct 2023 | $0.05 | 0% | $0.05 | $0.00 |
| 3 Mar 2023Interim | 31 Mar 2023 | $0.06 | 0% | $0.06 | $0.00 |
| 9 Sept 2022Final | 7 Oct 2022 | $0.07 | 0% | $0.07 | $0.00 |
| 3 Mar 2022Interim | 31 Mar 2022 | $0.07 | 0% | $0.07 | $0.00 |
| 9 Sept 2021Final | 7 Oct 2021 | $0.06 | 0% | $0.06 | $0.00 |
| 4 Mar 2021Interim | 1 Apr 2021 | $0.05 | 0% | $0.05 | $0.00 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Variable
Payout Health
One-off event
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Variable. Payout health: One-off event. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Priced well below ceiling. 67% below means you're locking in well over 6% yield.
Current Snapshot
Current Price
$0.96
Max Buy Price
$2.92
Delta
+67.0%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $0.96 and a ceiling of $2.92, the entry is 67.0% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying this far below the ceiling locks in a yield well above 6% based on proven historical dividends. Your income starts strong from day one.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Essential services maintain demand regardless of economic conditions - people always need electricity, banking, and telecommunications. Your income is protected by inelastic demand.
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