(Corrects paragraph 3 to say six months ended February 2012 vs
year ago, not between February 2011 and 2012)
Ten Network Holdings Ltd looks the most expensive
among 55 stocks in Australia's consumer discretionary sector
tracked by at least three analysts, data from Thomson Reuters
The media company fares badly on the Relative Valuation (RV)
model with a score of 10. The lower the score, the more
expensive the stock. It also has a Value-Momentum (Val-Mo) score
of 1, the lowest in the sector.
The company' s net margin and free cash flow (FCF) for 2011
lag industry average by 12.5 percent and 4 percent respectively.
Its FCF stayed r e latively stable for the six m o nths e n ded
Feb ruary 2012 fr om the year-ago period, i n c reasing by A$1
million to A$72 million. It s n et income dropped 70 percent to
A$15 million during the same period.
While four of the 13 analysts tracking the stock have cut
their EPS estimates for 2012 and 2013 by 29.9 percent over the
past 30 days, six have cut their estimates by 30.5 percent.
Nine analysts rank it 'sell' or 'strong sell', three have
'hold' rating and one has a 'buy'.
The stock is down 54 percent so far this year, while the
broader index is up nearly 8.29 percent for the same
period, as of Tuesday's close.
On the other end of the spectrum, APN News & Media is the
most attractive on valuations in the sector with an RV score of
Ten Network said on Sept. 20 the Australian Competition and
Consumer Commission had cleared the sale of the company's ad
sales business Eye Corp Pty Ltd.
StarMine's Relative Valuation model combines six different
ratios that measure a company's valuation and then ranks it
compared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile ranking
of stocks and rates companies based on a combination of value
and momentum metrics.
(Reporting By Reshma Apte; Editing by Jijo Jacob)