# Nine Entertainment Co. Holdings (NEC.AU)

Canonical: https://gigainvestors.com/s/NEC.AU

Analysis as of: 2026-10-16T07:45:22.593Z. Financial observations: FY2007–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 0.65 per share; close as of 2026-10-15.

Estimated value: low AUD 0.90 per share, central AUD 1.02 per share, high AUD 1.19 per share. Buy at or below the central value AUD 1.02 per share. Valuation as of 2026-10-16T07:45:22.593Z; scenarios are not confidence intervals.

Expected annual return: 14.4% at the stated quote. About 14.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.21×

- FY2019: 0.19×

- FY2020: 0.11×

- FY2021: 0.16×

- FY2022: 0.20×

- FY2023: 0.16×

- FY2024: 0.12×

- FY2025: 0.16×

- FY2026: 0.09×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 17.7%

- ROIC, second-lowest year: 8.8%

- Typical minus recent gross margin: 6.6 pp

- Typical gross margin (annual median): 17.0%

- Recent gross margin (lower of latest and 3-year median): 10.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 6.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.8%

- FY2018: 27.0%

- FY2019: 22.1%

- FY2020: 12.5%

- FY2021: 14.9%

- FY2022: 25.9%

- FY2023: 20.5%

- FY2024: 13.6%

- FY2025: 21.6%

- FY2026: 8.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.73×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 198M

- Net income, five-year total: AUD 270M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.3 pp

- Working capital / revenue, final three-year average: 14.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.99×

- FY2023: 0.92×

- FY2024: 0.63×

- FY2025: 1.50×

- FY2026: 1.15×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 22.1% vs 13.6%

- Per-share earnings: 0.21 to 0.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.1%

- Ordinary dilution, 5-year annual growth: -1.5%

- Market cap gain: AUD -948M

- Cumulative retained earnings: AUD -912M

- Diluted shares, 10-year annual growth: 6.1%

- Diluted shares, 5-year annual growth: -1.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -13.7%

- Per-share value change: AUD -0.15

- Per-share value, starting three-year median: AUD 0.21

- Per-share value, ending three-year median: AUD 0.07

- Buybacks concentrated in cheaper years (correlation): 0.11

- Average buyback yield: 1.4%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 3.0B

- Cumulative net income, 10 years: AUD 155M

- ROIC, first three-year median: 22.1%

- ROIC, last three-year median: 13.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.12

- FY2018: AUD 0.21

- FY2019: AUD 0.14

- FY2020: AUD -0.31

- FY2021: AUD 0.10

- FY2022: AUD 0.17

- FY2023: AUD 0.11

- FY2024: AUD 0.07

- FY2025: AUD 0.07

- FY2026: AUD -0.27

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -16.0%

- Receivables to sales index (DSRI): 1.66×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.15×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.5%

- FY2018: 2.6%

- FY2019: 0.3%

- FY2020: -24.5%

- FY2021: -5.8%

- FY2022: -4.6%

- FY2023: -4.2%

- FY2024: -4.6%

- FY2025: -7.0%

- FY2026: -16.0%

## Holders

## Price story

Down 78% since Mar 2022 · sales -18.7%

Story as of 2026-10-16T10:00:13.392Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.1% a year for ten years

### Sales · FY2025–2026

sales -18.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 1.2B 

- FY2018: AUD 1.4B 

- FY2019: AUD 2.0B 

- FY2020: AUD 2.2B 

- FY2021: AUD 2.3B 

- FY2022: AUD 2.7B 

- FY2023: AUD 2.7B 

- FY2024: AUD 2.6B 

- FY2025: AUD 2.7B 

- FY2026: AUD 2.2B 

### Gross margin · FY2026

gross margin 10.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 10.1% 

- FY2018: 23.3% 

- FY2019: 23.2% 

- FY2020: 10.9% 

- FY2021: 15.6% 

- FY2022: 19.8% 

- FY2023: 22.2% 

- FY2024: 12.3% 

- FY2025: 18.4% 

- FY2026: 10.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in entertainment; annual sales are AUD 2.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2026: revenue 2189051000; grossProfit 227581000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NEC.AU: Nine Entertainment Co. Holdings Limited engages in the broadcasting and program production on free to air television, broadcast video on demand, and subscription video on demand in Australia. The company operates through Streaming & Broadcast, Publishing, and Outdoor segments. It is involved in the operation of a broadcast network through linear television, including Channel 9 for news, entertainment, and sport destinations; 9GO! for entertainment, reality, comedy, and blockbuster movies; and 9Life, a lifestyle destination. The company also engages in the operation of 9Now, a broadcast video on demand platform; and cross-platform news, such as newspapers, news-inserted magazines, digital, and events under the Nine.com.au, The Sydney Morning Herald, The Age, Brisbane Times, WAtoday, The Sun Herald, Sunday Age, and Drive brands. In addition, it offers subscription video-on-demand streaming services under the STAN brand; events for entertainment, lifestyle, food, finance, and leadership; AM radio channels consisting of 2GB, 3AW, 4BC, and 6PR stations; and out-of-home advertising and media services for a portfolio of owned and represented digital and static billboards, street furniture, and airport locations. Nine Entertainment Co. Holdings Limited was founded in 1956 and is based in North Sydney, Australia.

### Why customers stay

Margins ranged from 10.4% to 18.4% during 2024–26; it earns 17.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2024: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2025: grossProfit / revenue = 18.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2026: grossProfit / revenue = 10.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); 10-year return on capital observations [[2017,0.0881206860031395],[2018,0.26980092685875595],[2019,0.22102238937656532],[2020,0.12523582694185054],[2021,0.14923035955896968],[2022,0.25886209599351495],[2023,0.2045804371089663],[2024,0.1361079696634876],[2025,0.21593698083781618],[2026,0.087365555209784]]; median 0.176905398333968. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2018: growth capex 0; upkeep 22666000; owner earnings 223742000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2019: growth capex 0; upkeep 26524000; owner earnings 283594000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2021: growth capex 0; upkeep 93763000; owner earnings 147310000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2022: growth capex 0; upkeep 74767000; owner earnings 294937000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2023: growth capex 0; upkeep 97840000; owner earnings 166661776.9171854. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2024: growth capex 0; upkeep 136999000; owner earnings 69745416.87027428. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); FY2025: growth capex 0; upkeep 24828000; owner earnings 155778492.6997555. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); Dividend observations: [[2017,73904000],[2018,87076000],[2019,138390000],[2020,190922000],[2021,122053000],[2022,231799000],[2023,239295000],[2024,146074000],[2025,126861000],[2026,911811000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 28.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NEC.AU SharesStats.PercentInsiders = 28.656 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:22.593Z); Ten-year compound average after fade. Initial solved rate -0.08378055806676604. Price 0.65; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.3420024951999991 → FY2026 -0.3085096525174514. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.86 per share

- 2016-11: AUD 0.93 per share

- 2016-12: AUD 1.07 per share

- 2017-01: AUD 1.00 per share

- 2017-02: AUD 1.05 per share

- 2017-03: AUD 1.26 per share

- 2017-04: AUD 1.23 per share

- 2017-05: AUD 1.30 per share

- 2017-06: AUD 1.38 per share

- 2017-07: AUD 1.44 per share

- 2017-08: AUD 1.37 per share

- 2017-09: AUD 1.38 per share

- 2017-10: AUD 1.50 per share

- 2017-11: AUD 1.59 per share

- 2017-12: AUD 1.54 per share

- 2018-01: AUD 1.68 per share

- 2018-02: AUD 2.28 per share

- 2018-03: AUD 2.27 per share

- 2018-04: AUD 2.36 per share

- 2018-05: AUD 2.41 per share

- 2018-06: AUD 2.48 per share

- 2018-07: AUD 2.24 per share

- 2018-08: AUD 2.41 per share

- 2018-09: AUD 2.26 per share

- 2018-10: AUD 1.69 per share

- 2018-11: AUD 1.76 per share

- 2018-12: AUD 1.38 per share

- 2019-01: AUD 1.46 per share

- 2019-02: AUD 1.71 per share

- 2019-03: AUD 1.71 per share

- 2019-04: AUD 1.75 per share

- 2019-05: AUD 2.08 per share

- 2019-06: AUD 1.88 per share

- 2019-07: AUD 2.02 per share

- 2019-08: AUD 1.99 per share

- 2019-09: AUD 1.96 per share

- 2019-10: AUD 1.84 per share

- 2019-11: AUD 1.77 per share

- 2019-12: AUD 1.79 per share

- 2020-01: AUD 1.88 per share

- 2020-02: AUD 1.59 per share

- 2020-03: AUD 1.15 per share

- 2020-04: AUD 1.43 per share

- 2020-05: AUD 1.48 per share

- 2020-06: AUD 1.38 per share

- 2020-07: AUD 1.36 per share

- 2020-08: AUD 1.66 per share

- 2020-09: AUD 1.75 per share

- 2020-10: AUD 2.08 per share

- 2020-11: AUD 2.30 per share

- 2020-12: AUD 2.32 per share

- 2021-01: AUD 2.41 per share

- 2021-02: AUD 2.87 per share

- 2021-03: AUD 2.77 per share

- 2021-04: AUD 2.85 per share

- 2021-05: AUD 2.97 per share

- 2021-06: AUD 2.91 per share

- 2021-07: AUD 2.76 per share

- 2021-08: AUD 2.73 per share

- 2021-09: AUD 2.64 per share

- 2021-10: AUD 2.76 per share

- 2021-11: AUD 2.94 per share

- 2021-12: AUD 2.91 per share

- 2022-01: AUD 2.62 per share

- 2022-02: AUD 2.79 per share

- 2022-03: AUD 2.97 per share

- 2022-04: AUD 2.69 per share

- 2022-05: AUD 2.20 per share

- 2022-06: AUD 1.83 per share

- 2022-07: AUD 2.06 per share

- 2022-08: AUD 2.20 per share

- 2022-09: AUD 1.87 per share

- 2022-10: AUD 2.06 per share

- 2022-11: AUD 2.10 per share

- 2022-12: AUD 1.84 per share

- 2023-01: AUD 2.03 per share

- 2023-02: AUD 1.95 per share

- 2023-03: AUD 1.97 per share

- 2023-04: AUD 2.06 per share

- 2023-05: AUD 1.89 per share

- 2023-06: AUD 1.97 per share

- 2023-07: AUD 2.14 per share

- 2023-08: AUD 2.06 per share

- 2023-09: AUD 2.05 per share

- 2023-10: AUD 1.85 per share

- 2023-11: AUD 1.94 per share

- 2023-12: AUD 2.02 per share

- 2024-01: AUD 1.98 per share

- 2024-02: AUD 1.72 per share

- 2024-03: AUD 1.71 per share

- 2024-04: AUD 1.53 per share

- 2024-05: AUD 1.41 per share

- 2024-06: AUD 1.40 per share

- 2024-07: AUD 1.46 per share

- 2024-08: AUD 1.33 per share

- 2024-09: AUD 1.26 per share

- 2024-10: AUD 1.18 per share

- 2024-11: AUD 1.26 per share

- 2024-12: AUD 1.24 per share

- 2025-01: AUD 1.36 per share

- 2025-02: AUD 1.63 per share

- 2025-03: AUD 1.51 per share

- 2025-04: AUD 1.43 per share

- 2025-05: AUD 1.62 per share

- 2025-06: AUD 1.63 per share

- 2025-07: AUD 1.70 per share

- 2025-08: AUD 1.67 per share

- 2025-09: AUD 1.21 per share

- 2025-10: AUD 1.16 per share

- 2025-11: AUD 1.09 per share

- 2025-12: AUD 1.11 per share

- 2026-01: AUD 1.15 per share

- 2026-02: AUD 1.06 per share

- 2026-03: AUD 0.95 per share

- 2026-04: AUD 0.95 per share

- 2026-05: AUD 0.96 per share

- 2026-06: AUD 0.89 per share

- 2026-07: AUD 0.96 per share

- 2026-08: AUD 0.97 per share

- 2026-09: AUD 0.69 per share

- 2026-10: AUD 0.66 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 0.32 per share, central AUD 0.37 per share, high AUD 0.42 per share

- FY2018: low AUD 0.59 per share, central AUD 0.67 per share, high AUD 0.78 per share

- FY2019: low AUD 1.94 per share, central AUD 2.19 per share, high AUD 2.52 per share

- FY2020: low AUD 2.07 per share, central AUD 2.35 per share, high AUD 2.71 per share

- FY2021: low AUD 1.01 per share, central AUD 1.14 per share, high AUD 1.32 per share

- FY2022: low AUD 1.96 per share, central AUD 2.22 per share, high AUD 2.57 per share

- FY2023: low AUD 1.18 per share, central AUD 1.34 per share, high AUD 1.54 per share

- FY2024: low AUD 1.14 per share, central AUD 1.29 per share, high AUD 1.50 per share

- FY2025: low AUD 1.19 per share, central AUD 1.35 per share, high AUD 1.56 per share

- FY2026: low AUD 0.90 per share, central AUD 1.02 per share, high AUD 1.19 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.