NIELSEN HOLDINGS PLC (NLSN) Fundamental Analysis & Valuation

NYSE:NLSN • GB00BWFY5505

Current stock price

27.98 USD
+0.01 (+0.04%)
At close:
27.99 USD
+0.01 (+0.04%)
After Hours:

This NLSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. NLSN Profitability Analysis

1.1 Basic Checks

  • NLSN had positive earnings in the past year.
  • NLSN had a positive operating cash flow in the past year.
NLSN Yearly Net Income VS EBIT VS OCF VS FCFNLSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 500M -500M 1B

1.2 Ratios

Industry RankSector Rank
ROA 4.86%
ROE 15.26%
ROIC 6.42%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NLSN Yearly ROA, ROE, ROICNLSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 -10 20 -20

1.3 Margins

  • NLSN's Profit Margin has improved in the last couple of years.
  • NLSN's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.51%
PM (TTM) 14.99%
GM N/A
OM growth 3Y28.76%
OM growth 5Y6.33%
PM growth 3YN/A
PM growth 5Y43.28%
GM growth 3YN/A
GM growth 5YN/A
NLSN Yearly Profit, Operating, Gross MarginsNLSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

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2

2. NLSN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLSN is destroying value.
  • Compared to 1 year ago, NLSN has more shares outstanding
  • The debt/assets ratio for NLSN has been reduced compared to a year ago.
NLSN Yearly Shares OutstandingNLSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M
NLSN Yearly Total Debt VS Total AssetsNLSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 1.46, we must say that NLSN is in the distress zone and has some risk of bankruptcy.
  • The Debt to FCF ratio of NLSN is 8.68, which is on the high side as it means it would take NLSN, 8.68 years of fcf income to pay off all of its debts.
  • A Debt/Equity ratio of 1.61 is on the high side and indicates that NLSN has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF 8.68
Altman-Z 1.46
ROIC/WACC0.88
WACC7.27%
NLSN Yearly LT Debt VS Equity VS FCFNLSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.04 indicates that NLSN has no problem at all paying its short term obligations.
  • NLSN has a Quick Ratio of 2.04. This indicates that NLSN is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 2.04
NLSN Yearly Current Assets VS Current LiabilitesNLSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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3

3. NLSN Growth Analysis

3.1 Past

  • NLSN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.15%.
  • NLSN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.84% yearly.
  • The Revenue for NLSN has decreased by -28.72% in the past year. This is quite bad
  • NLSN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.12% yearly.
EPS 1Y (TTM)-2.15%
EPS 3Y23.97%
EPS 5Y-6.84%
EPS Q2Q%6.98%
Revenue 1Y (TTM)-28.72%
Revenue growth 3Y-18.71%
Revenue growth 5Y-11.12%
Sales Q2Q%2.44%

3.2 Future

  • Based on estimates for the next years, NLSN will show a small growth in Earnings Per Share. The EPS will grow by 5.62% on average per year.
  • Based on estimates for the next years, NLSN will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y6.17%
EPS Next 2Y5.15%
EPS Next 3Y6.05%
EPS Next 5Y5.62%
Revenue Next Year2.38%
Revenue Next 2Y3.15%
Revenue Next 3Y3.41%
Revenue Next 5Y3.21%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NLSN Yearly Revenue VS EstimatesNLSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
NLSN Yearly EPS VS EstimatesNLSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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2

4. NLSN Valuation Analysis

4.1 Price/Earnings Ratio

  • NLSN is valuated correctly with a Price/Earnings ratio of 15.37.
  • NLSN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 13.98, the valuation of NLSN can be described as correct.
  • NLSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 15.37
Fwd PE 13.98
NLSN Price Earnings VS Forward Price EarningsNLSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF 15.56
EV/EBITDA 11.18
NLSN Per share dataNLSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10 -15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NLSN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.49
PEG (5Y)N/A
EPS Next 2Y5.15%
EPS Next 3Y6.05%

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3

5. NLSN Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.86%, NLSN is not a good candidate for dividend investing.
  • With a Dividend Yield of 0.86, NLSN pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

  • The dividend of NLSN decreases each year by -44.32%.
  • NLSN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-44.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
NLSN Yearly Dividends per shareNLSN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • NLSN pays out 16.23% of its income as dividend. This is a sustainable payout ratio.
DP16.23%
EPS Next 2Y5.15%
EPS Next 3Y6.05%
NLSN Yearly Income VS Free CF VS DividendNLSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 500M -500M
NLSN Dividend Payout.NLSN Dividend Payout, showing the Payout Ratio.NLSN Dividend Payout.PayoutRetained Earnings

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NLSN Fundamentals: All Metrics, Ratios and Statistics

NIELSEN HOLDINGS PLC

NYSE:NLSN (10/11/2022, 8:25:24 PM)

After market: 27.99 +0.01 (+0.04%)

27.98

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)07-27
Earnings (Next)11-04
Inst Owners0.01%
Inst Owner Change0%
Ins Owners10.9%
Ins Owner Change0%
Market Cap10.07B
Revenue(TTM)3.54B
Net Income(TTM)530.00M
Analysts71.43
Price Target28.56 (2.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
Yearly Dividend0.24
Dividend Growth(5Y)-44.32%
DP16.23%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.58%
Min EPS beat(2)6.72%
Max EPS beat(2)10.45%
EPS beat(4)4
Avg EPS beat(4)16.96%
Min EPS beat(4)6.72%
Max EPS beat(4)26.96%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-2.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-0.73%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 15.37
Fwd PE 13.98
P/S 2.85
P/FCF 15.56
P/OCF 10.25
P/B 2.9
P/tB N/A
EV/EBITDA 11.18
EPS(TTM)1.82
EY6.5%
EPS(NY)2
Fwd EY7.15%
FCF(TTM)1.8
FCFY6.43%
OCF(TTM)2.73
OCFY9.75%
SpS9.82
BVpS9.65
TBVpS-15.24
PEG (NY)2.49
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 4.86%
ROE 15.26%
ROCE N/A
ROIC 6.42%
ROICexc N/A
ROICexgc 51.61%
OM 23.51%
PM (TTM) 14.99%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y4.08%
ROICexgc growth 5Y-0.34%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y28.76%
OM growth 5Y6.33%
PM growth 3YN/A
PM growth 5Y43.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF 8.68
Debt/EBITDA N/A
Cap/Depr 64.92%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 122.08%
Current Ratio 2.04
Quick Ratio 2.04
Altman-Z 1.46
F-Score6
WACC7.27%
ROIC/WACC0.88
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.15%
EPS 3Y23.97%
EPS 5Y-6.84%
EPS Q2Q%6.98%
EPS Next Y6.17%
EPS Next 2Y5.15%
EPS Next 3Y6.05%
EPS Next 5Y5.62%
Revenue 1Y (TTM)-28.72%
Revenue growth 3Y-18.71%
Revenue growth 5Y-11.12%
Sales Q2Q%2.44%
Revenue Next Year2.38%
Revenue Next 2Y3.15%
Revenue Next 3Y3.41%
Revenue Next 5Y3.21%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.59%
FCF growth 3Y-15.47%
FCF growth 5Y-17.74%
OCF growth 1Y-12.94%
OCF growth 3Y-14.3%
OCF growth 5Y-12.47%

NIELSEN HOLDINGS PLC / NLSN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NIELSEN HOLDINGS PLC (NLSN) stock?

ChartMill assigns a fundamental rating of 4 / 10 to NLSN.


What is the valuation status for NLSN stock?

ChartMill assigns a valuation rating of 3 / 10 to NIELSEN HOLDINGS PLC (NLSN). This can be considered as Overvalued.


What is the profitability of NLSN stock?

NIELSEN HOLDINGS PLC (NLSN) has a profitability rating of 4 / 10.


How financially healthy is NIELSEN HOLDINGS PLC?

The financial health rating of NIELSEN HOLDINGS PLC (NLSN) is 4 / 10.


What is the earnings growth outlook for NIELSEN HOLDINGS PLC?

The Earnings per Share (EPS) of NIELSEN HOLDINGS PLC (NLSN) is expected to grow by 6.17% in the next year.