NIELSEN HOLDINGS PLC (NLSN)
GB00BWFY5505 - Common Stock
NLSN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. Both the profitability and financial health of NLSN have multiple concerns. NLSN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
NLSN had positive earnings in the past year.
In the past year NLSN had a positive cash flow from operations.
In multiple years NLSN reported negative net income over the last 5 years.
NLSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
In the last couple of years the Profit Margin of NLSN has grown nicely.
NLSN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLSN is destroying value.
NLSN has more shares outstanding than it did 1 year ago.
The debt/assets ratio for NLSN has been reduced compared to a year ago.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 8.68 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.88
WACC7.27%
2.3 Liquidity
NLSN has a Current Ratio of 2.04. This indicates that NLSN is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.04 indicates that NLSN has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The earnings per share for NLSN have decreased by -2.15% in the last year.
The Earnings Per Share has been decreasing by -6.84% on average over the past years.
Looking at the last year, NLSN shows a very negative growth in Revenue. The Revenue has decreased by -28.72% in the last year.
Measured over the past years, NLSN shows a very negative growth in Revenue. The Revenue has been decreasing by -11.12% on average per year.
EPS 1Y (TTM)-2.15%
EPS 3Y23.97%
EPS 5Y-6.84%
EPS growth Q2Q6.98%
Revenue 1Y (TTM)-28.72%
Revenue growth 3Y-18.71%
Revenue growth 5Y-11.12%
Revenue growth Q2Q2.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
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 24.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.98, which indicates a correct valuation of NLSN.
NLSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.49
PEG (5Y)N/A
EPS Next 2Y5.15%
EPS Next 3Y6.05%
5. Dividend
5.1 Amount
NLSN has a yearly dividend return of 0.86%, which is pretty low.
Compared to an average S&P500 Dividend Yield of 2.39, NLSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of NLSN decreases each year by -44.32%.
NLSN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-44.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
16.23% of the earnings are spent on dividend by NLSN. This is a low number and sustainable payout ratio.
DP16.23%
EPS Next 2Y5.15%
EPS Next 3Y6.05%
NIELSEN HOLDINGS PLC
NYSE:NLSN (10/11/2022, 7:25:24 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 13.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 15.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.51% | ||
| PM (TTM) | 14.99% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.15%
EPS 3Y23.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.72%
Revenue growth 3Y-18.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y