Seven West Media (SWM.ASX) – declined almost 29% in May despite the company upgrading their FY22 EBITDA guidance at the beginning of the month. SWM announced that EBITDA for the FY22 year would be in the range of $335-$340m, up from $315-$325m reflecting the strength of the advertising markets and the ongoing success of Seven’s broadcast and digital businesses. Whilst a relatively modest upgrade the fall in share price seems to reflect a change in sentiment towards consumer discretionary stocks and the outlook for advertising spend more generally. Despite the outlook for media (and many other sectors possibly dimming) SWM is amortising its debt very quickly with strong cash flows. The valuation for the business with rapidly digitising revenues seems highly attractive at ~3x EV/EBITA.
SWM Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)