MDP  Meredith Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Newspapers/Magazines

Market Cap.

2.80B

Vuru Grade

42.34/100

Current Price

$62.93
-0.05 (-0.08%)

Growth Price

$47.89
Overvalued by 23.91%

Stability Price

$30.10
Overvalued by 52.17%

Company Metrics

  • P/E 29.67
  • P/S 1.66
  • P/B 2.96
  • EPS 2.12
  • Cash ROIC 8.71%
  • Cash Ratio 0.05
  • Dividend 2.08 / 3.28 %
  • Avg. Vol. 631,921.00
  • Shares 44.49M
  • Market Cap. 2.80B

Company Description

Meredith Corporation, a media and marketing company, engages in magazine and book publishing, television broadcasting, integrated marketing, and interactive media business in the United States. It operates in two segments, Publishing and Broadcasting. The Publishing segment publishes magazines for women focusing on the home and family market. It publishes 25 subscription magazines, including Bette... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Meredith Corporation (MDP) Ex-Dividend Date Scheduled for February 24, 2017
Nasdaq - 20 hours ago
Meredith Corporation ( MDP ) will begin trading ex-dividend on February 24, 2017. A cash dividend payment of $0.52 per share is scheduled to be paid on March 15, 2017.
Meredith Corporation (MDP) Breaks into New 52-Week High on February 23 Session
Equities.com - 12 hours ago
Shares of Meredith Corporation (MDP) broke into a new 52-week high yesterday, hitting a peak of $64.15. Shares closed at $63.45 after opening at $63.55 for a move of -0.08%.
Political Advertising Helps Fuel Better-Than-Expected Q2 for Meredith Corp.
Motley Fool - Jan 26, 2017
Shares of Meredith Corporation (NYSE:MDP), a publicly held media and marketing services company with core knowledge of the home, family, food, and lifestyle markets, were up about 10% yesterday after the company reported better-than-expected ...
Meredith Delivers Record Fiscal 2017 2nd Quarter And 1st Half Results - PR Newswire (press release)
Meredith CEO plays it cool on possible merger with Time - DesMoinesRegister.com
Meredith Corp. Announces Layoffs
MediaPost Communications - Feb 1, 2017
Big publishers aren't slacking on cost-cutting measures in the New Year. Women's interest publisher Meredith Corp. revealed that it has cut 40 positions across the company, with half of the layoffs falling on its New York office and the rest spread ...
(VIDEO) Meredith Corp.'s Minoff Bullish On Server-To-Server, Industry ...
Huffington Post - Feb 17, 2017
HOLLYWOOD, Florida - Meredith Corporation's Chief Digital Officer is bullish on server-to-server ad auction integration.
Meredith Corp. may bid against billionaire trio for Time Inc.
New York Post - Nov 30, 2016
As the Time Inc. drama played out for a second day, some media insiders were betting that Meredith Corp. will soon enter the fray and trigger a potential bidding war against the billionaire trio of Edgar Bronfman Jr.
Industry eyes Meredith as Time Inc. suitor - CNNMoney
Time Inc., Meredith Corp. stocks jump amid merger speculation
New York Post - Jan 5, 2017
The shares of both Time Inc. and Meredith Corp. touched 52-week highs on Wednesday after a top Meredith executive said he would, in certain circumstance, be interested in opportunities for his TV or magazines assets.
CBS and Meredith Announce Affiliation Renewals and Digital Distribution Deal
PR Newswire (press release) - Jan 24, 2017
NEW YORK, Jan. 24, 2017 /PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) and Meredith Corporation (NYSE: MDP) today announced a long-term deal that renews station affiliation agreements for four of its owned-and-operated stations, including ...
Meredith Board Of Directors Raises Dividend 5.1 Percent To $2.08 Per Share
PR Newswire (press release) - Jan 30, 2017
DES MOINES, Iowa, Jan. 30, 2017 /PRNewswire/ -- The Meredith Corporation (NYSE: MDP; www.meredith.com) Board of Directors on Saturday, January 28, 2017, approved a 5.1 percent increase of its regular stock dividend to $2.08 per share on an ...
Meredith cuts 40 jobs in reorgnization - Seeking Alpha
Meredith Corporation (MDP) Moves Lower on Volume Spike for January 31 - Equities.com
Meredith Corporation (MDP) Breaks into New 52-Week High on February 14 Session
Equities.com - Feb 14, 2017
Shares of Meredith Corporation (MDP) broke into a new 52-week high yesterday, hitting a peak of $63.45. Shares closed at $62.95 after opening at $62.85 for a move of -0.08%.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MDP to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MDP's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$62.93 Current Price

$47.89 Growth Price (DCF)

Overvalued by 23.91%


Growth Rate Assumed by Market: 9.70%


Future Free Cash Flow Growth Rate: -1.1%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$30.10 Stability Price (EPV)

Overvalued by 52.17%


Discount Rate: 15.0%

$41.83 Book Price

Overvalued by 33.52%


Poor Cash Return on Invested Capital over the past 5 years

MDP has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

MDP has only created $8.71 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 146.21M 163.12M 153.27M 159.10M 201.56M
divided by
Invested Capital 1.51B 1.66B 2.02B 2.29B 2.13B
Cash ROIC 9.70% 9.85% 7.57% 6.95% 9.48%

Shrinking Return on Equity over the past 5 years

MDP has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

MDP has generated $11.70 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income 104.37M 123.65M 113.54M 136.79M 33.94M
divided by
Stockholders' Equity 797.45M 854.30M 891.65M 951.85M 889.04M
Return on Equity 13.09% 14.47% 12.73% 14.37% 3.82%

Excellent Business Performance over the past 10 years

MDP has been able to maintain profitability in good times and bad. This could mean MDP has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MDP has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Free Cash Flow 167.92M 226.34M 157.45M 166.93M 184.63M 146.21M 163.12M 153.27M 159.10M 201.56M

Weak Balance Sheet

MDP's financial position is not ideal. The key is to check whether MDP is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash 39.22M 37.64M 27.91M 48.57M 27.72M 25.82M 27.67M 36.59M 22.83M 24.97M
Current Assets 452.64M 403.09M 340.14M 381.43M 333.74M 359.44M 407.69M 470.01M 482.53M 481.16M
Total Assets 2.09B 2.06B 1.67B 1.73B 1.71B 2.02B 2.14B 2.54B 2.84B 2.63B
Current Liabilities 487.03M 443.14M 349.22M 438.31M 408.99M 482.59M 456.67M 483.10M 531.00M 477.89M
Total Liabilities 1.26B 1.27B 1.06B 1.04B 937.84M 1.22B 1.29B 1.65B 1.89B 1.74B
Stockholder' Equity 833.20M 787.86M 609.38M 688.35M 774.99M 797.45M 854.30M 891.65M 951.85M 889.04M
Current Ratio 0.93 0.91 0.97 0.87 0.82 0.74 0.89 0.97 0.91 1.01
TL-to-TA 0.60 0.62 0.63 0.60 0.55 0.60 0.60 0.65 0.67 0.66

Low or No Reinvestment of Profits over the past 10 years

MDP has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to MDP operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Retained Earnings 727.63M 701.21M 542.01M 604.62M 687.82M 722.78M 775.90M 814.05M 870.86M 818.71M
Retained Earnings Growth - -3.63% -22.70% 11.55% 13.76% 5.08% 7.35% 4.92% 6.98% -5.99%

Competitive Industry over the past 10 years

MDP is likely operating in an industry with medium to low barriers to entry. This may mean that MDP doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that MDP invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.19 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Net Income 162.35M 134.67M -107.08M 103.96M 127.43M 104.37M 123.65M 113.54M 136.79M 33.94M
divided by
Revenue 1.62B 1.59B 1.41B 1.39B 1.40B 1.38B 1.47B 1.47B 1.59B 1.65B
Net Profit Margin 10.05% 8.49% -7.60% 7.49% 9.10% 7.58% 8.40% 7.73% 8.58% 2.06%

Strong Pricing Power over the past 10 years

MDP has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$59.75 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Gross Profit 953.79M 897.66M 762.20M 812.95M 846.38M 829.12M 910.28M 901.68M 995.24M 1.04B
divided by
Revenue 1.62B 1.59B 1.41B 1.39B 1.40B 1.38B 1.47B 1.47B 1.59B 1.65B
Gross Margin 59.02% 56.58% 54.10% 58.58% 60.43% 60.23% 61.87% 61.39% 62.43% 62.91%

Medium Capital Intensity over the past 10 years

MDP has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

30.07% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Capital Expenditure 42.60M 29.62M 23.48M 24.72M 29.91M 35.72M 25.97M 24.82M 33.25M 25.04M
divided by
Net Income 162.35M 134.67M -107.08M 103.96M 127.43M 104.37M 123.65M 113.54M 136.79M 33.94M
Capital Expenditure Ratio 26.24% 21.99% -21.92% 23.78% 23.47% 34.22% 21.00% 21.86% 24.30% 73.77%

Very Strong Dividend History over the past 10 years

MDP has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests MDP is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Dividend Paid 33.25M 37.34M 39.73M 41.35M 44.24M 62.99M 70.53M 75.39M 79.98M 86.09M
divided by
Shares Outstanding 49.11M 47.59M 45.04M 45.54M 45.83M 45.10M 45.09M 45.41M 45.32M 45.36M
Dividend Paid Per Share 0.68 0.78 0.88 0.91 0.97 1.40 1.56 1.66 1.76 1.90
Price at Year End 47.07 14.54 28.58 33.12 32.29 33.33 51.93 54.34 43.35 59.15
Dividend Yield 1.44% 5.40% 3.09% 2.74% 2.99% 4.19% 3.01% 3.06% 4.07% 3.21%

History of Stock Buybacks over the past 10 years

MDP has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Shares Outstanding 49.11M 47.59M 45.04M 45.54M 45.83M 45.10M 45.09M 45.41M 45.32M 45.36M
Stock Bought Back - 3.20% 5.65% -1.10% -0.63% 1.62% 0.03% -0.72% 0.19% -0.07%
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