MDP  Meredith Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Newspapers/Magazines

Market Cap.

2.39B

Vuru Grade

45.92/100

Current Price

$53.70
+0.30 (+0.56%)

Growth Price

$49.54
Overvalued by 7.74%

Stability Price

$30.98
Overvalued by 42.30%

Company Metrics

  • P/E 12.91
  • P/S 1.39
  • P/B 2.39
  • EPS 4.16
  • Cash ROIC 8.41%
  • Cash Ratio 0.05
  • Dividend 2.08 / 3.9%
  • Avg. Vol. 319,926.00
  • Shares 44.51M
  • Market Cap. 2.39B

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

An obscure company is ground zero for the biggest debate in the stock market
Business Insider - Oct 17, 2017
You may not have heard of Meredith Corporation, but its shareholder list highlights a tug-of-war in the stock market. A little known fact about the $2.4 billion media conglomerate is that well over 20% of its stock is owned by exchange-traded funds (ETFs).
Meredith Corporation To Report Fiscal 2018 First Quarter Results
PR Newswire (press release) - Oct 12, 2017
DES MOINES, Iowa, Oct. 12, 2017 /PRNewswire/ -- Meredith Corporation (NYSE: MDP; www.meredith.com), the leading media and marketing company serving more than 110 million unduplicated American women and more than 70 percent of U.S.
Meredith Corporation (MDP) Analysts See $0.63 EPS - WeeklyHub
Meredith Corporation Hosts Second Annual BrandFront Presentation Unveiling ...
PR Newswire (press release) - Sep 25, 2017
NEW YORK, Sept. 25, 2017 /PRNewswire/ -- Meredith Corporation (NYSE: MDP) (www.meredith.com), the nation's leading media and marketing company with national brands that service 110 million American women every month and local television brands ...
GSA Capital Partners LLP Has $405000 Stake in Meredith Corporation (NYSE:MDP)
TrueBlueTribune - 12 hours ago
Meredith Corporation logo GSA Capital Partners LLP lessened its stake in Meredith Corporation (NYSE:MDP) by 31.6% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission.
ValuEngine Upgrades Meredith Corporation (NYSE:MDP) to “Buy” - StockNewsTimes
Meredith Corporation (NYSE:MDP) Upgraded to “Buy” at ValuEngine - The Ledger Gazette
Meredith Launches "Strive" to Bring Premium Wellness Content to Over 100 ...
PR Newswire (press release) - Sep 28, 2017
NEW YORK, Sept. 28, 2017 /PRNewswire/ -- Meredith Corporation (NYSE: MDP; www.meredith.com), the nation's leading media and marketing company serving 110 million unduplicated U.S.
Meredith launches new wellness brand, Strive, aimed at American Millennial women - Talking New Media
Meredith E-commerce Network Awarded "Innovator Of The Year" By Commission ...
PR Newswire (press release) - Oct 10, 2017
NEW YORK, Oct. 10, 2017 /PRNewswire/ -- Meredith Corporation (NYSE: MDP) (www.meredith.com), the nation's leading media and marketing company serving 110 million unduplicated U.S.
Stock is down at $54.85 (MDP) Meredith E-commerce Network Awarded… - HugoPress
Meredith Corporation (NYSE:MDP) Runs -2.36% For the Past 5 Trading Days
Concord Register - 12 hours ago
Meredith Corporation (NYSE:MDP) shares saw the needle move -2.36% on the week. The stock closed the most recent session at $53.25 after seeing 61444 shares trade hands.
Meredith Corporation (NYSE:MDP) Short Interest & Technical Update
Midway Monitor - 4 hours ago
According to the latest data, investors are looking at Meredith Corporation (NYSE:MDP)'s short data and trying to figure out market sentiment on which way the market thinks the stock is moving.
The Volatility Option Trade After Earnings in Meredith Corporation
CML News - Oct 20, 2017
This is a slightly advanced option trade that bets on volatility for a period that starts one-day after Meredith Corporation (NYSE:MDP) earnings and lasts for the 6 calendar days to follow, that has been a winner for the last 3 years. We note the use ...
Meredith employees spruce up East High, surrounding area
DesMoinesRegister.com - Oct 13, 2017
Des Moines students, along with volunteers from Rebuilding Together and Meredith Corporation, got to work Thursday on renovations to East High School and the surrounding area.
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.

$53.70 Current Price

$49.54 Growth Price (DCF)

Overvalued by 7.74%


Growth Rate Assumed by Market: 4.06%


Future Free Cash Flow Growth Rate: 0.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$30.98 Stability Price (EPV)

Overvalued by 42.30%


Discount Rate: 15.0%

$46.56 Book Price

Overvalued by 13.30%


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 $8.41 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20132014201520162017
Free Cash Flow 163.12M 153.27M 159.10M 201.56M 184.56M
divided by
Invested Capital 1.66B 2.02B 2.29B 2.13B 2.25B
Cash ROIC 9.85% 7.57% 6.95% 9.48% 8.21%

Satisfactory Return on Equity over the past 5 years

MDP has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

MDP has generated $12.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20132014201520162017
Net Income 123.65M 113.54M 136.79M 33.94M 188.93M
divided by
Stockholders' Equity 854.30M 891.65M 951.85M 889.04M 995.97M
Return on Equity 14.47% 12.73% 14.37% 3.82% 18.97%

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
2008200920102011201220132014201520162017
Free Cash Flow 226.34M 157.45M 166.93M 184.63M 146.21M 163.12M 153.27M 159.10M 201.56M 184.56M

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
2008200920102011201220132014201520162017
Cash 37.64M 27.91M 48.57M 27.72M 25.82M 27.67M 36.59M 22.83M 24.97M 22.29M
Current Assets 403.09M 340.14M 381.43M 333.74M 359.44M 407.69M 470.01M 482.53M 481.16M 505.25M
Total Assets 2.06B 1.67B 1.73B 1.71B 2.02B 2.14B 2.54B 2.84B 2.63B 2.73B
Current Liabilities 443.14M 349.22M 438.31M 408.99M 482.59M 456.67M 483.10M 531.00M 477.89M 459.67M
Total Liabilities 1.27B 1.06B 1.04B 937.84M 1.22B 1.29B 1.65B 1.89B 1.74B 1.73B
Stockholder' Equity 787.86M 609.38M 688.35M 774.99M 797.45M 854.30M 891.65M 951.85M 889.04M 995.97M
Current Ratio 0.91 0.97 0.87 0.82 0.74 0.89 0.97 0.91 1.01 1.10
TL-to-TA 0.62 0.63 0.60 0.55 0.60 0.60 0.65 0.67 0.66 0.64

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
2008200920102011201220132014201520162017
Retained Earnings 701.21M 542.01M 604.62M 687.82M 722.78M 775.90M 814.05M 870.86M 818.71M 915.70M
Retained Earnings Growth - -22.70% 11.55% 13.76% 5.08% 7.35% 4.92% 6.98% -5.99% 11.85%

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 $6.29 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Net Income 134.67M -107.08M 103.96M 127.43M 104.37M 123.65M 113.54M 136.79M 33.94M 188.93M
divided by
Revenue 1.59B 1.41B 1.39B 1.40B 1.38B 1.47B 1.47B 1.59B 1.65B 1.71B
Net Profit Margin 8.49% -7.60% 7.49% 9.10% 7.58% 8.40% 7.73% 8.58% 2.06% 11.03%

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.

$60.33 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
2008200920102011201220132014201520162017
Gross Profit 897.66M 762.20M 812.95M 846.38M 829.12M 910.28M 901.68M 995.24M 1.04B 1.11B
divided by
Revenue 1.59B 1.41B 1.39B 1.40B 1.38B 1.47B 1.47B 1.59B 1.65B 1.71B
Gross Margin 56.58% 54.10% 58.58% 60.43% 60.23% 61.87% 61.39% 62.43% 62.91% 64.81%

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.

29.20% 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
2008200920102011201220132014201520162017
Capital Expenditure 29.62M 23.48M 24.72M 29.91M 35.72M 25.97M 24.82M 33.25M 25.04M 34.79M
divided by
Net Income 134.67M -107.08M 103.96M 127.43M 104.37M 123.65M 113.54M 136.79M 33.94M 188.93M
Capital Expenditure Ratio 21.99% -21.92% 23.78% 23.47% 34.22% 21.00% 21.86% 24.30% 73.77% 18.41%

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
2008200920102011201220132014201520162017
Dividend Paid 37.34M 39.73M 41.35M 44.24M 62.99M 70.53M 75.39M 79.98M 86.09M 91.93M
divided by
Shares Outstanding 47.59M 45.04M 45.54M 45.83M 45.10M 45.09M 45.41M 45.32M 45.36M 45.45M
Dividend Paid Per Share 0.78 0.88 0.91 0.97 1.40 1.56 1.66 1.76 1.90 2.02
Price at Year End 14.54 28.58 33.12 32.29 33.33 51.93 54.34 43.35 59.15 55.10
Dividend Yield 5.40% 3.09% 2.74% 2.99% 4.19% 3.01% 3.06% 4.07% 3.21% 3.67%

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
2008200920102011201220132014201520162017
Shares Outstanding 47.59M 45.04M 45.54M 45.83M 45.10M 45.09M 45.41M 45.32M 45.36M 45.45M
Stock Bought Back - 5.65% -1.10% -0.63% 1.62% 0.03% -0.72% 0.19% -0.07% -0.20%
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