Viacom decreases 11 June 2019

NEWS BITES - NORTH AMERICA

Viacom, Inc. (NASDAQ:VIA), the NASDAQ's 16th largest Consumer product/services company by market cap, has decreased 9.0c (0.3%) from its previous trading session to close at $US33.64. Compared with the NASDAQ-100 Index which rose 11.9 points (0.2%) in the day, the relative price change was -0.4%. The volume was 0.4 times the average daily trading volume of 38,564 shares. There were 17,209 shares worth $US578,911 traded today.

UPCOMING EVENT: DIVIDEND

The company announced a dividend of 20.0c per share; ex-dividend date is Friday, June 14; the payable date is Monday, July 01; the record date is Monday, June 17.

Stock Summary

Day's Range$US33.58-$US34.12
52-Week Range$US26.85-$US37.54
SectorConsumer Product/Services sector
Market Cap$US1.7 billion
Shares Outstanding49,431,181

Highlights in today's Report:

SECTION 1 TODAY'S BEARISH SIGNALS

SECTION 2 TODAY'S BULLISH SIGNALS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US33.64):

SECTION 3 THE PAST WEEK

SECTION 4 ONGOING BULLISH PARAMETERS

SECTION 5 ONGOING BEARISH PARAMETERS

SECTION 6 REPORTED BUYING AND SELLING

SECTION 7 SUMMARY FINANCIALS

SECTION 8 CORPORATE PROFILE

SECTION 1 VIACOM BEARISH SIGNALS

1.1 Overvaluation Indicator and rank of Viacom in the Usnasdaq market:

DescriptionValueRank In Market
* EV/EBITDA5.3In Bottom 8%

* Enterprise value of $US11.8 billion is divided by Earnings before interest tax depreciation and amortization of $US2.2 billion.

1.2 Downtrend:

Price/Moving Average Price and MACD:

+ The Price/MAP of 1.0 for VIA is lower than the Price/MAP for the NASDAQ-100 Index of 1.07.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 33.73 minus the 26-day EMA of 33.89 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

+ The price to 50-day EMAP ratio is 1.0. In the past 200 days this ratio has been under 1.0 13 times suggesting downside. The 50-day EMAP has decreased to $US34.03. A decrease is another bearish indicator.

Past Week:

+ Viacom, Inc. is placed 1554/2484 in BuySellSignals' ranking of NASDAQ performers in the past week, a percentile ranking of 38.

+ In the past week, volume was 0.6 times average and the shares were down 1.1%. Tuesday's close price is at a 0.2% discount to its 5-day Volume Weighted Average Price (VWAP) of $US33.71.

Past Month:

+ Falls to Rises: in the past month the number of falls outnumbered rises 14:7 or 2:1.

Slipping Relative Strength (1mo, 3 mo):

+ In the NASDAQ market of 2,447 stocks and 10 units traded today, the stock has a 6-month relative strength of 57 which means it has outperformed 57% of the market.

+ Also, the relative strength percentile is slipping at 61 for 3 months and 60 for 1 month.

SECTION 2 VIACOM BULLISH SIGNALS

2.1 Undervaluation [compared with sector average]:

Price/Earnings and Earnings Yield

+ Price/Earnings of 7.9. The P/E of 7.9 plus annual inflation in the United States of 2.0% adds up to 9.9, well within the value benchmark Rule of 19.

+ Earnings yield of 12.7% is 5.9 times the 10-year bond yield of 2.15%.

Dividend Yield

+ To quote Benjamin Graham: "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 1.1 times the triple-A bond yield of 2.2%.

+ The relative yield of VIA, defined by its yield of 2.4%, divided by average yield of dividend yielding stocks in the NASDAQ-100 Index of 1.0% is 240.4%. This suggests Viacom stock is undervalued in dividend yield terms.

Price to Sales

+ Price/Sales of 0.1 [1.0]. We estimate Viacom stock is trading at a current year Price/Sales of 0.1 and a forward year Price/Sales of 0.1.

2.2 Undervaluation Indicators and rank of Viacom in the Usnasdaq market:

DescriptionValueRank In Market
Price to Sales0.1In Top 2%
Price/Earnings7.9In Top Quartile

2.3 Uptrend:

Past Month:

+ In the past three months the stock has hit a new 52-week high twice.

2.4 High Price Performance Indicator and rank of Viacom in the NASDAQ market:

DescriptionVIA ValueRank In Market
MCap$US1.7 billionIn Top Quartile

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US33.64):

SECTION 3 THE PAST WEEK

3.1 Snapshot: Viacom stock was down 37.0c or 1.1% in the past week. Volume in the week was 0.6 times average trading of 192,820 shares. It underperformed the NASDAQ-100 index in 5 out of 5 days.

DayViacomClose price [USD]Price change %Relative change %Comment
MondayDrops on high volatility33.73-0.6-1.7
FridayLifts 2.1% on rising relative strength33.921.1-0.9Top Rise
ThursdayDecreases33.56-0.8-1.5Steepest Fall
WednesdayDecreases33.82-0.6-1.3
TuesdayIn its biggest weekly gain in 2 months34.010.5-2.2

3.2 Corporate Wires: Viacom (VIA) issued one Release in the past week.

June 05: Nickelodeon Expands Partnership with pocket.watch

Viacom Nickelodeon Consumer Products to Manage International Consumer Products Licensing for Ryan's World and Ryan's Mystery Playdate

*Click HERE for art.

NEW YORK---- Viacom Nickelodeon Consumer Products (VNCP) today announced an agreement with pocket.watch, the new studio creating global franchises from the YouTube stars and characters loved by Generation Alpha, to manage licensing in select international markets across all product categories for Ryan's World, a companion consumer products line featuring YouTube superstar Ryan from Ryan ToysReview and the universe of characters created by Ryan and his parents, and Ryan's Mystery Playdate, Nickelodeon's new breakout live-action series created and produced by pocket.watch and starring Ryan and his parents.

3.3 Volatility:

+ Viacom is at a discount of 10.4% to its 12-month high of $US37.54 on April 17. It is also at a premium of 25.3% to the 12-month low of $US26.85 on December 27, 2018.

SECTION 4 ONGOING BULLISH PARAMETERS

4.1 Performance:

+ Return on Equity 23.1% [7.5%].

+ Return on Assets 7.3% [3.0%].

+ Return on Capital Employed 10.1% [4.6%].

+ Net profit margin has averaged 13.2% in the last 3 years. This is better than the sector average of 9.6% and suggests a high margin of safety.

4.2 Growth:

Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

+ Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 19 [Q2]-4.317.112.4
Dec 18 [Q1]--18.510.7

4.3 High Performance Indicator and rank of Viacom in the Usnasdaq market:

DescriptionValueRank In Market
Return on Equity [ROE] %23.1In Top Quartile

4.4 Increased ADVT past five years

Avg. Daily Volume Traded 12 months ended Jun 11, thousand shares

YearADVT
201938.6
201863.4
201765.4
201673.6
201526.0

In the past five years, Average Daily Volume of Trading (ADVT) has increased 48.2% to 38,564 shares.

4.5 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 19.7% (or a turnover period of 5 years 29 days). The average length of ownership of the stock is 9.2 times the average holding period of 6 months for stocks in the NASDAQ-100 Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 5 ONGOING BEARISH PARAMETERS

5.1 Growth:

Annual Trend in Revenue, EPS and EBITDA:

+ Profit growth and EBITDA growth have shown signs of deterioration in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Sep 18-2.4-9-9.2
Sep 17-29.910.1

5.2 High Debt Indicators:

+ The debt to equity ratio of 135.1% is above a safe benchmark figure of 70%. However, it has improved in the past three years.

+ Total Liabilities/EBITDA of 7.4 compares unfavourably with the Joseph Piotroski benchmark of 5.

DescriptionValueRank In Market
Debt to Equity1.4In Bottom Quartile

5.3 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged -13.4%. The Moving Annual Return has been positive in 1 of the last 5 years. An investment a year ago in VIA would have produced a return of 7.1%.

VIAClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 1133.640.84.62.57.1
1 Yr ago32.160.8(14.4)2.1(12.2)
2 Yrs ago37.561.2(15.4)2.7(12.7)
3 Yrs ago44.41.6(31.5)2.5(29.0)
4 Yrs ago64.771.32(21.9)1.6(20.3)

Close 5 years ago $US82.95

5.4 Declining VWAP

Past five years, 12 months ended Jun 11 (USD)

YearHigh PriceVWAPLow Price
201937.5433.4526.85
201841.0835.8527.36
201748.8141.234.82
201666.1644.7632.54
201585.3669.2361.0

In the past five years Volume Weighted Average Price (VWAP) has decreased by 51.7% to $US33.45. Based on a dynamic start date of five years ago, there has been no rise in VWAP over the last 5 years.

5.5 Declining Average Daily Turnover

Past five years, 12 months ended Jun 11 (USD million)

YearAverage Daily Turnover
20191.3
20182.3
20172.7
20163.3
20151.8

In the past five years, average daily share turnover has decreased 28.8% to $US1.3 million. This suggests decreased liquidity.

SECTION 6 VIACOM REPORTED BUYING AND SELLING

6.1 Institutional Buying and Selling Quarter Ended March 31

Total reported Institutional buying = 145,385 shares

Total reported Institutional selling = 158,329 shares

Net reported institutional selling = 12,944 shares

6.2 Reported Holdings of Institutions as at Mar 31, 2019

Total = 7,468,738 shares

Market Value = $US242.4 million

Institutions hold 15.1% of Issued Shares.

SECTION 7 VIACOM SUMMARY FINANCIALS

7.1 Dividend History

+ Trailing 12 months dividend for the 12 months ended June 11 has deteriorated from $US1.32 in 2015 to 80.0c in 2019.

7.2 Financials Summary

Year endedSep 2018Sep 2017Sep 2016
Sales (USD B)12.913.312.5
Pretax (USD B)22.22
Net (USD B)1.71.91.4
EPS (USD)4.274.693.61

+ Net profit was down 8.3% from US$1.9 billion in 2017 to US$1.7 billion in 2018.

+ Earnings Per Share (EPS) was down 9% from $US4.69 to $US4.27.

SECTION 8 CORPORATE PROFILE

8.1 Activities

Viacom, Inc. (Viacom) is a global entertainment content company. The Company engages audiences on television, motion picture, Internet, mobile and video game platforms, through entertainment brands. The Company operates through two segments: Media Networks and Filmed Entertainment. In September 2008, MTV Networks (MTVN) acquired Social Project, Inc., its partner in building the Flux social media platform.

8.2 Top Management

The chief executive officer is Bob Bakish and the chief financial officer is Wade Davis.

8.3 Issued Capital and MCap

Based on 49,431,181 issued shares the market capitalisation is $US1.7 billion.

COMPANY IDENTIFIERS

Contact: 1-212-2586000

Physical Address: 1515 Broadway New York NY 10036

State/Province/Country: NY, United States

Country of Incorporation: United States

Industry [NAICS]: 515210

Exchange: NASDAQ

ISIN: US92553P1021

O:VIA; VIA.O

RIC: VIA.O

CIK: 1339947

CUSIP: 92553P102

Viacom Inc, Viacom Inc Cl A, Viacom Inc Class A, Viacom, Inc

Source: www.BuySellSignals.com