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Could Singapore Press Holdings Limited Be A Value Media Stock?

newspaperThe media sector covers companies providing a range of products and services related to communication.

Examples include producers, operators and broadcasters of radio, television and music. It also includes providers of advertising and publishers of printed or electronic media.

The Singapore Stock Exchange lists eight companies classified as media stocks. There are a further 13 quoted companies that report some profits from media activities. Three of these media companies, namely Singapore Press Holdings (SGX: T39), Asian Pay Television Trust (SGX: S7OU) and Popular Holdings (SGX: P29), are components of the FTSE ST All Share Index.

None of these the companies appear to represent particularly good value. They are all priced at around 20 times earnings. That said, the dividend yields are healthy. Popular Holdings is paying 4%, whilst Singapore Press Holdings (SPH) and Asian Pay Television Trust are both offering dividend yields just shy of 10%.

Singapore Press Holdings has the least appealing price to book ratio. Meanwhile, SPH and Asian Pay, with price-to-book ratios just below one, could be considered slightly more reasonably priced.

Among the smaller media companies, there appears to be little to excite value investors. Global Yellow Pages (SGX: Y07), which is worth around S$80m, has an acceptable valuation of six times earnings. It is also priced at around its book value. However, the company does not pay a dividend. What’s more, its top-line sales and bottom-line profits have declined in recent times.

Fung Choi Media Group (SGX: F11), whilst technically classified as a support services also engages in some print operations. In common with Global Yellow Pages, it is valued at an invitingly-low four times earnings. Its price-to-book ratio is just 0.2. It does not pay a dividend, though.

However, Fun Choi Media Group has, unlike Global Yellow Pages, seen strong growth in revenues over the past few years and a steadier bottom-line.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Adam Kuo doesn’t own shares in any companies mentioned.