| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 3.90 | -92 |
| Graham Formula | 32.00 | -36 |
Meredith Corporation (0K0J.L) is a diversified media powerhouse headquartered in Des Moines, Iowa, with a strong presence in both national and local media markets. Operating through its National Media and Local Media segments, the company owns iconic brands such as People, Better Homes & Gardens, InStyle, and Martha Stewart Living, reaching millions of consumers across print, digital, and mobile platforms. With over 50 websites, 300 special interest publications, and 17 television stations, Meredith Corporation leverages its extensive portfolio to deliver targeted advertising and content marketing solutions. The company’s Local Media segment includes CBS, FOX, NBC, and ABC affiliates, reinforcing its dominance in regional news and entertainment. Founded in 1902, Meredith has evolved into a leader in lifestyle and entertainment media, supported by its creative content studio, The Foundry 360, which specializes in native advertising and branded content. As a key player in the Technology sector’s Media & Entertainment industry, Meredith Corporation continues to adapt to digital transformation while maintaining its legacy in print and broadcast media.
Meredith Corporation presents a mixed investment profile. On the positive side, the company reported strong revenue of $8.68 billion and net income of $842 million in FY 2022, with a diluted EPS of $3.63. Its diversified media portfolio and strong brand recognition provide stability, while its Local Media segment benefits from steady advertising demand. However, the company’s high beta of 2.09 suggests significant volatility relative to the market, and its lack of reported total debt may obscure underlying financial risks. The dividend yield, at $5.07 per share, could appeal to income-focused investors, but the media industry’s ongoing shift to digital platforms poses long-term challenges. Investors should weigh Meredith’s established market position against potential disruptions from cord-cutting and declining print media revenues.
Meredith Corporation’s competitive advantage lies in its diversified media portfolio, combining high-profile national brands with a robust local broadcasting network. Its National Media segment benefits from strong consumer engagement with lifestyle and entertainment titles, while its Local Media segment provides geographic diversification and steady ad revenue. The company’s ability to monetize content across multiple platforms—print, digital, and broadcast—enhances its resilience against industry shifts. However, competition in digital media is intense, with tech giants and streaming services vying for ad dollars. Meredith’s reliance on traditional media formats could be a vulnerability as consumer preferences shift toward on-demand and digital-first content. The company’s creative studio, The Foundry 360, offers a competitive edge in branded content, but it must continue innovating to keep pace with digital-native competitors. While its local TV stations provide a stable revenue base, the broader decline in linear TV viewership remains a headwind. Meredith’s challenge is to balance its legacy strengths with the need for digital transformation.