Southern Cross Media Group Limited (SMG) AI Stock Analysis

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Southern Cross Media Group Limited

(ASX:SMG)

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Rating:45Neutral

Price Target:AUD 0.45▼(-2.58% Downside)

Action:reiterated

Date:08/17/26

The score is held down primarily by weak financial performance: volatile earnings with a recent net loss, sharply higher leverage, and a significant decline in operating/free cash flow. Technical indicators are mostly neutral with the stock still below key longer-term moving averages. Valuation is partially supported by a high dividend yield, but the negative P/E reflects loss-making performance and adds risk.

Positive Factors

Revenue scaleThe substantial increase in annual revenue demonstrates a much larger operating scale and shows that the business can generate significant top-line activity. If sustained, this expanded revenue base can improve the ability to spread fixed costs and support investment across its media platforms.

Negative Factors

Higher leverageThe sharp increase in leverage has materially reduced financial flexibility and leaves the company more exposed if operating conditions soften. A higher debt burden can absorb more future cash generation through financing needs, constraining investment and limiting room to manage weaker results.

Southern Cross Media Group Limited (SMG) vs. iShares MSCI Australia ETF (EWA)

Market Cap: AUD 227.42M
Dividend Yield: ―
Average Volume (3M): 454.45K
Price to Earnings (P/E): ―
Beta (1Y): 0.68
Revenue Growth: 162.81%
EPS Growth: -230.18%
Country: Australia
Employees: 2,342
Sector: Communication Services
Sector Strength: 60
Industry: Broadcasting

Southern Cross Media Group Limited Business Overview & Revenue Model

Company Description

Southern Cross Media Group Limited (SXL.AX) is an Australian media entity specializing in the production of audio content for both traditional broadcast and digital distribution channels. Its operations are divided into two primary areas: Audio and T...

How the Company Makes Money

SXL primarily makes money by selling advertising inventory across its audio and broadcast networks. The largest revenue driver is typically radio advertising, where advertisers pay for commercial spots placed within programming across metropolitan an...

Southern Cross Media Group Limited Financial Statement Overview

Summary

Weak overall fundamentals: the income statement is volatile with a return to a small net loss in 2026 despite a large revenue jump. Leverage rose sharply (debt-to-equity ~2.18x), reducing flexibility. Cash generation deteriorated materially in 2026 with operating and free cash flow down significantly, leaving a thinner cushion alongside higher debt.

Income Statement

43Neutral

Balance Sheet

34Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	1.11B	1.11B	421.70M	499.12M	503.95M	524.55M
Gross Profit	555.21M	555.21M	334.45M	134.50M	145.57M	162.34M
EBITDA	182.23M	182.23M	53.72M	-270.64M	67.75M	-166.76M
Net Income	-13.12M	-13.12M	9.19M	-224.60M	19.11M	-153.72M
Balance Sheet
Total Assets	1.83B	1.83B	686.06M	692.32M	1.03B	1.07B
Cash, Cash Equivalents and Short-Term Investments	142.24M	142.24M	35.45M	10.54M	12.96M	49.46M
Total Debt	790.59M	790.59M	226.84M	245.82M	247.28M	253.76M
Total Liabilities	1.47B	1.47B	473.80M	489.48M	594.40M	610.92M
Stockholders Equity	363.34M	363.34M	212.26M	202.84M	435.15M	460.41M
Cash Flow
Free Cash Flow	7.63M	7.63M	55.48M	18.71M	21.33M	13.70M
Operating Cash Flow	14.67M	14.67M	65.39M	21.70M	46.12M	43.60M
Investing Cash Flow	48.86M	48.86M	-3.01M	-8.16M	-21.51M	-30.99M
Financing Cash Flow	43.26M	43.26M	-37.48M	-28.74M	-61.11M	-38.57M

Southern Cross Media Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.47

Price Trends

50DMA0.53Negative

100DMA0.54Negative

200DMA0.57Negative

Market Momentum

MACD-0.01Positive

RSI31.46Neutral

STOCH22.73Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SMG, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.53, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SMG.

Southern Cross Media Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

AU:SMG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:NWS	73Outperform	AUD 21.84B	26.72	7.21%	0.67%	0.51%	31.05%
AU:OML	64Neutral	AUD 882.11M	33.40	3.76%	3.58%	1.84%	38.50%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AU:SEG	59Neutral	AUD 84.22M	37.88	2.67%	4.00%	39.72%	―
AU:A1N	57Neutral	AUD 87.36M	30.32	1.40%	―	-20.68%	―
AU:NEC	52Neutral	AUD 1.36B	-3.26	-29.93%	8.67%	-18.21%	-430.03%
AU:SMG	45Neutral	AUD 227.42M	―	332.46%	―	162.81%	-230.18%

* Communication Services Sector Average

Performance Comparison

AU:SMG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AU:SMG	Southern Cross Media Group Limited	0.47	-0.37	-44.64%
AU:SEG	Sports Entertainment Group Limited	0.25	0.02	8.23%
AU:NEC	Nine Entertainment Co. Holdings Limited	0.86	-0.16	-15.36%
AU:A1N	HT&E Ltd	0.28	-0.18	-39.13%
AU:OML	oOh media Ltd	1.67	0.46	38.59%
AU:NWS	News Corporation Shs B Chess Depository Interests repr 1 Sh	43.50	-2.10	-4.61%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Southern Cross Media Group Limited AI Stock Analysis