Overall IHRT gets a fundamental rating of 3 out of 10. We evaluated IHRT against 92 industry peers in the Media industry. Both the profitability and financial health of IHRT have multiple concerns. IHRT has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

IHRT had negative earnings in the past year.
IHRT had a negative operating cash flow in the past year.
IHRT had negative earnings in each of the past 5 years.
Each year in the past 5 years IHRT had a positive operating cash flow.

1.2 Ratios

IHRT has a Return On Assets (-7.85%) which is comparable to the rest of the industry.
The Return On Invested Capital of IHRT (3.97%) is better than 62.37% of its industry peers.
IHRT had an Average Return On Invested Capital over the past 3 years of 2.91%. This is below the industry average of 7.07%.
The 3 year average ROIC (2.91%) for IHRT is below the current ROIC(3.97%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-7.85%
ROE	N/A
ROIC	3.97%

ROA(3y)-12.39%

ROA(5y)-11.95%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)2.91%

ROIC(5y)2.17%

1.3 Margins

IHRT has a better Operating Margin (5.51%) than 61.29% of its industry peers.
In the last couple of years the Operating Margin of IHRT has declined.
IHRT has a better Gross Margin (58.44%) than 69.89% of its industry peers.
IHRT's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	5.51%
PM (TTM)	N/A
GM	58.44%

OM growth 3Y-11.51%

OM growth 5Y-23.92%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-2.17%

GM growth 5Y-2.96%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IHRT is destroying value.
The number of shares outstanding for IHRT has been increased compared to 1 year ago.
IHRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IHRT has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -0.25, we must say that IHRT is in the distress zone and has some risk of bankruptcy.
IHRT has a Altman-Z score of -0.25. This is in the lower half of the industry: IHRT underperforms 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-0.25

ROIC/WACC0.53

WACC7.46%

2.3 Liquidity

A Current Ratio of 1.59 indicates that IHRT should not have too much problems paying its short term obligations.
IHRT has a better Current ratio (1.59) than 64.52% of its industry peers.
IHRT has a Quick Ratio of 1.59. This is a normal value and indicates that IHRT is financially healthy and should not expect problems in meeting its short term obligations.
IHRT has a better Quick ratio (1.59) than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.59
Quick Ratio	1.59

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 62.35% over the past year.
IHRT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.39%.
Measured over the past years, IHRT shows a small growth in Revenue. The Revenue has been growing by 0.91% on average per year.

EPS 1Y (TTM)62.35%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-59.26%

Revenue 1Y (TTM)1.39%

Revenue growth 3Y2.7%

Revenue growth 5Y0.91%

Sales Q2Q%-1.1%

3.2 Future

IHRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.27% yearly.
Based on estimates for the next years, IHRT will show a small growth in Revenue. The Revenue will grow by 2.90% on average per year.

EPS Next Y58.79%

EPS Next 2Y44.4%

EPS Next 3Y27.27%

EPS Next 5YN/A

Revenue Next Year-1.28%

Revenue Next 2Y2.12%

Revenue Next 3Y1.22%

Revenue Next 5Y2.9%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

IHRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 6.41, which indicates a rather cheap valuation of IHRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IHRT indicates a rather cheap valuation: IHRT is cheaper than 81.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. IHRT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	6.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IHRT indicates a somewhat cheap valuation: IHRT is cheaper than 65.59% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.43

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IHRT's earnings are expected to grow with 27.27% in the coming years.