We assign a fundamental rating of 3 out of 10 to IHRT. IHRT was compared to 91 industry peers in the Media industry. IHRT has a bad profitability rating. Also its financial health evaluation is rather negative. IHRT has a correct valuation and a medium growth rate.

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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.
IHRT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

IHRT's Return On Assets of -7.85% is in line compared to the rest of the industry. IHRT outperforms 41.94% of its industry peers.
With a decent Return On Invested Capital value of 3.97%, IHRT is doing good in the industry, outperforming 63.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IHRT is below the industry average of 7.01%.
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

With a decent Operating Margin value of 5.51%, IHRT is doing good in the industry, outperforming 62.37% of the companies in the same industry.
In the last couple of years the Operating Margin of IHRT has declined.
IHRT has a Gross Margin of 58.44%. This is in the better half of the industry: IHRT outperforms 70.97% 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

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

2.2 Solvency

IHRT has an Altman-Z score of -0.26. This is a bad value and indicates that IHRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IHRT (-0.26) is worse than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-0.26

ROIC/WACC0.54

WACC7.37%

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

Based on estimates for the next years, IHRT will show a very strong growth in Earnings Per Share. The EPS will grow by 27.33% on average per year.
The Revenue is expected to grow by 2.90% on average over the next years.

EPS Next Y58.83%

EPS Next 2Y44.33%

EPS Next 3Y27.33%

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.
A Price/Forward Earnings ratio of 5.85 indicates a rather cheap valuation of IHRT.
Based on the Price/Forward Earnings ratio, IHRT is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
IHRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	5.85

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 67.74% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.28

4.3 Compensation for Growth

IHRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IHRT's earnings are expected to grow with 27.33% in the coming years. This may justify a more expensive valuation.