RESERVOIR MEDIA INC (RSVR) Stock Fundamental Analysis
NASDAQ:RSVR - US76119X1054 - Common Stock
7.93 USD
+0.08 (+1.02%)
7.93 USD
0 (0%)
RSVR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 79 industry peers in the Entertainment industry. RSVR scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, RSVR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RSVR was profitable.
In the past year RSVR had a positive cash flow from operations.
Each year in the past 5 years RSVR has been profitable.
RSVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RSVR has a better Return On Assets (0.88%) than 62.03% of its industry peers.
The Return On Equity of RSVR (2.04%) is better than 64.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.31%, RSVR is in the better half of the industry, outperforming 69.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RSVR is significantly below the industry average of 20.67%.
The 3 year average ROIC (2.69%) for RSVR is below the current ROIC(3.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 2.04% | ||
| ROIC | 3.31% |
ROA(3y)0.44%
ROA(5y)1.09%
ROE(3y)1.01%
ROE(5y)2.42%
ROIC(3y)2.69%
ROIC(5y)2.74%
1.3 Margins
The Profit Margin of RSVR (4.67%) is better than 73.42% of its industry peers.
RSVR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.00%, RSVR belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
RSVR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.51%, RSVR is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
RSVR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22% | ||
| PM (TTM) | 4.67% | ||
| GM | 64.51% |
OM growth 3Y7.17%
OM growth 5Y-2.03%
PM growth 3Y-26.15%
PM growth 5Y-21.03%
GM growth 3Y2.63%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
RSVR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RSVR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RSVR has more shares outstanding
The debt/assets ratio for RSVR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that RSVR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, RSVR is in line with its industry, outperforming 49.37% of the companies in the same industry.
RSVR has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.05, RSVR is doing worse than 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.43
WACC7.72%
2.3 Liquidity
RSVR has a Current Ratio of 1.29. This is a normal value and indicates that RSVR is financially healthy and should not expect problems in meeting its short term obligations.
RSVR has a Current ratio (1.29) which is in line with its industry peers.
A Quick Ratio of 1.20 indicates that RSVR should not have too much problems paying its short term obligations.
RSVR has a Quick ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
RSVR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 276.67%, which is quite impressive.
RSVR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.99% yearly.
The Revenue has grown by 9.65% in the past year. This is quite good.
RSVR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.20% yearly.
EPS 1Y (TTM)276.67%
EPS 3Y-18.87%
EPS 5Y-5.99%
EPS Q2Q%0%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%8.3%
3.2 Future
Based on estimates for the next years, RSVR will show a decrease in Earnings Per Share. The EPS will decrease by -4.99% on average per year.
RSVR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y19.15%
EPS Next 2Y-4.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y5.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 72.09, the valuation of RSVR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RSVR indicates a somewhat cheap valuation: RSVR is cheaper than 68.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, RSVR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 77.75, the valuation of RSVR can be described as expensive.
RSVR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, RSVR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.09 | ||
| Fwd PE | 77.75 |
4.2 Price Multiples
RSVR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RSVR is cheaper than 69.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RSVR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RSVR may justify a higher PE ratio.
A cheap valuation may be justified as RSVR's earnings are expected to decrease with -4.99% in the coming years.
PEG (NY)3.76
PEG (5Y)N/A
EPS Next 2Y-4.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.93
+0.08 (+1.02%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners45.22%
Inst Owner Change2.98%
Ins Owners4.26%
Ins Owner Change0.64%
Market Cap519.89M
Analysts82.5
Price Target13.52 (70.49%)
Short Float %3.67%
Short Ratio16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-149.02%
Min EPS beat(2)-296.08%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-23.88%
Min EPS beat(4)-296.08%
Max EPS beat(4)292.16%
EPS beat(8)3
Avg EPS beat(8)-13.46%
EPS beat(12)5
Avg EPS beat(12)-30.41%
EPS beat(16)7
Avg EPS beat(16)-16.26%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0.07%
Revenue beat(4)3
Avg Revenue beat(4)3.74%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)13.29%
Revenue beat(8)6
Avg Revenue beat(8)6.57%
Revenue beat(12)10
Avg Revenue beat(12)7.27%
Revenue beat(16)13
Avg Revenue beat(16)9.01%
PT rev (1m)0%
PT rev (3m)-3.64%
EPS NQ rev (1m)-14%
EPS NQ rev (3m)-24.12%
EPS NY rev (1m)-14.84%
EPS NY rev (3m)-26.67%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.09 | ||
| Fwd PE | 77.75 | ||
| P/S | 3.22 | ||
| P/FCF | N/A | ||
| P/OCF | 12.16 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.22 |
EPS(TTM)0.11
EY1.39%
EPS(NY)0.1
Fwd EY1.29%
FCF(TTM)-0.91
FCFYN/A
OCF(TTM)0.65
OCFY8.22%
SpS2.46
BVpS5.63
TBVpS-5.38
PEG (NY)3.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 2.04% | ||
| ROCE | 4.43% | ||
| ROIC | 3.31% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 39.95% | ||
| OM | 22% | ||
| PM (TTM) | 4.67% | ||
| GM | 64.51% | ||
| FCFM | N/A |
ROA(3y)0.44%
ROA(5y)1.09%
ROE(3y)1.01%
ROE(5y)2.42%
ROIC(3y)2.69%
ROIC(5y)2.74%
ROICexc(3y)2.76%
ROICexc(5y)2.81%
ROICexgc(3y)32.41%
ROICexgc(5y)33.27%
ROCE(3y)3.6%
ROCE(5y)3.66%
ROICexcg growth 3Y18.59%
ROICexcg growth 5Y2.71%
ROICexc growth 3Y13.35%
ROICexc growth 5Y-1.72%
OM growth 3Y7.17%
OM growth 5Y-2.03%
PM growth 3Y-26.15%
PM growth 5Y-21.03%
GM growth 3Y2.63%
GM growth 5Y2.35%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.17 | ||
| Cap/Depr | 376.96% | ||
| Cap/Sales | 63.53% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 68.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.02 |
F-Score6
WACC7.72%
ROIC/WACC0.43
Cap/Depr(3y)298.64%
Cap/Depr(5y)553.47%
Cap/Sales(3y)51.56%
Cap/Sales(5y)96.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)276.67%
EPS 3Y-18.87%
EPS 5Y-5.99%
EPS Q2Q%0%
EPS Next Y19.15%
EPS Next 2Y-4.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%8.3%
Revenue Next Year5.38%
Revenue Next 2Y5.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.68%
EBIT growth 3Y21.91%
EBIT growth 5Y17.77%
EBIT Next Year110.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-29.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.75%
OCF growth 3Y53.66%
OCF growth 5Y30.68%