RESERVOIR MEDIA INC (RSVR) Stock Fundamental Analysis
USA - NASDAQ:RSVR - US76119X1054 - Common Stock
7.7 USD
-0.03 (-0.39%)
7.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RSVR. RSVR was compared to 80 industry peers in the Entertainment industry. While RSVR is still in line with the averages on profitability rating, there are concerns on its financial health. RSVR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RSVR had positive earnings in the past year.
RSVR had a positive operating cash flow in the past year.
In the past 5 years RSVR has always been profitable.
RSVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RSVR has a Return On Assets (0.88%) which is comparable to the rest of the industry.
RSVR has a Return On Equity of 2.04%. This is in the better half of the industry: RSVR outperforms 62.50% 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 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RSVR is significantly below the industry average of 9.15%.
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
RSVR has a better Profit Margin (4.67%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of RSVR has declined.
The Operating Margin of RSVR (22.00%) is better than 93.75% of its industry peers.
RSVR's Operating Margin has declined in the last couple of years.
RSVR has a Gross Margin of 64.51%. This is in the better half of the industry: RSVR outperforms 73.75% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RSVR is destroying value.
The number of shares outstanding for RSVR has been increased compared to 1 year ago.
Compared to 5 years ago, RSVR has more shares outstanding
Compared to 1 year ago, RSVR has a worse debt to assets ratio.
2.2 Solvency
RSVR has an Altman-Z score of 1.01. This is a bad value and indicates that RSVR is not financially healthy and even has some risk of bankruptcy.
RSVR has a Altman-Z score (1.01) which is in line with its industry peers.
RSVR has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
RSVR has a Debt to Equity ratio of 1.05. This is in the lower half of the industry: RSVR underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.47
WACC7.12%
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 comparable to the rest of the industry.
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 of 1.20. This is comparable to the rest of the industry: RSVR outperforms 53.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 276.67% over the past year.
The Earnings Per Share has been decreasing by -5.99% on average over the past years.
Looking at the last year, RSVR shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
Measured over the past years, RSVR shows a very strong growth in Revenue. The Revenue has been growing by 20.20% on average per year.
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
RSVR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.18% yearly.
RSVR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.19% yearly.
EPS Next Y5.61%
EPS Next 2Y20.18%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 70.00, RSVR can be considered very expensive at the moment.
RSVR's Price/Earnings ratio is a bit cheaper when compared to the industry. RSVR is cheaper than 65.00% of the companies in the same industry.
RSVR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.76.
Based on the Price/Forward Earnings ratio of 47.18, the valuation of RSVR can be described as expensive.
70.00% of the companies in the same industry are more expensive than RSVR, based on the Price/Forward Earnings ratio.
RSVR is valuated expensively when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 47.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RSVR is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RSVR may justify a higher PE ratio.
A more expensive valuation may be justified as RSVR's earnings are expected to grow with 20.18% in the coming years.
PEG (NY)12.48
PEG (5Y)N/A
EPS Next 2Y20.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.7
-0.03 (-0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners47.89%
Inst Owner Change0%
Ins Owners4.02%
Ins Owner Change0.56%
Market Cap504.81M
Analysts82.5
Price Target13.52 (75.58%)
Short Float %3.43%
Short Ratio18.66
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14%
EPS NY rev (1m)-11.36%
EPS NY rev (3m)-24.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 47.18 | ||
| P/S | 3.12 | ||
| P/FCF | N/A | ||
| P/OCF | 11.81 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)0.11
EY1.43%
EPS(NY)0.16
Fwd EY2.12%
FCF(TTM)-0.91
FCFYN/A
OCF(TTM)0.65
OCFY8.47%
SpS2.46
BVpS5.63
TBVpS-5.38
PEG (NY)12.48
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 | 1.01 |
F-Score6
WACC7.12%
ROIC/WACC0.47
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 Y5.61%
EPS Next 2Y20.18%
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 Year108.32%
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%