RESERVOIR MEDIA INC (RSVR) Stock Fundamental Analysis
NASDAQ:RSVR - Nasdaq - US76119X1054 - Common Stock - Currency: USD
Taking everything into account, RSVR scores 4 out of 10 in our fundamental rating. RSVR was compared to 73 industry peers in the Entertainment industry. RSVR has an excellent profitability rating, but there are concerns on its financial health. RSVR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RSVR was profitable.
RSVR had a positive operating cash flow in the past year.
RSVR had positive earnings in each of the past 5 years.
Each year in the past 5 years RSVR had a positive operating cash flow.
1.2 Ratios
RSVR has a better Return On Assets (0.90%) than 68.49% of its industry peers.
RSVR has a Return On Equity of 2.12%. This is in the better half of the industry: RSVR outperforms 69.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.28%, RSVR is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
RSVR had an Average Return On Invested Capital over the past 3 years of 2.69%. This is significantly below the industry average of 24.03%.
The 3 year average ROIC (2.69%) for RSVR is below the current ROIC(3.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 2.12% | ||
| ROIC | 3.28% |
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
Looking at the Profit Margin, with a value of 4.88%, RSVR is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
In the last couple of years the Profit Margin of RSVR has declined.
Looking at the Operating Margin, with a value of 22.09%, RSVR belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
In the last couple of years the Operating Margin of RSVR has declined.
The Gross Margin of RSVR (63.81%) is better than 71.23% of its industry peers.
RSVR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 4.88% | ||
| GM | 63.81% |
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.
The number of shares outstanding for RSVR has been increased compared to 5 years ago.
The debt/assets ratio for RSVR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.98, 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 0.98, RSVR is in line with its industry, outperforming 46.58% of the companies in the same industry.
RSVR has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.06, RSVR is not doing good in the industry: 63.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.44
WACC7.41%
2.3 Liquidity
RSVR has a Current Ratio of 1.20. This is a normal value and indicates that RSVR is financially healthy and should not expect problems in meeting its short term obligations.
RSVR's Current ratio of 1.20 is in line compared to the rest of the industry. RSVR outperforms 58.90% of its industry peers.
RSVR has a Quick Ratio of 1.13. 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 Quick ratio of 1.13. This is in the better half of the industry: RSVR outperforms 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.13 |
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.
Looking at the last year, RSVR shows a quite strong growth in Revenue. The Revenue has grown by 9.56% in the last year.
The Revenue has been growing by 20.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)276.67%
EPS 3Y-18.87%
EPS 5Y-5.99%
EPS Q2Q%0%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%8.29%
3.2 Future
Based on estimates for the next years, RSVR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.57% on average per year.
Based on estimates for the next years, RSVR will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y39.91%
EPS Next 2Y9.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.26%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 70.00, 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 67.12% of the companies listed in the same industry.
RSVR is valuated expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
RSVR is valuated quite expensively with a Price/Forward Earnings ratio of 56.76.
61.64% of the companies in the same industry are more expensive than RSVR, based on the Price/Forward Earnings ratio.
RSVR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 33.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 56.76 |
4.2 Price Multiples
72.60% of the companies in the same industry are more expensive than RSVR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RSVR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y9.57%
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
+0.15 (+1.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners45.22%
Inst Owner Change-0.23%
Ins Owners4.26%
Ins Owner Change0.5%
Market Cap504.12M
Analysts82.5
Price Target13.52 (75.58%)
Short Float %3.54%
Short Ratio12.87
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)1
Avg EPS beat(2)145.1%
Min EPS beat(2)-1.96%
Max EPS beat(2)292.16%
EPS beat(4)1
Avg EPS beat(4)16.97%
Min EPS beat(4)-132.68%
Max EPS beat(4)292.16%
EPS beat(8)4
Avg EPS beat(8)36.05%
EPS beat(12)6
Avg EPS beat(12)2.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.24%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)13.29%
Revenue beat(4)2
Avg Revenue beat(4)3.52%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)13.29%
Revenue beat(8)6
Avg Revenue beat(8)8.87%
Revenue beat(12)10
Avg Revenue beat(12)9.83%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 56.76 | ||
| P/S | 3.18 | ||
| P/FCF | N/A | ||
| P/OCF | 11.13 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.19 |
EPS(TTM)0.11
EY1.43%
EPS(NY)0.14
Fwd EY1.76%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)0.69
OCFY8.98%
SpS2.42
BVpS5.57
TBVpS-5.42
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 2.12% | ||
| ROCE | 4.39% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 45.08% | ||
| OM | 22.09% | ||
| PM (TTM) | 4.88% | ||
| GM | 63.81% | ||
| 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.33 | ||
| Cap/Depr | 367.18% | ||
| Cap/Sales | 60.84% | ||
| Interest Coverage | 1.54 | ||
| Cash Conversion | 73.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 0.98 |
F-Score6
WACC7.41%
ROIC/WACC0.44
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 Y39.91%
EPS Next 2Y9.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.56%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%8.29%
Revenue Next Year5.26%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.66%
EBIT growth 3Y21.91%
EBIT growth 5Y17.77%
EBIT Next Year110.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-262.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.11%
OCF growth 3Y53.66%
OCF growth 5Y30.68%