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 72 industry peers in the Entertainment industry. RSVR has an excellent profitability rating, 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
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.
Each year in the past 5 years RSVR had a positive operating cash flow.
1.2 Ratios
RSVR's Return On Assets of 0.90% is fine compared to the rest of the industry. RSVR outperforms 68.06% of its industry peers.
RSVR has a Return On Equity of 2.12%. This is in the better half of the industry: RSVR outperforms 69.44% of its industry peers.
RSVR's Return On Invested Capital of 3.28% is fine compared to the rest of the industry. RSVR outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSVR is significantly below the industry average of 23.12%.
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
RSVR has a Profit Margin of 4.88%. This is in the better half of the industry: RSVR outperforms 76.39% of its industry peers.
In the last couple of years the Profit Margin of RSVR has declined.
RSVR's Operating Margin of 22.09% is amongst the best of the industry. RSVR outperforms 93.06% of its industry peers.
RSVR's Operating Margin has declined in the last couple of years.
RSVR has a Gross Margin of 63.81%. This is in the better half of the industry: RSVR outperforms 72.22% 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
RSVR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RSVR has more shares outstanding
Compared to 5 years ago, RSVR has more shares outstanding
RSVR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that RSVR is in the distress zone and has some risk of bankruptcy.
RSVR's Altman-Z score of 0.95 is in line compared to the rest of the industry. RSVR outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that RSVR has dependencies on debt financing.
RSVR has a worse Debt to Equity ratio (1.06) than 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.4
WACC8.2%
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.
With a Current ratio value of 1.20, RSVR perfoms like the industry average, outperforming 59.72% of the companies in the same industry.
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 (1.13) which is comparable to the rest of the industry.
| 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 182.50%, which is quite impressive.
Measured over the past years, RSVR shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.99% on average per year.
The Revenue has grown by 9.56% in the past year. This is quite good.
The Revenue has been growing by 20.20% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)182.5%
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%5.8%
3.2 Future
RSVR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.57% yearly.
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
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
A Price/Earnings ratio of 67.18 indicates a quite expensive valuation of RSVR.
69.44% of the companies in the same industry are more expensive than RSVR, based on the Price/Earnings ratio.
RSVR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.54.
RSVR is valuated quite expensively with a Price/Forward Earnings ratio of 46.74.
63.89% of the companies in the same industry are more expensive than RSVR, based on the Price/Forward Earnings ratio.
RSVR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.18 | ||
| Fwd PE | 46.74 |
4.2 Price Multiples
RSVR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RSVR is cheaper than 73.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.86 |
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)1.68
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 |
7.39
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners46.36%
Inst Owner Change-0.01%
Ins Owners3.69%
Ins Owner Change0.5%
Market Cap483.82M
Analysts82.5
Price Target13.52 (82.95%)
Short Float %3.5%
Short Ratio14.36
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)-3.64%
PT rev (3m)-1.85%
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)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.18 | ||
| Fwd PE | 46.74 | ||
| P/S | 3.05 | ||
| P/FCF | N/A | ||
| P/OCF | 10.69 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.86 |
EPS(TTM)0.11
EY1.49%
EPS(NY)0.16
Fwd EY2.14%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)0.69
OCFY9.36%
SpS2.42
BVpS5.57
TBVpS-5.42
PEG (NY)1.68
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 | 0.95 |
F-Score6
WACC8.2%
ROIC/WACC0.4
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)182.5%
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%5.8%
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 Year115.31%
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%