SALEM MEDIA GROUP INC (SALM) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SALM • US7940931048

0.2609 USD
-0.04 (-13.06%)
At close: Jan 18, 2024
0.26 USD
0 (-0.34%)
After Hours: 1/18/2024, 8:22:51 PM
Fundamental Rating

1

SALM gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 91 industry peers in the Media industry. SALM has a bad profitability rating. Also its financial health evaluation is rather negative. SALM is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • SALM had negative earnings in the past year.
  • SALM had a negative operating cash flow in the past year.
SALM Yearly Net Income VS EBIT VS OCF VS FCFSALM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M -40M

1.2 Ratios

  • SALM has a Return On Assets of -9.71%. This is in the lower half of the industry: SALM underperforms 74.74% of its industry peers.
  • SALM has a Return On Equity of -34.61%. This is in the lower half of the industry: SALM underperforms 73.68% of its industry peers.
  • SALM has a worse Return On Invested Capital (0.02%) than 67.37% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SALM is below the industry average of 7.01%.
Industry RankSector Rank
ROA -9.71%
ROE -34.61%
ROIC 0.02%
ROA(3y)-0.97%
ROA(5y)-1.69%
ROE(3y)-6.17%
ROE(5y)-6.92%
ROIC(3y)3.01%
ROIC(5y)3.18%
SALM Yearly ROA, ROE, ROICSALM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 20 -20

1.3 Margins

  • With a Operating Margin value of 0.04%, SALM is not doing good in the industry: 67.37% of the companies in the same industry are doing better.
  • SALM's Operating Margin has declined in the last couple of years.
  • The Gross Margin of SALM (12.12%) is worse than 86.32% of its industry peers.
  • SALM's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 0.04%
PM (TTM) N/A
GM 12.12%
OM growth 3Y-8.13%
OM growth 5Y-10.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.42%
GM growth 5Y-4.99%
SALM Yearly Profit, Operating, Gross MarginsSALM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 -20

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1

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SALM is destroying value.
  • Compared to 1 year ago, SALM has about the same amount of shares outstanding.
  • Compared to 1 year ago, SALM has an improved debt to assets ratio.
SALM Yearly Shares OutstandingSALM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M 20M 25M
SALM Yearly Total Debt VS Total AssetsSALM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

2.2 Solvency

  • Based on the Altman-Z score of 0.25, we must say that SALM is in the distress zone and has some risk of bankruptcy.
  • SALM's Altman-Z score of 0.25 is on the low side compared to the rest of the industry. SALM is outperformed by 73.68% of its industry peers.
  • A Debt/Equity ratio of 1.15 is on the high side and indicates that SALM has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.15, SALM is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF N/A
Altman-Z 0.25
ROIC/WACC0
WACC6.08%
SALM Yearly LT Debt VS Equity VS FCFSALM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M 250M

2.3 Liquidity

  • SALM has a Current Ratio of 0.66. This is a bad value and indicates that SALM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SALM has a worse Current ratio (0.66) than 91.58% of its industry peers.
  • A Quick Ratio of 0.64 indicates that SALM may have some problems paying its short term obligations.
  • SALM has a Quick ratio of 0.64. This is amonst the worse of the industry: SALM underperforms 91.58% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.64
SALM Yearly Current Assets VS Current LiabilitesSALM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M

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3

3. Growth

3.1 Past

  • The earnings per share for SALM have decreased strongly by -400.00% in the last year.
  • SALM shows a decrease in Revenue. In the last year, the revenue decreased by -2.14%.
  • Measured over the past years, SALM shows a small growth in Revenue. The Revenue has been growing by 0.25% on average per year.
EPS 1Y (TTM)-400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-161.36%
Revenue 1Y (TTM)-2.14%
Revenue growth 3Y1.69%
Revenue growth 5Y0.25%
Sales Q2Q%-5.03%

3.2 Future

  • Based on estimates for the next years, SALM will show a very strong growth in Earnings Per Share. The EPS will grow by 38.62% on average per year.
  • Based on estimates for the next years, SALM will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y-1178.92%
EPS Next 2Y38.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.18%
Revenue Next 2Y3.05%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SALM Yearly Revenue VS EstimatesSALM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
SALM Yearly EPS VS EstimatesSALM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1 -1 -2

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1

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for SALM. In the last year negative earnings were reported.
  • Also next year SALM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SALM Price Earnings VS Forward Price EarningsSALM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

  • SALM's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.36
SALM Per share dataSALM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • SALM's earnings are expected to grow with 38.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.62%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

  • SALM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SALEM MEDIA GROUP INC / SALM FAQ

Can you provide the ChartMill fundamental rating for SALEM MEDIA GROUP INC?

ChartMill assigns a fundamental rating of 1 / 10 to SALM.


Can you provide the valuation status for SALEM MEDIA GROUP INC?

ChartMill assigns a valuation rating of 0 / 10 to SALEM MEDIA GROUP INC (SALM). This can be considered as Overvalued.


Can you provide the profitability details for SALEM MEDIA GROUP INC?

SALEM MEDIA GROUP INC (SALM) has a profitability rating of 1 / 10.


What is the earnings growth outlook for SALEM MEDIA GROUP INC?

The Earnings per Share (EPS) of SALEM MEDIA GROUP INC (SALM) is expected to decline by -1178.92% in the next year.


How sustainable is the dividend of SALEM MEDIA GROUP INC (SALM) stock?

The dividend rating of SALEM MEDIA GROUP INC (SALM) is 0 / 10 and the dividend payout ratio is 0%.