TOWNSQUARE MEDIA INC - CL A (TSQ) Stock Fundamental Analysis
NYSE:TSQ - New York Stock Exchange, Inc. - US8922311019 - Common Stock - Currency: USD
TSQ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. While TSQ is still in line with the averages on profitability rating, there are concerns on its financial health. TSQ has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TSQ has reported negative net income.
TSQ had a positive operating cash flow in the past year.
In multiple years TSQ reported negative net income over the last 5 years.
In the past 5 years TSQ always reported a positive cash flow from operatings.
1.2 Ratios
TSQ has a Return On Assets of -2.91%. This is comparable to the rest of the industry: TSQ outperforms 45.36% of its industry peers.
TSQ's Return On Invested Capital of 10.61% is amongst the best of the industry. TSQ outperforms 87.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSQ is above the industry average of 7.56%.
The last Return On Invested Capital (10.61%) for TSQ is above the 3 year average (10.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | N/A | ||
| ROIC | 10.61% |
ROA(3y)-2.48%
ROA(5y)-3.17%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.2%
ROIC(5y)9.02%
1.3 Margins
TSQ's Operating Margin of 14.08% is fine compared to the rest of the industry. TSQ outperforms 72.16% of its industry peers.
In the last couple of years the Operating Margin of TSQ has declined.
TSQ has a worse Gross Margin (27.63%) than 69.07% of its industry peers.
In the last couple of years the Gross Margin of TSQ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 27.63% |
OM growth 3Y-10.55%
OM growth 5Y-3.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.9%
GM growth 5Y-1.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSQ is creating some value.
The number of shares outstanding for TSQ has been reduced compared to 1 year ago.
Compared to 5 years ago, TSQ has less shares outstanding
The debt/assets ratio for TSQ is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that TSQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TSQ (0.48) is worse than 61.86% of its industry peers.
TSQ has a debt to FCF ratio of 15.19. This is a negative value and a sign of low solvency as TSQ would need 15.19 years to pay back of all of its debts.
TSQ has a Debt to FCF ratio (15.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.19 | ||
| Altman-Z | 0.48 |
ROIC/WACC1.34
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.98 indicates that TSQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, TSQ is doing worse than 71.13% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that TSQ may have some problems paying its short term obligations.
TSQ has a worse Quick ratio (0.98) than 69.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
TSQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.09%, which is quite impressive.
The Revenue has decreased by -0.15% in the past year.
Measured over the past years, TSQ shows a small growth in Revenue. The Revenue has been growing by 0.89% on average per year.
EPS 1Y (TTM)57.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-183.33%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y2.56%
Revenue growth 5Y0.89%
Sales Q2Q%-0.96%
3.2 Future
TSQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.49% yearly.
TSQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.81% yearly.
EPS Next Y147.41%
EPS Next 2Y68.52%
EPS Next 3Y40.49%
EPS Next 5YN/A
Revenue Next Year-3.06%
Revenue Next 2Y1.5%
Revenue Next 3Y0.81%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
TSQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of TSQ.
Based on the Price/Forward Earnings ratio, TSQ is valued a bit cheaper than 74.23% of the companies in the same industry.
TSQ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSQ is valued a bit cheaper than 74.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSQ indicates a rather cheap valuation: TSQ is cheaper than 90.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.29 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TSQ's earnings are expected to grow with 40.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y68.52%
EPS Next 3Y40.49%
5. Dividend
5.1 Amount
TSQ has a Yearly Dividend Yield of 10.53%, which is a nice return.
Compared to an average industry Dividend Yield of 4.82, TSQ pays a better dividend. On top of this TSQ pays more dividend than 98.97% of the companies listed in the same industry.
TSQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.53% |
5.2 History
On average, the dividend of TSQ grows each year by 18.02%, which is quite nice.
TSQ has been paying a dividend for over 5 years, so it has already some track record.
TSQ has decreased its dividend recently.
Dividend Growth(5Y)18.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of TSQ are negative and hence is the payout ratio. TSQ will probably not be able to sustain this dividend level.
TSQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-77.18%
EPS Next 2Y68.52%
EPS Next 3Y40.49%
7.74
+0.14 (+1.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners52.93%
Inst Owner Change1.56%
Ins Owners9.57%
Ins Owner Change6.51%
Market Cap126.55M
Analysts83.33
Price Target17.34 (124.03%)
Short Float %3.02%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.53% |
Yearly Dividend0.76
Dividend Growth(5Y)18.02%
DP-77.18%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)69.31%
Min EPS beat(2)-23.76%
Max EPS beat(2)162.38%
EPS beat(4)2
Avg EPS beat(4)-194.29%
Min EPS beat(4)-996.59%
Max EPS beat(4)162.38%
EPS beat(8)3
Avg EPS beat(8)-233.14%
EPS beat(12)4
Avg EPS beat(12)-191.24%
EPS beat(16)5
Avg EPS beat(16)-147.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)6
Avg Revenue beat(12)-0.14%
Revenue beat(16)10
Avg Revenue beat(16)0.33%
PT rev (1m)-5.56%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.4 | ||
| P/S | 0.28 | ||
| P/FCF | 4.29 | ||
| P/OCF | 2.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)-1.09
EYN/A
EPS(NY)0.82
Fwd EY10.64%
FCF(TTM)1.81
FCFY23.33%
OCF(TTM)2.88
OCFY37.15%
SpS27.52
BVpS-1.88
TBVpS-21.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.91% | ||
| ROE | N/A | ||
| ROCE | 13.43% | ||
| ROIC | 10.61% | ||
| ROICexc | 10.73% | ||
| ROICexgc | 32.88% | ||
| OM | 14.08% | ||
| PM (TTM) | N/A | ||
| GM | 27.63% | ||
| FCFM | 6.56% |
ROA(3y)-2.48%
ROA(5y)-3.17%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.2%
ROIC(5y)9.02%
ROICexc(3y)11.08%
ROICexc(5y)9.83%
ROICexgc(3y)35.42%
ROICexgc(5y)32.69%
ROCE(3y)12.92%
ROCE(5y)11.42%
ROICexcg growth 3Y-6.81%
ROICexcg growth 5Y-0.4%
ROICexc growth 3Y-0.57%
ROICexc growth 5Y5.71%
OM growth 3Y-10.55%
OM growth 5Y-3.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.9%
GM growth 5Y-1.93%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.19 | ||
| Debt/EBITDA | 5.05 | ||
| Cap/Depr | 75.43% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 54.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.48 |
F-Score6
WACC7.94%
ROIC/WACC1.34
Cap/Depr(3y)67.01%
Cap/Depr(5y)68.08%
Cap/Sales(3y)3.53%
Cap/Sales(5y)3.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)57.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-183.33%
EPS Next Y147.41%
EPS Next 2Y68.52%
EPS Next 3Y40.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y2.56%
Revenue growth 5Y0.89%
Sales Q2Q%-0.96%
Revenue Next Year-3.06%
Revenue Next 2Y1.5%
Revenue Next 3Y0.81%
Revenue Next 5YN/A
EBIT growth 1Y-9.2%
EBIT growth 3Y-8.26%
EBIT growth 5Y-3%
EBIT Next Year297.76%
EBIT Next 3Y62.7%
EBIT Next 5YN/A
FCF growth 1Y-13.88%
FCF growth 3Y-13.71%
FCF growth 5Y9.04%
OCF growth 1Y-7.79%
OCF growth 3Y-7.27%
OCF growth 5Y4.04%