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 96 industry peers in the Media industry. TSQ has a medium profitability rating, but doesn't score so well on its financial health evaluation. TSQ is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TSQ had negative earnings in the past year.
In the past year TSQ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TSQ reported negative net income in multiple years.
TSQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSQ has a Return On Assets (-2.91%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 10.61%, TSQ belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
TSQ had an Average Return On Invested Capital over the past 3 years of 10.20%. This is above the industry average of 6.73%.
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
With a decent Operating Margin value of 14.08%, TSQ is doing good in the industry, outperforming 77.08% of the companies in the same industry.
In the last couple of years the Operating Margin of TSQ has declined.
TSQ has a worse Gross Margin (27.63%) than 66.67% 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
TSQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TSQ has less shares outstanding
Compared to 5 years ago, TSQ has less shares outstanding
Compared to 1 year ago, TSQ has a worse debt to assets ratio.
2.2 Solvency
TSQ has an Altman-Z score of 0.47. This is a bad value and indicates that TSQ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.47, TSQ is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
The Debt to FCF ratio of TSQ is 15.19, which is on the high side as it means it would take TSQ, 15.19 years of fcf income to pay off all of its debts.
TSQ's Debt to FCF ratio of 15.19 is in line compared to the rest of the industry. TSQ outperforms 55.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.19 | ||
| Altman-Z | 0.47 |
ROIC/WACC1.37
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.98 indicates that TSQ may have some problems paying its short term obligations.
With a Current ratio value of 0.98, TSQ is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.98 indicates that TSQ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, TSQ is doing worse than 63.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.09% over the past year.
The Revenue has decreased by -0.15% in the past year.
TSQ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.89% yearly.
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.
The Revenue is expected to grow by 0.81% on average over the next years.
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 8.13 indicates a reasonable valuation of TSQ.
Based on the Price/Forward Earnings ratio, TSQ is valued a bit cheaper than 77.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, TSQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSQ indicates a somewhat cheap valuation: TSQ is cheaper than 76.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TSQ is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.65 | ||
| EV/EBITDA | 6.4 |
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.
TSQ's earnings are expected to grow with 40.49% in the coming years. This may justify a more expensive valuation.
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 11.35%, which is a nice return.
In the last 3 months the price of TSQ has falen by -23.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TSQ's Dividend Yield is rather good when compared to the industry average which is at 4.91. TSQ pays more dividend than 98.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TSQ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
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.
Dividend Growth(5Y)18.02%
Div Incr Years0
Div Non Decr Years0
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.
The dividend of TSQ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-77.18%
EPS Next 2Y68.52%
EPS Next 3Y40.49%
6.69
-0.22 (-3.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners55.31%
Inst Owner Change2.57%
Ins Owners13.35%
Ins Owner Change7.26%
Market Cap107.84M
Analysts83.33
Price Target18.36 (174.44%)
Short Float %2.13%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.35% |
Yearly Dividend0.76
Dividend Growth(5Y)18.02%
DP-77.18%
Div Incr Years0
Div Non Decr Years0
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)0%
PT rev (3m)-5.26%
EPS NQ rev (1m)-32.79%
EPS NQ rev (3m)-59%
EPS NY rev (1m)-43.56%
EPS NY rev (3m)-64.34%
Revenue NQ rev (1m)-2.36%
Revenue NQ rev (3m)-6.21%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.13 | ||
| P/S | 0.24 | ||
| P/FCF | 3.65 | ||
| P/OCF | 2.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.4 |
EPS(TTM)-1.09
EYN/A
EPS(NY)0.82
Fwd EY12.3%
FCF(TTM)1.83
FCFY27.38%
OCF(TTM)2.92
OCFY43.59%
SpS27.92
BVpS-1.91
TBVpS-21.39
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 | 0.47 |
F-Score6
WACC7.72%
ROIC/WACC1.37
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 Year307.35%
EBIT Next 3Y62.45%
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%