TOWNSQUARE MEDIA INC - CL A (TSQ) Stock Fundamental Analysis
NYSE:TSQ - New York Stock Exchange, Inc. - US8922311019 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSQ. TSQ was compared to 97 industry peers in the Media industry. TSQ has a bad profitability rating. Also its financial health evaluation is rather negative. TSQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSQ has reported negative net income.
In the past year TSQ had a positive cash flow from operations.
In multiple years TSQ reported negative net income over the last 5 years.
Each year in the past 5 years TSQ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TSQ (-2.19%) is comparable to the rest of the industry.
TSQ has a better Return On Invested Capital (9.96%) than 89.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSQ is above the industry average of 6.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | N/A | ||
| ROIC | 9.96% |
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 has a Operating Margin of 14.09%. This is in the better half of the industry: TSQ outperforms 77.32% of its industry peers.
TSQ's Operating Margin has declined in the last couple of years.
TSQ has a Gross Margin of 27.54%. This is in the lower half of the industry: TSQ underperforms 68.04% of its industry peers.
In the last couple of years the Gross Margin of TSQ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.09% | ||
| PM (TTM) | N/A | ||
| GM | 27.54% |
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.
TSQ has less shares outstanding than it did 1 year ago.
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 0.51. This is a bad value and indicates that TSQ is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.51, TSQ is doing worse than 60.82% of the companies in the same industry.
The Debt to FCF ratio of TSQ is 14.88, which is on the high side as it means it would take TSQ, 14.88 years of fcf income to pay off all of its debts.
TSQ has a Debt to FCF ratio of 14.88. This is comparable to the rest of the industry: TSQ outperforms 55.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.3
WACC7.68%
2.3 Liquidity
TSQ has a Current Ratio of 1.38. This is a normal value and indicates that TSQ is financially healthy and should not expect problems in meeting its short term obligations.
TSQ has a Current ratio (1.38) which is in line with its industry peers.
A Quick Ratio of 1.38 indicates that TSQ should not have too much problems paying its short term obligations.
TSQ's Quick ratio of 1.38 is in line compared to the rest of the industry. TSQ outperforms 53.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.23% over the past year.
Looking at the last year, TSQ shows a decrease in Revenue. The Revenue has decreased by -0.71% in the last year.
The Revenue has been growing slightly by 0.89% on average over the past years.
EPS 1Y (TTM)64.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1235.71%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y2.56%
Revenue growth 5Y0.89%
Sales Q2Q%2.64%
3.2 Future
Based on estimates for the next years, TSQ will show a very strong growth in Earnings Per Share. The EPS will grow by 42.04% on average per year.
TSQ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.33% yearly.
EPS Next Y183.99%
EPS Next 2Y83.88%
EPS Next 3Y42.04%
EPS Next 5YN/A
Revenue Next Year-1.61%
Revenue Next 2Y2.47%
Revenue Next 3Y2.33%
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.
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 8.18 indicates a reasonable valuation of TSQ.
Based on the Price/Forward Earnings ratio, TSQ is valued cheaply inside the industry as 88.66% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.20. TSQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSQ is valued a bit cheaper than 76.29% of the companies in the same industry.
TSQ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TSQ is cheaper than 91.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 6.12 |
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 42.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y83.88%
EPS Next 3Y42.04%
5. Dividend
5.1 Amount
TSQ has a Yearly Dividend Yield of 11.92%, which is a nice return.
In the last 3 months the price of TSQ has falen by -24.21%. 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 4.97. TSQ pays more dividend than 98.97% of the companies in the same industry.
TSQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.92% |
5.2 History
The dividend of TSQ is nicely growing with an annual growth rate of 18.02%!
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
TSQ has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TSQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-96.91%
EPS Next 2Y83.88%
EPS Next 3Y42.04%
6.73
+0.11 (+1.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners55.31%
Inst Owner Change0.09%
Ins Owners13.35%
Ins Owner Change7.39%
Market Cap108.49M
Analysts83.33
Price Target18.36 (172.81%)
Short Float %2.01%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.92% |
Yearly Dividend0.76
Dividend Growth(5Y)18.02%
DP-96.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)121.59%
Min EPS beat(2)80.8%
Max EPS beat(2)162.38%
EPS beat(4)3
Avg EPS beat(4)-185.5%
Min EPS beat(4)-996.59%
Max EPS beat(4)162.38%
EPS beat(8)3
Avg EPS beat(8)-268.66%
EPS beat(12)4
Avg EPS beat(12)-190.67%
EPS beat(16)6
Avg EPS beat(16)-144.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)0.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)0.2%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)11
Avg Revenue beat(16)0.44%
PT rev (1m)0%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-136.36%
EPS NY rev (1m)-28.51%
EPS NY rev (3m)-36.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.18 | ||
| P/S | 0.24 | ||
| P/FCF | 3.47 | ||
| P/OCF | 2.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)-0.98
EYN/A
EPS(NY)0.82
Fwd EY12.23%
FCF(TTM)1.94
FCFY28.86%
OCF(TTM)3.02
OCFY44.93%
SpS27.98
BVpS-1.98
TBVpS-21.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.19% | ||
| ROE | N/A | ||
| ROCE | 12.6% | ||
| ROIC | 9.96% | ||
| ROICexc | 10.65% | ||
| ROICexgc | 32.16% | ||
| OM | 14.09% | ||
| PM (TTM) | N/A | ||
| GM | 27.54% | ||
| FCFM | 6.94% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.88 | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 71.02% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 1.78 | ||
| Cash Conversion | 55.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.51 |
F-Score5
WACC7.68%
ROIC/WACC1.3
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)64.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1235.71%
EPS Next Y183.99%
EPS Next 2Y83.88%
EPS Next 3Y42.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y2.56%
Revenue growth 5Y0.89%
Sales Q2Q%2.64%
Revenue Next Year-1.61%
Revenue Next 2Y2.47%
Revenue Next 3Y2.33%
Revenue Next 5YN/A
EBIT growth 1Y-12.67%
EBIT growth 3Y-8.26%
EBIT growth 5Y-3%
EBIT Next Year307.35%
EBIT Next 3Y62.45%
EBIT Next 5YN/A
FCF growth 1Y-40.76%
FCF growth 3Y-13.71%
FCF growth 5Y9.04%
OCF growth 1Y-28.13%
OCF growth 3Y-7.27%
OCF growth 5Y4.04%