RESERVOIR MEDIA INC (RSVR) Stock Fundamental Analysis
NASDAQ:RSVR - Nasdaq - US76119X1054 - Common Stock - Currency: USD
RSVR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Entertainment industry. RSVR has a medium profitability rating, but doesn't score so well on its financial health evaluation. RSVR is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years RSVR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RSVR (0.95%) is better than 68.18% of its industry peers.
Looking at the Return On Equity, with a value of 2.19%, RSVR is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
RSVR has a better Return On Invested Capital (3.42%) than 69.70% of its industry peers.
RSVR had an Average Return On Invested Capital over the past 3 years of 2.48%. This is significantly below the industry average of 91.11%.
The 3 year average ROIC (2.48%) for RSVR is below the current ROIC(3.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 2.19% | ||
| ROIC | 3.42% |
ROA(3y)0.78%
ROA(5y)1.42%
ROE(3y)1.56%
ROE(5y)3.18%
ROIC(3y)2.48%
ROIC(5y)2.85%
1.3 Margins
The Profit Margin of RSVR (5.04%) is better than 75.76% of its industry peers.
In the last couple of years the Profit Margin of RSVR has declined.
RSVR's Operating Margin of 21.35% is amongst the best of the industry. RSVR outperforms 90.91% of its industry peers.
RSVR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 63.23%, RSVR is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
RSVR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.35% | ||
| PM (TTM) | 5.04% | ||
| GM | 63.23% |
OM growth 3Y-10.99%
OM growth 5YN/A
PM growth 3Y-67.17%
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5YN/A
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.
The number of shares outstanding for RSVR has been increased compared to 1 year ago.
RSVR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RSVR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that RSVR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, RSVR perfoms like the industry average, outperforming 46.97% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that RSVR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.03, RSVR is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.48
WACC7.2%
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.
RSVR's Current ratio of 1.20 is fine compared to the rest of the industry. RSVR outperforms 60.61% of its industry peers.
RSVR has a Quick Ratio of 1.07. 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 Quick ratio value of 1.07, RSVR perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.07 |
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.
The earnings per share for RSVR have been decreasing by -60.31% on average. This is quite bad
RSVR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.32%.
Measured over the past years, RSVR shows a very strong growth in Revenue. The Revenue has been growing by 20.99% on average per year.
EPS 1Y (TTM)182.5%
EPS 3Y-60.31%
EPS 5YN/A
EPS Q2Q%260%
Revenue 1Y (TTM)11.32%
Revenue growth 3Y20.99%
Revenue growth 5YN/A
Sales Q2Q%19.25%
3.2 Future
Based on estimates for the next years, RSVR will show a very strong growth in Earnings Per Share. The EPS will grow by 116.22% on average per year.
RSVR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
EPS Next Y180.5%
EPS Next 2Y116.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.91%
Revenue Next 2Y7.62%
Revenue Next 3Y8.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 70.00, RSVR can be considered very expensive at the moment.
RSVR's Price/Earnings ratio is a bit cheaper when compared to the industry. RSVR is cheaper than 63.64% of the companies in the same industry.
RSVR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 41.18, RSVR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RSVR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
RSVR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 41.18 |
4.2 Price Multiples
RSVR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RSVR is cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.64 |
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.
RSVR has a very decent profitability rating, which may justify a higher PE ratio.
RSVR's earnings are expected to grow with 116.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y116.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.7
-0.18 (-2.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change0.03%
Ins Owners3.96%
Ins Owner Change0.01%
Market Cap502.27M
Analysts82.22
Price Target13.77 (78.83%)
Short Float %3.25%
Short Ratio33.55
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)101.27%
Min EPS beat(2)-89.62%
Max EPS beat(2)292.16%
EPS beat(4)2
Avg EPS beat(4)66.01%
Min EPS beat(4)-132.68%
Max EPS beat(4)292.16%
EPS beat(8)4
Avg EPS beat(8)31.97%
EPS beat(12)7
Avg EPS beat(12)7.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.85%
Min Revenue beat(2)2.42%
Max Revenue beat(2)13.29%
Revenue beat(4)3
Avg Revenue beat(4)5.86%
Min Revenue beat(4)-0.8%
Max Revenue beat(4)13.29%
Revenue beat(8)7
Avg Revenue beat(8)9.12%
Revenue beat(12)11
Avg Revenue beat(12)10.71%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)8%
EPS NQ rev (1m)-21.98%
EPS NQ rev (3m)-59.4%
EPS NY rev (1m)73.69%
EPS NY rev (3m)73.69%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70 | ||
| Fwd PE | 41.18 | ||
| P/S | 3.21 | ||
| P/FCF | N/A | ||
| P/OCF | 10.71 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.64 |
EPS(TTM)0.11
EY1.43%
EPS(NY)0.19
Fwd EY2.43%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)0.72
OCFY9.34%
SpS2.4
BVpS5.51
TBVpS-5.12
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 2.19% | ||
| ROCE | 4.33% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.51% | ||
| ROICexgc | 44.39% | ||
| OM | 21.35% | ||
| PM (TTM) | 5.04% | ||
| GM | 63.23% | ||
| FCFM | N/A |
ROA(3y)0.78%
ROA(5y)1.42%
ROE(3y)1.56%
ROE(5y)3.18%
ROIC(3y)2.48%
ROIC(5y)2.85%
ROICexc(3y)2.54%
ROICexc(5y)3.03%
ROICexgc(3y)27.85%
ROICexgc(5y)33.91%
ROCE(3y)3.14%
ROCE(5y)3.61%
ROICexcg growth 3Y-12.1%
ROICexcg growth 5YN/A
ROICexc growth 3Y-8.76%
ROICexc growth 5YN/A
OM growth 3Y-10.99%
OM growth 5YN/A
PM growth 3Y-67.17%
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5YN/A
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.27 | ||
| Cap/Depr | 284.27% | ||
| Cap/Sales | 47.07% | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | 79.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.02 |
F-Score6
WACC7.2%
ROIC/WACC0.48
Cap/Depr(3y)516.83%
Cap/Depr(5y)734.99%
Cap/Sales(3y)91.35%
Cap/Sales(5y)118.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)182.5%
EPS 3Y-60.31%
EPS 5YN/A
EPS Q2Q%260%
EPS Next Y180.5%
EPS Next 2Y116.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.32%
Revenue growth 3Y20.99%
Revenue growth 5YN/A
Sales Q2Q%19.25%
Revenue Next Year7.91%
Revenue Next 2Y7.62%
Revenue Next 3Y8.71%
Revenue Next 5YN/A
EBIT growth 1Y37%
EBIT growth 3Y7.7%
EBIT growth 5YN/A
EBIT Next Year161.69%
EBIT Next 3Y47.03%
EBIT Next 5YN/A
FCF growth 1Y53.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.22%
OCF growth 3Y30.6%
OCF growth 5YN/A