RESERVOIR MEDIA INC (RSVR) Stock Fundamental Analysis
NASDAQ:RSVR - Nasdaq - US76119X1054 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RSVR. RSVR was compared to 72 industry peers in the Entertainment industry. RSVR scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, RSVR is valued expensive at the moment.
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.
RSVR had positive earnings in each of the past 5 years.
RSVR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.90%, RSVR is doing good in the industry, outperforming 68.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.12%, RSVR is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
RSVR's Return On Invested Capital of 3.28% is fine compared to the rest of the industry. RSVR outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSVR is significantly below the industry average of 22.90%.
The 3 year average ROIC (2.69%) for RSVR is below the current ROIC(3.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 2.12% | ||
| ROIC | 3.28% |
ROA(3y)0.44%
ROA(5y)1.09%
ROE(3y)1.01%
ROE(5y)2.42%
ROIC(3y)2.69%
ROIC(5y)2.74%
1.3 Margins
RSVR has a Profit Margin of 4.88%. This is in the better half of the industry: RSVR outperforms 76.39% of its industry peers.
In the last couple of years the Profit Margin of RSVR has declined.
Looking at the Operating Margin, with a value of 22.09%, RSVR belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
RSVR's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 63.81%, RSVR is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Gross Margin of RSVR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 4.88% | ||
| GM | 63.81% |
OM growth 3Y7.17%
OM growth 5Y-2.03%
PM growth 3Y-26.15%
PM growth 5Y-21.03%
GM growth 3Y2.63%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RSVR is destroying value.
RSVR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RSVR has more shares outstanding
RSVR has a worse debt/assets ratio than last year.
2.2 Solvency
RSVR has an Altman-Z score of 1.00. This is a bad value and indicates that RSVR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.00, RSVR is in line with its industry, outperforming 44.44% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that RSVR has dependencies on debt financing.
RSVR's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. RSVR is outperformed by 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.43
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.20 indicates that RSVR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.20, RSVR is doing good in the industry, outperforming 61.11% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that RSVR should not have too much problems paying its short term obligations.
RSVR has a Quick ratio of 1.13. This is comparable to the rest of the industry: RSVR outperforms 59.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.13 |
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.
RSVR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.99% yearly.
Looking at the last year, RSVR shows a quite strong growth in Revenue. The Revenue has grown by 9.56% in the last year.
Measured over the past years, RSVR shows a very strong growth in Revenue. The Revenue has been growing by 20.20% on average per year.
EPS 1Y (TTM)182.5%
EPS 3Y-18.87%
EPS 5Y-5.99%
EPS Q2Q%0%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%5.8%
3.2 Future
Based on estimates for the next years, RSVR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.57% on average per year.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y39.91%
EPS Next 2Y9.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.26%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RSVR is valuated quite expensively with a Price/Earnings ratio of 72.64.
Based on the Price/Earnings ratio, RSVR is valued a bit cheaper than 69.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of RSVR to the average of the S&P500 Index (27.30), we can say RSVR is valued expensively.
A Price/Forward Earnings ratio of 50.54 indicates a quite expensive valuation of RSVR.
62.50% of the companies in the same industry are more expensive than RSVR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RSVR to the average of the S&P500 Index (21.76), we can say RSVR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.64 | ||
| Fwd PE | 50.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RSVR is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RSVR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RSVR may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y9.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RSVR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.99
-0.06 (-0.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners46.36%
Inst Owner Change0%
Ins Owners3.69%
Ins Owner Change0.5%
Market Cap523.11M
Analysts82.5
Price Target13.52 (69.21%)
Short Float %3.42%
Short Ratio16.82
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)145.1%
Min EPS beat(2)-1.96%
Max EPS beat(2)292.16%
EPS beat(4)1
Avg EPS beat(4)16.97%
Min EPS beat(4)-132.68%
Max EPS beat(4)292.16%
EPS beat(8)4
Avg EPS beat(8)36.05%
EPS beat(12)6
Avg EPS beat(12)2.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.24%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)13.29%
Revenue beat(4)2
Avg Revenue beat(4)3.52%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)13.29%
Revenue beat(8)6
Avg Revenue beat(8)8.87%
Revenue beat(12)10
Avg Revenue beat(12)9.83%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.64%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-13.89%
EPS NY rev (3m)-15.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.64 | ||
| Fwd PE | 50.54 | ||
| P/S | 3.3 | ||
| P/FCF | N/A | ||
| P/OCF | 11.55 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.5 |
EPS(TTM)0.11
EY1.38%
EPS(NY)0.16
Fwd EY1.98%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)0.69
OCFY8.66%
SpS2.42
BVpS5.57
TBVpS-5.42
PEG (NY)1.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 2.12% | ||
| ROCE | 4.39% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 45.08% | ||
| OM | 22.09% | ||
| PM (TTM) | 4.88% | ||
| GM | 63.81% | ||
| FCFM | N/A |
ROA(3y)0.44%
ROA(5y)1.09%
ROE(3y)1.01%
ROE(5y)2.42%
ROIC(3y)2.69%
ROIC(5y)2.74%
ROICexc(3y)2.76%
ROICexc(5y)2.81%
ROICexgc(3y)32.41%
ROICexgc(5y)33.27%
ROCE(3y)3.6%
ROCE(5y)3.66%
ROICexcg growth 3Y18.59%
ROICexcg growth 5Y2.71%
ROICexc growth 3Y13.35%
ROICexc growth 5Y-1.72%
OM growth 3Y7.17%
OM growth 5Y-2.03%
PM growth 3Y-26.15%
PM growth 5Y-21.03%
GM growth 3Y2.63%
GM growth 5Y2.35%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.33 | ||
| Cap/Depr | 367.18% | ||
| Cap/Sales | 60.84% | ||
| Interest Coverage | 1.54 | ||
| Cash Conversion | 73.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1 |
F-Score6
WACC7.57%
ROIC/WACC0.43
Cap/Depr(3y)298.64%
Cap/Depr(5y)553.47%
Cap/Sales(3y)51.56%
Cap/Sales(5y)96.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)182.5%
EPS 3Y-18.87%
EPS 5Y-5.99%
EPS Q2Q%0%
EPS Next Y39.91%
EPS Next 2Y9.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.56%
Revenue growth 3Y13.75%
Revenue growth 5Y20.2%
Sales Q2Q%5.8%
Revenue Next Year5.26%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.66%
EBIT growth 3Y21.91%
EBIT growth 5Y17.77%
EBIT Next Year115.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-262.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.11%
OCF growth 3Y53.66%
OCF growth 5Y30.68%