VIVID SEATS INC - CLASS A (SEAT) Stock Fundamental Analysis
NASDAQ:SEAT - Nasdaq - US92854T1007 - Common Stock - Currency: USD
Taking everything into account, SEAT scores 4 out of 10 in our fundamental rating. SEAT was compared to 72 industry peers in the Entertainment industry. While SEAT is still in line with the averages on profitability rating, there are concerns on its financial health. SEAT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SEAT was profitable.
In the past year SEAT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SEAT reported negative net income in multiple years.
Of the past 5 years SEAT 4 years had a positive operating cash flow.
1.2 Ratios
SEAT has a Return On Assets of 0.58%. This is in the better half of the industry: SEAT outperforms 70.83% of its industry peers.
SEAT's Return On Equity of 3.61% is fine compared to the rest of the industry. SEAT outperforms 76.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.20%, SEAT is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SEAT is significantly below the industry average of 82.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 3.61% | ||
| ROIC | 2.2% |
ROA(3y)2.63%
ROA(5y)-11.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.46%
ROIC(5y)N/A
1.3 Margins
SEAT's Profit Margin of 1.21% is fine compared to the rest of the industry. SEAT outperforms 72.22% of its industry peers.
With a decent Operating Margin value of 5.44%, SEAT is doing good in the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Operating Margin of SEAT has declined.
SEAT's Gross Margin of 73.97% is amongst the best of the industry. SEAT outperforms 84.72% of its industry peers.
SEAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.44% | ||
| PM (TTM) | 1.21% | ||
| GM | 73.97% |
OM growth 3Y-31.94%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SEAT is destroying value.
Compared to 1 year ago, SEAT has less shares outstanding
The number of shares outstanding for SEAT has been increased compared to 5 years ago.
SEAT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.09, we must say that SEAT is in the distress zone and has some risk of bankruptcy.
SEAT's Altman-Z score of -0.09 is on the low side compared to the rest of the industry. SEAT is outperformed by 61.11% of its industry peers.
SEAT has a debt to FCF ratio of 8.00. This is a slightly negative value and a sign of low solvency as SEAT would need 8.00 years to pay back of all of its debts.
SEAT's Debt to FCF ratio of 8.00 is fine compared to the rest of the industry. SEAT outperforms 66.67% of its industry peers.
SEAT has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.47, SEAT is doing worse than 65.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8 | ||
| Altman-Z | -0.09 |
ROIC/WACC0.28
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SEAT may have some problems paying its short term obligations.
SEAT has a Current ratio (0.81) which is comparable to the rest of the industry.
SEAT has a Quick Ratio of 0.81. This is a bad value and indicates that SEAT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, SEAT perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for SEAT have decreased strongly by -86.86% in the last year.
Looking at the last year, SEAT shows a quite strong growth in Revenue. The Revenue has grown by 8.79% in the last year.
Measured over the past years, SEAT shows a quite strong growth in Revenue. The Revenue has been growing by 10.59% on average per year.
EPS 1Y (TTM)-86.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-103.33%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y20.52%
Revenue growth 5Y10.59%
Sales Q2Q%0.76%
3.2 Future
Based on estimates for the next years, SEAT will show a very strong growth in Earnings Per Share. The EPS will grow by 52.40% on average per year.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y24.67%
EPS Next 2Y27.56%
EPS Next 3Y49.09%
EPS Next 5Y52.4%
Revenue Next Year-1.34%
Revenue Next 2Y2.17%
Revenue Next 3Y4.21%
Revenue Next 5Y5.63%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.93, SEAT can be considered very expensive at the moment.
76.39% of the companies in the same industry are more expensive than SEAT, based on the Price/Earnings ratio.
SEAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
SEAT is valuated quite expensively with a Price/Forward Earnings ratio of 27.60.
SEAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SEAT is cheaper than 79.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, SEAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEAT indicates a rather cheap valuation: SEAT is cheaper than 83.33% of the companies listed in the same industry.
84.72% of the companies in the same industry are more expensive than SEAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SEAT's earnings are expected to grow with 49.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y27.56%
EPS Next 3Y49.09%
5. Dividend
5.1 Amount
SEAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.305
-0.11 (-4.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners91.45%
Inst Owner Change-1.15%
Ins Owners6.65%
Ins Owner Change0.78%
Market Cap481.56M
Analysts77.89
Price Target4.94 (114.32%)
Short Float %9.45%
Short Ratio8.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.96%
Min EPS beat(2)-110.44%
Max EPS beat(2)66.52%
EPS beat(4)1
Avg EPS beat(4)-48.06%
Min EPS beat(4)-115.76%
Max EPS beat(4)66.52%
EPS beat(8)5
Avg EPS beat(8)47.33%
EPS beat(12)8
Avg EPS beat(12)70.43%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)0.87%
Revenue beat(4)2
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.47%
Revenue beat(8)6
Avg Revenue beat(8)6.27%
Revenue beat(12)10
Avg Revenue beat(12)8.46%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-13.84%
EPS NQ rev (1m)-112.63%
EPS NQ rev (3m)-112.16%
EPS NY rev (1m)-44.55%
EPS NY rev (3m)-47.69%
Revenue NQ rev (1m)-4.88%
Revenue NQ rev (3m)-11.62%
Revenue NY rev (1m)-5.16%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 27.6 | ||
| P/S | 0.62 | ||
| P/FCF | 9.91 | ||
| P/OCF | 8.93 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.07
EY3.04%
EPS(NY)0.08
Fwd EY3.62%
FCF(TTM)0.23
FCFY10.09%
OCF(TTM)0.26
OCFY11.2%
SpS3.71
BVpS1.25
TBVpS-4.38
PEG (NY)1.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 3.61% | ||
| ROCE | 3.49% | ||
| ROIC | 2.2% | ||
| ROICexc | 2.75% | ||
| ROICexgc | N/A | ||
| OM | 5.44% | ||
| PM (TTM) | 1.21% | ||
| GM | 73.97% | ||
| FCFM | 6.27% |
ROA(3y)2.63%
ROA(5y)-11.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.46%
ROIC(5y)N/A
ROICexc(3y)5.88%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.08%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-37.79%
ROICexc growth 5YN/A
OM growth 3Y-31.94%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-0.9%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8 | ||
| Debt/EBITDA | 4.45 | ||
| Cap/Depr | 12.01% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 62.37% | ||
| Profit Quality | 515.88% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | -0.09 |
F-Score6
WACC7.72%
ROIC/WACC0.28
Cap/Depr(3y)22.81%
Cap/Depr(5y)24.24%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.53%
Profit Quality(3y)249.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-86.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-103.33%
EPS Next Y24.67%
EPS Next 2Y27.56%
EPS Next 3Y49.09%
EPS Next 5Y52.4%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y20.52%
Revenue growth 5Y10.59%
Sales Q2Q%0.76%
Revenue Next Year-1.34%
Revenue Next 2Y2.17%
Revenue Next 3Y4.21%
Revenue Next 5Y5.63%
EBIT growth 1Y-48.06%
EBIT growth 3Y-17.97%
EBIT growth 5YN/A
EBIT Next Year140.17%
EBIT Next 3Y47.19%
EBIT Next 5Y32.79%
FCF growth 1Y-66.68%
FCF growth 3Y-34.7%
FCF growth 5Y-8.36%
OCF growth 1Y-63.4%
OCF growth 3Y-32.56%
OCF growth 5Y-6.76%