TOWNSQUARE MEDIA INC - CL A (TSQ) Stock Fundamental Analysis
NYSE:TSQ - New York Stock Exchange, Inc. - US8922311019 - Common Stock - Currency: USD
Taking everything into account, TSQ scores 4 out of 10 in our fundamental rating. TSQ was compared to 97 industry peers in the Media industry. While TSQ is still in line with the averages on profitability rating, there are concerns on its financial health. TSQ is valued correctly, but it does not seem to be growing.
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.
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 of -2.91%. This is comparable to the rest of the industry: TSQ outperforms 45.36% of its industry peers.
TSQ's Return On Invested Capital of 10.61% is amongst the best of the industry. TSQ outperforms 87.63% of its industry peers.
TSQ had an Average Return On Invested Capital over the past 3 years of 10.20%. This is above the industry average of 7.56%.
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
The Operating Margin of TSQ (14.08%) is better than 72.16% of its industry peers.
TSQ's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.63%, TSQ is not doing good in the industry: 69.07% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TSQ is still creating some value.
TSQ has less shares outstanding than it did 1 year ago.
TSQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TSQ is higher compared to a year ago.
2.2 Solvency
TSQ has an Altman-Z score of 0.49. 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 0.49, TSQ is doing worse than 63.92% of the companies in the same industry.
TSQ has a debt to FCF ratio of 15.19. This is a negative value and a sign of low solvency as TSQ would need 15.19 years to pay back of 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 57.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.19 | ||
| Altman-Z | 0.49 |
ROIC/WACC1.38
WACC7.71%
2.3 Liquidity
TSQ has a Current Ratio of 0.98. This is a bad value and indicates that TSQ is not financially healthy enough and could expect problems in meeting its short term obligations.
TSQ has a Current ratio of 0.98. This is in the lower half of the industry: TSQ underperforms 71.13% of its industry peers.
TSQ has a Quick Ratio of 0.98. This is a bad value and indicates that TSQ is not financially healthy enough and could expect problems in meeting its short term obligations.
TSQ's Quick ratio of 0.98 is on the low side compared to the rest of the industry. TSQ is outperformed by 69.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
TSQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.09%, which is quite impressive.
Looking at the last year, TSQ shows a decrease in Revenue. The Revenue has decreased by -0.15% in the last 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
Based on estimates for the next years, TSQ will show a very strong growth in Earnings Per Share. The EPS will grow by 40.49% on average per year.
Based on estimates for the next years, TSQ will show a small growth in Revenue. The Revenue will grow by 0.81% on average per year.
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
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TSQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.97, the valuation of TSQ can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TSQ is valued a bit cheaper than the industry average as 72.16% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TSQ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSQ is valued a bit cheaper than the industry average as 75.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TSQ is valued cheaper than 90.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
TSQ's 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
With a Yearly Dividend Yield of 9.67%, TSQ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.62, TSQ pays a better dividend. On top of this TSQ pays more dividend than 98.97% of the companies listed in the same industry.
TSQ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.67% |
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.
The dividend of TSQ decreased recently.
Dividend Growth(5Y)18.02%
Div Incr Years1
Div Non Decr Years1
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.
TSQ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-77.18%
EPS Next 2Y68.52%
EPS Next 3Y40.49%
8.21
+0.26 (+3.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners52.93%
Inst Owner Change0%
Ins Owners9.57%
Ins Owner Change6.6%
Market Cap134.23M
Analysts83.33
Price Target17.34 (111.21%)
Short Float %3.16%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.67% |
Yearly Dividend0.76
Dividend Growth(5Y)18.02%
DP-77.18%
Div Incr Years1
Div Non Decr Years1
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)-5.56%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.97 | ||
| P/S | 0.3 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.67 |
EPS(TTM)-1.09
EYN/A
EPS(NY)0.82
Fwd EY10.03%
FCF(TTM)1.81
FCFY21.99%
OCF(TTM)2.88
OCFY35.02%
SpS27.52
BVpS-1.88
TBVpS-21.09
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 | 0.49 |
F-Score6
WACC7.71%
ROIC/WACC1.38
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 Year297.76%
EBIT Next 3Y62.7%
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%