Creative Media (CMCT) AI Stock Analysis

• Market Cap: $2.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• Revenue Growth: -8.72%
• EPS Growth: 84.98%
• Country: US
• Employees: 5
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -23.52
• Shares Outstanding: 789,251
• 10 Day Avg. Volume: 6,729,590
• 30 Day Avg. Volume: 2,286,183
• PEG Ratio: 0.02
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -3.76
• Enterprise Value/Market Cap: 312.20
• Enterprise Value/Revenue: 7.03
• Enterprise Value/Gross Profit: 22.24
• Enterprise Value/Ebitda: 41.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $6.50 ▲(51.87% Upside)

Creative Media's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. While the earnings call highlighted some positive strategic initiatives, ongoing financial challenges remain a significant concern.

Positive Factors

Strategic Asset Sales

The sale of non-core assets like the lending business allows CMCT to focus on core operations, improve liquidity, and strengthen its balance sheet, which is crucial for long-term stability and growth.

Multifamily Segment Growth

Growth in the multifamily segment indicates strong demand and effective management, contributing to improved occupancy and rent growth, which are vital for sustainable revenue streams.

Development of New Properties

The completion of new residential properties in desirable locations enhances CMCT's asset portfolio, potentially increasing rental income and market competitiveness in the long term.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in downturns, potentially impacting CMCT's ability to invest in growth opportunities and manage operational costs.

Declining Revenue Trend

A declining revenue trend suggests challenges in maintaining market share and profitability, which could hinder future growth and necessitate strategic adjustments to reverse the trend.

Negative Core FFO

Negative core FFO reflects ongoing financial challenges and operational inefficiencies, which may require significant restructuring or cost management to achieve financial stability.

Creative Media Business Overview & Revenue Model

Company Description

Creative Media & Community Trust Corporation is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). Its properties are primarily located in Los Angeles and the San Francisco Bay Area. Creative Media & Community Trust Corporation is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities.

How the Company Makes Money

CMCT generates revenue through various streams, including service fees for its creative services such as video production, graphic design, and social media campaigns. Additionally, the company earns income from ongoing retainer agreements with clients for digital marketing services, which provide a steady cash flow. CMCT also capitalizes on partnerships with brands and media platforms to develop sponsored content and advertising campaigns, further diversifying its revenue sources. By leveraging its expertise and industry connections, CMCT is able to create tailored solutions that meet client needs while maximizing profitability.

Creative Media Financial Statement Overview

Summary

Creative Media is facing significant financial challenges, with declining revenues and persistent losses impacting profitability. High leverage poses financial risks, while cash flow improvements are insufficient to offset the negative income trends. The company needs to address operational inefficiencies and manage debt levels to improve its financial position.

Income Statement

Creative Media's income statement shows a declining revenue trend with a negative revenue growth rate of -3.87% in the TTM period. The company is experiencing negative net profit margins, indicating ongoing losses. Gross profit margins have decreased significantly from previous years, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins are also declining, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.87, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively stable, but the overall financial health is weakened by high debt levels.

Cash Flow

Cash flow analysis shows a substantial improvement in free cash flow growth, although it remains negative. The operating cash flow to net income ratio indicates that operating cash flows are not sufficient to cover net losses. The free cash flow to net income ratio is negative, highlighting cash flow challenges. Despite some improvement, cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.68M	124.51M	119.26M	101.91M	90.93M	77.21M
Gross Profit	36.57M	51.70M	51.84M	47.53M	47.68M	33.93M
EBITDA	19.52M	39.65M	37.54M	37.18M	31.74M	16.00M
Net Income	-43.11M	-25.18M	-48.48M	5.92M	-850.00K	-15.02M
Balance Sheet
Total Assets	871.83M	889.55M	891.20M	690.25M	660.87M	685.62M
Cash, Cash Equivalents and Short-Term Investments	17.32M	20.26M	19.29M	46.19M	22.31M	43.65M
Total Debt	0.00	505.73M	471.56M	184.27M	201.15M	322.63M
Total Liabilities	588.88M	562.49M	514.43M	312.52M	249.53M	361.67M
Stockholders Equity	281.93M	325.31M	374.40M	377.36M	410.99M	323.50M
Cash Flow
Free Cash Flow	-22.53M	-6.24M	-1.33M	23.59M	42.23M	-1.90M
Operating Cash Flow	3.62M	17.03M	12.00M	32.41M	46.28M	12.83M
Investing Cash Flow	-16.88M	-22.29M	-88.69M	-22.27M	-12.70M	-38.32M
Financing Cash Flow	25.52M	13.90M	63.45M	13.69M	-43.58M	33.20M

Creative Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCT, the sentiment is Negative. The current price of 4.28 is below the 20-day moving average (MA) of 5.51, below the 50-day MA of 5.96, and below the 200-day MA of 7.24, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCT.

Creative Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ONL	51 Neutral	$115.44M	―	-18.67%	7.80%	-11.41%	-56.73%
CIO	49 Neutral	$280.53M	―	-17.91%	5.76%	-5.61%	-651.25%
CMCT	47 Neutral	$2.60M	―	-12.13%	―	-8.72%	84.98%
NYC	41 Neutral	$20.05M	―	-25.83%	―	-17.00%	89.73%
FSP	40 Neutral	$99.56M	―	-7.21%	4.13%	-14.68%	-13.53%

Creative Media Corporate Events

Creative Media Reports Q3 2025 Financial Results

On November 14, 2025, Creative Media & Community Trust Corporation reported its third-quarter results for 2025, highlighting a net loss of $17.7 million. The company executed significant leasing activity and entered into an agreement to sell its lending business for approximately $44 million, as part of its strategy to focus on multifamily assets. The office portfolio showed a slight increase in leasing activity, while the hotel segment was impacted by renovation projects. The multifamily segment is expected to improve net operating income as occupancy rates increase.

Creative Media Sells Lending Division for $44 Million

On November 12, 2025, Creative Media & Community Trust Corporation announced the sale of its lending division to PG FR Holding, LLC for approximately $44 million, with expected net cash proceeds of $31 million. This transaction aligns with CMCT’s strategy to enhance its multifamily portfolio, strengthen its balance sheet, and improve liquidity. Concurrently, Barry Berlin will resign from his executive roles, succeeded by Brandon Hill as CFO and Treasurer, as part of a strategic management transition.