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Creative Media & Community Trust Corporation (CMCT)
:CMCT
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Creative Media
(NASDAQ:CMCT)
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Rating:46Neutral
Price Target:
$6.50
▼(-3.27% Downside)
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 ongoing losses. While the earnings call highlighted some strategic progress, significant financial challenges remain.
Creative Media (CMCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.04M
Dividend YieldN/A
Average Volume (3M)32.06K
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth-6.54%
EPS Growth40.94%
CountryUS
Employees5
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-18.94
Shares Outstanding789,251
10 Day Avg. Volume34,131
30 Day Avg. Volume32,065
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap160.90
Enterprise Value/Revenue6.87
Enterprise Value/Gross Profit20.40
Enterprise Value/Ebitda26.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Creative Media Business Overview & Revenue Model
Company DescriptionCreative Media (CMCT) is a dynamic company operating in the digital media and technology sectors. Specializing in innovative content creation, CMCT develops and distributes multimedia solutions including video production, graphic design, and digital marketing services. The company caters to a diverse clientele ranging from startups to established enterprises, focusing on enhancing brand visibility and engagement through creative storytelling and strategic media campaigns.
How the Company Makes MoneyCreative Media generates revenue through multiple streams, including service fees for custom content production, monthly retainers for digital marketing services, and licensing agreements for proprietary media assets. Key revenue streams also include partnerships with businesses seeking to enhance their brand presence through CMCT's creative solutions. Additionally, CMCT monetizes its content through advertising and sponsorship deals, collaborating with brands to promote products and services within their media productions. The company's strong industry connections and reputation for quality have led to significant partnerships that contribute to its financial growth.
Creative Media Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant progress in leasing activity and successful refinancing and property renovations. However, there were substantial financial challenges with declines in NOI across several segments and a negative core FFO. The strategic initiatives are yielding some positive results, but ongoing market challenges remain.Q2-2025 Updates
Positive Updates
Significant Leasing Activity Increase
In 2025, executed approximately 140,000 square feet of leases through the end of July, representing an over 55% increase from the prior year period, driven primarily by Los Angeles and Austin properties.
Successful Property Financing and Credit Facility Repayment
Secured property level financing on 7 assets, allowing full repayment and retirement of a recourse credit facility with a balance of approximately $169 million.
Hotel Renovation Completion
Completed renovation of all 500-plus guestrooms at the Sheraton Grand Sacramento, leading to a 15% year-over-year increase in Q1 net operating income.
Increase in Multifamily Occupancy
Multifamily occupancy at the 701 South Hudson property increased from 41% to 68% by the end of the quarter.
Negative Updates
Negative Core FFO and Overall NOI Decrease
Core FFO was negative $7.2 million, and overall net operating income decreased to $9.8 million from $11.8 million in the prior quarter.
Office and Multifamily NOI Decline
Office NOI declined by $1.6 million, and multifamily NOI decreased by $2.1 million compared to the prior year due to lower occupancy and rental revenue.
Lending Division NOI Decline
Lending division NOI declined to a loss of $47,000 compared to NOI of $743,000 in the prior year due to decreased interest income and increased credit losses.
Challenges in Oakland Market
Continued uneven demand and challenges in occupancy and rent levels at Oakland properties.
Company Guidance
During the Creative Media & Community Trust Corporation's second quarter 2025 earnings call, significant progress was reported across various metrics. The company executed approximately 140,000 square feet of leases by the end of July 2025, marking a 55% increase from the previous year, driven primarily by properties in Los Angeles and Austin. Despite challenges in Oakland, improvements in the San Francisco market offer optimism. The firm has refinanced property-level financing for seven assets, allowing for the retirement of a $169 million recourse credit facility and supporting key growth initiatives. Multifamily net operating income (NOI) increased by $800,000 from the previous quarter, with occupancy in Los Angeles properties like 701 South Hudson rising from 41% to 68%. However, the company's overall NOI decreased from $11.8 million in the prior quarter to $9.8 million, with core funds from operations (FFO) at negative $7.2 million. The hotel segment's Q1 NOI saw a 15% year-over-year increase, although Q2 results were impacted by ongoing renovations. Looking ahead, the company anticipates meaningful NOI growth in 2026, driven by improved leasing activity, completion of hotel renovations, and potential benefits from a declining interest rate environment.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.45
Neutral
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.40
Negative
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 118.06M | 124.51M | 119.26M | 101.91M | 90.93M | 77.21M |
| Gross Profit | 39.77M | 51.70M | -3.27M | 47.53M | 47.68M | 33.93M |
| EBITDA | 30.97M | 39.65M | 37.54M | 37.25M | 30.62M | 16.00M |
| Net Income | -35.76M | -25.18M | -48.48M | 5.92M | -851.00K | -15.02M |
Balance Sheet | ||||||
| Total Assets | 885.02M | 889.55M | 891.20M | 690.25M | 660.87M | 685.62M |
| Cash, Cash Equivalents and Short-Term Investments | 27.77M | 20.26M | 19.29M | 46.19M | 22.31M | 33.64M |
| Total Debt | 535.61M | 505.73M | 471.56M | 184.27M | 201.15M | 324.31M |
| Total Liabilities | 584.25M | 562.49M | 514.43M | 312.52M | 249.53M | 361.67M |
| Stockholders Equity | 287.11M | 325.31M | 374.40M | 377.36M | 410.99M | 323.50M |
Cash Flow | ||||||
| Free Cash Flow | -22.02M | -6.24M | -1.33M | 23.59M | 42.23M | -1.90M |
| Operating Cash Flow | 10.21M | 17.03M | 12.00M | 32.41M | 46.28M | 12.83M |
| Investing Cash Flow | -31.13M | -22.29M | -88.69M | -22.27M | -12.70M | -38.32M |
| Financing Cash Flow | 27.93M | 13.90M | 63.45M | 13.69M | -43.58M | 33.20M |
Creative Media Technical Analysis
Negative
6.72
Price Trends
6.79
Negative
7.40
Negative
9.96
Negative
Market Momentum
-0.09
Negative
45.73
Neutral
22.31
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 6.72 is above the 20-day moving average (MA) of 6.53, below the 50-day MA of 6.79, and below the 200-day MA of 9.96, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 22.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCT.
Creative Media Risk Analysis
Creative Media disclosed 2 risk factors in its most recent earnings report. Creative Media reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Creative Media Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
53 Neutral | $280.12M | -2.19 | -17.53% | 5.76% | -3.69% | -777.30% | |
51 Neutral | $144.73M | ― | -10.03% | 6.32% | -15.14% | 16.61% | |
46 Neutral | $5.04M | -0.02 | -10.85% | ― | -6.54% | 40.94% | |
43 Neutral | $145.17M | -2.71 | -8.18% | 2.86% | -18.12% | 24.44% | |
41 Neutral | $25.74M | ― | -112.61% | ― | -11.84% | 52.84% |
* Real Estate Sector Average
CMCT
Creative Media
6.38
-108.67
-94.45%
FSP
Franklin Street Properties
1.40
-0.31
-18.13%
CIO
City Office REIT
6.93
1.71
32.76%
NYC
New York City REIT
9.70
0.76
8.50%
ONL
Orion Office REIT
2.53
-1.10
-30.30%
NLOP
Net Lease Office Properties
29.12
2.28
8.49%
Creative Media Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Creative Media Reports Q2 2025 Financial Results
Neutral
Aug 13, 2025
Creative Media & Community Trust Corporation reported its second-quarter 2025 results, highlighting significant leasing activity and refinancing efforts. Despite a net loss of $14.3 million, the company executed over 78,000 square feet of office leases in the first half of 2025 and completed multiple refinancing transactions to improve liquidity and focus on multifamily assets. The company also saw a 5.5% increase in hotel net operating income following renovations, and it plans further upgrades to enhance future performance.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.