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Cumulus Media (CMLS)
:CMLS
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Cumulus Media
(NASDAQ:CMLS)41Neutral
Positive Factors
Debt Management
Pushing out maturities for the majority of its debt earlier this year to 2029 is helpful, providing time for Cumulus to execute on its strategy.
Negative Factors
Ad Sales Relationship Termination
The end of an ad sales relationship towards year end is expected to be a $15 million headwind for 2025.
Revenue Decline
Cumulus reported a 1.2% decline in Q4 revenues to $218.6 million, consistent with the pacing guidance the company provided in November and matching our estimate.
Cumulus Media (CMLS) vs. S&P 500 (SPY)
Market Cap
$21.49M
Dividend YieldN/A
Average Volume (3M)36.31K
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth-2.07%
EPS Growth-138.25%
CountryUS
Employees3,367
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)-16.66
Shares Outstanding16,917,736
10 Day Avg. Volume54,818
30 Day Avg. Volume36,309
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.01
Price to Cash Flow (P/CF)0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
Cumulus Media Business Overview & Revenue Model
Company DescriptionCumulus Media Inc. (CMLS) is one of the largest audio-first media companies in the United States. It operates in the radio broadcasting sector, providing a wide array of content through its extensive portfolio of FM and AM radio stations. The company also owns and operates the Westwood One network, which produces and distributes various syndicated programming. In addition to traditional radio, Cumulus Media offers digital streaming and podcasting services, catering to a diverse audience across multiple platforms.
How the Company Makes MoneyCumulus Media primarily generates revenue through advertising sales across its radio stations and digital platforms. As advertisers seek to reach large and varied audiences, Cumulus provides valuable advertising inventory on its local and national radio broadcasts, as well as through digital audio content like podcasts and streaming. The company also earns revenue from content syndication via its Westwood One network, which sells programming to other broadcasters. Additionally, Cumulus Media may engage in strategic partnerships and sponsorship deals that further contribute to its income.
Cumulus Media Financial Statement Overview
Summary
Cumulus Media is facing significant financial challenges across all major financial statements. The income statement reveals declining revenue and negative profits, the balance sheet is burdened with high debt and low equity, and cash flow is insufficient to cover operational needs. These factors collectively indicate financial distress and necessitate strategic actions for improvement.Income Statement
Cumulus Media's financial performance has been challenging, with a declining revenue trend and negative profitability margins. The company reported a significant decrease in total revenue from $953 million in 2022 to $827 million in 2024, indicating a negative growth trajectory. Its net profit margin has been negative, reaching -34.24% in 2024, highlighting profitability issues. The gross profit margin has declined drastically, and EBIT and EBITDA margins have also turned negative, reflecting operational inefficiencies and financial distress.40
Negative
Balance Sheet
Cumulus Media's balance sheet shows signs of financial strain. The debt-to-equity ratio is extremely high, indicating heavy reliance on debt financing and a weak equity position. Stockholders' equity has significantly decreased from $408 million in 2022 to $7 million in 2024, severely impacting the equity ratio, which is low at 0.62%. This high leverage poses a risk to financial stability and increases vulnerability to economic fluctuations.30
Negative
Cash Flow
The company's cash flow situation is concerning with negative free cash flow in 2024 amounting to -$22.58 million. Operating cash flow has turned negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is unfavorable due to persistent losses, and free cash flow growth is negative, reflecting ongoing cash management issues.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 827.08M | 844.55M | 953.51M | 916.47M | 816.22M | Gross Profit |
| 827.08M | 511.19M | 596.03M | 557.78M | 479.14M | EBIT |
| -239.66M | -41.28M | 79.79M | 69.12M | 21.40M | EBITDA |
| -162.86M | 35.85M | 158.40M | 119.65M | 59.51M | Net Income Common Stockholders |
| -283.25M | -117.88M | 16.23M | 17.28M | -59.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 63.84M | 80.66M | 107.43M | 177.03M | 271.76M | Total Assets |
| 1.12B | 1.44B | 1.61B | 1.72B | 1.86B | Total Debt |
| 794.71M | 813.08M | 862.35M | 952.96M | 1.13B | Net Debt |
| 730.87M | 732.42M | 754.92M | 775.93M | 858.54M | Total Liabilities |
| 1.11B | 1.15B | 1.20B | 1.30B | 1.46B | Stockholders Equity |
| 6.95M | 286.58M | 408.40M | 419.50M | 397.59M |
| Cash Flow | Free Cash Flow | |||
| -22.58M | 6.85M | 47.42M | 39.43M | 18.34M | Operating Cash Flow |
| -3.12M | 31.66M | 78.48M | 68.52M | 33.21M | Investing Cash Flow |
| -4.23M | -6.82M | -26.24M | -1.54M | 64.36M | Financing Cash Flow |
| -9.47M | -51.61M | -121.84M | -161.71M | 157.19M |
Cumulus Media Technical Analysis
Negative
0.53
Price Trends
0.81
Negative
0.86
Negative
1.34
Negative
Market Momentum
-0.08
Positive
26.82
Positive
4.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMLS, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.81, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 26.82 is Positive, neither overbought nor oversold. The STOCH value of 4.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMLS.
Cumulus Media Risk Analysis
Cumulus Media disclosed 19 risk factors in its most recent earnings report. Cumulus Media reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cumulus Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
49 Neutral | $11.53M | 3.61 | 1.77% | ― | -5.77% | ― | |
48 Neutral | $7.87B | ― | -37.33% | 4.51% | -2.84% | -249.80% | |
41 Neutral | $21.49M | ― | -193.00% | ― | -2.07% | -138.25% | |
34 Underperform | $234.34M | ― | 86.54% | ― | 2.76% | 9.71% |
* Communication Services Sector Average
Performance Comparison
CMLS
Cumulus Media
0.52
-3.16
-85.87%
BBGI
Beasley Broadcast Group
6.30
-10.37
-62.21%
SIRI
Sirius XM Holdings
25.23
-14.91
-37.14%
IHRT
iHeartMedia
1.83
-0.36
-16.44%
Cumulus Media Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -41.11% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in digital marketing services and cost reduction efforts, but also faced challenges with declines in advertising revenue and negative impacts from the loss of key podcast partnerships. Despite the headwinds, there is optimism about growth opportunities in digital and efforts to mitigate losses.Highlights
Digital Marketing Services Growth
Digital marketing services business experienced a 27% revenue increase year-over-year, becoming the largest digital segment. Customer count increased by 18%, and digital-only customers grew by 31%.
Cost Reductions and Financial Flexibility
Achieved approximately $35 million in annualized net cost reductions in Q4 2024. Extended debt maturities to 2029, providing financial flexibility and optionality.
Podcast Revenue (Excluding Daily Wire)
Podcast revenue, excluding Daily Wire, was up over 35% in 2024, and efforts are underway to offset the revenue loss from Daily Wire.
Political Advertising Revenue
Benefited from approximately $19 million in political advertising during 2024, contributing positively to overall revenue.
Lowlights
National and Local Advertising Challenges
Experienced significant headwinds in national advertising and a slowdown in local broadcast advertising. Overall revenue was down 2.1% for the year.
Impact of Daily Wire and Dan Bongino Exit
Loss of Daily Wire ad sales function resulted in a negative revenue impact of $15 million for the full year. Dan Bongino's exit is expected to have a comparable negative impact.
Streaming Revenue Decline
Streaming revenue was down 4% for the year, affected by the expiration of a fixed-rate sales contract.
Ongoing Economic Uncertainty
Revenue for Q1 2025 is pacing down mid-single digits due to continued concerns about inflation, tariffs, and consumer sentiment.
Company Guidance
During the Cumulus Media earnings call for the fourth quarter of 2024, the company provided guidance on several key metrics and strategies. The digital marketing services (DMS) business emerged as a standout performer, with a 27% revenue increase year-over-year, growing to account for approximately 19% of total company revenue. The company also noted an 18% increase in customer count and an 11% rise in average digital order size per customer, contributing to a high retention rate. Despite a slight decline in podcast revenue due to the Daily Wire's decision to handle its ad sales in-house, podcast revenues excluding Daily Wire were up over 35% in 2024. In terms of cost management, Cumulus implemented $35 million in annualized net cost reductions in Q4, adding to the $128 million in cost cuts from 2019 through Q3 2024, reducing its fixed cost base by 22% over the same period. Looking forward, Cumulus Media aims to continue investing in digital growth while reengineering its business to enhance operating efficiency. Additionally, the company extended its debt maturities to 2029, providing financial flexibility to execute these strategies.Cumulus Media Corporate Events
Executive/Board Changes
Cumulus Media Board Reshuffle: Galbraith Joins Directors
Positive
Jan 22, 2025
On January 22, 2025, Cumulus Media announced the resignation of Matthew Blank from its Board of Directors to focus on other commitments, with Steven M. Galbraith appointed as his replacement, effective immediately. Galbraith, a top shareholder and seasoned investment professional, is expected to bring valuable insights to the board, potentially enhancing the company’s growth and strategic positioning in the audio media industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.