Cineverse (CNVS) AI Stock Analysis

• Market Cap: $64.09M
• Dividend Yield: N/A
• Average Volume (3M): 372.78K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.29
• Revenue Growth: 77.07%
• EPS Growth: N/A
• Country: US
• Employees: 176
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.21
• Shares Outstanding: 19,075,264
• 10 Day Avg. Volume: 166,206
• 30 Day Avg. Volume: 372,782
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 7.14
• 1Y Price Target: $7.25
• Price Target Upside: 115.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $4.50 ▲(33.93% Upside)

Cineverse's overall stock score is driven by strong financial recovery and positive earnings call guidance, indicating potential for future growth. However, bearish technical indicators and a high P/E ratio suggest caution. The absence of a dividend yield and mixed advertising performance are additional concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and increased demand for Cineverse's streaming services, supporting long-term business expansion.

Streaming Metrics Improvement

Improved streaming metrics reflect growing user engagement and platform popularity, which are crucial for sustaining subscriber growth and revenue.

Theatrical and Microseries Expansion

Expanding into microseries and theatrical releases diversifies revenue streams and taps into new markets, enhancing long-term growth prospects.

Negative Factors

Decreased Cash and Increased Net Loss

Increased net loss and decreased cash reserves may strain financial resources, impacting the company's ability to invest in growth opportunities.

Mixed Advertising Performance

Challenges in advertising performance, particularly in programmatic markets, could limit revenue growth and affect profitability in the long term.

Decreased Asset Base

A shrinking asset base could constrain Cineverse's capacity to expand operations and invest in new projects, potentially hindering future growth.

Cineverse Business Overview & Revenue Model

Company Description

Cineverse (CNVS) is a multimedia entertainment company that operates in the film, television, and digital content sectors. The company focuses on providing a wide range of content through its streaming platform, which includes films, series, and documentaries. Cineverse aims to cater to diverse audience preferences by offering a mix of independent and mainstream productions, as well as original content, thereby enhancing the viewing experience for its subscribers and viewers.

How the Company Makes Money

Cineverse generates revenue primarily through subscription fees from its streaming service, allowing users unlimited access to its library of content for a monthly or annual fee. Additionally, the company earns revenue through advertising on its free-tier content, where viewers can watch films and shows in exchange for viewing ads. Licensing deals with other platforms and networks also contribute to revenue, as Cineverse sells distribution rights for its content. Strategic partnerships with content creators and production studios further enhance its content library, attracting more subscribers and advertisers, ultimately boosting overall earnings.

Cineverse Financial Statement Overview

Summary

Cineverse has shown significant improvement with strong profitability, cost management, and cash flow generation. The net profit margin turned positive, and free cash flow growth was robust. However, the decrease in the asset base may limit future growth.

Income Statement

Cineverse has shown significant improvement in its financial performance over the years. The gross profit margin has increased, reaching 50.4% in the latest period, indicating improved cost management. The net profit margin turned positive to 4.6% after sustained losses, reflecting a return to profitability. Revenue growth was strong at 59% compared to the previous year. EBIT and EBITDA margins improved significantly, suggesting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.01, indicating minimal reliance on debt financing. Return on equity has improved to 9.3%, showing better returns for shareholders. The equity ratio stands at 53.4%, reflecting a stable capital structure. However, the overall asset base has decreased, which may limit future growth.

Cash Flow

Cineverse demonstrated strong cash flow performance with robust free cash flow growth, turning positive from substantial previous deficits. The operating cash flow to net income ratio is high at 4.83, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also favorable, further supporting liquidity and financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	78.18M	49.13M	68.03M	31.42M	56.05M
Gross Profit	39.41M	30.00M	27.90M	8.40M	30.59M
EBITDA	12.03M	-16.42M	-4.46M	-52.21M	6.41M
Net Income	3.60M	-21.41M	-9.73M	-62.82M	2.21M
Balance Sheet
Total Assets	72.52M	64.38M	88.08M	75.45M	104.64M
Cash, Cash Equivalents and Short-Term Investments	13.94M	5.17M	7.15M	16.85M	13.06M
Total Debt	462.00K	7.16M	6.21M	11.99M	749.00K
Total Liabilities	34.72M	32.23M	49.01M	59.56M	63.69M
Stockholders Equity	38.75M	33.27M	40.34M	17.24M	42.25M
Cash Flow
Free Cash Flow	16.24M	-11.66M	-10.24M	-22.62M	4.24M
Operating Cash Flow	17.41M	-10.59M	-8.97M	-20.01M	4.88M
Investing Cash Flow	-635.00K	-531.00K	-1.27M	-1.71M	-12.30M
Financing Cash Flow	-8.00M	9.14M	4.33M	24.27M	2.64M

Cineverse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.36
• 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 CNVS, the sentiment is Negative. The current price of 3.36 is below the 20-day moving average (MA) of 3.53, below the 50-day MA of 4.70, and below the 200-day MA of 4.00, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNVS.

Cineverse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	65 Neutral	$64.09M	25.07	9.22%	―	77.07%	―
GAIA	65 Neutral	152.92M	-30.62	-6.49%	―	12.22%	19.18%
RDI	53 Neutral	50.88M	-2.07	263.74%	―	7.59%	61.22%
AGAE	46 Neutral	36.13M	-1.84	-36.32%	―	0.52%	-225.42%
ANGH	41 Neutral	19.73M	-0.27	-106.18%	―	88.72%	-85.54%
LVO	40 Neutral	55.63M	-2.32	101.40%	―	-18.76%	-21.71%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Cineverse Corporate Events

Cineverse Announces New Employment Agreement with Antonio Huidor

On May 14, 2025, Cineverse Corp. announced a new employment agreement with Antonio Huidor, effective May 1, 2025, which supersedes the previous agreement. Under this agreement, Mr. Huidor will serve as President of Technology and Chief Product Officer, with a term ending on April 30, 2027, and an automatic one-year renewal option. The agreement outlines his compensation, including an annual base salary of $430,000, a target bonus of $301,000, and RSUs for 76,820 shares of Common Stock. The agreement also details conditions for termination and compensation in the event of a change in control, highlighting the company’s commitment to securing key leadership roles and ensuring stability in its executive team.