Emerald Expositions Events (EEX) AI Stock Analysis

• Market Cap: $939.58M
• Dividend Yield: 1.29%
• Average Volume (3M): 107.72K
• Price to Earnings (P/E): 215.7
• Beta (1Y): 0.69
• Revenue Growth: 11.18%
• EPS Growth: N/A
• Country: US
• Employees: 697
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 197,807,360
• 10 Day Avg. Volume: 229,492
• 30 Day Avg. Volume: 107,722
• PEG Ratio: -7.39
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 26.47
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 15.04
• 1Y Price Target: $7.85
• Price Target Upside: 68.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $463.00M

• Rating: 62 Neutral
• Price Target: $5.50 ▲(18.03% Upside)

Emerald Expositions Events has a stable financial position with positive revenue growth and improved leverage metrics. However, profitability and cash flow challenges persist. The stock shows strong technical momentum, but valuation concerns due to a high P/E ratio weigh heavily. Optimism from strategic initiatives and acquisitions is tempered by operational challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Acquisitions

Strategic acquisitions expand market presence and diversify revenue streams, positioning the company for sustained growth.

AI Integration

AI integration enhances customer experience and operational efficiency, providing a competitive edge in the events industry.

Negative Factors

Profitability Challenges

Low profitability can limit reinvestment opportunities and shareholder returns, affecting long-term financial health.

Cash Flow Weakness

Weak cash flow generation can constrain operational flexibility and investment in growth initiatives, impacting future performance.

Organic Revenue Decline

Declining organic revenue growth may indicate underlying market or operational challenges, affecting long-term growth prospects.

Emerald Expositions Events Business Overview & Revenue Model

Company Description

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company operates trade shows in various industry sectors, including retail, design and construction, technology, equipment, and safety and security. It also operates content and content-marketing websites, and related digital products, as well as produce publications. In addition, the company operates Elastic Suite platform that streamlines the wholesale buying process for brands and retail buyers; and Flex platform. Emerald Expositions Events, Inc. was incorporated in 2013 and is based in New York, New York.

How the Company Makes Money

Emerald Expositions Events generates revenue primarily through several key streams: exhibitor fees, attendee registration fees, and sponsorships. Exhibitors pay for booth space, which varies in cost based on the size and location within the event venue. Attendee registration fees provide an additional revenue source, as individuals and companies pay to access the trade shows and events. Sponsorships from brands looking to enhance their visibility during these events also contribute significantly to the company's earnings. Furthermore, EEX may engage in partnerships with industry organizations and media outlets, leveraging these relationships to enhance its event offerings and attract more participants, thereby boosting its revenue potential.

Emerald Expositions Events Financial Statement Overview

Summary

Emerald Expositions Events shows positive revenue growth and improved leverage metrics, indicating stability. However, low net profit margins and modest returns on equity highlight profitability challenges. Cash flow generation has weakened, raising potential liquidity concerns.

Income Statement

Emerald Expositions Events has shown a positive trend in revenue growth, with a TTM revenue growth rate of 13.3%. The gross profit margin is strong at 63.18% for TTM, indicating efficient cost management. However, the net profit margin is low at 1.05%, suggesting challenges in translating revenue into profit. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.04 in TTM, indicating reduced leverage and a stronger equity position. However, the return on equity is modest at 1.20%, suggesting limited profitability relative to shareholder equity. The equity ratio is not directly provided, but the improvement in debt metrics suggests a more stable financial position.

Cash Flow

The free cash flow growth rate has declined by 13.64% in TTM, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 0.17, which is relatively low, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is strong at 0.91, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	437.50M	398.80M	382.80M	325.90M	145.50M	127.40M
Gross Profit	246.60M	223.00M	200.20M	149.90M	40.80M	21.20M
EBITDA	94.90M	83.60M	85.40M	245.40M	-14.20M	-618.70M
Net Income	4.60M	2.20M	-8.20M	70.60M	-79.70M	-633.60M
Balance Sheet
Total Assets	1.22B	1.05B	1.05B	1.10B	1.06B	1.05B
Cash, Cash Equivalents and Short-Term Investments	95.40M	194.80M	204.20M	239.10M	231.20M	295.30M
Total Debt	514.70M	412.20M	415.80M	429.20M	534.60M	538.70M
Total Liabilities	847.80M	662.80M	649.30M	1.13B	1.18B	1.06B
Stockholders Equity	369.50M	385.90M	404.60M	-33.10M	-121.00M	-3.80M
Cash Flow
Free Cash Flow	47.50M	45.50M	37.70M	172.90M	88.50M	-38.00M
Operating Cash Flow	48.80M	46.80M	38.30M	174.70M	90.00M	-37.10M
Investing Cash Flow	-203.30M	-25.00M	-21.00M	-47.90M	-131.90M	-37.30M
Financing Cash Flow	62.10M	-31.20M	-52.20M	-118.90M	-22.20M	360.10M

Emerald Expositions Events Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEX, the sentiment is Positive. The current price of 4.66 is above the 20-day moving average (MA) of 3.99, above the 50-day MA of 4.17, and above the 200-day MA of 4.50, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EEX.

Emerald Expositions Events Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	77 Outperform	$1.03B	6.85	15.37%	―	0.32%	69.78%
DLX	72 Outperform	$1.00B	12.15	12.96%	5.41%	-0.94%	47.48%
QNST	69 Neutral	$833.11M	80.56	4.55%	―	43.12%	―
STGW	65 Neutral	$1.29B	65.19	3.80%	―	6.76%	1841.46%
EEX	62 Neutral	$939.58M	215.74	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CCO	57 Neutral	$1.07B	-12.37	―	―	-29.67%	30.13%

Emerald Expositions Events Corporate Events

Emerald Expositions Reviews Strategic Options with Goldman Sachs

Emerald Holding, Inc. has initiated a review of potential strategic options following acquisition inquiries, with Goldman Sachs serving as the lead financial advisor. The company reaffirmed its full-year 2025 financial guidance, emphasizing its strong market position and commitment to shareholder value, though no assurance of a transaction is guaranteed.