Emerald Expositions Events (EEX) AI Stock Analysis

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Emerald Expositions Events

(NYSE:EEX)

69Neutral

Emerald Expositions Events demonstrates a recovery with strong financial performance, particularly in revenue and EBITDA growth, supported by strategic acquisitions and a solid liquidity position. The technical analysis shows bullish momentum, although it is countered by overvaluation concerns due to a high P/E ratio. The overall outlook remains cautiously optimistic, driven by a robust earnings call sentiment and proactive management strategies.

Positive Factors

Acquisitions

Two acquisitions are expected to collectively add ~$40M in revenue and ~$15M in adjusted EBITDA in 2025 and represent higher growth.

Earnings

Emerald reported results with revenue and adjusted EBITDA up 11% and 35%, both topping estimates.

Financial Strategy

The company has refinanced debt with no significant maturities until 2030 and authorized a new $25M share buyback.

Negative Factors

External Factors

Results were impacted by timing and hurricanes in Florida.

Profitability

Gross margin declined due to mix, impacting overall profitability.

Emerald Expositions Events (EEX) vs. S&P 500 (SPY)

Market Cap

$898.84M

Dividend Yield1%

Average Volume (3M)128.03K

Price to Earnings (P/E)280.1

Beta (1Y)1.26

Revenue Growth4.87%

EPS GrowthN/A

CountryUS

Employees697

SectorCommunication Services

Sector Strength84

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)0.12

Shares Outstanding198,858,860

10 Day Avg. Volume100,906

30 Day Avg. Volume128,028

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.14

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.09

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.90

Price Target Upside74.78% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Emerald Expositions Events Business Overview & Revenue Model

Company DescriptionEmerald 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 MoneyEmerald Expositions Events primarily generates revenue through the organization and management of trade shows and events. Key revenue streams include exhibitor fees, which are charged to companies for booth space and participation in events, and attendee registration fees. Additionally, the company earns income from sponsorships and advertising opportunities offered during these events. EEX also leverages partnerships with industry associations and media entities to enhance event reach and engagement, contributing to its financial performance.

Emerald Expositions Events Financial Statement Overview

Summary

Emerald Expositions Events shows a positive trajectory in revenue growth, improvements in profitability, and cash flow stability. The balance sheet reflects a healthier leverage position, albeit with historical instability risks.

Income Statement

Positive

Emerald Expositions Events shows a positive trajectory in revenue growth, with a TTM revenue growth of 3.60%. The Gross Profit Margin is stable at 61.64%, and there's a significant improvement in Net Profit Margin, which turned positive to 1.57% in TTM from negative in prior years. EBIT and EBITDA Margins show recovery, indicating operational efficiency improvements. However, the past negative Net Income suggests historical challenges in profitability.

Balance Sheet

Neutral

The debt-to-equity ratio has improved significantly from negative to a more stable position due to increased stockholder equity, now at 0.01, reflecting low leverage risk. The Equity Ratio stands at 33.14%, indicating a recovery phase. However, the company had negative equity in past years, highlighting potential financial instability risks.

Cash Flow

Positive

The Free Cash Flow has remained stable with a slight growth of 0.21% in TTM, and the Operating Cash Flow to Net Income ratio is favorable at 8.02, showcasing strong cash generation relative to net income. A consistent Free Cash Flow to Net Income ratio in TTM indicates operational cash flow effectiveness.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
398.80M	382.80M	325.90M	145.50M	127.40M
	Gross Profit
251.30M	245.20M	209.40M	90.00M	69.80M
	EBIT
46.80M	34.70M	179.80M	-23.20M	-97.40M
	EBITDA
70.90M	85.40M	242.00M	-14.20M	-622.00M
	Net Income Common Stockholders
-10.50M	-8.20M	130.80M	-78.10M	-633.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.80M	204.20M	239.10M	231.20M	295.30M
	Total Assets
1.05B	1.05B	1.10B	1.06B	1.05B
	Total Debt
412.20M	415.80M	429.20M	534.60M	538.70M
	Net Debt
217.40M	211.60M	190.10M	303.40M	243.40M
	Total Liabilities
662.80M	649.30M	1.13B	1.18B	660.00M
	Stockholders Equity
385.90M	404.60M	-33.10M	-119.40M	394.40M
Cash Flow		Free Cash Flow
46.80M	28.80M	164.80M	83.40M	-41.10M
	Operating Cash Flow
46.80M	40.30M	175.10M	90.00M	-37.10M
	Investing Cash Flow
-25.00M	-21.00M	-47.90M	-131.90M	-37.30M
	Financing Cash Flow
-31.20M	-54.20M	-119.30M	-22.20M	360.10M

Emerald Expositions Events Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.52

Price Trends

50DMA

3.91

Positive

100DMA

4.25

Positive

200DMA

4.57

Negative

Market Momentum

MACD

0.16

Negative

RSI

68.48

Neutral

STOCH

73.19

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 4.52 is above the 20-day moving average (MA) of 3.85, above the 50-day MA of 3.91, and below the 200-day MA of 4.57, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 68.48 is Neutral, neither overbought nor oversold. The STOCH value of 73.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EEX.

Emerald Expositions Events Risk Analysis

Emerald Expositions Events disclosed 40 risk factors in its most recent earnings report. Emerald Expositions Events 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

Emerald Expositions Events Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEXN	73 Outperform	$659.90M	20.15	6.60%	―	10.09%	―
EEX	69 Neutral	$898.84M	280.12	1.62%	1.00%	4.87%	―
DLX	68 Neutral	$681.39M	12.15	9.10%	7.92%	-2.69%	61.73%
QNST	64 Neutral	$1.00B	―	-5.52%	―	68.99%	84.85%
Sector *	59 Neutral	$13.74B	7.33	-2.74%	3.82%	2.18%	-37.91%
NCMI	52 Neutral	$552.11M	―	-5.27%	0.53%	45.67%	-100.72%
CCO	45 Neutral	$541.42M	―	4.92%	―	-17.54%	66.05%

* Communication Services Sector Average

Performance Comparison

EEX

Emerald Expositions Events

4.52

-1.25

-21.66%

CCO

Clear Channel Outdoor

1.09

-0.45

-29.22%

DLX

Deluxe

15.23

-5.71

-27.27%

NCMI

National Cinemedia

5.80

1.14

24.46%

QNST

Quinstreet

17.74

-1.02

-5.44%

NEXN

Nexxen International

10.86

5.12

89.20%

Emerald Expositions Events Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 15.01%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Positive

Emerald Holding's earnings call reflected a strong start to fiscal year 2025 with significant revenue and EBITDA growth, supported by strategic acquisitions and portfolio optimization. Despite challenges in international markets, the company's strong cash position and proactive measures to mitigate external pressures underline a positive outlook.

Q1-2025 Updates

Positive Updates

Strong Revenue and EBITDA Growth

Total revenue for Q1 2025 was $147.7 million, up from $133.4 million in the prior year, representing a 10.7% increase. Adjusted EBITDA grew by 34.7% to $53.6 million compared to $39.8 million in the prior year.

Successful Portfolio Optimization

The company's refined portfolio spans high-growth sectors, reducing reliance on slower growth verticals. Notable events like Kbiz, Prosper Show, and International Pizza Expo contributed to performance.

Acquisition and Strategic M&A

Emerald received regulatory approval for the acquisition of This Is Beyond and completed the acquisition of InsureTech Insights, enhancing its portfolio with high-end experiential events and expanding into high-growth sectors.

Strong Cash Position and Shareholder Returns

The company reported $276.8 million in cash as of March 31, 2025. It repurchased 2.8 million shares and reauthorized an additional $25 million share buyback, reflecting confidence in long-term value.

Negative Updates

Challenges in International Markets

Pressure on sales from China and Canada was noted, with expected declines in international exhibitor revenues. However, some offset was seen from markets like Turkey and Brazil.

External Economic Pressures

The company is navigating challenges from shifting consumer sentiment and global economic pressures, remaining vigilant in monitoring these external factors.

Company Guidance

During the Emerald Holding First Quarter 2025 Earnings Conference Call, CEO Herve Sedky and CFO David Doft provided detailed guidance on the company's expected performance for the year. They reaffirmed their full-year 2025 guidance, projecting revenue between $450 million to $460 million and adjusted EBITDA in the range of $120 million to $125 million. The first quarter already showed strong results, with total revenue of $147.7 million, which included a 5.6% increase in organic revenue year-over-year. Adjusted EBITDA, excluding insurance proceeds, rose by 34.7% to $53.6 million, resulting in an EBITDA margin of approximately 36.3%. The company highlighted its strategic acquisitions, including InsureTech Insights and This Is Beyond, which are expected to contribute to future growth. The management also discussed their proactive approach to managing international trade challenges, noting that about 10% of their total revenue comes from international exhibitors, with China and Canada each contributing around 2%. Additionally, they emphasized the company's strong liquidity position, with $276.8 million in cash as of March 31, 2025, and highlighted the successful refinancing of existing debt, which has extended their debt maturities. The company remains focused on cost management, operational efficiencies, and strategic M&A to drive long-term shareholder value.

Emerald Expositions Events Corporate Events

Executive/Board Changes

Emerald Expositions Events Announces New Employment Agreement

Neutral

Feb 13, 2025

Emerald X Canada Inc., a subsidiary of Emerald Holding, Inc., announced a new employment agreement with Issa Jouaneh, effective January 20, 2025. This agreement outlines his compensation, including a base salary of $450,000 and the potential for an annual bonus. It also includes benefits such as participation in health and retirement plans, unlimited paid time off, and severance packages in the event of termination without cause. The agreement emphasizes confidentiality and non-compete clauses, reinforcing Emerald X Canada’s commitment to protecting its business interests and maintaining industry standards.

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.