Atresmedia Corporacion de Medios de Comunicacion, S.A (A3M) AI Stock Analysis

• Market Cap: €1.18B
• Dividend Yield: 12.52%
• Average Volume (3M): 317.96K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.81
• Revenue Growth: -3.21%
• EPS Growth: -36.23%
• Country: ES
• Employees: 2,662
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): 0.12
• Shares Outstanding: 225,732,800
• 10 Day Avg. Volume: 313,897
• 30 Day Avg. Volume: 317,960
• PEG Ratio: -0.27
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 5.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.17
• Price Target Upside: -0.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: €5.50 ▲(5.57% Upside)

Atresmedia's overall stock score is driven by its strong valuation, offering a high dividend yield and low P/E ratio, which are attractive to investors. However, bearish technical indicators and recent declines in gross profit margin and cash flow growth present challenges. The company's solid financial performance and prudent balance sheet management provide a stable foundation, but focus on improving cost efficiency and cash flow generation is needed.

Atresmedia Corporacion de Medios de Comunicacion, S.A Business Overview & Revenue Model

Company Description

Atresmedia Corporación de Medios de Comunicación, S.A., an audiovisual company, engages in the television, digital and multimedia development, advertising, cinema, radio, cinema, and events organization businesses in Spain and internationally. The company is involved in the production, distribution, and sale of TV series; and management of music rights, as well as produces and distributes channels on pay-TV platforms; and operates Atresplayer, an on-line video platform. It operates under the Antena 3, La Sexta, Onda Cero, Europa FM, etc. brands. The company was formerly known as Antena 3 de Televisión, S.A. Atresmedia Corporación de Medios de Comunicación, S.A. was incorporated in 1988 and is based in Madrid, Spain.

How the Company Makes Money

Atresmedia generates revenue primarily through advertising sales, which constitutes a significant portion of its income, driven by its extensive audience reach and popular programming. The company also earns money from subscription fees for premium content services, syndication of its produced content to other networks, and partnerships with digital platforms. In addition, Atresmedia has strategic alliances with various advertisers and sponsors, enhancing its revenue through branded content and promotional deals. The diversification of its media offerings, including radio and digital services, further contributes to its revenue streams.

Atresmedia Corporacion de Medios de Comunicacion, S.A Financial Statement Overview

Summary

Atresmedia demonstrates a solid financial profile with stable revenue growth and strong cash flow generation. The company shows low leverage, providing a cushion against economic fluctuations, though a declining net profit margin could indicate emerging challenges in maintaining profitability.

Income Statement

Atresmedia shows a stable gross profit margin and improving revenue growth. The gross profit margin for 2024 was approximately 50.7%, with an EBIT margin of 17.4% and EBITDA margin of 20.4%. Revenue growth of 3.7% from 2023 to 2024 indicates solid expansion. However, the net profit margin decreased to 13.1% from 19.3% in 2023, which is a concern for profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 55.2% as of 2024. The debt-to-equity ratio improved to 0.23, suggesting low leverage and financial stability. Return on equity, although slightly decreased from 2023, remains robust at 14.5% in 2024, indicating effective utilization of equity capital.

Cash Flow

Cash flow performance is strong, with operating cash flow to net income ratio at 1.55, showing efficient cash generation relative to net income. Free cash flow grew by 20.8% from 2023, reflecting solid cash management. The free cash flow to net income ratio is 1.38, indicating strong conversion of income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	956.07M	918.95M	886.11M	867.29M	877.87M	799.12M
Gross Profit	346.43M	466.08M	239.75M	484.50M	482.30M	405.31M
EBITDA	166.90M	187.05M	175.93M	177.36M	181.51M	62.93M
Net Income	115.06M	120.28M	171.16M	112.91M	118.54M	23.85M
Balance Sheet
Total Assets	1.42B	1.50B	1.46B	1.51B	1.41B	1.32B
Cash, Cash Equivalents and Short-Term Investments	222.97M	314.78M	206.55M	262.82M	286.54M	173.01M
Total Debt	151.64M	190.21M	208.57M	281.84M	278.77M	276.45M
Total Liabilities	646.16M	673.38M	703.74M	823.84M	864.01M	852.66M
Stockholders Equity	770.31M	830.10M	759.98M	685.13M	548.17M	466.26M
Cash Flow
Free Cash Flow	100.80M	165.71M	137.26M	104.20M	176.19M	89.99M
Operating Cash Flow	129.59M	186.72M	167.04M	124.18M	193.77M	104.64M
Investing Cash Flow	28.87M	33.04M	45.20M	-106.66M	-37.34M	-22.27M
Financing Cash Flow	-172.40M	-118.56M	-182.64M	-109.57M	-61.22M	4.23M

Atresmedia Corporacion de Medios de Comunicacion, S.A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:A3M, the sentiment is Negative. The current price of 5.21 is below the 20-day moving average (MA) of 5.40, below the 50-day MA of 5.40, and above the 200-day MA of 5.06, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:A3M.

Atresmedia Corporacion de Medios de Comunicacion, S.A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A3M	―	€1.18B	10.22	14.87%	12.52%	-3.21%	-36.23%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VOC	―	€77.13M	-1.00	-61.32%	5.66%	-7.49%	-4893.28%
PRS	―	€499.32M	―	―	―	-3.40%	50.24%