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

• Market Cap: €1.18B
• Dividend Yield: 12.31%
• Average Volume (3M): 317.96K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.80
• 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: €5.38
• Price Target Upside: -0.37% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €6.00 ▲(11.11% Upside)

Atresmedia's overall stock score is driven by its strong valuation, highlighted by a high dividend yield and reasonable P/E ratio, which provide a solid investment case. Financial performance is stable, though recent declines in profit margins and cash flow growth suggest areas for improvement. Technical analysis indicates mixed signals, with potential short-term weakness but also opportunities for a rebound.

Positive Factors

Revenue Diversification

Atresmedia's diversified revenue streams, including advertising, subscriptions, and partnerships, provide stability and reduce reliance on any single source, enhancing long-term financial resilience.

Strong Profitability Margins

Consistently strong EBIT and EBITDA margins indicate operational efficiency and effective cost management, supporting sustained profitability and competitive positioning in the market.

Improving Leverage Ratios

Improved leverage ratios reflect prudent financial management, reducing financial risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

Decline in Gross Profit Margin

A significant decline in gross profit margin suggests potential cost pressures or pricing challenges, which could impact future profitability if not addressed.

Decreased Free Cash Flow Growth

A decline in free cash flow growth may indicate challenges in cash generation, potentially limiting the company's ability to fund operations and growth initiatives.

Revenue Growth Decline

Negative revenue growth highlights potential market challenges or competitive pressures, which could affect the company's ability to maintain its market position and financial performance.

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 solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet reflects prudent financial management with improving leverage ratios. However, recent declines in gross profit margin and free cash flow growth highlight areas for improvement.

Income Statement

Atresmedia has shown consistent revenue growth over the years, with a slight dip in gross profit margins in the TTM period. The company maintains healthy EBIT and EBITDA margins, indicating operational efficiency. However, the decline in gross profit margin from 50.72% in 2024 to 35.59% in TTM suggests potential cost pressures or pricing challenges.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. The return on equity remains strong, although it has slightly decreased in the TTM period. The equity ratio is stable, reflecting a balanced asset structure. Overall, the balance sheet shows financial stability with manageable debt levels.

Cash Flow

Atresmedia's cash flow performance is mixed, with a notable decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains robust, suggesting efficient cash management despite recent declines.

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: Positive
• Last Price: 5.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:A3M, the sentiment is Positive. The current price of 5.4 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 5.37, and above the 200-day MA of 5.20, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	69 Neutral	€1.18B	10.22	14.87%	12.31%	-3.21%	-36.23%
VOC	56 Neutral	€75.93M	-0.99	-63.51%	5.70%	-6.41%	-905.11%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PRS	48 Neutral	€484.52M	-27.48	―	―	-1.03%	59.06%