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

• Market Cap: €1.36B
• Dividend Yield: 6%
• Average Volume (3M): 690.72K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.81
• Revenue Growth: 3.71%
• EPS Growth: -29.72%
• Country: ES
• Employees: 2,662
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 225,732,800
• 10 Day Avg. Volume: 1,056,525
• 30 Day Avg. Volume: 690,719
• PEG Ratio: -1.12
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.89
• 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: €5.65
• Price Target Upside: -6.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 81 Outperform
• Price Target: €7.00 ▲(15.70%Upside)

Atresmedia's strong technical momentum and solid valuation metrics are the most significant factors driving the stock score. The company's stable financial performance, particularly its strong cash flow and low leverage, further supports the positive outlook, though the declining net profit margin warrants cautious monitoring.

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 primarily generates revenue through advertising sales on its television channels and radio stations, leveraging its large audience base to attract advertisers. The company also earns income from content distribution, both domestically and internationally, by selling broadcasting rights of its television programs and films. Additionally, Atresmedia's digital platforms contribute to its revenue through online advertising and subscription models. Partnerships with other media companies and content creators further enhance its financial performance by expanding its content offerings and reach.

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
928.09M	918.95M	886.11M	867.29M	877.87M	799.12M
	Gross Profit
329.11M	466.08M	315.16M	484.50M	482.30M	405.31M
	EBIT
168.79M	160.21M	155.30M	155.30M	154.54M	60.73M
	EBITDA
184.81M	187.05M	175.93M	177.36M	181.51M	62.93M
	Net Income Common Stockholders
180.42M	120.28M	171.16M	112.91M	118.54M	23.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
235.16M	314.78M	206.55M	262.82M	286.54M	185.86M
	Total Assets
1.48B	1.50B	1.46B	1.51B	1.41B	1.32B
	Total Debt
181.98M	190.21M	208.57M	281.84M	278.77M	276.45M
	Net Debt
-50.23M	-114.54M	5.03M	108.26M	10.37M	103.65M
	Total Liabilities
700.89M	673.38M	703.74M	823.84M	864.01M	852.66M
	Stockholders Equity
777.31M	830.10M	759.98M	685.13M	548.17M	466.26M
Cash Flow		Free Cash Flow
215.34M	165.71M	137.26M	104.20M	176.19M	89.99M
	Operating Cash Flow
239.12M	186.72M	167.04M	124.18M	193.77M	104.64M
	Investing Cash Flow
-37.79M	33.04M	45.20M	-106.66M	-37.34M	-22.27M
	Financing Cash Flow
-185.49M	-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: 6.05
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 6.05 is below the 20-day moving average (MA) of 6.10, above the 50-day MA of 5.71, and above the 200-day MA of 4.83, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 74.92 is Neutral, 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	81 Outperform	€1.36B	11.33	15.13%	6.00%	3.71%	-29.72%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
0R7W		€526.24M	―		―	―	―
0KDD		€79.53M	―	-60.92%	5.56%	―	―

Atresmedia Corporacion de Medios de Comunicacion, S.A Corporate Events

Atresmedia Announces 2024 Dividend Distribution

Atresmedia Corporación announced that its Ordinary General Meeting of Shareholders approved the distribution of a total dividend of €0.68 per share for the 2024 financial year. This includes a complementary dividend of €0.47 per share, with the payment scheduled for June 18, 2025. The decision reflects the company’s commitment to returning value to its shareholders, and the payment process will be facilitated through IBERCLEAR and Banco Santander, S.A. acting as the paying agent.

Atresmedia Corporación Announces Board Committee Appointments

Atresmedia Corporación has announced changes to its Board of Directors’ committees, re-electing several members and appointing new ones. These appointments are expected to strengthen the company’s governance structure, potentially impacting its strategic direction and operational efficiency.

Atresmedia Navigates Challenges Amid Global Instability

Atresmedia’s General Shareholders’ Meeting addressed the challenges faced due to a recent blackout and the broader geopolitical instability affecting global operations. The company emphasized its commitment to responsible reporting amidst international conflicts and uncertainties, highlighting its role in fostering informed public discourse.

Atresmedia’s Strategic Shift Fuels Growth Amid Economic Challenges

In 2024, Atresmedia navigated a challenging economic environment marked by geopolitical and social instability, yet managed to achieve growth in the advertising market, particularly in conventional media. The company implemented a significant transformation in its advertising approach, shifting from traditional GRP cost to CPM, which has strengthened its market leadership and competitiveness.

Atresmedia Reports Strong Financial Position and Maintains Leadership in TV Audiences

Atresmedia reported net revenues of 243.2 million euros and a net profit of 28.6 million euros for the first quarter of 2025, maintaining its leadership in television audiences with Antena 3 as the most-watched channel. Despite a slight decrease in net revenues compared to the previous year, the company achieved its best net financial position since its IPO in 2003, with a positive balance of 184.7 million euros, indicating strong financial health and resilience in a fluctuating advertising market.

Atresmedia Approves 2024 Financials and Announces Dividend

Atresmedia Corporación held its Ordinary General Meeting of Shareholders, where key decisions were made regarding the approval of the 2024 financial accounts, including a profit distribution plan. The company announced a total dividend of 0.68 euros per share for the fiscal year, reflecting a strong financial performance. Additionally, the meeting confirmed the re-election of KPMG as external auditors and the re-election and appointment of several directors, which could influence the company’s strategic direction and governance.

Atresmedia Announces 2025 Shareholders Meeting with Key Governance and Financial Agenda

Atresmedia Corporación has announced the call for its Ordinary General Meeting of Shareholders, scheduled for April 29, 2025. Key agenda items include the approval of the 2024 financial year accounts, re-election of KPMG as auditors, and various board appointments. The meeting will also address modifications to the company’s bylaws, authorizations for share acquisitions, and the issuance of bonds and other securities. These decisions are crucial for Atresmedia’s governance and financial strategy, potentially impacting its market positioning and stakeholder interests.

Atresmedia Announces Key Proposals for Upcoming Shareholders’ Meeting

Atresmedia Corporación de Medios de Comunicación, S.A. has announced the proposals for agreements to be considered at its upcoming Ordinary General Shareholders’ Meeting scheduled for April 29, 2025. Key proposals include the approval of the company’s annual accounts and management reports for the 2024 financial year, the distribution of dividends amounting to a total of 153,121 thousand euros, and the allocation of remaining profits to voluntary reserves. These decisions reflect the company’s financial performance and commitment to shareholder returns, potentially impacting its market positioning and stakeholder relations.