Squirrel Media SA (SQRL) AI Stock Analysis

• Market Cap: €221.60M
• Dividend Yield: N/A
• Average Volume (3M): 46.83K
• Price to Earnings (P/E): 136.9
• Beta (1Y): 0.62
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: ES
• Employees: 222
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.09
• Shares Outstanding: 95,953,640
• 10 Day Avg. Volume: 35,488
• 30 Day Avg. Volume: 46,830
• PEG Ratio: -0.55
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -10.35
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €2.50 ▲(5.04% Upside)

Squirrel Media SA's overall stock score is influenced by its strong revenue growth but is hampered by declining profitability and cash flow issues. The technical indicators suggest weak momentum, and the high P/E ratio indicates overvaluation. These factors collectively contribute to a moderate stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Squirrel Media SA's content and services, supporting long-term business expansion.

Operational Efficiency

Operational efficiency, as indicated by a positive EBIT margin, suggests effective cost management, enhancing profitability potential.

Balanced Capital Structure

A stable equity ratio indicates a balanced approach to financing, providing financial stability and flexibility for future growth.

Negative Factors

Declining Profit Margins

Declining profit margins suggest challenges in cost management or pricing strategy, potentially impacting long-term profitability.

Cash Flow Challenges

Challenges in cash flow management could limit Squirrel Media SA's ability to invest in growth opportunities and sustain operations.

Increasing Leverage

Increasing leverage may strain financial resources and limit flexibility, posing risks to long-term financial health.

Squirrel Media SA Business Overview & Revenue Model

Company Description

Squirrel Media SA (SQRL) is a dynamic media company specializing in digital content creation and distribution across various platforms. Operating within the entertainment and technology sectors, SQRL focuses on producing high-quality video content, including films, web series, and branded entertainment. The company leverages cutting-edge technology to enhance viewer engagement and offers innovative solutions for advertisers looking to connect with targeted audiences.

How the Company Makes Money

Squirrel Media SA generates revenue through multiple streams, primarily from content licensing, advertising sales, and subscription services. The company licenses its original content to streaming platforms and broadcast networks, providing a stable income from content distribution deals. Additionally, SQRL partners with brands for product placements and sponsored content, which allows it to monetize its reach and audience engagement. Subscription services may also be a revenue stream if SQRL offers exclusive content directly to consumers. The company benefits from strategic partnerships with technology firms that enhance its production capabilities and expand its distribution channels, contributing to its overall earnings.

Squirrel Media SA Financial Statement Overview

Summary

Squirrel Media SA demonstrates strong revenue growth but faces challenges in maintaining profitability and cash flow stability. The company's increasing leverage and declining margins pose potential risks. While operational efficiency is evident, the negative cash flow trends highlight the need for improved cash management strategies to support sustainable growth.

Income Statement

Squirrel Media SA has shown a consistent revenue growth trend, with a notable 12.15% increase in the TTM period. However, margins have been under pressure, with a declining gross profit margin from 21.91% in 2023 to 12.52% in the TTM. The net profit margin also decreased significantly, indicating challenges in cost management or pricing strategy. Despite these challenges, the company maintains a positive EBIT margin of 6.85% in the TTM, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased slightly to 0.80 in the TTM, indicating a moderate level of leverage. Return on equity has decreased to 2.42% in the TTM, reflecting reduced profitability. However, the equity ratio remains stable, suggesting a balanced capital structure. The overall financial stability is moderate, with potential risks from increasing debt levels.

Cash Flow

Squirrel Media SA faces challenges in cash flow management, with a negative free cash flow growth rate of -38.83% in the TTM. The operating cash flow to net income ratio is 0.30, indicating that operating cash flow is not fully covering net income. The negative free cash flow to net income ratio suggests difficulties in generating cash from operations, which could impact future investments and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.55M	144.49M	129.64M	78.31M	69.70M	32.61M
Gross Profit	13.75M	21.11M	23.93M	17.50M	9.71M	10.21M
EBITDA	12.39M	14.11M	18.76M	11.35M	5.94M	2.03M
Net Income	-1.45M	2.88M	10.29M	3.54M	5.56M	1.40M
Balance Sheet
Total Assets	238.36M	211.44M	173.56M	117.98M	64.28M	55.16M
Cash, Cash Equivalents and Short-Term Investments	14.47M	10.77M	16.34M	15.80M	15.61M	16.80M
Total Debt	50.76M	46.83M	41.94M	28.02M	15.79M	8.52M
Total Liabilities	163.52M	135.38M	108.25M	69.98M	33.80M	27.87M
Stockholders Equity	63.71M	63.69M	55.73M	43.00M	29.93M	26.91M
Cash Flow
Free Cash Flow	-5.07M	-10.87M	9.83M	-12.48M	-3.55M	-969.00K
Operating Cash Flow	30.00M	27.08M	31.01M	10.30M	8.19M	4.81M
Investing Cash Flow	-39.48M	-42.59M	-27.88M	-33.31M	-13.10M	-11.68M
Financing Cash Flow	11.62M	10.29M	7.01M	24.23M	1.39M	11.02M

Squirrel Media SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SQRL, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.57, and above the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.83 is Neutral, neither overbought nor oversold. The STOCH value of 13.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:SQRL.

Squirrel Media SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IZER	66 Neutral	€300.45M	51.73	6.51%	―	18.40%	18.62%
IDR	66 Neutral	€8.06B	20.93	28.47%	0.52%	6.92%	57.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DOM	58 Neutral	€462.71M	24.23	9.35%	2.51%	-6.21%	-46.67%
SQRL	55 Neutral	€221.60M	136.90	2.39%	―	―	―