Squirrel Media SA (SQRL) AI Stock Analysis

• Market Cap: €204.86M
• Dividend Yield: N/A
• Average Volume (3M): 46.25K
• Price to Earnings (P/E): 136.3
• 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: 93,212,510
• 10 Day Avg. Volume: 29,487
• 30 Day Avg. Volume: 46,250
• 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: €2.50
• Price Target Upside: 7.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: €2.50 ▲(7.76% Upside)

The overall stock score of 60 reflects a mixed outlook for Squirrel Media SA. The company's strong revenue growth is offset by challenges in profitability and cash flow management. Technical indicators suggest a positive trend, but the high P/E ratio raises concerns about overvaluation. The absence of earnings call data and corporate events limits further insights into the company's future prospects.

Squirrel Media SA Business Overview & Revenue Model

Company Description

Squirrel Media, S.A. produces and distributes audiovisual contents in Spain and internationally. It primarily offers advertising, content, media communication, and technology services. The company was formerly known as Vértice Trescientos Sesenta Grados, S.A. The company was incorporated in 2006 and is based in Madrid, Spain.

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	1.98M
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: Positive
• Last Price: 2.32
• 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:SQRL, the sentiment is Positive. The current price of 2.32 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.13, and above the 200-day MA of 2.12, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SQRL.

Squirrel Media SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDR	64 Neutral	€7.18B	18.97	29.23%	0.62%	7.63%	63.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SQRL	60 Neutral	€204.86M	136.31	2.39%	―	―	―
DOM	57 Neutral	$489.25M	25.62	9.35%	2.38%	-6.21%	-46.67%
IZER	54 Neutral	€270.11M	47.91	6.51%	―	18.40%	18.62%

Squirrel Media SA Corporate Events

Squirrel Media Secures DTT License Renewal, Strengthening Market Position

Squirrel Media S.A. has secured the renewal of its Digital Terrestrial Television (DTT) license for Net TV until 2040, marking a strategic milestone that ensures operational continuity and strengthens its competitive position in the Spanish audiovisual market. This renewal supports Squirrel Group’s long-term growth strategy, reinforcing its commitment to a diverse and innovative television offering, and lays the groundwork for future investments and strategic alliances, positioning Net TV as a key player in the evolving entertainment landscape.

Squirrel Media’s Outlook Upgraded to Positive by EthiFinance

Squirrel Media S.A. has received a positive outlook from EthiFinance Ratings, which confirmed its BBB- corporate credit rating. This reflects the company’s favorable evolution, marked by increased activity, controlled debt levels, and growing capitalization, enhancing its investment grade status.