Squirrel Media SA (SQRL) AI Stock Analysis

• Market Cap: €255.34M
• Dividend Yield: N/A
• Average Volume (3M): 46.83K
• Price to Earnings (P/E): 163.1
• Beta (1Y): 0.54
• 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: 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: 61 Neutral
• Price Target: €3.00 ▲(15.83% Upside)

The overall stock score of 61 reflects a mix of strong technical momentum and significant valuation concerns. While the stock shows positive price trends, the high P/E ratio and lack of dividend yield suggest overvaluation. Financial performance indicates growth but also highlights challenges in profitability and cash flow management.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Squirrel Media's offerings and successful market expansion, which supports long-term business sustainability.

Operational Efficiency

Positive EBIT margins demonstrate effective cost management and operational efficiency, which are crucial for sustaining profitability and competitive advantage.

Balanced Capital Structure

A stable equity ratio indicates a balanced capital structure, providing financial stability and flexibility to support future growth initiatives.

Negative Factors

Declining Profit Margins

Declining profit margins suggest challenges in cost management or pricing strategy, which could impact long-term profitability and competitive positioning.

Negative Cash Flow Trends

Negative cash flow trends highlight difficulties in generating cash from operations, potentially limiting the company's ability to invest in growth and manage financial obligations.

Increasing Leverage

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

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	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: Positive
• Last Price: 2.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.59 is below the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.53, and above the 200-day MA of 2.33, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 16.02 is Positive, 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	66 Neutral	€8.97B	23.28	28.47%	0.54%	6.92%	57.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SQRL	61 Neutral	€255.34M	163.10	2.39%	―	―	―
IZER	60 Neutral	€294.67M	51.99	6.51%	―	18.40%	18.62%
DOM	58 Neutral	$456.97M	23.93	9.35%	2.45%	-6.21%	-46.67%