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Entravision (EVC)
NYSE:EVC

Entravision (EVC) AI Stock Analysis

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Entravision

(NYSE:EVC)

48Neutral
Entravision's overall score is driven by significant profitability challenges, with negative net income impacting financial stability. While there is strong revenue growth in specific segments, the stock faces bearish technical indicators and valuation concerns due to negative earnings. Despite effective cost management and strong revenue growth in the earnings call, the company's financial and technical weaknesses weigh heavily on its stock performance.

Entravision (EVC) vs. S&P 500 (SPY)

Entravision Business Overview & Revenue Model

Company DescriptionEntravision Communications Corp. engages in the provision of media and marketing solutions, and data analytics services. It operates through the following segments: Television Broadcasting, Radio Broadcasting, and Digital Media. The Television Broadcasting segment offers an entertainment, news, and national news magazine, as well as local news produced by its tv stations. The Radio Broadcasting segment sells advertisements and syndicates radio programming through Entavision Solution. The Digital Media segment delivers mobile, digital, and other interactive media platforms and services on internet-connected devices, including local websites and social media. The company was founded by Walter F. Ulloa and Philip C. Wilkinson in January 1996 and is headquartered in Santa Monica, CA.
How the Company Makes MoneyEntravision generates revenue primarily through advertising sales across its television, radio, and digital media platforms. In the television and radio segments, the company earns money by selling advertising time during its programming, with rates often influenced by audience size and demographics. The digital media segment contributes to revenue by providing digital marketing services such as programmatic ad buying and targeted advertising campaigns. Entravision leverages its strong presence in Hispanic markets to attract advertisers seeking to reach Hispanic audiences, which is a significant factor in its revenue generation. Additionally, partnerships with major media networks and advertisers enhance its ability to offer comprehensive advertising solutions, further contributing to its earnings.

Entravision Financial Statement Overview

Summary
Entravision faces significant financial challenges, particularly in revenue and profitability. The balance sheet shows a stable debt position but declining equity and assets. Cash flow remains positive, offering some stability, but declining trends raise concerns about long-term sustainability. The company must address operational inefficiencies and improve profitability to strengthen its financial standing.
Income Statement
45
Neutral
The company has experienced a significant decline in revenue and profitability. The TTM (Trailing-Twelve-Months) data shows negative net income and EBITDA, indicating operational challenges. Historical revenue growth has been inconsistent, with the latest TTM figures showing a sharp decrease compared to previous years. Gross profit margin has also declined substantially, which is concerning for future profitability.
Balance Sheet
55
Neutral
The balance sheet reveals a moderate debt-to-equity ratio, which indicates manageable leverage. However, both total assets and stockholders' equity have decreased over time, pointing to potential financial instability. The equity ratio is declining, suggesting a weakening financial position. Despite these issues, the company maintains a decent level of cash and short-term investments.
Cash Flow
60
Neutral
The cash flow statement shows positive free cash flow in the TTM period, but with a decreasing trend compared to previous years. Operating cash flow remains positive and sufficient to cover capital expenditures, yet the free cash flow growth rate is negative, highlighting potential cash management issues. The operating cash flow to net income ratio is strong, reflecting efficient cash generation despite losses.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
777.32M1.11B956.21M760.19M344.03M273.57M
Gross Profit
129.48M183.70M209.68M177.23M132.19M117.41M
EBIT
59.00K-4.52M61.90M60.47M47.34M28.07M
EBITDA
-40.08M26.93M68.77M83.82M26.17M19.52M
Net Income Common Stockholders
-65.74M-15.44M18.12M29.29M-1.39M-19.48M
Balance SheetCash, Cash Equivalents and Short-Term Investments
133.52M118.91M155.22M185.09M147.15M124.78M
Total Assets
804.99M865.95M880.84M851.34M744.65M656.20M
Total Debt
251.54M262.47M260.27M240.61M252.52M266.47M
Net Debt
122.36M156.73M149.58M55.52M133.36M233.34M
Total Liabilities
591.62M599.66M595.47M594.42M468.67M368.03M
Stockholders Equity
173.53M222.53M270.42M256.93M275.98M288.17M
Cash FlowFree Cash Flow
52.49M47.87M67.45M59.43M54.23M3.96M
Operating Cash Flow
66.22M75.20M78.92M65.25M63.45M31.54M
Investing Cash Flow
-30.16M-15.96M-60.49M17.27M38.09M14.36M
Financing Cash Flow
-58.19M-64.17M-92.82M-16.57M-15.48M-59.44M

Entravision Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.88
Price Trends
50DMA
2.22
Negative
100DMA
2.29
Negative
200DMA
2.11
Negative
Market Momentum
MACD
-0.11
Positive
RSI
39.97
Neutral
STOCH
39.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVC, the sentiment is Negative. The current price of 1.88 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.22, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 39.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVC.

Entravision Risk Analysis

Entravision disclosed 40 risk factors in its most recent earnings report. Entravision reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Entravision Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$135.93B8.6819.24%3.45%1.78%11.62%
TT
76
Outperform
$186.70B17.4410.54%4.27%-0.08%-24.48%
DIDIS
74
Outperform
$176.98B31.795.54%0.97%3.97%89.53%
65
Neutral
$16.01B37.165.23%0.74%-1.51%82.74%
59
Neutral
$29.20B0.14-12.92%4.06%2.18%-51.74%
EVEVC
48
Neutral
$168.31M-60.60%10.81%-49.03%-559.75%
TVTV
48
Neutral
$939.18M-6.74%4.52%-9.19%48.76%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVC
Entravision
1.88
0.59
45.74%
T
AT&T
25.72
9.64
59.95%
CMCSA
Comcast
35.19
-6.31
-15.20%
TV
Grupo Televisa, S.A.B.
1.89
-0.91
-32.50%
NWSA
News Corp
26.77
0.88
3.40%
DIS
Walt Disney
98.76
-12.29
-11.07%

Entravision Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -9.62% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Entravision's third quarter earnings report showed strong revenue growth across segments, particularly in political advertising and technology services, despite a net loss and reduced free cash flow. Cost management efforts were effective, and the company achieved significant political advertising outcomes.
Highlights
Significant Revenue Growth
Revenue for the third quarter was $97.2 million, up 25% compared to the third quarter of 2023, driven primarily by political advertising revenue and growth in the Smadex segment.
Successful Media Segment Performance
Media segment revenue increased by 23% compared to the third quarter of 2023, with an operating profit of $11.7 million, up 19% year-over-year.
Strong Performance in Advertising Technology and Services
Revenue for the Advertising Technology and Services segment was $37.4 million, up 30% compared to the third quarter of 2023, with operating margin improving to 5% from 3% a year prior.
Effective Cost Management
Corporate expenses decreased by 48% compared to the third quarter of 2023, significantly reducing overall costs.
Positive Political Advertising Outcomes
Political revenue for 2024 exceeded the previous high in 2022, with notable increases in Spanish language media allocation.
Lowlights
Net Loss for the Quarter
Net loss attributable to common stockholders was $12 million compared to net income of $2.7 million in the prior year third quarter, primarily due to an income tax loss.
Decline in Free Cash Flow
Free cash flow for the third quarter of 2024 was $9.3 million, a decrease from $17 million in the third quarter of 2023, due to the sale of the EGP business.
Company Guidance
During the third quarter of 2024, Entravision reported a consolidated revenue of $97.2 million, an increase of 25% compared to the same period in 2023, primarily driven by political advertising in their Media segment and growth in Smadex within the Advertising Technology and Services segment. However, the net loss attributable to common stockholders was $12 million, a decline from a net income of $2.7 million in the prior year, mainly due to an income tax loss. The Media segment saw a revenue increase of 23%, reaching $59.8 million, with an operating profit of $11.7 million. Meanwhile, the Advertising, Technology, and Services segment experienced a 30% revenue growth to $37.4 million, with operating margins improving to 5%. Corporate expenses decreased by 48% to $6.9 million, driven by reduced personnel and related costs. The company ended the quarter with $93 million in cash and marketable securities, while capital expenditures were $1.6 million. Free cash flow was reported at $9.3 million, and dividends paid amounted to $4.5 million for the quarter. Looking ahead, revenue from the Media segment is pacing 28% higher for the fourth quarter, with the Advertising, Technology, and Services segment pacing 30% above the previous year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.