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Entravision (EVC)
NYSE:EVC

Entravision (EVC) AI Stock Analysis

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Entravision

(NYSE:EVC)

47Neutral
Entravision's overall stock score reflects significant challenges in financial performance, particularly with negative net income and bearish technical trends. Despite effective cash management, the company's valuation is hampered by a negative P/E ratio, although a high dividend yield offers a silver lining. The lack of earnings call data and corporate events limits further analysis.

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

Entravision Business Overview & Revenue Model

Company DescriptionEntravision Communications Corporation (EVC) is a diversified global media, marketing, and technology company serving clients primarily in the United States and Latin America. The company operates through three principal segments: television broadcasting, radio broadcasting, and digital media. Entravision owns and operates a portfolio of television and radio stations that provide Spanish-language content to Hispanic audiences, while its digital media division offers a range of digital marketing services, including programmatic advertising, content creation, and mobile marketing solutions.
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 profitability challenges, with negative net income affecting both income and balance sheet metrics. While cash flows are managed effectively, the company needs to address its revenue and expense structure to improve financial stability and profitability.
Income Statement
35
Negative
Entravision's revenue has seen fluctuations, with a significant drop from 2023 to 2024. The company has experienced negative net income, resulting in a poor net profit margin. EBIT and EBITDA margins are negative, indicating operational challenges. The gross profit margin remains relatively stable, but overall profitability is a concern.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio has improved over time, showing better leverage management. The equity ratio has decreased, indicating a reliance on liabilities. Despite these improvements, the return on equity is negative, reflecting the net income challenges and affecting overall financial health.
Cash Flow
60
Neutral
Entravision's operating cash flow remains stable, with positive free cash flow indicating efficient cash management despite negative net income. The free cash flow to net income ratio is positive, suggesting good cash generation relative to earnings. However, free cash flow growth has been inconsistent, highlighting potential cash flow volatility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
364.95M1.11B956.21M760.19M344.03M
Gross Profit
126.49M183.70M209.68M177.23M132.19M
EBIT
-51.98M-4.52M61.90M60.47M47.34M
EBITDA
-28.93M26.93M68.77M83.82M26.17M
Net Income Common Stockholders
-148.91M-15.44M18.12M29.29M-1.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
100.61M118.91M155.22M185.09M147.15M
Total Assets
487.28M865.95M880.84M851.34M744.65M
Total Debt
49.84M262.47M260.27M240.61M252.52M
Net Debt
-46.07M156.73M149.58M55.52M133.36M
Total Liabilities
341.26M599.66M595.47M594.42M468.67M
Stockholders Equity
146.02M222.53M270.42M256.93M275.98M
Cash FlowFree Cash Flow
66.24M47.87M67.45M59.43M54.23M
Operating Cash Flow
74.70M75.20M78.92M65.25M63.45M
Investing Cash Flow
-26.82M-15.96M-60.49M17.27M38.09M
Financing Cash Flow
-57.69M-64.17M-92.82M-16.57M-15.48M

Entravision Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.83
Price Trends
50DMA
2.05
Negative
100DMA
2.18
Negative
200DMA
2.07
Negative
Market Momentum
MACD
0.02
Negative
RSI
52.04
Neutral
STOCH
41.18
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 1.83 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.05, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 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 33 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$127.34B8.1319.24%3.68%1.78%11.62%
DIDIS
77
Outperform
$154.08B27.675.54%1.11%3.97%89.53%
TT
76
Outperform
$189.43B17.6910.54%4.21%-0.08%-24.48%
65
Neutral
$15.62B36.115.23%0.76%-1.51%82.74%
58
Neutral
$25.97B3.12-10.67%4.37%2.16%-43.01%
TVTV
48
Neutral
$789.57M-6.74%5.45%-17.83%44.72%
EVEVC
47
Neutral
$173.76M-60.60%10.81%-49.03%-559.75%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVC
Entravision
1.83
-0.04
-2.14%
T
AT&T
26.79
11.29
72.84%
CMCSA
Comcast
33.72
-4.37
-11.47%
TV
Grupo Televisa, S.A.B.
1.70
-1.43
-45.69%
NWSA
News Corp
26.19
2.01
8.31%
DIS
Walt Disney
84.89
-28.09
-24.86%

Entravision Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: -9.85% | 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.

Entravision Corporate Events

Executive/Board Changes
Entravision Adjusts Executive Compensation Program in April 2025
Neutral
Apr 7, 2025

During the first fiscal quarter of 2025, Entravision Communications Corporation’s Compensation Committee decided to adjust its executive compensation program to emphasize equity compensation over cash compensation. This involved significant reductions in the base salaries of key executives and the elimination of their eligibility for cash bonuses in 2025, while increasing their equity incentive awards compared to 2024. Additionally, on April 4, 2025, amendments were made to the company’s severance plan to ensure that if any of the executives face a qualifying termination before the end of 2026, their severance calculations will be based on their 2024 compensation levels.

Spark’s Take on EVC Stock

According to Spark, TipRanks’ AI Analyst, EVC is a Neutral.

Entravision’s overall stock score reflects significant challenges in financial performance, particularly with negative net income and bearish technical trends. Despite effective cash management, the company’s valuation is hampered by a negative P/E ratio, although a high dividend yield offers a silver lining. The lack of earnings call data and corporate events limits further analysis.

To see Spark’s full report on EVC stock, click here.

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.