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Entravision (EVC)
NYSE:EVC

Entravision (EVC) AI Stock Analysis

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Entravision

(NYSE:EVC)

Rating:54Neutral
Price Target:
$2.00
▼(-3.85%Downside)
Entravision's overall stock score reflects financial instability and profitability challenges, highlighted by persistent net losses and a negative P/E ratio. Despite some positive operational resilience and strategic investments in the ATS segment, the mixed technical analysis and potential financial impact from corporate events contribute to a cautious outlook.

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

Entravision Business Overview & Revenue Model

Company DescriptionEntravision Communications Corporation operates as an advertising, media, and technology solutions company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics across acculturation levels and media channels. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services, as well as advertising customers billing and technological and other support services, including strategic marketing and training; and Smadex, a programmatic ad purchasing platform that enables advertising customers or ad agencies to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a branding and mobile performance solutions, such as managed services to advertisers looking to connect with consumers on mobile devices; and digital audio advertising solutions for advertisers. Further, it sells advertisements and syndicated radio programming solutions through its Entravision radio network. As of March 3, 2022, the company had 50 television stations; and 46 Spanish-language radio stations. It serves advertisers from various industries, such as e-commerce, retail, entertainment, gaming, delivery services, financial technology, communications, lifestyle, and travel. The company was founded in 1996 and is headquartered in Santa Monica, California.
How the Company Makes MoneyEntravision generates revenue through a combination of digital advertising, television broadcasting, and radio broadcasting. The digital segment, a significant growth driver, includes programmatic advertising services, digital audio, and video offerings, leveraging partnerships with major global technology platforms. Television and radio revenue is primarily derived from advertising sales, where Entravision sells commercial airtime to local, regional, and national advertisers seeking to reach its audience base. Additionally, the company benefits from retransmission consent agreements with cable and satellite providers, which provide further revenue streams. Strategic partnerships with global digital platforms and a focus on expanding its digital footprint contribute significantly to Entravision's earnings.

Entravision Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 9.47%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the ATS segment and a significant reduction in corporate expenses, contributing to an overall revenue increase. However, the media segment faced challenges with declining revenue and operating losses. Noncash charges further impacted the financial results, leading to a net loss. Despite positive trends in ATS, the challenges in the media segment and significant noncash charges resulted in a balanced sentiment.
Q1-2025 Updates
Positive Updates
ATS Segment Revenue Growth
Advertising Technology and Services (ATS) revenue increased by 57% in Q1 2025 compared to Q1 2024, with higher customer numbers and spend per customer, leading to an operating profit of $6.5 million.
Consolidated Revenue Increase
Consolidated revenue for Q1 2025 was $91.9 million, up 17% compared to Q1 2024, driven primarily by growth in the ATS segment.
Corporate Expense Reduction
Corporate expenses were reduced by $4.5 million in Q1 2025 compared to Q1 2024, contributing to an 18% annualized reduction.
Negative Updates
Media Segment Revenue Decline
Media segment revenue decreased by 10% in Q1 2025 compared to Q1 2024, attributed to a reduction in political advertising and lower retransmission consent revenue.
Operating Loss in Media Segment
The media segment experienced an operating loss of $2.6 million in Q1 2025, compared to an operating profit of $3 million in Q1 2024, due to decreased revenue and increased operating expenses.
Consolidated Operating Loss
Excluding noncash charges, there was a consolidated operating loss of $3.9 million in Q1 2025.
Noncash Charges Impact
Noncash charges of $48.9 million were incurred due to the sale of two TV stations in Mexico and the vacating of the Santa Monica headquarters, leading to a net loss of $48 million.
Company Guidance
During the first quarter of 2025, Entravision Communications Corporation reported a consolidated revenue increase of 17% to $91.9 million compared to the same period in 2024, driven primarily by a 57% revenue growth in their Advertising Technology and Services (ATS) segment. However, the Media segment experienced a 10% revenue decline, largely due to reduced political advertising and a decrease in retransmission consent revenue. The company incurred an operating loss of $3.9 million, excluding noncash charges. Operating expenses in the Media segment increased by 2%, while ATS expenses grew by 43%, attributed to performance compensation. Despite these challenges, Entravision made strategic investments in expanding sales capacity and technology, aiming to enhance digital sales and AI capabilities. The company reduced corporate expenses by 36%, or $4.5 million, and maintained a strong balance sheet with $78 million in cash and marketable securities. They also announced a dividend of $0.05 per share, payable in the second quarter, reflecting their commitment to shareholder returns.

Entravision Financial Statement Overview

Summary
Entravision is facing significant financial challenges, particularly with negative net income affecting income and balance sheet metrics. The income statement shows fluctuations with a significant drop in revenue and negative net profit margins. The balance sheet indicates better leverage management but a negative return on equity. Cash flows are managed efficiently with positive free cash flow, but there is inconsistency in free cash flow growth.
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
-32.89M26.93M68.77M83.82M26.17M
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
236.80M262.47M260.27M240.61M252.52M
Net Debt
140.89M156.73M149.58M55.52M133.36M
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
Positive
Last Price2.08
Price Trends
50DMA
1.95
Positive
100DMA
2.03
Positive
200DMA
2.09
Negative
Market Momentum
MACD
0.03
Negative
RSI
61.08
Neutral
STOCH
76.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVC, the sentiment is Positive. The current price of 2.08 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.95, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 76.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
While our revenue is variable based on many factors, many of our operating expenses are fixed. Q4, 2024
2.
The failure to comply with the financial covenants under the 2023 Credit Agreement could have a material adverse effect on our operations and financial condition. Q4, 2024

Entravision Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SGSGA
67
Neutral
$82.78M23.052.06%7.78%-1.65%-51.45%
GTGTN
62
Neutral
$428.00M1.659.92%8.40%9.08%
61
Neutral
$14.59B5.85-4.31%3.69%2.76%-30.36%
SSSSP
60
Neutral
$185.95M2.3411.23%6.28%
58
Neutral
$44.07M-56.08%-7.35%-1093.79%
EVEVC
54
Neutral
$189.23M-82.15%9.62%-66.94%-52.19%
53
Neutral
$204.69M86.54%3.31%-39.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVC
Entravision
2.08
0.11
5.58%
SSP
E. W. Scripps Company Class A
2.16
-0.23
-9.62%
GTN
Gray Television
3.81
-1.31
-25.59%
UONE
Urban One
1.71
-1.19
-41.03%
SGA
Saga Communications
12.85
-2.74
-17.58%
IHRT
iHeartMedia
1.50
0.34
29.31%

Entravision Corporate Events

Executive/Board ChangesShareholder Meetings
Entravision Stockholders’ Meeting and Executive Compensation Update
Neutral
Jun 2, 2025

On May 28, 2025, Entravision Communications Corporation announced a new executive compensation agreement with Juan Navarro, who will continue as Chief Revenue Officer with a base salary of $400,000 and potential bonuses. Additionally, a participation agreement was made for Mr. Navarro to join the company’s Executive Severance and Change in Control Plan. On May 29, 2025, Entravision held its annual stockholders’ meeting, where directors were elected, Deloitte & Touche, LLP was ratified as the company’s independent auditor, and executive compensation was approved.

Business Operations and StrategyFinancial Disclosures
Entravision Lease Termination Affects Financial Outlook
Negative
Apr 24, 2025

Entravision Communications Corporation has decided to vacate its corporate headquarters in Santa Monica, California, as of February 2025, ceasing payments on its lease which was set to expire in 2034. The landlord terminated the lease on April 18, 2025, and the company is currently unable to estimate the costs and damages resulting from this termination, impacting its financial statements as of December 31, 2024.

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.

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.