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Entravision (EVC)
NYSE:EVC
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Entravision (EVC) AI Stock Analysis

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EVC

Entravision

(NYSE:EVC)

Rating:54Neutral
Price Target:
$2.50
▼(-5.30% Downside)
Entravision's overall stock score reflects significant financial challenges, including persistent net losses and declining revenues. While technical indicators suggest a lack of strong momentum, the high dividend yield and strategic corporate actions, such as amending the credit agreement, provide some positive aspects. The mixed performance in the earnings call, with growth in the Ad Tech segment but declines in the media segment, further contributes to the moderate score.

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

Entravision Business Overview & Revenue Model

Company DescriptionEntravision (EVC) is a leading media company that specializes in serving the Hispanic market in the United States and globally. The company operates through various segments, including television, radio, and digital media. Entravision's core products and services include broadcasting television and radio stations, offering digital advertising solutions, and producing content that resonates with Hispanic audiences. By leveraging its extensive media assets and audience reach, Entravision aims to connect brands with consumers in culturally relevant ways.
How the Company Makes MoneyEntravision generates revenue primarily through advertising sales across its television, radio, and digital platforms. The company earns money by selling advertising inventory to local and national advertisers who want to reach Hispanic audiences. Key revenue streams include traditional advertising on its broadcast stations, digital advertising through its online platforms, and programmatic advertising services. Additionally, Entravision has formed strategic partnerships with various technology and media companies, enhancing its advertising capabilities and expanding its audience reach. These partnerships enable Entravision to offer comprehensive advertising solutions that cater to the evolving needs of brands targeting the Hispanic demographic.

Entravision Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: 15.79%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected significant growth in the Ad Tech and Services segment, with substantial revenue and operating profit increases. However, the media segment faced challenges with declining revenue and operating profit, contributing to an overall operating loss. Cost reductions were a positive note, but the balance between the highlights and lowlights suggests a mixed performance.
Q2-2025 Updates
Positive Updates
Revenue Growth
Consolidated revenue increased 22% to $101 million in Q2 '25 compared to Q2 '24.
Ad Tech and Services Segment Performance
ATS revenue was 66% higher in Q2 '25 compared to Q2 '24, with more customers and higher spend per customer. Operating profit in ATS was $5 million, almost 3x higher than in Q2 '24.
Cost Reductions
Corporate expenses were reduced by $4 million in Q2 '25 compared to Q2 '24, nearly $18 million on an annualized basis.
Strong Balance Sheet
Entravision concluded Q2 '25 with over $69 million in cash and marketable securities, and made a debt prepayment of $1 million.
Negative Updates
Media Segment Revenue Decline
Media segment revenue declined 8% in Q2 '25 compared to Q2 '24, attributed to fewer active local advertisers and economic uncertainty.
Overall Operating Loss
The company reported an overall operating loss of $800,000 in Q2 '25, despite segment operating profits.
Media Segment Profit Decline
Operating profit for the media segment decreased by 94% versus Q2 '24 due to lower revenue and increased operating expenses.
Company Guidance
During the Entravision Second Quarter 2025 Earnings Conference Call, several key metrics and guidance were discussed. The company reported a 22% increase in consolidated revenue, reaching $100.7 million compared to the same period in 2024. However, the Media segment saw an 8% decline in revenue, totaling $45.4 million, attributed to fewer active local advertisers and economic uncertainties. Despite this, average spend per advertiser increased slightly. The Advertising Technology and Services (ATS) segment experienced significant growth, with revenue rising by 66% to $55.3 million, driven by more customers and higher spend per customer. Operating expenses for the Media segment increased by 5%, whereas ATS expenses grew by 60%, reflecting investments in technology and sales capabilities. The overall operating loss was $800,000, but Entravision reduced corporate expenses by 41%, saving $4.4 million. The company aims to achieve profitability by focusing on revenue growth and cost reduction. Additionally, Entravision maintained a strong balance sheet with $69 million in cash and securities and made a $1 million voluntary debt prepayment. The Board approved a $0.05 per share dividend for the third quarter, reflecting the company's commitment to returning capital to shareholders.

Entravision Financial Statement Overview

Summary
Entravision faces significant challenges, with persistent net losses and declining revenues indicating financial instability. While the balance sheet shows some improvement in debt levels, profitability and leverage remain concerns. Positive free cash flow suggests some operational resilience, though decreasing operating cash flow warrants caution moving forward.
Income Statement
45
Neutral
Entravision's revenue has experienced volatility, with a significant drop from 2023 to TTM. The company has consistently recorded net losses, indicating profitability challenges. Margins are negative, with a substantial decline in EBIT and EBITDA margins over recent periods. Despite a short-term revenue increase from 2024 to TTM, the overall trajectory suggests financial instability.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio has improved due to a decrease in total debt, but equity has also declined. The equity ratio remains relatively stable, yet low compared to industry norms. The return on equity is negative, reflecting ongoing profitability issues. While debt levels have reduced, the balance sheet indicates financial leverage concerns.
Cash Flow
60
Neutral
Operating cash flow has decreased from previous periods, but the company has generated positive free cash flow. The free cash flow to net income ratio indicates reliance on cash flow for financial stability. However, decreasing operating cash flow poses a risk to future liquidity. Overall, cash flow management shows resilience despite net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue396.70M364.95M1.11B956.21M760.19M344.03M
Gross Profit159.69M126.49M183.70M209.68M177.23M132.19M
EBITDA-69.37M-32.89M26.93M68.77M83.82M26.17M
Net Income-119.64M-148.91M-15.44M18.12M29.29M-1.39M
Balance Sheet
Total Assets418.00M487.28M865.95M880.84M851.34M744.65M
Cash, Cash Equivalents and Short-Term Investments70.07M100.61M118.91M155.22M185.09M147.15M
Total Debt224.47M236.80M262.47M260.27M240.61M252.52M
Total Liabilities327.99M341.26M599.66M595.47M594.42M468.67M
Stockholders Equity90.01M146.02M222.53M270.42M256.93M275.98M
Cash Flow
Free Cash Flow4.29M66.24M47.87M67.45M59.43M54.23M
Operating Cash Flow8.39M74.70M75.20M78.92M65.25M63.45M
Investing Cash Flow-89.00K-26.82M-15.96M-60.49M17.27M38.09M
Financing Cash Flow-17.55M-57.69M-64.17M-92.82M-16.57M-15.48M

Entravision Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.64
Price Trends
50DMA
2.34
Positive
100DMA
2.12
Positive
200DMA
2.15
Positive
Market Momentum
MACD
0.05
Negative
RSI
57.51
Neutral
STOCH
85.12
Negative
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 2.64 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.34, and above the 200-day MA of 2.15, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, 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 0 New Risks

Entravision Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$628.93M3.827.23%5.33%7.03%1727.49%
64
Neutral
$86.94M40.491.23%7.72%-1.72%-66.67%
61
Neutral
$277.17M6.318.30%5.25%
60
Neutral
$44.01B1.91-11.93%4.00%2.46%-39.70%
54
Neutral
$240.18M-75.89%7.94%-58.44%-130.21%
54
Neutral
$271.71M86.54%3.18%62.89%
46
Neutral
$42.12M-97.71%-10.63%-61.23%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVC
Entravision
2.52
0.83
49.11%
SSP
E. W. Scripps Company Class A
2.98
0.86
40.57%
GTN
Gray Television
6.00
1.68
38.89%
UONE
Urban One
1.66
-0.45
-21.33%
SGA
Saga Communications
13.50
-0.76
-5.33%
IHRT
iHeartMedia
2.26
0.84
59.15%

Entravision Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Entravision Amends Credit Agreement for Financial Stability
Positive
Jul 16, 2025

On July 15, 2025, Entravision Communications Corporation amended its credit agreement to enhance financial stability and accelerate debt reduction. Key changes include increasing quarterly loan payments, reducing revolving credit commitments, and adjusting leverage ratio calculations. These strategic adjustments aim to provide operational flexibility and mitigate financial risks amid industry changes, ultimately enhancing shareholder value.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 06, 2025