Entravision (EVC) AI Stock Analysis

• Market Cap: $274.97M
• Dividend Yield: 6.56%
• Average Volume (3M): 339.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -45.95%
• EPS Growth: -75.87%
• Country: US
• Employees: 990
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.19
• Shares Outstanding: 82,610,690
• 10 Day Avg. Volume: 361,341
• 30 Day Avg. Volume: 339,691
• PEG Ratio: 0.07
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 75.99
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 33.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $3.00 ▲(6.01% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held back primarily by weak financial performance (multi-year losses, negative operating margins, and still-elevated leverage despite debt reduction). This is partially offset by strong technical momentum (price above major moving averages with positive MACD) and constructive earnings-call signals around ATS segment expansion and a 2026 political advertising outlook, while valuation is mixed due to a high dividend yield but negative P/E from losses.

Positive Factors

Rapid ATS segment expansion

Sustained double‑digit and multi‑year ATS revenue and operating profit growth indicates a durable shift toward technology and services. This creates recurring fee and margin expansion potential, diversifies away from cyclical broadcast ad revenue, and supports scalable operating leverage and cash generation as ATS scales.

Improving liquidity and debt paydown

Material cash balances alongside active debt reduction enhance financial flexibility. Lower credit facility balances and ability to return capital signal improving capital structure, giving management room to prioritize strategic investments, cushion cyclicality in advertising, and support ongoing ATS growth without urgent external financing.

Structural cost and efficiency actions

Sustained expense reductions and workforce/facility optimization lower the company's fixed cost base. This improves break‑even dynamics, increases the fraction of ATS revenue that can drop to the operating line, and creates a more durable margin profile if management maintains discipline while scaling revenue.

Negative Factors

Persistent operating losses

Multi‑year net losses and negative EBITDA indicate underlying operations have not yet converted higher revenue into consistent profitability. Persistent losses erode equity, constrain self‑funding for growth, and keep dependence on external liquidity or asset sales, making long‑term investment and execution riskier.

Elevated leverage and compressed equity

A relatively high debt‑to‑equity ratio and materially reduced equity limit financial flexibility and increase refinancing and interest risks. With weak returns on equity and ongoing losses, leverage amplifies downside in advertising downturns and constrains capital allocation choices between debt paydown, investment, and dividends.

Media segment cyclicality & political reliance

Heavy reliance on political advertising creates pronounced revenue volatility across election cycles. Large declines in Media revenue during non‑political years reduce predictability of cash flows and place pressure on consolidated results, requiring ATS growth and digital/local gains to consistently offset cyclical swings.

Entravision Business Overview & Revenue Model

Company Description

Entravision (EVC) is a media company that specializes in the provision of advertising and marketing solutions primarily targeted at Hispanic audiences in the United States and Latin America. The company operates a diverse portfolio that includes radio and television broadcasting, digital media, and advertising services, leveraging its comprehensive understanding of cultural nuances to connect brands with consumers. Entravision's core services encompass traditional media channels, digital advertising, and data analytics, enabling clients to reach their target demographics effectively.

How the Company Makes Money

Entravision primarily makes money by selling advertising and providing advertising-related services across its operating segments. 1) Media segment (U.S. television and radio): - Advertising sales: Entravision generates revenue by selling commercial spots and other advertising placements on its owned and/or operated television and radio stations. Rates are generally influenced by audience reach, ratings, market size, seasonality, and overall advertising demand. - Affiliate/network and related arrangements: For stations affiliated with major Spanish-language networks, station economics are typically tied to agreements that can involve programming rights and the ability to monetize local advertising time (specific contract economics vary by station/market; if not publicly detailed, they are not enumerated here). 2) Advertising Technology & Services segment (digital advertising): - Managed services / digital agency-style revenue: Entravision earns fees for planning, creating, executing, and optimizing digital advertising campaigns for clients. This can include strategy, creative services, campaign management, analytics, and optimization, with revenue commonly recognized as service fees and/or as a portion of media spend managed on behalf of clients. - Programmatic and performance advertising: Entravision facilitates the buying and selling of digital advertising (including performance-oriented campaigns) and earns revenue based on the delivery of ads and outcomes as defined in client agreements (e.g., impressions, clicks, conversions), depending on campaign structure. - Technology/platform-related revenue: Where Entravision provides technology-enabled advertising solutions, it can generate revenue through service arrangements tied to the use of its tools and capabilities (specific pricing structures not publicly specified are not detailed here). Key factors that influence earnings: - Advertising market conditions: As an ad-driven business, results are sensitive to macroeconomic conditions and changes in advertiser demand. - Audience and inventory scale: Broadcast ratings, digital reach, and the scale/quality of available ad inventory impact pricing and utilization. - Mix of services vs. media spend: In digital operations, revenue can depend on the balance between service fees and pass-through media buying, and on client concentration and retention. Significant partnerships: null

Entravision Financial Statement Overview

Summary

Financials are pressured by persistent losses and negative operating profitability (2025 net margin -17.7%, EBITDA margin -14.3%) despite revenue returning to growth and a stronger 2025 gross margin (58.9%). Leverage remains elevated (debt-to-equity ~1.20) even after meaningful debt reduction, while cash flow is a relative support with positive operating cash flow and free cash flow, though both stepped down notably in 2025.

Income Statement

Revenue returned to growth in 2025 (+6.5% annually) after a volatile multi-year trend (including a sharp decline in 2022). Profitability remains the key weakness: the company posted net losses in 2023–2025, with 2025 showing a deeply negative net margin (-17.7%) and negative EBITDA margin (-14.3%). A positive is a meaningful improvement in gross margin in 2025 (58.9%), but that has not translated into operating profitability, indicating cost structure and/or below-the-gross-line expenses are pressuring results.

Balance Sheet

Leverage is elevated and equity has compressed materially: debt-to-equity sits at ~1.20 in 2025 and equity is down sharply versus prior years, reducing balance-sheet flexibility. Total debt also declined substantially from 2024 to 2025, which is a positive de-risking step, but returns on equity are very weak (2025 ROE is deeply negative), reflecting ongoing losses and a smaller equity base.

Cash Flow

Cash generation is positive but weakened in 2025: operating cash flow was positive (~$10.6M) and free cash flow stayed positive (~$3.5M), but both fell significantly versus 2024 and free cash flow declined about 31% year over year. Cash flow quality versus earnings is mixed—free cash flow covered only about a third of the net loss in 2025, but the company is at least not burning cash on a free-cash-flow basis, which helps near-term liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	447.59M	364.95M	297.04M	323.99M	760.19M
Gross Profit	94.34M	126.49M	106.60M	144.08M	177.23M
EBITDA	12.88M	-32.89M	3.30M	58.50M	83.35M
Net Income	-78.40M	-148.91M	-15.44M	18.12M	29.29M
Balance Sheet
Total Assets	387.51M	487.28M	865.95M	880.84M	851.34M
Cash, Cash Equivalents and Short-Term Investments	63.20M	100.61M	118.91M	155.22M	185.09M
Total Debt	213.63M	236.80M	262.47M	260.27M	240.61M
Total Liabilities	332.07M	341.26M	599.66M	595.47M	594.42M
Stockholders Equity	55.44M	146.02M	222.53M	270.42M	256.93M
Cash Flow
Free Cash Flow	3.51M	66.24M	47.87M	67.45M	59.43M
Operating Cash Flow	10.65M	74.70M	75.20M	78.92M	65.25M
Investing Cash Flow	-6.13M	-26.82M	-15.96M	-60.49M	17.27M
Financing Cash Flow	-40.65M	-57.69M	-64.17M	-92.82M	-16.57M

Entravision Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.83
• 50DMA: Negative
• 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 EVC, the sentiment is Positive. The current price of 2.83 is below the 20-day moving average (MA) of 3.03, below the 50-day MA of 3.07, and above the 200-day MA of 2.57, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVC.

Entravision Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UONE	55 Neutral	$28.04M	-0.31	-119.60%	―	-13.08%	-69.47%
EVC	53 Neutral	$274.97M	-3.41	-98.27%	6.56%	-45.95%	-75.87%
SSP	52 Neutral	$353.44M	-3.48	1.81%	―	-3.27%	86.01%
SGA	52 Neutral	$73.35M	-8.92	0.18%	8.81%	-0.77%	-93.46%
MDIA	44 Neutral	$53.19M	-1.45	-49.86%	―	83.96%	-73.70%
BBGI	40 Underperform	$6.84M	-0.67	-5.86%	―	-7.78%	-369.53%