Phoenix New Media (FENG) AI Stock Analysis

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Phoenix New Media

(NYSE:FENG)

Rating:41Neutral

Price Target:

$2.00

▼( -9.91% Downside)

Phoenix New Media faces ongoing financial challenges with declining revenue and persistent losses, impacting its overall stock score. While there are some positive signals in technical analysis and revenue growth in paid services, the company's valuation remains unattractive due to a negative P/E ratio and no dividend yield. Efforts to innovate and expand into new sectors are positive but are offset by increasing operating expenses and net losses, resulting in a cautious outlook.

Phoenix New Media (FENG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.50M

Dividend YieldN/A

Average Volume (3M)34.19K

Price to Earnings (P/E)―

Beta (1Y)0.35

Revenue Growth0.38%

EPS Growth19.52%

CountryUS

Employees893

SectorCommunication Services

Sector Strength86

IndustryInternet Content & Information

Share Statistics

EPS (TTM)-0.04

Shares Outstanding5,399,831

10 Day Avg. Volume15,092

30 Day Avg. Volume34,193

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)<0.01

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Phoenix New Media Business Overview & Revenue Model

Company DescriptionPhoenix New Media Limited (FENG) is a leading new media company in China, operating in the sectors of internet content and services. The company offers an integrated platform across PC and mobile channels, providing users with comprehensive news, in-depth reports, and interactive content. Its core services include ifeng.com, a news portal, and mobile applications that deliver multimedia content, including text, video, and interactive features. Phoenix New Media is recognized for its high-quality content, professional journalism, and innovative technology.

How the Company Makes MoneyPhoenix New Media generates revenue primarily through online advertising services, which constitute the largest part of its income. The company offers a variety of advertising solutions, including banner ads, video ads, and native ads, catering to different client needs. Additionally, the company earns from paid services, such as subscriptions and content licensing, leveraging its extensive library of multimedia content. Strategic partnerships with other media organizations and technology companies also play a critical role in expanding its content reach and distribution, contributing to its overall revenue.

Phoenix New Media Financial Statement Overview

Summary

Phoenix New Media is facing significant financial challenges characterized by declining revenue and persistent losses. The balance sheet remains stable with low leverage, but the cash flow statement highlights severe liquidity concerns. The company must address operational inefficiencies and improve cash generation to enhance financial health.

Income Statement

Negative

Phoenix New Media has been experiencing a declining revenue trend over the past years, with significant net losses each year. The gross profit margin improved slightly in 2024 compared to 2023, but the net profit margin remains negative due to consistent net losses. The EBIT and EBITDA margins are negative, indicating ongoing operational challenges.

Balance Sheet

Neutral

The company maintains a solid equity base with a high equity ratio, indicating stability in its financial structure. However, the debt-to-equity ratio is low due to minimal debt, which is a positive aspect but doesn't offset the declining equity year-over-year. The return on equity is negative, reflecting continued unprofitability.

Cash Flow

Negative

Phoenix New Media shows a troubling cash flow situation with consistently negative free cash flow and operating cash flow over the years. There is no improvement in free cash flow, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting earnings into cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
703.70M	692.02M	785.71M	1.03B	1.21B
	Gross Profit
268.71M	227.88M	237.20M	432.93M	649.56M
	EBIT
-64.72M	-125.70M	-191.44M	-336.10M	-79.79M
	EBITDA
-43.19M	-83.13M	-136.69M	-270.04M	-65.39M
	Net Income Common Stockholders
-53.55M	-102.50M	-125.72M	-273.07M	380.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.09B	1.15B	1.50B	1.64B
	Total Assets
1.71B	1.76B	2.03B	2.41B	2.77B
	Total Debt
56.67M	69.44M	104.59M	45.85M	53.04M
	Net Debt
-550.91M	-457.96M	8.60M	-143.13M	-304.75M
	Total Liabilities
598.52M	595.12M	765.60M	1.02B	1.11B
	Stockholders Equity
1.18B	1.23B	1.32B	1.43B	1.64B
Cash Flow		Free Cash Flow
0.00	-70.54M	-346.37M	-159.66M	-115.20M
	Operating Cash Flow
0.00	-60.83M	-312.41M	-142.82M	-103.11M
	Investing Cash Flow
0.00	487.84M	228.70M	-42.65M	746.22M
	Financing Cash Flow
0.00	-655.00K	0.00	-3.54M	-639.66M

Phoenix New Media Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.22

Price Trends

50DMA

2.05

Positive

100DMA

2.22

Positive

200DMA

2.53

Negative

Market Momentum

MACD

0.07

Negative

RSI

54.84

Neutral

STOCH

50.69

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FENG, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.05, and below the 200-day MA of 2.53, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FENG.

Phoenix New Media Risk Analysis

Phoenix New Media disclosed 95 risk factors in its most recent earnings report. Phoenix New Media reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

We believe we are not an investment company pursuant to Section 3(b)(1) under the Investment Company Act of 1940, as amended, or the 1940 Act, because we believe we are primarily engaged in a non-investment company business, but there can be no assurances that the SEC or the courts will agree with our view. Q4, 2023

We intend to conduct our business activities to maintain compliance with the 1940 Act and that may negatively impact our ability to operate our business as contemplated. Moreover, if we were deemed an "investment company" under 1940 Act, we could be required to take remedial actions that would further interfere operating our business as contemplated. If we are unable to successfully complete necessary remedial actions, we may face severe legal consequences associated with the operation of an unregistered investment company. Q4, 2023

Phoenix New Media Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IZEA	61 Neutral	$47.22M	―	-28.40%	―	7.16%	-90.90%
Sector *	60 Neutral	$14.21B	6.47	-3.76%	3.69%	2.48%	-35.46%
ZDGE	57 Neutral	$31.76M	―	-6.60%	―	4.26%	88.30%
MNY	56 Neutral	$30.67M	―	-60.26%	―	345.36%	-650.95%
SCOR	46 Neutral	$23.45M	―	-29.17%	―	-3.17%	13.15%
FENG	41 Neutral	$27.50M	―	-4.89%	―	0.38%	19.52%
BODI	40 Underperform	$27.60M	―	-130.56%	―	-26.11%	57.68%

* Communication Services Sector Average

Performance Comparison

FENG

Phoenix New Media

2.22

0.39

21.31%

SCOR

comScore

4.74

-8.90

-65.25%

IZEA

IZEA Worldwide

2.95

0.20

7.27%

ZDGE

Zedge

2.39

-0.16

-6.27%

MNY

MoneyHero Limited

0.71

-1.50

-67.87%

BODI

Beachbody Company

3.84

-4.69

-54.98%

Phoenix New Media Earnings Call Summary

Earnings Call Date:Mar 17, 2025

(Q1-2025)

% Change Since: 4.23%|

Next Earnings Date:May 19, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. While there were significant achievements in content innovation and a notable increase in paid services revenue, the decline in net advertising revenue and the increase in operating expenses and net losses indicate substantial challenges. The company is making strategic expansions in new advertising sectors, but existing challenges continue to impact financial performance.

Q1-2025 Updates

Positive Updates

Paid Services Revenue Surge

Paid services revenues were CNY 34.7 million, representing a 141% increase year-on-year from CNY 14.4 million, primarily driven by revenue generated from digital reading services offered through mini programs on third-party applications.

Cost of Revenues Decrease

Cost of revenues decreased by 15.1% to CNY 92.5 million from CNY 109 million in the same period of last year.

New Content Innovations and Partnerships

Phoenix New Media launched KCA Link and a new column 'Why It Is,' which garnered over 100,000 WeChat reads, reflecting robust engagement and social impact. These innovations have led to new commercial partnerships and increased brand trust and visibility.

Expansion in New Advertising Sectors

Despite challenges, Phoenix New Media expanded quickly in finance, e-commerce, consumer goods, and electronics sectors, achieving good progress.

Negative Updates

Net Advertising Revenue Decline

Net advertising revenues were CNY 120.5 million compared to CNY 138.6 million in the same period of last year, showing a decline.

Operating Expenses Increase

Total operating expenses were CNY 101.1 million, reflecting a 25.6% increase year-on-year from CNY 80.5 million, primarily due to higher sales and marketing expenses.

Increased Loss from Operations

Loss from operations was CNY 38.4 million compared to CNY 36.5 million in the same period of last year.

Net Loss Increase

Net loss attributable to ifeng was CNY 29.7 million compared to CNY 26 million in the same period of last year.

Company Guidance

During the Phoenix New Media First Quarter 2025 Earnings Call, the company reported a total revenue of CNY 155.2 million, a 1.4% increase year-on-year, with net advertising revenues at CNY 120.5 million and paid service revenues surging by 141% to CNY 34.7 million. The cost of revenues decreased by 15.1% to CNY 92.5 million, while total operating expenses rose by 25.6% to CNY 101.1 million, leading to a loss from operations of CNY 38.4 million. The net loss attributable to ifeng was CNY 29.7 million. For Q2 2025, the company forecasts total revenues between CNY 182.1 million and CNY 197.1 million, with net advertising revenues expected to be between CNY 148.7 million and CNY 158.7 million, and paid service revenues projected to range from CNY 33.4 million to CNY 38.4 million. Despite challenges, the company remains committed to content innovation, expanding commercial opportunities, and enhancing operational efficiency to deliver long-term value for investors.

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.