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Phoenix New Media (FENG)
:FENG

Phoenix New Media (FENG) AI Stock Analysis

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Phoenix New Media

(NYSE:FENG)

Rating:45Neutral
Price Target:
$2.00
▼(-7.83%Downside)
The most significant factor influencing the overall score is the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis provides a neutral outlook, while valuation remains unattractive due to the negative P/E ratio. The earnings call highlighted some positives in revenue growth for paid services but also underscored ongoing challenges with increasing losses and expenses.

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

Phoenix New Media Business Overview & Revenue Model

Company DescriptionPhoenix New Media Limited (FENG) is a leading new media company based in China, primarily focused on providing premium content across an integrated platform that includes internet media, mobile media, and TV channels. The company operates through its flagship website, ifeng.com, and mobile applications, offering a rich blend of news, lifestyle, entertainment, finance, and other content categories. As a prominent player in the Chinese digital media landscape, Phoenix New Media leverages its strong editorial capabilities and robust distribution channels to engage audiences with high-quality content.
How the Company Makes MoneyPhoenix New Media generates revenue primarily through online advertising services, which include display advertisements, video advertisements, and mobile advertisements on its platform. The company collaborates with a variety of advertisers and agencies to offer tailored advertising solutions that leverage its extensive user base and data insights. Additionally, Phoenix New Media earns income through content distribution services, providing technology and content solutions to third-party clients, and subscription services where users pay for premium content. Strategic partnerships with media and technology companies also play a critical role in expanding its distribution network and enhancing its content offerings, thereby contributing to its revenue streams.

Phoenix New Media Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 3.83%|
Next Earnings Date:Aug 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.

Phoenix New Media Financial Statement Overview

Summary
Phoenix New Media faces significant financial challenges with declining revenue and persistent losses. The balance sheet is stable with low leverage, but severe liquidity concerns are highlighted in the cash flow statement. Operational inefficiencies need addressing to improve financial health.
Income Statement
35
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
45
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
25
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue705.91M703.70M692.02M785.71M1.03B1.21B
Gross Profit287.41M268.71M227.88M237.20M432.93M649.56M
EBITDA-61.17M-43.19M-83.13M-136.69M-270.04M-65.39M
Net Income-57.27M-53.55M-102.50M-125.72M-273.07M380.37M
Balance Sheet
Total Assets1.61B1.71B1.76B2.03B2.41B2.77B
Cash, Cash Equivalents and Short-Term Investments974.78M1.04B1.09B1.15B1.50B1.64B
Total Debt50.17M56.67M69.44M104.59M45.85M53.04M
Total Liabilities530.39M598.52M595.12M765.60M1.02B1.11B
Stockholders Equity1.15B1.18B1.23B1.32B1.43B1.64B
Cash Flow
Free Cash Flow0.00-49.52M-70.54M-346.37M-159.66M-115.20M
Operating Cash Flow0.00-44.30M-60.83M-312.41M-142.82M-103.11M
Investing Cash Flow0.00127.52M487.84M228.70M-42.65M746.22M
Financing Cash Flow0.00-1.90M-655.00K0.00-3.54M-639.66M

Phoenix New Media Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.17
Price Trends
50DMA
2.12
Positive
100DMA
2.16
Positive
200DMA
2.40
Negative
Market Momentum
MACD
0.03
Negative
RSI
52.10
Neutral
STOCH
58.77
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 2.17 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.12, and below the 200-day MA of 2.40, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 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
1.
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
2.
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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$53.57M-6.29%1.27%78.96%
58
Neutral
C$3.32B6.33-0.75%6.13%-2.19%-11.60%
MNMNY
56
Neutral
$44.50M-48.12%345.36%-650.95%
52
Neutral
$43.33M-28.40%7.16%-90.90%
48
Neutral
$24.84M-29.17%-3.17%13.15%
45
Neutral
$26.06M-4.89%0.38%19.52%
42
Neutral
$29.56M-130.56%-26.11%57.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FENG
Phoenix New Media
2.17
-0.57
-20.80%
SCOR
comScore
5.02
-7.42
-59.65%
IZEA
IZEA Worldwide
2.61
0.37
16.52%
ZDGE
Zedge
3.93
0.80
25.56%
MNY
MoneyHero Limited
1.07
-0.78
-42.16%
BODI
Beachbody Company
4.22
-4.34
-50.70%
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: Jun 26, 2025