Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $499.13M
• Dividend Yield: N/A
• Average Volume (3M): 68.93K
• Price to Earnings (P/E): 52.4
• Beta (1Y): 0.71
• Revenue Growth: 11.17%
• EPS Growth: N/A
• Country: US
• Employees: 99
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 65,588,230
• 10 Day Avg. Volume: 81,665
• 30 Day Avg. Volume: 68,929
• PEG Ratio: 0.06
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -9.69
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 5.66
• Enterprise Value/Gross Profit: 8.77
• Enterprise Value/Ebitda: 14.24
• 1Y Price Target: $13.25
• Price Target Upside: 74.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): $166.74M

• Rating: 61 Neutral
• Price Target: $8.00 ▲(5.12% Upside)

Reservoir Media's overall stock score is driven by strong earnings call performance and strategic growth initiatives, particularly in catalog acquisitions and market expansion. However, the high P/E ratio and negative technical indicators weigh down the score. The company's financial performance shows potential but is hindered by profitability and cash flow challenges.

Positive Factors

Revenue Growth

The company's strong revenue growth, driven by both organic expansion and strategic acquisitions, indicates a robust business model and market position.

Strategic Catalog Acquisitions

Acquiring high-profile catalogs like Miles Davis enhances Reservoir Media's competitive advantage and long-term revenue potential through diversified offerings.

Expansion in Emerging Markets

Expansion into emerging markets like MENA diversifies revenue streams and positions the company for growth in underpenetrated regions.

Negative Factors

Profitability Challenges

Low net profit margins suggest challenges in translating revenue growth into bottom-line profitability, impacting long-term financial health.

Increased Operating Expenses

Rising operating expenses can erode profit margins, necessitating better cost management to sustain financial performance.

Higher Interest Expenses

Increased interest expenses due to higher debt levels can strain cash flows and limit financial flexibility, posing long-term risks.

Reservoir Media Business Overview & Revenue Model

Company Description

Reservoir Media, Inc. operates as a music publishing company. It operates in two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York. Reservoir Media, Inc. is a subsidiary of Reservoir Holdings, Inc.

How the Company Makes Money

Reservoir Media generates revenue primarily through the licensing of its music catalog for use in television, film, advertising, and other media platforms. The company earns money from performance royalties when its songs are played on radio and streaming services, as well as mechanical royalties from physical and digital sales. Additionally, Reservoir Media engages in strategic partnerships with artists and labels, allowing for collaborative projects that enhance its catalog and revenue potential. The management of music rights and the provision of related services, such as synchronization licensing, further contribute to its diverse revenue streams.

Reservoir Media Financial Statement Overview

Summary

Reservoir Media demonstrates solid revenue growth and operational efficiency, but profitability and cash flow management need improvement. The balance sheet reflects moderate leverage, which could pose risks if not managed carefully. Overall, the company is on a stable growth trajectory but should focus on enhancing profitability and cash flow.

Income Statement

Reservoir Media shows consistent revenue growth with a TTM increase of 2.95%. Gross profit margin is strong at 64.51%, indicating effective cost management. However, the net profit margin is relatively low at 4.67%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.07, indicating a moderate level of leverage. Return on equity is low at 2.08%, suggesting limited returns for shareholders. The equity ratio stands at 41.05%, showing a balanced capital structure but with potential risks due to debt levels.

Cash Flow

Operating cash flow is strong, but free cash flow is negative, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is negative, highlighting potential liquidity issues. Despite this, the operating cash flow to net income ratio is 0.80, showing decent cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.32M	158.71M	144.86M	122.29M	107.84M	80.25M
Gross Profit	107.28M	101.28M	89.38M	74.30M	63.65M	47.39M
EBITDA	66.11M	58.05M	47.25M	45.24M	47.27M	34.50M
Net Income	9.61M	7.75M	644.94K	2.54M	13.08M	9.25M
Balance Sheet
Total Assets	903.54M	865.13M	783.53M	754.08M	684.27M	461.86M
Cash, Cash Equivalents and Short-Term Investments	27.94M	21.39M	18.13M	14.90M	17.81M	9.21M
Total Debt	428.46M	393.86M	337.51M	318.56M	269.86M	212.53M
Total Liabilities	531.42M	498.93M	429.05M	404.42M	336.82M	267.49M
Stockholders Equity	370.94M	364.88M	352.99M	348.36M	346.39M	193.36M
Cash Flow
Free Cash Flow	-45.35M	-51.28M	-14.16M	-41.03M	-181.88M	-103.89M
Operating Cash Flow	48.71M	45.28M	36.19M	31.20M	12.48M	14.71M
Investing Cash Flow	-136.04M	-96.72M	-50.55M	-72.23M	-196.82M	-118.61M
Financing Cash Flow	94.35M	54.52M	17.56M	38.46M	196.53M	47.22M

Reservoir Media Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Positive. The current price of 7.61 is above the 20-day moving average (MA) of 7.43, above the 50-day MA of 7.48, and above the 200-day MA of 7.55, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 77.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSVR.

Reservoir Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	64 Neutral	$14.52B	40.07	61.97%	2.66%	4.37%	-16.22%
RSVR	61 Neutral	$499.13M	52.37	2.64%	―	11.17%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DLPN	53 Neutral	$19.52M	-2.96	-55.09%	―	3.86%	81.68%
GAIA	52 Neutral	$101.44M	-20.82	-5.63%	―	12.98%	27.93%
LION	52 Neutral	$2.37B	-11.81	―	―	97.19%	-21.46%
ANGH	41 Neutral	$16.85M	-0.23	―	―	88.72%	-85.54%

Reservoir Media Corporate Events

Reservoir Media Releases Investor Presentation on 8-K

On November 17, 2025, Reservoir Media, Inc. released an investor presentation on its website, which is also attached to its current report on Form 8-K. The presentation includes forward-looking statements about the company’s future financial condition, growth initiatives, and market opportunities, but cautions that actual results may differ due to various risks and uncertainties. The presentation also contains unaudited financial information and non-GAAP financial measures, which are intended to provide investors with additional insights into the company’s operations and performance.