Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $515.91M
• Dividend Yield: N/A
• Average Volume (3M): 86.74K
• Price to Earnings (P/E): 67.2
• Beta (1Y): 0.76
• Revenue Growth: 9.56%
• EPS Growth: 1088.00%
• Country: US
• Employees: 99
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): 0.04
• Shares Outstanding: 65,471,375
• 10 Day Avg. Volume: 60,893
• 30 Day Avg. Volume: 86,743
• PEG Ratio: N/A
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.70
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 3.99
• 1Y Price Target: $13.25
• Price Target Upside: 68.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $8.50 ▲(7.87%Upside)

Reservoir Media's strong financial performance, exceeding earnings expectations, and strategic growth initiatives are significant positives. However, high valuation, rising leverage, and liquidity challenges weigh on the overall score. The expanded credit agreement offers enhanced flexibility, contributing positively to the outlook.

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 makes money primarily through the monetization of music rights, which includes collecting royalties from various sources such as streaming services, radio airplay, and public performances. The company's revenue streams are derived from music publishing, which involves licensing compositions for use in films, television shows, commercials, and other media. Additionally, Reservoir Media earns income from recorded music sales and digital streaming. Key partnerships with digital platforms, media companies, and other music industry stakeholders further enhance its revenue potential and market reach.

Reservoir Media Financial Statement Overview

Summary

Reservoir Media shows solid growth with impressive revenue gains and stable profit margins. However, rising leverage and negative free cash flow due to capital expenditures pose risks. Improvement in net profitability and cash management would enhance financial health.

Income Statement

Reservoir Media has demonstrated strong revenue growth, increasing from $63.2M in 2020 to $158.7M in 2025. The gross profit margin remains robust, hovering around 63.8% in 2025, indicating efficient cost management. However, net profit margin is lower at 4.9% for 2025, suggesting room for improving profitability. Consistent revenue growth and stable EBIT and EBITDA margins are positive signs, but net profit margins could be optimized for better financial performance.

Balance Sheet

The company maintains a manageable debt-to-equity ratio, though it has increased to 1.08 in 2025 from previous years, indicating rising leverage. The equity ratio is stable at 42.2%, suggesting a balanced capital structure. Return on Equity (ROE) is modest at 2.1%, highlighting potential for improved profitability. While the company's financial stability is adequate, increased leverage could pose risks if not managed carefully.

Cash Flow

Operating cash flow has shown improvement, with a significant increase from $11.9M in 2020 to $45.3M in 2025, reflecting strong operational efficiency. However, free cash flow remains negative, primarily due to high capital expenditures, which could impact liquidity. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to profitability, but sustained negative free cash flow warrants attention to capital spending.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	158.71M	144.86M	122.29M	107.84M	80.25M
Gross Profit	101.28M	89.38M	74.30M	63.65M	47.39M
EBITDA	58.05M	47.25M	43.13M	38.38M	32.41M
Net Income	7.75M	644.94K	2.54M	13.08M	9.25M
Balance Sheet
Total Assets	865.13M	783.53M	754.08M	684.27M	461.86M
Cash, Cash Equivalents and Short-Term Investments	21.39M	18.13M	14.90M	17.81M	9.21M
Total Debt	393.86M	337.51M	318.56M	269.86M	212.53M
Total Liabilities	498.93M	429.05M	404.42M	336.82M	267.49M
Stockholders Equity	364.88M	352.99M	348.36M	346.39M	193.36M
Cash Flow
Free Cash Flow	-51.28M	-14.16M	-41.03M	-181.88M	-103.89M
Operating Cash Flow	45.28M	36.19M	31.20M	12.48M	14.71M
Investing Cash Flow	-96.72M	-50.55M	-72.23M	-196.82M	-118.61M
Financing Cash Flow	54.52M	17.56M	38.46M	196.53M	47.22M

Reservoir Media Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 7.88 is above the 20-day moving average (MA) of 7.48, above the 50-day MA of 7.43, and below the 200-day MA of 7.99, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 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	72 Outperform	$15.32B	34.16	89.20%	2.45%	-0.91%	-14.87%
RSVR	71 Outperform	$515.91M	67.24	2.16%	―	9.56%	1088.00%
Sector *	58 Neutral	C$3.32B	6.33	-0.75%	6.13%	-2.19%	-11.60%
SIRI	56 Neutral	$8.21B	―	-37.30%	4.45%	-4.08%	-248.39%
DLPN	52 Neutral	$14.30M	―	-98.74%	―	0.31%	27.47%
ANGH	41 Neutral	$33.42M	―	-270.84%	―	88.72%	-85.53%
KUKE	38 Underperform	$14.92M	―	-218.47%	―	-36.94%	15.41%

Reservoir Media Corporate Events

Reservoir Media Expands Credit Agreement by $100 Million

On June 3, 2025, Reservoir Media Management, Inc. amended its credit agreement to increase its revolving credit commitment from $450 million to $550 million and reset its incremental borrowing capacity to $150 million. This amendment aims to provide additional operational flexibility and adjust financial ratios, potentially enhancing the company’s ability to manage its music library assets and financial obligations.

The most recent analyst rating on (RSVR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.

Reservoir Media Releases Investor Presentation June 2025

On June 4, 2025, Reservoir Media, Inc. released an investor presentation on its website, providing insights into its financial condition and strategic initiatives. The presentation, however, contains forward-looking statements and unaudited financial information, which may be subject to change, highlighting the inherent risks and uncertainties in the company’s future performance and market positioning.

The most recent analyst rating on (RSVR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.