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Reservoir Media (RSVR)
NASDAQ:RSVR
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Reservoir Media
(NASDAQ:RSVR)
63Neutral
Reservoir Media (RSVR) vs. S&P 500 (SPY)
Market Cap
$477.50M
Dividend YieldN/A
Average Volume (3M)39.14K
Price to Earnings (P/E)61.3
Beta (1Y)0.78
Revenue Growth11.32%
EPS Growth3803.23%
CountryUS
Employees99
SectorCommunication Services
Sector Strength81
IndustryEntertainment
Share Statistics
EPS (TTM)0.12
Shares Outstanding65,232,560
10 Day Avg. Volume36,568
30 Day Avg. Volume39,141
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.74
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside104.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Reservoir Media Business Overview & Revenue Model
Company DescriptionReservoir Media (RSVR) is a leading independent music company that engages in the acquisition and management of music catalogs. The company operates primarily in the music publishing and recorded music sectors, offering a diverse array of services that include licensing, royalty collection, and creative development for artists and songwriters. Reservoir Media is committed to nurturing a wide range of musical talent, working with both iconic and emerging artists across various genres.
How the Company Makes MoneyReservoir Media generates revenue through multiple streams within the music industry. The primary source of revenue is music publishing, where the company earns money by acquiring rights to song catalogs and collecting royalties whenever these songs are played on radio, used in movies or TV shows, streamed online, or covered by other artists. Additionally, Reservoir Media earns income from recorded music by owning and managing masters, which involves licensing recordings for use in various media. The company also leverages its extensive network and partnerships to facilitate collaborations and placements that further enhance its revenue potential. Key factors contributing to Reservoir's earnings include strategic acquisitions of high-value catalogs and effective management of its diverse portfolio.
Reservoir Media Financial Statement Overview
Summary
Reservoir Media exhibits strong revenue and profit growth with reasonable operational efficiency. The balance sheet shows a healthy equity position but carries a significant debt burden, which could introduce risk if not managed properly. Cash flows are strong, supporting operational and strategic flexibility. Overall, the company is financially stable with room for improvement in cost management and debt reduction.Income Statement
Reservoir Media shows strong revenue growth with a TTM revenue of $117.33 billion, up significantly from previous years. The gross profit margin is healthy at approximately 63.18% for TTM, suggesting good profitability from core operations. However, the net profit margin of 4.33% indicates potential cost management issues or high operating expenses. EBIT and EBITDA margins also reflect strong operational efficiency.―
Balance Sheet
The debt-to-equity ratio is approximately 1.05 (TTM), indicating a moderate level of leverage. While stockholders' equity is substantial at $359.51 billion, the high total debt level may pose risks if revenues decline. The equity ratio stands at 43.18%, reflecting a solid equity base relative to total assets, which enhances financial stability.70
Cash Flow
Operating cash flow is robust at $33.12 billion (TTM), highlighting strong cash generation capabilities. The free cash flow growth rate is positive, indicating effective management of expenditures and investments. However, the free cash flow to net income ratio is high, suggesting reliance on cash flow rather than net income for financing activities.―
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 144.86M | 122.29M | 107.84M | 80.25M | 63.24M | Gross Profit |
| 89.38M | 74.30M | 63.65M | 47.39M | 35.93M | EBIT |
| 24.58M | 21.06M | 19.35M | 18.33M | 15.48M | EBITDA |
| 47.25M | 43.13M | 38.38M | 32.41M | 23.90M | Net Income Common Stockholders |
| 644.94K | 2.54M | 13.08M | 9.25M | 6.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 18.13M | 14.90M | 17.81M | 9.21M | 25.00K | Total Assets |
| 783.53M | 754.08M | 684.27M | 461.86M | 25.00K | Total Debt |
| 337.51M | 318.56M | 269.86M | 212.53M | 180.34M | Net Debt |
| 319.38M | 303.66M | 252.04M | 203.32M | 180.32M | Total Liabilities |
| 429.05M | 404.42M | 336.82M | 267.49M | 1.23K | Stockholders Equity |
| 352.99M | 348.36M | 346.39M | 193.36M | 23.77K |
| Cash Flow | Free Cash Flow | |||
| -14.16M | -41.03M | -181.88M | -103.89M | 11.35M | Operating Cash Flow |
| 36.19M | 31.20M | 12.48M | 14.71M | 11.88M | Investing Cash Flow |
| -50.55M | -72.23M | -196.82M | -118.61M | -107.81M | Financing Cash Flow |
| 17.56M | 38.46M | 196.53M | 47.22M | 147.03M |
Reservoir Media Technical Analysis
Neutral
7.32
Price Trends
7.38
Negative
7.91
Negative
8.03
Negative
Market Momentum
-0.01
Negative
51.36
Neutral
74.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Neutral. The current price of 7.32 is above the 20-day moving average (MA) of 7.18, below the 50-day MA of 7.38, and below the 200-day MA of 8.03, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.36 is Neutral, neither overbought nor oversold. The STOCH value of 74.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RSVR.
Reservoir Media Risk Analysis
Reservoir Media disclosed 37 risk factors in its most recent earnings report. Reservoir Media reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reservoir Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $15.75B | 31.05 | 100.20% | 2.35% | 0.75% | 9.36% | |
63 Neutral | $477.50M | 61.31 | 2.22% | ― | 11.32% | 3803.23% | |
59 Neutral | $13.76B | 7.70 | -1.87% | 3.86% | 2.21% | -37.55% | |
58 Neutral | $6.92B | ― | -37.30% | 5.24% | -4.08% | -248.39% | |
47 Neutral | $12.56M | ― | -79.76% | ― | 19.85% | 41.89% | |
41 Neutral | $16.97M | ― | -109.46% | ― | ― | ― | |
33 Underperform | $18.28M | ― | -270.84% | ― | 13.03% | 19.07% |
* Communication Services Sector Average
Performance Comparison
RSVR
Reservoir Media
7.32
-1.18
-13.88%
SIRI
Sirius XM Holdings
20.47
-10.14
-33.13%
DLPN
Dolphin Entertainment
1.12
-1.24
-52.54%
WMG
Warner Music Group
30.26
-4.42
-12.75%
ANGH
Anghami Inc.
0.62
-0.45
-42.06%
KUKE
Kuke Music Holding
4.29
-24.21
-84.95%
Reservoir Media Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q3-2025)
| % Change Since: -9.96%|
Next Earnings Date:May 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance by Reservoir Media with significant revenue growth, improved EBITDA, and strategic acquisitions. However, this was tempered by increased operating expenses and interest costs, along with a decline in neighboring rights revenue. The overall sentiment is optimistic due to the raised guidance and Grammy recognition, despite some financial challenges.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Reservoir Media reported a total revenue of $42.3 million for the third quarter of fiscal year 2025, representing a 19% improvement over the same period last year. This growth was driven by a 16% increase in music publishing revenue and a 20% increase in recorded music revenue.
Significant Improvement in EBITDA
The company achieved an adjusted EBITDA of $17.3 million, marking a 26% improvement from the year-ago quarter, due to effective cost management and increased revenues.
Successful Catalog Acquisitions
Reservoir Media deployed over $70 million in catalog acquisitions year-to-date, securing notable talents such as Snoop Dogg and k.d. lang, and acquiring the rights to the catalog of Grammy Award-winning composer Lebohang Morake.
Increased Guidance for Fiscal 2025
The company raised its full-year revenue guidance to $155 million - $158 million and adjusted EBITDA guidance to $61.5 million - $64.5 million, reflecting confidence in continued growth.
Grammy Awards Recognition
Reservoir celebrated six wins across its roster at the 2025 Grammy Awards, highlighting the company's successful management and creative efforts.
Negative Updates
Higher Operating Expenses
Total costs increased by 13% compared to the prior year quarter, driven by a 17% increase in administration expenses and a 14% increase in the cost of revenue.
Decline in Neighboring Rights Revenue
Recorded music revenue growth was partially offset by a modest decline in neighboring rights revenue, indicating challenges in this revenue stream.
Increased Interest Expenses
Interest expense for the quarter rose to $5.8 million, an increase of $405,000 from the prior year, due to increased borrowings to support M&A strategy and higher effective interest rates.
Company Guidance
During the call, Reservoir Media provided guidance for the fiscal year 2025, highlighting strong financial performance in the third quarter. The company reported total revenue of $42.3 million, marking a 19% improvement from the previous year, driven by a 16% increase in music publishing revenue and a 20% increase in recorded music revenue. The adjusted EBITDA was $17.3 million, a 26% increase year-over-year. Reservoir also announced an increase in their full-year revenue guidance range to $155 million to $158 million and adjusted EBITDA guidance to $61.5 million to $64.5 million, implying growth of 8% and over 13% respectively. The company's strategy focuses on growing its music portfolio through acquisitions, with over $70 million deployed in catalog acquisitions year-to-date, and they maintain a robust pipeline of off-market deals.Reservoir Media Corporate Events
Business Operations and StrategyFinancial Disclosures
Reservoir Media Releases Investor Presentation on Strategic Goals
Neutral
Feb 19, 2025
On February 19, 2025, Reservoir Media, Inc. made an investor presentation available on its website, outlining various forward-looking statements about future opportunities and strategic goals for their business. The presentation included unaudited financial information and non-GAAP financial measures, with a disclaimer regarding the reliability of forward-looking statements and third-party data.
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.