Salem Communications (SALM) AI Stock Analysis

• Market Cap: $13.68M
• Dividend Yield: N/A
• Average Volume (3M): 29.71K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,147
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.24
• Shares Outstanding: 26,309,519
• 10 Day Avg. Volume: 23,965
• 30 Day Avg. Volume: 29,712
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -1.15
• Enterprise Value/Market Cap: 5.02
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.40
• Enterprise Value/Ebitda: -2.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.56 ▲(39.25% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily held down by weak financial performance—declining revenue, a return to losses, and negative operating/free cash flow—despite balance-sheet deleveraging. Technicals provide some near-term support, but the longer-term downtrend persists. Valuation remains unfavorable due to negative earnings and no dividend yield support.

Positive Factors

Balance-sheet de-risking

Meaningful reduction in leverage is a durable financial improvement: lower debt burdens increase solvency, reduce interest expense risk, and provide greater flexibility to fund strategic investments or absorb advertising cyclicality over the next several quarters without immediate refinancing pressure.

Niche content and diversified revenue streams

A focused, values-driven audience and multi‑channel distribution create a structural advantage: loyal listeners and targeted advertisers allow cross-platform bundling across radio, digital and syndicated programming, supporting more durable monetization than a single-channel model.

Operational scale

A substantial workforce supports content production, syndication, sales coverage and digital operations. Scale enables efficient content creation and distribution, bargaining power with advertisers and potential operating leverage as digital monetization improves over multiple quarters.

Negative Factors

Persistent revenue decline

Sustained top-line contraction is a structural risk: falling audience or ad demand erodes scale revenue, limits ability to invest in digital growth, and compresses long-term margins. Continued multi-year declines suggest deeper demand or distribution weaknesses rather than a short cyclical drop.

Weak cash generation

Repeated negative operating and free cash flow reduces internal funding for content, technology and sales initiatives. Dependence on external liquidity increases financial fragility and constrains the company’s ability to sustain investment during slower ad cycles over the next several quarters.

Unstable profitability and returns

Volatile and recently negative returns indicate weak margin durability and inconsistent cost structure. This undermines reinvestment capacity and strategic planning, making sustained recovery difficult and heightening the risk that balance-sheet gains won't translate into improved long‑term profitability.

Salem Communications Business Overview & Revenue Model

Company Description

Salem Media Group, Inc. operates as a multimedia company in the United States. It operates through three segments: Broadcast, Digital Media, and Publishing. The company owns and operates 32 FM radio stations and 69 AM radio stations; offers programs on the Family Talk Christian-themed talk format station on SiriusXM Channel 131; provides programming to Christian and family-themed talk stations, music stations, and news talk stations; places advertising on Christian and talk formatted radio stations, and other commercial radio station formats; and operates Salem Podcast Network, a platform for conservative, political, news, and family-oriented podcasts. It also provides Christian, conservative, investing content, e-commerce, audio and video streaming, and other resources digitally through BibleStudyTools.com, Crosswalk.com, GodVine.com, iBelieve.com, GodTube.com, OnePlace.com, Christianity.com, GodUpdates.com, CrossCards.com, ChristianHeadlines.com, LightSource.com, AllCreated.com, ChristianRadio.com, CCMmagazine.com, SingingNews.com, and SouthernGospel.com; and Townhall.com, HotAir.com, Twitchy.com, RedState.com, BearingArms.com, ConservativeRadio.com, and pjmedia.com, as well as mobile applications. In addition, the company publishes digital newsletters that provide market analysis and non-individualized investment strategies; and operates SermonSearch.com, ChurchStaffing.com, WorshipHouseMedia.com, SermonSpice.com, WorshipHouseKids.com, Preaching.com, ChristianJobs.com, ShiftWorship.com, JourneyBoxMedia.com, Playblackmedia.com, and HyperPixelsMedia.com. Further, it offers publication of conservative, Christian, and history books; Xulon Press, a print-on-demand self-publishing service; and Mill City Press that publishes books, as well as provides digital marketing service. The company was formerly known as Salem Communications Corporation and changed its name to Salem Media Group, Inc. in February 2015. The company was founded in 1974 and is based in Irving, Texas.

How the Company Makes Money

Salem primarily generates revenue through (1) broadcasting: selling advertising and sponsorships on its owned-and-operated radio stations and on syndicated radio programming it distributes to other stations; (2) digital media: selling digital advertising (display, audio/streaming, podcast ads), sponsorships, and marketing services across its websites, email lists, and other online platforms; and (3) content/programming monetization: earning fees tied to syndication, network distribution, and related content offerings where applicable. Revenue is influenced by audience reach and engagement, advertiser demand and pricing in local and national ad markets, and the company’s ability to bundle radio and digital campaigns for advertisers seeking access to its targeted demographic. Specific material partnerships or contract terms: null.

Salem Communications Financial Statement Overview

Summary

Financial fundamentals are weak overall: revenue has been declining and profitability deteriorated into a sizable loss in 2025 (Income Statement score 34). Cash generation is also pressured with negative operating cash flow and free cash flow in 2024–2025 (Cash Flow score 29). The main offset is an improving balance sheet as leverage has come down (Balance Sheet score 58), but it has not translated into stable returns.

Income Statement

Operating performance has been inconsistent and has deteriorated recently. Revenue has been declining for several years (down about 8% in 2024 and down sharply in 2025), and profitability swung from a profit in 2024 to a sizable loss in 2025 (negative operating profit and negative net margin). While 2021 showed strong profitability, the more recent pattern (2022–2025) points to unstable earnings and weak margin durability.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity falling from very elevated levels in 2020–2023 to a more moderate level in 2025, reflecting balance-sheet de-risking. Equity remains sizable relative to assets, but returns on shareholders’ capital have been volatile and turned sharply negative again in 2025, highlighting that improved leverage has not yet translated into consistent profitability.

Cash Flow

Cash generation is currently weak: operating cash flow and free cash flow were both negative in 2024 and 2025, following stronger results in 2020–2021 and a brief improvement in 2022. The company is not presently funding operations and investment from internally generated cash, which increases dependence on liquidity management and leaves less flexibility if operating conditions remain pressured.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	212.69M	237.56M	258.65M	266.97M	258.25M
Gross Profit	201.74M	13.02M	16.27M	47.08M	55.51M
EBITDA	-6.62M	35.22M	-32.78M	22.04M	78.09M
Net Income	-34.61M	16.18M	-43.31M	-3.24M	41.51M
Balance Sheet
Total Assets	332.23M	451.92M	455.54M	505.12M	516.11M
Cash, Cash Equivalents and Short-Term Investments	2.41M	0.00	284.00K	0.00	1.78M
Total Debt	56.26M	150.30M	220.52M	210.12M	221.56M
Total Liabilities	154.55M	262.94M	323.03M	329.76M	337.90M
Stockholders Equity	177.68M	188.99M	132.51M	175.36M	178.21M
Cash Flow
Free Cash Flow	-11.88M	-16.45M	-18.65M	-5.64M	11.58M
Operating Cash Flow	-5.74M	-10.49M	-4.02M	7.74M	22.49M
Investing Cash Flow	76.64M	86.38M	-331.00K	-898.00K	11.61M
Financing Cash Flow	-68.49M	-76.17M	4.35M	-8.63M	-38.64M

Salem Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVC	55 Neutral	$275.89M	-3.41	-98.27%	6.56%	-45.95%	-75.87%
SGA	52 Neutral	$77.21M	-8.92	0.18%	8.81%	-0.77%	-93.46%
SALM	46 Neutral	$13.68M	-0.40	-18.85%	―	―	―
MDIA	44 Neutral	$50.01M	-1.45	-49.86%	―	83.96%	-73.70%
UONE	42 Neutral	$26.42M	-0.21	-119.60%	―	-13.08%	-69.47%
BBGI	40 Underperform	$6.71M	-0.67	-5.86%	―	-7.78%	-369.53%