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Seaport Entertainment Group Inc. (SEG)
:SEG
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Seaport Entertainment Group Inc.
(NYSE MKT:SEG)
Rating:44Neutral
Price Target:
$19.50
▼(-3.32%Downside)
Seaport Entertainment Group Inc. (SEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$261.00M
Dividend YieldN/A
Average Volume (3M)72.69K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees180
SectorReal Estate
Sector Strength64
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-3.28
Shares Outstanding12,694,631
10 Day Avg. Volume81,112
30 Day Avg. Volume72,685
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)0.48
Price to Sales (P/S)0.00
P/FCF Ratio-6.64
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit6.88
Enterprise Value/Ebitda-0.38
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Seaport Entertainment Group Inc. Business Overview & Revenue Model
Company DescriptionSeaport Entertainment Group Inc. (SEG) is a diversified entertainment company operating across various sectors, including media production, live events, and digital content distribution. The company specializes in creating and distributing high-quality entertainment content, offering services ranging from film and television production to event management and digital streaming solutions. By leveraging its expertise in these areas, SEG aims to deliver engaging experiences to audiences worldwide.
How the Company Makes MoneySEG generates revenue through multiple streams, primarily by producing and distributing media content such as films and television shows, which are monetized through box office sales, licensing deals, and streaming agreements with various platforms. Additionally, the company earns income from organizing and managing live events, which include ticket sales, sponsorships, and merchandise. Digital content distribution also contributes to SEG's earnings, as the company partners with various online platforms to provide exclusive content, earning a share of subscription fees or advertising revenue. Strategic partnerships with other entertainment entities and brands further enhance SEG's revenue potential by expanding its reach and diversifying its offerings.
Seaport Entertainment Group Inc. Earnings Call Summary
Earnings Call Date:Mar 10, 2025
(Q1-2025)
| % Change Since: 4.89%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Seaport Entertainment Group's performance. While there were significant achievements in the entertainment sector and operational improvements leading to better financial performance, the company faced challenges with declining hospitality revenues and a net loss for the quarter.Q1-2025 Updates
Positive Updates
Entertainment Segment Growth
Entertainment revenue increased 18% versus Q1 2024, with successful events such as the Rooftop at Pier 17's concerts and increased ticket sales for the Las Vegas Aviators.
GITANO New York City Opening
The soft opening of GITANO New York City at Pier 17 and a grand opening event in May received positive press, setting GITANO up as a key destination in New York City.
Improvement in Financial Performance
Despite revenue declines, the Tin Building improved first quarter asset level EBITDA by 7% compared to Q1 2024. Overall operating EBITDA for the company increased 10% compared to Q1 2024.
Reduction in General and Administrative Expenses
General and administrative expenses decreased by 41% year-over-year, driven by non-repeating separation expenses from Q1 2024.
Positive Net Debt Position
Net debt to gross assets was negative 4%, benefiting from healthy cash and cash equivalent balances totaling $132 million.
Negative Updates
Decline in Hospitality Revenues
Overall hospitality revenues decreased by 16%, with a 33% reduction at the Tin Building due to strategic closures. Same-store hospitality revenues were down 12% year-over-year.
First Quarter Revenue Decline
Total consolidated revenues for Q1 2025 were $16.1 million, a 12% decrease compared to pro forma Q1 2024.
Decreased Entertainment Operating EBITDA
Entertainment operating EBITDA decreased by 2% versus Q1 2024 due to elevated programming expenses.
Net Loss for the Quarter
First quarter net loss attributable to common stockholders was $31.9 million, though it was an improvement compared to the previous year.
Company Guidance
During the Seaport Entertainment Group's first quarter 2025 earnings call, the company outlined its strategic priorities aimed at achieving financial stability and growth. These include addressing cash burn to reach breakeven by 2026, achieving profitability by 2027, and stabilizing the asset base by 2028. Key initiatives involve optimizing the Tin Building's operations, improving cash flow through strategic leasing, and monetizing non-cash flowing assets like 250 Water Street, which has attracted over 130 potential buyers or partners. Despite a 12% year-over-year decline in same-store hospitality revenues and an overall 16% decline in hospitality revenues, the company reported a 7% improvement in Tin Building's EBITDA. The Entertainment segment saw an 18% revenue increase, driven by successful events like the Rooftop at Pier 17's concert series. The company also announced plans to develop 17,500 square feet of event space at Pier 17, enhancing its capacity to host large-scale events. Overall, the company reported a 10% increase in total operating EBITDA, a 41% reduction in G&A expenses, and a 28% improvement in net loss compared to the previous year.Seaport Entertainment Group Inc. Financial Statement Overview
Summary
Seaport Entertainment Group Inc. struggles with profitability and cash flow, indicated by negative net income and zero operating cash flow. Despite a strong equity position, the lack of revenue growth and continued losses are significant concerns.Income Statement
Seaport Entertainment Group Inc. has faced declining revenues, with a revenue decrease of 3.93% from 2022 to 2023 and a further decline in 2024. The company has consistently reported negative net income, resulting in negative net profit margins. The EBIT and EBITDA margins are also negative, indicating operational challenges. Despite a gross profit margin of 100% in 2024, profitability remains elusive due to high operational costs.35
Negative
Balance Sheet
The company maintains a solid equity position, with an equity ratio of 76.85% in 2024, indicating strong financial stability. However, the debt-to-equity ratio of 0.08 suggests low leverage, which can be positive for risk but might limit growth potential. Return on equity is negative due to ongoing losses, which is a concern for shareholder value.55
Neutral
Cash Flow
Cash flow remains a significant concern, with operating cash flow at zero in 2024. Free cash flow has improved to zero from negative positions in previous years, but this is not sufficient for strong financial health. The inability to generate positive operating cash flow raises sustainability issues.40
Negative
| Breakdown | |||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 112.55M | 111.14M | 115.68M | 119.05M | Gross Profit |
| 25.40M | 36.38M | 36.78M | 42.24M | EBIT |
| -103.19M | -101.74M | -777.01M | -66.67M | EBITDA |
| -102.24M | -111.09M | -810.67M | -56.44M | Net Income Common Stockholders |
| -141.02M | -153.21M | -859.57M | -111.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 200.23M | 165.67M | 1.83M | 16.45M | Total Assets |
| 809.93M | 743.56M | 616.81M | 1.31B | Total Debt |
| 150.24M | 149.06M | 203.78M | 190.53M | Net Debt |
| -49.99M | -16.60M | 201.95M | 174.08M | Total Liabilities |
| 174.00M | 172.17M | 231.92M | 218.33M | Stockholders Equity |
| 625.93M | 561.48M | 384.89M | 1.10B |
| Cash Flow | Free Cash Flow | ||
| -73.56M | -59.42M | -69.53M | -41.76M | Operating Cash Flow |
| -54.38M | -52.70M | -50.78M | -29.55M | Investing Cash Flow |
| -88.80M | -102.88M | -108.30M | -198.03M | Financing Cash Flow |
| 231.05M | 279.58M | 136.21M | 237.41M |
Seaport Entertainment Group Inc. Technical Analysis
Positive
20.17
Price Trends
19.21
Positive
21.64
Negative
24.85
Negative
Market Momentum
0.32
Negative
59.41
Neutral
76.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEG, the sentiment is Positive. The current price of 20.17 is above the 20-day moving average (MA) of 19.32, above the 50-day MA of 19.21, and below the 200-day MA of 24.85, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEG.
Seaport Entertainment Group Inc. Risk Analysis
Seaport Entertainment Group Inc. disclosed 65 risk factors in its most recent earnings report. Seaport Entertainment Group Inc. 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
Seaport Entertainment Group Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.85B | 10.96 | 0.41% | 8438.88% | 5.73% | -21.25% | |
61 Neutral | $270.32M | 6.74 | 19.15% | 13.02% | 11.78% | 65.73% | |
59 Neutral | $219.42M | 166.99 | 0.47% | 7.25% | 14.71% | ― | |
59 Neutral | $340.48M | 42.93 | 0.95% | ― | -5.86% | 59.60% | |
59 Neutral | $250.45M | 12.94 | 4.96% | ― | 331.33% | ― | |
44 Neutral | $261.00M | ― | -223.33% | ― | ― | ― |
* Real Estate Sector Average
Performance Comparison
SEG
Seaport Entertainment Group Inc.
20.58
-9.19
-30.87%
TCI
Transcontinental Realty Investors
39.41
10.39
35.80%
PINE
Alpine Income Property Trust Inc
15.57
1.25
8.73%
NREF
NexPoint Real Estate ate Finance
15.52
2.84
22.40%
LPA
Logistic Properties of the Americas
7.56
-9.30
-55.16%
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.