Music Licensing (SONG) AI Stock Analysis

• Market Cap: $500.20K
• Dividend Yield: N/A
• Average Volume (3M): 145.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -49.14
• Revenue Growth: -96.82%
• EPS Growth: -100.00%
• Country: US
• Employees: 1
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -2078579.15
• Shares Outstanding: 5,002
• 10 Day Avg. Volume: 428,522
• 30 Day Avg. Volume: 144,996
• PEG Ratio: <0.01
• Price to Book (P/B): -0.45
• Price to Sales (P/S): 0.01
• P/FCF Ratio: -0.14
• Enterprise Value/Market Cap: 71.21
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 12.11
• 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: 27 Underperform
• Price Target: ―

SONG's stock faces substantial risks primarily due to its weak financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis reinforces this with negative momentum indicators. Valuation metrics further suggest overvaluation concerns due to the lack of profitability and dividend yield.

Positive Factors

Business Model Strength

SONG's business model focuses on music rights management, a niche with growing demand as digital platforms expand, providing a durable revenue base.

Partnerships

Strong partnerships with major digital and media platforms enhance SONG's market reach and revenue potential, supporting long-term growth.

Revenue Streams

Earning royalties provides a steady income stream, aligning SONG's success with the growing music consumption trend, ensuring sustainable revenue.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market position and competitiveness, potentially impacting long-term financial health.

High Leverage

High leverage limits financial flexibility and increases risk, potentially hindering SONG's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate operational inefficiencies and challenge SONG's ability to fund operations and growth without external financing.

Music Licensing Business Overview & Revenue Model

Company Description

Music Licensing (SONG) is a leading provider in the music rights management sector, offering comprehensive music licensing solutions to artists, content creators, and businesses. The company specializes in securing and managing the rights for music usage across various platforms, including digital streaming services, television, film, advertising, and live performances. By simplifying the licensing process, SONG enables artists to maximize their revenue streams while ensuring compliance for businesses that utilize their music.

How the Company Makes Money

Music Licensing (SONG) generates revenue primarily through the collection of licensing fees from businesses and individuals who wish to use the music catalog it manages. These fees vary depending on the type of usage, such as streaming, broadcast, public performance, or synchronization with visual media. Additionally, SONG earns a percentage of royalties collected on behalf of artists and rights holders, providing them with a steady income stream from their creative works. The company's partnerships with digital streaming platforms, television networks, and film studios are significant contributors to its earnings, as these collaborations expand the reach and utilization of its extensive music catalog.

Music Licensing Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, high leverage, and negative cash flows. This indicates financial instability and a need for strategic restructuring.

Income Statement

The income statement shows significant volatility in revenue, with a drastic decline from 2023 to 2024. Gross profit margins were high due to matching total revenue, but the net profit margin is negative due to substantial net losses. The EBIT margin also reflects negative performance, indicating operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a negative stockholders' equity and a high debt-to-equity ratio, suggesting financial instability. The equity ratio is negative, further indicating potential financial distress and risk.

Cash Flow

The cash flow statement shows negative free cash flow and significant cash outflows from operations. The free cash flow to net income ratio is impacted by consistent net losses, highlighting challenges in generating positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.99M	128.87M	1.05B	41.60K	20.10K	749.00
Gross Profit	8.05M	128.87M	1.05B	41.60K	20.10K	749.00
EBITDA	2.94M	0.00	0.00	0.00	0.00	0.00
Net Income	512.32K	-54.42M	46.03M	-60.81K	-213.50K	-24.76K
Balance Sheet
Total Assets	24.66M	19.92M	62.30M	46.13K	220.68K	45.88K
Cash, Cash Equivalents and Short-Term Investments	20.00	1.18K	415.00	996.00	175.54K	749.00
Total Debt	35.12M	23.24M	12.31M	0.00	199.90K	0.00
Total Liabilities	35.61M	23.72M	12.72M	96.73K	210.47K	36.13K
Stockholders Equity	-10.95M	-3.80M	49.58M	-50.60K	10.21K	9.76K
Cash Flow
Free Cash Flow	-24.74M	-12.62M	-47.33K	-516.23K	-216.66K	-24.76K
Operating Cash Flow	-24.74M	-12.62M	112.67K	-516.23K	-216.66K	-24.76K
Investing Cash Flow	30.65K	-150.19K	-160.00K	0.00	-22.41K	0.00
Financing Cash Flow	23.98M	12.77M	46.75K	341.69K	413.86K	25.50K

Music Licensing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.00
• 50DMA: Negative
• 100DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONG, the sentiment is Negative. The current price of 100 is below the 20-day moving average (MA) of 736960.00, below the 50-day MA of 1909582.00, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -2435539.50 indicates Negative momentum. The RSI at 25.18 is Positive, neither overbought nor oversold. The STOCH value of 0.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONG.

Music Licensing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	64 Neutral	$15.64B	43.18	61.97%	2.47%	4.37%	-16.22%
RSVR	61 Neutral	$491.91M	51.69	2.64%	―	11.17%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TOON	54 Neutral	$41.04M	-1.37	-78.34%	―	22.84%	46.18%
LVO	43 Neutral	$50.01M	-1.80	―	―	-32.17%	-135.06%
AGAE	41 Neutral	$14.59M	-0.74	-35.18%	―	-14.24%	-104.12%
SONG	27 Underperform	$500.20K	―	-237.76%	―	-96.82%	-100.00%