Corus Entertainment (CJR.B) AI Stock Analysis

• Market Cap: $17.95M
• Dividend Yield: N/A
• Average Volume (3M): 113.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -13.09%
• EPS Growth: 88.95%
• Country: CA
• Employees: 2,610
• Sector: Communication Services
• Sector Strength: 94
• Industry: Entertainment
• EPS (TTM): 0.06
• Shares Outstanding: 196,074,770
• 10 Day Avg. Volume: 114,907
• 30 Day Avg. Volume: 113,864
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 58.78
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: $0.19
• Price Target Upside: 115.53% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Corus Entertainment's financial instability, reflected in negative equity and declining revenue, is the most significant factor affecting its stock score. Technical indicators also suggest a bearish trend, while valuation metrics show ongoing challenges. Although cost reduction efforts and digital platform growth offer some positives, they are insufficient to outweigh the broader financial and market difficulties.

Positive Factors

Financial Performance

The Q3 financial result came in better than expected with notably lower costs driving a beat in terms of EBITDA and adj. EPS.

Network Transition

The transition to new Home and Flavour networks appears successful, ranking #1 and #2 in specialty lifestyle, which could help moderate subscriber declines.

Profitability

Better profitability due to lower TV costs.

Negative Factors

Advertising Environment

A continued weak ad environment.

Advertising Outlook

The advertising outlook remains weak from ongoing economic uncertainty, competition, and secular declines in linear.

Debt Load

Target and SELL rating maintained due to the substantial debt load.

Corus Entertainment Business Overview & Revenue Model

Company Description

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates in two segments, Television and Radio. The Television segment operates 33 specialty television networks and 15 conventional television stations. It is also involved in the production and distribution of films and television programs, and animation software; and merchandise licensing and book publishing activities. In addition, this segment provides social digital agency and social influencer network, as well as media and technology services. Its primary brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, History, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, and Nickelodeon Canada. The Radio segment operates 39 radio stations that include a network of news-talk radio stations, as well as classic rock, country, new rock, and contemporary music formats. The company also provides children's animated content and related consumer products under the Babar, Franklin, Max & Ruby, Hardy Boys, Agent Binky: Pets of the Universe, and Esme and Roy brands; Toon Boom, a digital content and animation creation software; and Kids Can Press, a children's publishing press. Corus Entertainment Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.

How the Company Makes Money

Corus Entertainment generates revenue through several key streams, primarily from advertising sales on its television networks, subscription fees from cable and satellite providers, and licensing deals for its content. The company's advertising revenue is bolstered by its ability to attract a large audience across its channels, allowing it to command premium rates from advertisers. Additionally, Corus earns revenue from direct-to-consumer subscription services and partnerships with streaming platforms, which further expand its reach. The company also engages in content production and distribution, monetizing its extensive library through syndication and international sales, which contribute significantly to its overall earnings.

Corus Entertainment Financial Statement Overview

Summary

Corus Entertainment faces significant challenges with declining revenue and profitability, coupled with a highly leveraged balance sheet and negative equity. While cash flows remain positive, they are insufficient to offset the broader financial concerns. The company must address its profitability and leverage issues to stabilize and improve its financial health.

Income Statement

Corus Entertainment's TTM revenue decreased by 8.34% compared to the previous year, indicating a declining revenue trend. The gross profit margin stands at 54.00%, suggesting strong cost management despite decreased revenue. However, the net profit margin is negative at -6.61%, reflecting ongoing profitability challenges. The EBIT margin is 8.21%, and the EBITDA margin is 54.97%, indicating that the company benefits from strong EBITDA performance, but high depreciation and amortization expenses are impacting net income.

Balance Sheet

The company's balance sheet shows a negative stockholders' equity, highlighting significant financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, indicating high leverage and financial risk. The equity ratio is also negative, suggesting that liabilities exceed assets. These factors point to a concerning financial position that requires careful management to avoid solvency issues.

Cash Flow

Operating cash flow for the TTM is positive, but has decreased significantly from the previous year. Free cash flow remains positive, indicating some capacity for investment and debt service. The free cash flow to net income ratio is negative due to negative net income, showing that while cash generation is stable, profitability remains an issue. The company should focus on improving cash flows relative to earnings to ensure long-term sustainability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.16B	1.27B	1.51B	1.60B	1.54B	1.51B
Gross Profit	628.92M	740.50M	839.33M	971.36M	1.00B	965.86M
EBITDA	640.21M	-236.59M	401.30M	655.86M	1.03B	230.23M
Net Income	-76.98M	-772.64M	-428.72M	-232.24M	172.55M	-607.71M
Balance Sheet
Total Assets	1.70B	1.49B	2.75B	3.50B	3.86B	3.97B
Cash, Cash Equivalents and Short-Term Investments	81.86M	82.42M	56.16M	54.91M	43.69M	45.90M
Total Debt	1.08B	1.17B	1.22B	1.40B	1.49B	1.66B
Total Liabilities	2.10B	1.83B	2.29B	2.60B	2.64B	2.92B
Stockholders Equity	-439.08M	-465.40M	317.75M	752.04M	1.07B	899.82M
Cash Flow
Free Cash Flow	32.38M	111.53M	106.03M	194.62M	244.65M	293.95M
Operating Cash Flow	47.12M	130.66M	122.67M	216.84M	274.49M	313.27M
Investing Cash Flow	-11.44M	-29.55M	125.27M	25.17M	-29.53M	-19.00M
Financing Cash Flow	-21.03M	-73.64M	-246.69M	-230.78M	-247.18M	-330.94M

Corus Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJR.B, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CJR.B.

Corus Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$43.67B	3.93	-13.01%	4.05%	1.89%	-42.25%
CJR.B	42 Neutral	$17.95M	―	175.81%	―	-13.09%	88.95%
FP	―	C$4.69M	3.08	23.65%	―	―	―
PNC.A	―	C$148.08M	―		―	―	―
SAT	―	C$1.95M	―	-816.77%	―	―	―

Corus Entertainment Corporate Events

Corus Entertainment Reports Third Quarter Financial Results Amid Industry Challenges

Corus Entertainment reported a decrease in consolidated revenue by 10% for the third quarter and 11% for the year-to-date, with a net loss attributable to shareholders of $7.3 million for the quarter. Despite these financial challenges, the company is making progress in reducing its cost base and has secured a strong lineup of new shows for the upcoming broadcast season. Corus is focusing on targeted growth opportunities and implementing cost-saving initiatives to navigate the challenging industry landscape.

The most recent analyst rating on ($TSE:CJR.B) stock is a Sell with a C$0.24 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Corus Entertainment Appoints John Gossling as CEO Amid Leadership Restructuring

Corus Entertainment Inc. has announced significant changes in its leadership team, appointing John Gossling as the new Chief Executive Officer. Previously serving as Co-CEO and CFO, Gossling brings over 25 years of experience in the media and communications industry. The company is transitioning back to a single CEO structure to better navigate the evolving industry landscape and stabilize its capital and debt structure. Additionally, the company has expanded the roles of several senior executives, including Jennifer Abrams and Jennifer Lee, to strengthen its focus on content, marketing, and operational functions. These changes are expected to position Corus for future opportunities and long-term growth.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.