Corus Entertainment (CJR.B) AI Stock Analysis

• Market Cap: $21.94M
• Dividend Yield: N/A
• Average Volume (3M): 147.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -13.09%
• EPS Growth: 88.95%
• Country: CA
• Employees: 2,610
• Sector: Communication Services
• Sector Strength: 88
• Industry: Entertainment
• EPS (TTM): 0.06
• Shares Outstanding: 196,074,770
• 10 Day Avg. Volume: 138,336
• 30 Day Avg. Volume: 147,312
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.21
• Price Target Upside: 105.85% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Corus Entertainment's stock score reflects significant financial challenges, with declining revenues and negative equity. Technical analysis indicates mixed signals with mild momentum but potential volatility. The valuation underscores risks due to unprofitability, while earnings call and corporate events provide some positive strategic shifts but are not enough to offset broader concerns.

Positive Factors

Audience Growth

Early positive signs in TV indicate that conventional ratings are strong, with advertising declines moderating and Global’s overall audience up 11% year over year.

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.

Operational Strategy

The amendment to the bank credit agreement gives management some space to carve out a strategy and potentially stabilize operations.

Negative Factors

Debt Load

The company has maintained a SELL rating due to the substantial debt load and continuing challenges in the advertising market.

Financial Performance

Corus reported Q2/25 results with revenues down 10% year over year and adjusted EBITDA down 67%, reflecting a continued weak ad environment.

Leverage and Valuation

With balance sheet leverage at 4.48x net debt/LTM EBITDA, there is little prospect for a positive valuation for the equity.

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 primarily through advertising sales, subscriber fees, and content licensing. Advertising is a significant source of income, as the company sells commercial airtime on its television and radio stations. Subscriber fees come from agreements with cable and satellite providers for the distribution of Corus's specialty channels to viewers. Additionally, Corus earns revenue through the licensing and distribution of its original content to international broadcasters and streaming platforms. The company also benefits from strategic partnerships and collaborations that enhance content distribution and audience reach.

Corus Entertainment Financial Statement Overview

Summary

Corus Entertainment faces significant financial challenges across several key metrics. The income statement indicates declining revenues and persistent losses, while the balance sheet demonstrates financial instability with negative equity. Although operating cash flow remains positive, overall cash flow trends could impact liquidity. Without substantial improvements, the company might face continued financial difficulties.

Income Statement

The income statement shows declining revenue with a significant decrease over the TTM period. Gross profit margin is shrinking, and net income has been negative for several periods, indicating ongoing profitability issues. EBIT and EBITDA margins have been volatile, with recent figures showing negative EBITDA, a concerning sign for operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, and the company's equity ratio is also negative, reflecting a precarious financial position with liabilities exceeding assets.

Cash Flow

Cash flow statements show positive operating cash flow, but free cash flow has been declining. The operating cash flow to net income ratio is strong due to negative net income, but this is offset by negative trends in free cash flow growth, suggesting potential liquidity issues.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.20B	1.27B	1.51B	1.60B	1.54B	1.51B
Gross Profit	645.24M	740.50M	839.33M	971.36M	1.00B	965.86M
EBITDA	-311.97M	-236.59M	401.30M	655.86M	1.03B	230.23M
Net Income	-839.54M	-772.64M	-428.72M	-232.24M	172.55M	-607.71M
Balance Sheet
Total Assets	1.77B	1.49B	2.75B	3.50B	3.86B	3.97B
Cash, Cash Equivalents and Short-Term Investments	91.69M	82.42M	56.16M	54.91M	43.69M	45.90M
Total Debt	1.05B	1.17B	1.22B	1.40B	1.49B	1.66B
Total Liabilities	2.16B	1.83B	2.29B	2.60B	2.64B	2.92B
Stockholders Equity	-426.93M	-465.40M	317.75M	752.04M	1.07B	899.82M
Cash Flow
Free Cash Flow	83.31M	111.53M	106.03M	194.62M	244.65M	293.95M
Operating Cash Flow	99.03M	130.66M	122.67M	216.84M	274.49M	313.27M
Investing Cash Flow	-18.28M	-29.55M	125.27M	25.17M	-29.53M	-19.00M
Financing Cash Flow	-56.47M	-73.64M	-246.69M	-230.78M	-247.18M	-330.94M

Corus Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJR.B, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.03 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$40.08B	-1.19	-13.44%	3.97%	2.29%	-73.14%
CJR.B	48 Neutral	$21.94M	―	175.81%	―	-13.09%	88.95%
FP		C$4.35M	2.29	32.98%	―	―	―
PNC.A		C$140.62M	―		―	―	―
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.

Corus Entertainment’s Executive Chair Heather Shaw to Retire

Heather Shaw, the Executive Chair of Corus Entertainment Inc., will retire from her position on May 31, 2025, after serving since the company’s inception in 1999. She will continue to serve as a non-executive chair on the Board of Directors. Shaw’s leadership has been pivotal in navigating Corus through significant industry changes, and her departure marks a notable transition for the company. Her ongoing involvement with the Board and other philanthropic ventures indicates her continued influence in the media and philanthropic sectors.

Corus Entertainment Faces Financial Challenges Amid Strong Audience Engagement

Corus Entertainment reported a challenging fiscal 2025 second quarter, with a 10% decrease in consolidated revenue and a significant 67% drop in segment profit for the quarter. Despite these financial setbacks, the company highlighted strong audience performance across its platforms and modestly better-than-expected television advertising revenue. Corus is taking strategic steps to stabilize its financial position, including updating its credit facility to support future growth and operational adjustments.