tiprankstipranks
Trending News
More News >
Corus Entertainment (TSE:CJR.B)
TSX:CJR.B

Corus Entertainment (CJR.B) AI Stock Analysis

Compare
419 Followers

Top Page

TSE:CJR.B

Corus Entertainment

(TSX:CJR.B)

Select Model
Select Model
Select Model
Underperform 40 (OpenAI - 5.2)
Rating:40Underperform
Price Target:
C$0.04
▼(-5.00% Downside)
Corus Entertainment's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and high leverage. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively suggest significant risks for investors.
Positive Factors
Diversified revenue streams
Multiple revenue pillars—advertising, subscriptions and licensing—provide structural resilience versus single-source media firms. Over 2-6 months this mix can stabilize cash flow cycles, enable cross-subsidization of new content, and reduce reliance on any one advertising or distribution channel.
Recognized channel brands
A portfolio of well-known specialty channels supports long-term audience loyalty and targeted advertising premiums. Strong channel brands help maintain carriage agreements, command stable ad CPMs and support cross-platform monetization and licensing opportunities over the medium term.
In-house production and IP
Owning production capability (Nelvana) enables content ownership, recurring licensing income and control over distribution. This vertical integration supports margin improvement potential and creates durable revenue from syndication, merchandising and platform deals over multiple years.
Negative Factors
Declining revenues and margins
Sustained revenue decline and shrinking margins indicate structural demand or cost issues. Over months this erodes operating leverage, reduces reinvestment capacity for content, and makes it harder to fund growth initiatives without materially improving monetization or cutting costs.
High leverage and negative equity
Negative equity and elevated debt create solvency and refinancing risk, limiting strategic flexibility. Over the medium term this constrains ability to invest in content, pursue partnerships or weather ad-market volatility and increases vulnerability to rising interest costs.
Weak cash generation
Persistent negative operating and free cash flow undermines the firm's ability to fund content, service debt and invest in digital transformation. Without structural cash generation fixes, the company may need asset sales, cost cuts or external capital, stressing long-term strategic options.

Corus Entertainment (CJR.B) vs. iShares MSCI Canada ETF (EWC)

Corus Entertainment Business Overview & Revenue Model

Company DescriptionCorus 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 MoneyCorus 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 Earnings Call Summary

Earnings Call Date:Jun 26, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 03, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with significant achievements in digital growth and cost management, but faced considerable challenges in revenue and advertising market pressures. While there were strategic initiatives and successes in specific areas, the financial and market challenges present a cautious outlook.
Q3-2025 Updates
Positive Updates
Global TV Performance
Global TV was #1 in core prime time for fall 2024 and spring 2025 in the adults 18-plus demo. Global News viewing is up 4% year-over-year in spring 2025 and 6% for the year-to-date.
Streaming Portfolio Growth
Streaming portfolio had its strongest winter-spring season with 19 million average hours streamed, up 7% year-over-year.
Cost Reduction Achievements
Significant total general and administrative expense reductions of $10 million or 9% in the quarter, with a decrease of 7% in employee costs.
Radio Segment Profit Increase
Radio segment profit increased significantly with a 13% expense decline, doubling the profit margin to 22% from 11% in the prior year period.
Negative Updates
Decline in Consolidated Revenue
Consolidated revenue decreased to $298 million, a 10% decrease from the prior year, mainly due to a 15% decline in TV advertising revenue.
Negative Free Cash Flow
Free cash flow of negative $33 million in the quarter, reflecting lower segment profit and seasonally higher working capital usage.
Challenges in TV Advertising
Advertising environment remains very challenging, with a decline in television advertising revenue expected to be in the 20% range for Q4 2025.
Increased Net Debt to Segment Profit
Net debt to segment profit increased to 5.39x at the end of the third quarter, compared to 3.84x at the end of August 2024.
Company Guidance
During the Corus Entertainment Q3 2025 Analyst and Investor Conference Call, CEO John Gossling provided several key metrics and updates about the company's performance and strategic initiatives. Despite challenging advertising conditions, the company reported consolidated revenue of $298 million, a 10% decrease from the prior year, and a consolidated segment profit of $62 million. TV segment revenue was $275 million, down 11%, while radio segment revenue was $23 million, showing a slight 1% decrease. The company achieved total general and administrative expense reductions of $10 million or 9%, and TV employee costs decreased by 10%. The company also had a free cash flow of negative $33 million, primarily due to lower segment profit and higher restructuring costs. Corus' streaming portfolio saw a year-over-year increase in average streamed hours by 7% during the winter-spring season. The company also announced significant content and programming updates, including the launch of new shows and returning hits for the upcoming broadcast year, reaching over 31 million Canadians monthly. Looking ahead, Corus expects a year-over-year decline in TV advertising revenue for Q4 of fiscal 2025 to be around 20% and continues to implement cost reduction initiatives to offset lower expected revenues.

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
45
Neutral
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
30
Negative
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.13B1.13B1.27B1.51B1.60B1.54B
Gross Profit500.63M500.63M740.50M839.33M971.36M1.00B
EBITDA374.06M374.06M-236.59M401.30M655.86M1.03B
Net Income-328.40M-328.40M-772.64M-428.72M-232.24M172.55M
Balance Sheet
Total Assets1.27B1.27B1.49B2.75B3.50B3.86B
Cash, Cash Equivalents and Short-Term Investments59.55M59.55M82.42M56.16M54.91M43.69M
Total Debt1.20B1.20B1.17B1.22B1.40B1.49B
Total Liabilities1.93B1.93B1.83B2.29B2.60B2.64B
Stockholders Equity-706.56M-706.56M-465.40M317.75M752.04M1.07B
Cash Flow
Free Cash Flow-31.39M-31.58M111.53M106.03M194.62M244.65M
Operating Cash Flow-13.57M-14.91M130.66M122.67M216.84M274.49M
Investing Cash Flow-8.24M-8.24M-29.55M125.27M25.17M-29.53M
Financing Cash Flow-1.06M288.00K-73.64M-246.69M-230.78M-247.18M

Corus Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.06
Negative
200DMA
0.08
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
45.62
Neutral
STOCH
66.67
Neutral
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 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$963.16M18.5619.09%2.19%12.69%
78
Outperform
C$963.16M17.8519.09%2.28%12.69%
69
Neutral
C$156.71M11.7023.61%8.77%-7.80%-58.83%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
51
Neutral
C$25.92M-1.42-5.50%-6.56%46.49%
43
Neutral
C$666.12M-19.5418.50%31.15%
40
Underperform
C$7.98M-0.02-11.27%57.50%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CJR.B
Corus Entertainment
0.04
-0.07
-65.00%
TSE:Y
Yellow Pages
11.34
0.94
9.02%
TSE:CGX
Cineplex
10.56
-0.42
-3.83%
TSE:RAY.A
Stingray Digit SV
14.59
7.52
106.36%
TSE:RAY.B
Stingray Dgt Vary SV
13.62
6.68
96.25%
TSE:TVA.B
TVA Group Inc B NV
0.60
-0.27
-31.03%

Corus Entertainment Corporate Events

Business Operations and StrategyFinancial Disclosures
Corus Entertainment Posts Lower Q1 Results, Advances Major Recapitalization Plan
Negative
Jan 14, 2026

Corus Entertainment reported an 18% year-over-year decline in consolidated revenue to $267.6 million for its fiscal 2026 first quarter, driven by a 19% drop in television revenue and softer advertising and subscriber income, while radio revenue fell 4%. Consolidated segment profit slid 32% to $57.2 million, compressing margins to 21%, and the company swung to a net loss attributable to shareholders of $11.1 million, alongside a negative free cash flow of $53.6 million, underscoring ongoing market and industry pressures. Management highlighted substantial progress on a proposed recapitalization transaction expected to reduce debt and other liabilities by more than $500 million and deliver up to $40 million in annual cash interest savings, which would materially strengthen the balance sheet and extend debt maturities if completed. Operationally, Corus continued to invest in its content slate, announcing robust winter 2025 and winter 2026 programming across Global, Showcase and W Network, including new and returning high-profile series designed to support audience engagement and advertising performance amid challenging conditions.

The most recent analyst rating on ($TSE:CJR.B) stock is a Sell with a C$0.03 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Corus Seeks Securityholder Approval for Debt-Heavy Recapitalization to Stabilize Finances
Negative
Jan 8, 2026

Corus Entertainment has mailed and filed materials for special meetings of its shareholders and senior noteholders to vote on a proposed recapitalization transaction designed to materially reduce debt, cut annual interest costs, and secure ongoing access to an expanded revolving credit facility. Backed by a substantial majority of both senior noteholders and key voting shareholders, the board unanimously supports the plan of arrangement under the Canada Business Corporations Act as the best available solution to stabilize the balance sheet, extend covenant relief, and preserve value for stakeholders, warning that failure to approve the deal could force alternative restructuring with little or no recovery for equity holders.

The most recent analyst rating on ($TSE:CJR.B) stock is a Sell with a C$0.03 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Corus Seeks Securityholder Approval for Major Debt Recapitalization to Avert Restructuring
Negative
Jan 8, 2026

Corus Entertainment has mailed and filed materials for special meetings of its shareholders and senior noteholders to seek approval for a proposed recapitalization transaction designed to address its heavy debt load and looming maturities. The board, following a strategic review, unanimously backs the plan, which would be implemented via a court-approved plan of arrangement and has already secured strong support from a large majority of senior noteholders and key voting shareholders. If approved, the transaction is expected to cut more than $500 million in third-party debt and other liabilities, generate up to $40 million in annual interest savings, increase the company’s secured revolving credit facility from $75 million to $125 million, and extend covenant relief, thereby bolstering liquidity and operational stability. The company warns that failure to implement the recapitalization would likely force alternative restructuring options that could leave existing shareholders with no recovery, underscoring the high stakes of the January 30, 2026 votes for both creditors and equity investors.

The most recent analyst rating on ($TSE:CJR.B) stock is a Sell with a C$0.03 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyLegal ProceedingsShareholder Meetings
Corus Entertainment Advances Recapitalization Efforts with Interim Court Approval
Neutral
Dec 18, 2025

Corus Entertainment has received an interim order from the Ontario Superior Court in relation to its recapitalization transaction under the Canada Business Corporations Act. The approval process involves meetings with senior noteholders and shareholders in January 2026, aiming to finalize and approve the statutory plan of arrangement, with implications for streamlining the company’s financial framework and operational structure.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Corus Entertainment Announces Strategic Recapitalization to Strengthen Financial Position
Positive
Nov 3, 2025

Corus Entertainment has announced a proposed recapitalization transaction aimed at strengthening its financial position by reducing debt and interest costs, thereby enhancing its capital structure and liquidity. The transaction, supported by major lenders and stakeholders, is expected to maintain business operations without impacting obligations to clients, suppliers, and employees, while positioning the company for long-term strategic growth and operational efficiency.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Corus Entertainment Expands Credit Facility to Enhance Liquidity
Positive
Oct 30, 2025

Corus Entertainment has amended its Eighth Amended and Restated Credit Agreement to increase its revolving credit facility from $75 million to $125 million. This strategic move is part of Corus’s prudent liquidity management strategy, aiming to enhance its financial flexibility and support its operational and strategic objectives.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Corus Entertainment Reports Fiscal 2025 Financial Results Amid Industry Challenges
Negative
Oct 30, 2025

Corus Entertainment reported a significant decline in its financial performance for the fiscal year 2025, with a 14% decrease in consolidated revenue for the fourth quarter and an 11% decline for the year. The company also faced a net loss of $277.1 million for the quarter, attributed to non-cash impairment charges. Despite these challenges, Corus is committed to cost-saving initiatives and has launched a robust fall TV lineup, aiming to enhance its digital streaming services and maintain its market position amidst industry headwinds.

The most recent analyst rating on ($TSE:CJR.B) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Corus Entertainment stock, see the TSE:CJR.B Stock Forecast page.

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.Date of analysis: Dec 19, 2025