Corus Entertainment (CJR.B) AI Stock Analysis

• Market Cap: $19.94M
• Dividend Yield: N/A
• Average Volume (3M): 159.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -13.09%
• EPS Growth: 88.95%
• Country: CA
• Employees: 2,610
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): 0.06
• Shares Outstanding: 196,074,770
• 10 Day Avg. Volume: 158,624
• 30 Day Avg. Volume: 159,555
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.55
• 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: 105.57% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Corus Entertainment's overall stock score reflects significant financial and operational challenges, including declining revenue, negative profitability, and high financial leverage. Although there are positive strategic initiatives in digital growth and cost management, they are insufficient to offset the broader financial risks. The stock's valuation also remains unattractive due to the lack of profitability.

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 Performance

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

Negative Factors

Advertising Market

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

Debt Concerns

The outlook for Corus Entertainment is very unclear given weak advertising trends, program supply uncertainty and approximately $1 billion of debt on its balance sheet.

Corus Entertainment Business Overview & Revenue Model

Company Description

Corus Entertainment Inc. (CJR.B) is a leading Canadian media and content company with a diversified portfolio in television, radio, and digital media. The company operates a suite of specialty and conventional television channels, including Global Television Network, and has a significant presence in radio broadcasting. Corus is also known for its content creation capabilities, producing original programming for domestic and international markets through its production arm, Corus Studios.

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

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 below the 20-day moving average (MA) of 0.10, above 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 Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, 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 *	59 Neutral	C$3.44B	8.14	-17.94%	4.86%	-2.63%	-19.63%
CJR.B	45 Neutral	$19.94M	―	175.81%	―	-13.09%	88.95%
FP	―	C$4.42M	2.29	32.98%	―	―	―
PNC.A	―	C$144.62M	―		―	―	―
SAT	―	C$2.20M	―	-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.