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Lingo Media Corp (TSE:ELL)
:ELL
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Lingo Media (ELL) AI Stock Analysis

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TSE:ELL

Lingo Media

(ELL)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
Lingo Media's strong financial performance, characterized by high profitability margins and low debt levels, supports a favorable outlook. The stock's undervaluation further suggests potential for appreciation. However, technical indicators warn of short-term overbought conditions, which may lead to price corrections.

Lingo Media (ELL) vs. iShares MSCI Canada ETF (EWC)

Lingo Media Business Overview & Revenue Model

Company DescriptionEverybody Loves Languages Corp., an edtech language-learning and content development company, develops, markets, and supports a suite of English and other language learning solutions in the People's Republic of China. The company operates in two segments, Print-Based English Language Learning (License of Intellectual Property), and Online and Offline Language Learning. The Print-Based English Language Learning segment publishes print-based English language learning textbook programs. It co-publishes approximately 795 million units from library of program titles. The Online English Language Learning segment provides web-based educational technology English language learning, training, and assessment solutions, such as web-based software licensing subscriptions, online and professional services, audio practice tools, and multi-platform applications. It offers approximately 3,000 hours of interactive learning through various product offerings that include Winnie's World, English Academy, Campus, English for Success, and Master and business. The company markets its products in Latin America, Asia, Europe, and the United States through a network of distributors. The company was formerly known as Lingo Media Corporation and changed its name to Everybody Loves Languages Corp. in October 2022. Everybody Loves Languages Corp. is headquartered in Toronto, Canada.
How the Company Makes MoneyLingo Media makes money through a diversified revenue model that includes sales of its digital and print educational products. The company's key revenue streams include subscriptions and licensing fees from its online learning platforms, sales of digital content and applications, and traditional print material sales. Significant partnerships with educational institutions and corporate clients also contribute to its earnings by expanding its market reach and product offerings. Additionally, the company may engage in strategic collaborations to enhance its product distribution and scaling potential in various markets.

Lingo Media Financial Statement Overview

Summary
Lingo Media exhibits strong profitability margins and a robust equity base. The company has improved its cash flow significantly, although revenue growth is moderate. Low debt levels reduce financial risk, positioning the company well for future growth opportunities.
Income Statement
75
Positive
Lingo Media has shown a solid gross profit margin, maintaining profitability despite fluctuations in revenue. The gross profit margin for 2023 is approximately 82.8%, indicating efficient cost control. Net profit margin improved significantly to 4.2% in 2023 from a negative value in 2022, reflecting a positive turnaround in profitability. However, revenue growth remains a concern with a modest growth rate of 5.3% in 2023 compared to a decline in the previous year. EBIT margin has also improved to 5.1%, showcasing an improvement in operational efficiency.
Balance Sheet
80
Positive
The balance sheet of Lingo Media shows a strong equity position with an equity ratio of 91.0% in 2023, which underscores financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal reliance on debt financing. ROE improved to 3.2% in 2023, reflecting better utilization of equity to generate profits. The company's robust equity position mitigates financial risks, though there is room for enhancing returns on equity.
Cash Flow
78
Positive
The cash flow statement reveals a remarkable turnaround in operating cash flow, improving to $819,696 in 2023 from a negative value in 2022. Free cash flow growth is significant, driven by improved cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating strong cash conversion efficiency. However, the free cash flow to net income ratio suggests potential volatility in cash flows relative to net income.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue2.49M2.39M2.27M2.64M2.10M1.96M
Gross Profit2.04M1.98M1.99M2.30M1.55M1.74M
EBITDA336.67K126.21K162.32K1.00M1.34M531.19K
Net Income266.09K100.51K-86.38K779.09K1.11M162.57K
Balance Sheet
Total Assets3.52M3.42M3.49M3.10M2.40M1.95M
Cash, Cash Equivalents and Short-Term Investments1.83M1.91M1.46M1.88M1.21M442.49K
Total Debt0.0080.00K0.000.0089.60K574.76K
Total Liabilities688.98K469.15K679.35K447.08K529.01K1.19M
Stockholders Equity3.08M3.11M2.91M2.65M1.87M766.28K
Cash Flow
Free Cash Flow954.91K819.70K-424.38K648.05K725.80K278.00K
Operating Cash Flow956.40K819.70K-423.39K650.30K728.12K278.45K
Investing Cash Flow-378.13K-376.64K-2.25K-2.32K-450.00
Financing Cash Flow-80.00K0.006.80K20.00K44.48K-69.36K

Lingo Media Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$2.32M7.838.55%12.99%48.21%
60
Neutral
C$235.64M-33.78-1.46%40.89%
58
Neutral
C$4.07B-208.79-11.03%-13.61%89.73%
58
Neutral
C$541.28M-78.160.02%2.85%-385.63%
45
Neutral
C$10.53M-0.962.20%37.96%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ELL
Lingo Media
0.06
0.03
100.00%
TSE:PXE
P2Earn
0.01
0.00
0.00%
TSE:GET
GameOn Entertainment Technologies
0.02
-0.03
-66.67%
TSE:VRTS
Wondr Gaming Corp
0.02
0.00
0.00%
TSE:DTOL
D2L
18.24
5.74
45.92%
TSE:READ
Legible Inc.
0.02
-0.04
-66.67%
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: Jan 14, 2025