Lingo Media (ELL) AI Stock Analysis

• Market Cap: C$1.96M
• Dividend Yield: N/A
• Average Volume (3M): 64.08K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.14
• Revenue Growth: 12.99%
• EPS Growth: 48.21%
• Country: CA
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): <0.01
• Shares Outstanding: 35,642,525
• 10 Day Avg. Volume: 46,400
• 30 Day Avg. Volume: 64,080
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 1.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Everybody 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 Money

Lingo 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62M	2.43M	2.39M	2.27M	2.64M	2.10M
Gross Profit	2.03M	1.91M	1.98M	1.99M	2.30M	1.55M
EBITDA	426.70K	257.43K	126.21K	95.31K	1.00M	1.34M
Net Income	294.10K	421.23K	100.51K	-86.38K	779.09K	1.11M
Balance Sheet
Total Assets	3.96M	3.84M	3.42M	3.49M	3.10M	2.40M
Cash, Cash Equivalents and Short-Term Investments	2.48M	2.47M	1.91M	1.46M	1.88M	1.21M
Total Debt	0.00	0.00	80.00K	80.00K	80.00K	89.60K
Total Liabilities	606.89K	530.87K	469.15K	679.35K	447.08K	529.01K
Stockholders Equity	3.60M	3.53M	3.11M	2.91M	2.65M	1.87M
Cash Flow
Free Cash Flow	529.28K	640.03K	819.70K	-424.38K	648.05K	725.80K
Operating Cash Flow	530.77K	641.52K	819.70K	-423.39K	650.30K	728.12K
Investing Cash Flow	-1.49K	-1.49K	-376.64K	-990.00	-2.25K	-2.32K
Financing Cash Flow	0.00	-80.00K	0.00	6.80K	20.00K	44.48K

Lingo Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTOL	78 Outperform	C$950.20M	21.49	45.71%	―	15.43%	6573.55%
ELL	73 Outperform	C$1.96M	6.63	8.55%	―	12.99%	48.21%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
GET	46 Neutral	―	―	―	―	―	―
VRTS	40 Underperform	C$10.64M	―	-251.82%	―	-5.42%	93.94%