Lingo Media (ELL) AI Stock Analysis

• Market Cap: C$2.96M
• Dividend Yield: N/A
• Average Volume (3M): 64.08K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.05
• Revenue Growth: 4.74%
• EPS Growth: 4.00%
• Country: CA
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$0.08 ▲(2.50% Upside)

The score is primarily supported by improved profitability and positive cash generation alongside a very conservative, debt-free balance sheet. Offsetting this is a mixed technical setup with an extended RSI and negative MACD, plus historical volatility in revenue, margins, and cash flow that reduces confidence in durability. Valuation helps due to the low P/E.

Positive Factors

Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, enhancing long-term financial stability and shareholder value.

Cash Flow Improvement

Improved cash flow enhances the company's ability to reinvest in growth opportunities, reduce debt, and provide shareholder returns, supporting sustainable operations.

Low Debt Levels

Low debt levels reduce financial risk, providing flexibility to navigate economic downturns and invest in strategic growth initiatives.

Negative Factors

Moderate Revenue Growth

Moderate revenue growth may limit the company's ability to scale operations and compete effectively, potentially impacting long-term market position.

Potential Cash Flow Volatility

Volatility in cash flows can affect the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.

Return on Equity

While ROE has improved, it remains relatively low, indicating that the company may not be maximizing shareholder returns through its equity investments.

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

Financials show a low-risk balance sheet (zero debt in 2024) and a return to healthier profitability and positive free cash flow in 2024. The main constraint is operating consistency: revenue has been uneven (including a slight decline in 2024) and both margins and cash flow have shown meaningful volatility over the past several years.

Income Statement

Revenue has been choppy with a slight decline in 2024 (-2.35%) following modest growth in 2023, signaling an uneven top-line trajectory. Profitability improved meaningfully versus 2023, with net margin rising to ~17.3% (from ~4.2%), and operating profitability is positive (EBIT margin ~10.5%). However, results have been volatile over the period (loss in 2022 and very high margins in 2020–2021), which reduces confidence in durability.

Balance Sheet

The balance sheet is conservatively positioned with zero debt in 2024 and very low leverage historically, reducing financial risk. Equity has grown (to ~$3.53M in 2024), and returns improved to ~11.9% in 2024 from ~3.2% in 2023, indicating better profitability on the capital base. The main weakness is variability in returns over time (including negative return in 2022), suggesting earnings consistency is still developing.

Cash Flow

Cash generation is currently solid: operating cash flow (~$0.64M) and free cash flow (~$0.64M) were positive in 2024, and free cash flow closely matched net income (roughly 1.0x), indicating decent earnings quality. That said, free cash flow fell sharply in 2024 (about -33% growth) and the company experienced negative operating and free cash flow in 2022, highlighting volatility and some sensitivity in cash conversion across years.

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
TTZ	72 Outperform	C$7.66M	23.55	7.09%	―	6.00%	-1.43%
ELL	69 Neutral	C$2.96M	9.62	8.66%	―	4.74%	4.00%
DTOL	68 Neutral	C$609.69M	13.87	45.71%	―	10.85%	384.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Lingo Media Corporate Events

Everybody Loves Languages Agrees to Go-Private Deal with ELL Ventures

Everybody Loves Languages Corp. has entered into a business combination agreement with ELL Ventures Ltd. under which all public shareholders, other than ELL Ventures, will receive cash consideration of $0.085 per share and the company will amalgamate with ELL Ventures to form a new private entity. The related-party transaction, led by a vehicle controlled by the company’s CEO and CFO, is subject to minority and two-thirds shareholder approval, regulatory clearances and financing conditions, and, if completed, will see the company delist from the TSX Venture Exchange, effectively taking it private and providing an exit for minority investors at a defined cash value.

The most recent analyst rating on (TSE:ELL) stock is a Buy with a C$0.09 price target. To see the full list of analyst forecasts on Lingo Media stock, see the TSE:ELL Stock Forecast page.