illumin Holdings (ILLM) AI Stock Analysis

327 Followers

Top Page

illumin Holdings

(TSX:ILLM)

60Neutral

illumin Holdings has shown financial recovery with strong revenue growth and a solid balance sheet. However, operational inefficiencies and inconsistent cash flow are concerns. Technical analysis indicates bearish momentum, and the stock is overvalued given its high P/E ratio. Corporate events point to strategic growth, but risks remain.

illumin Holdings (ILLM) vs. S&P 500 (SPY)

Market Cap

C$93.25M

Dividend YieldN/A

Average Volume (3M)58.68K

Price to Earnings (P/E)505.6

Beta (1Y)1.51

Revenue Growth15.82%

EPS GrowthN/A

CountryCA

Employees216

SectorCommunication Services

Sector Strength88

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)-0.04

Shares Outstanding51,238,056

10 Day Avg. Volume86,084

30 Day Avg. Volume58,676

Financial Highlights & Ratios

PEG Ratio0.51

Price to Book (P/B)1.67

Price to Sales (P/S)0.00

P/FCF Ratio-254.11

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$3.08

Price Target Upside84.43% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

illumin Holdings Business Overview & Revenue Model

Company Descriptionillumin Holdings (ILLM) is a diversified company operating across various sectors with a focus on delivering innovative solutions. The company is engaged in providing advanced technological products and services, including software development, digital marketing, and data analytics. It aims to drive growth and efficiency for its clients through cutting-edge technology and strategic insights.

How the Company Makes Moneyillumin Holdings generates revenue through a multi-faceted approach, leveraging its diversified portfolio. Key revenue streams include subscription fees from its software as a service (SaaS) products, service fees from digital marketing campaigns, and consulting charges for data analytics services. The company also engages in strategic partnerships with other technology firms to expand its market reach and enhance its service offerings. These collaborations often result in joint ventures or shared revenue models that contribute significantly to its earnings.

illumin Holdings Financial Statement Overview

Summary

Overall, illumin Holdings faces a challenging financial environment, characterized by weak profitability despite stable revenue and gross margins. The balance sheet is relatively stable with low leverage, but the negative return on equity indicates persistent profitability issues. Cash flows show improvement, yet negative free cash flow highlights ongoing financial challenges. Strategic improvements in operational efficiency and cost management are essential for future growth and stability.

Income Statement

Neutral

The income statement reveals a challenging financial landscape for illumin Holdings. Over the TTM period, the company experienced a slight increase in revenue by approximately 0.91% compared to the previous annual report. However, profitability remains a concern with negative EBIT and net income margins, indicating ongoing operational inefficiencies. The gross profit margin is relatively robust at around 45.77%, but the inability to translate this into net profitability points to significant cost management issues.

Balance Sheet

Neutral

The balance sheet shows a moderate financial position with some strengths and weaknesses. The company has a healthy equity ratio of about 67.86% in the TTM, indicating a strong asset base relative to liabilities. However, the debt-to-equity ratio stands at approximately 0.09, reflecting low leverage, which could limit growth potential if not managed strategically. The return on equity is negative due to the net loss, highlighting profitability issues that need addressing.

Cash Flow

Neutral

Cash flow analysis indicates mixed results. The operating cash flow has improved significantly, turning positive in the TTM, suggesting better cash management. However, the free cash flow remains negative, reflecting challenges in maintaining capital expenditures within the limits of generated cash. The operating cash flow to net income ratio suggests that the company's operations are generating cash despite reporting losses, which is a positive sign but requires careful monitoring.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
127.47M	126.32M	121.04M	122.03M	104.89M	119.13M
	Gross Profit
58.34M	60.30M	60.79M	63.56M	54.09M	57.42M
	EBIT
-6.94M	-11.38M	-5.52M	9.39M	6.99M	-2.26M
	EBITDA
-25.00K	-5.89M	-665.00K	19.01M	15.75M	4.53M
	Net Income Common Stockholders
-5.84M	-10.99M	-753.44K	11.75M	3.69M	-5.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.01M	55.45M	85.94M	102.21M	22.64M	7.41M
	Total Assets
67.60M	116.89M	141.65M	149.83M	72.43M	69.36M
	Total Debt
26.53M	7.99M	10.87M	11.01M	17.15M	27.43M
	Net Debt
18.51M	-47.46M	-75.07M	-91.20M	-5.49M	20.02M
	Total Liabilities
57.45M	36.20M	38.52M	36.77M	40.38M	53.76M
	Stockholders Equity
10.14M	80.70M	103.13M	113.06M	32.05M	15.60M
Cash Flow		Free Cash Flow
-492.00K	-6.63M	-2.05M	17.37M	13.98M	-7.84M
	Operating Cash Flow
4.74M	-1.39M	1.78M	19.69M	19.29M	640.85K
	Investing Cash Flow
-5.23M	-5.24M	-3.83M	-2.33M	-5.32M	-8.48M
	Financing Cash Flow
-8.54M	-22.99M	-19.35M	58.81M	1.25M	7.24M

illumin Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.67

Price Trends

50DMA

2.19

Negative

100DMA

2.32

Negative

200DMA

2.01

Negative

Market Momentum

MACD

-0.07

Negative

RSI

32.26

Neutral

STOCH

39.13

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ILLM, the sentiment is Negative. The current price of 1.67 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.19, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 32.26 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ILLM.

illumin Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZOMD	81 Outperform	$81.32M	6.78	67.52%	―	104.46%	―
TBRD	68 Neutral	C$53.09M	12.93	9.94%	―	25.69%	―
ILLM	60 Neutral	C$93.25M	505.56	0.19%	―	15.82%	―
Sector *	60 Neutral	$13.79B	7.12	-2.72%	3.79%	2.18%	-42.65%
SPN	49 Neutral	C$20.03M	―	-25.44%	―	-18.13%	60.10%
EQ	34 Underperform	C$70.99M	―	-451.55%	―	-0.72%	-36.11%

* Communication Services Sector Average

Performance Comparison

TSE:ILLM

illumin Holdings

1.82

0.22

13.75%

TSE:SPN

Snipp Interactive

0.07

-0.05

-41.67%

TSE:EQ

EQ Inc

1.02

-0.06

-5.56%

TSE:TBRD

Thunderbird Entertainment Group Inc

1.28

-0.48

-27.27%

TSE:ZOMD

Zoomd Technologies

0.82

0.75

1161.54%

illumin Holdings Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q3-2024)

% Change Since: -16.50%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call reflects strong revenue growth across all business segments, particularly in illumin self-service and programmatic revenue, alongside a significant increase in adjusted EBITDA. However, the company faced challenges with a net loss for the quarter and increased operating expenses, despite a decrease in cash reserves. The positive revenue trends and strategic initiatives indicate an optimistic outlook for future growth, though financial challenges remain.

Q3-2024 Updates

Positive Updates

Record Total Revenue

Reported record total revenue of $36.3 million, a 23% increase year-over-year.

illumin Self-Serve Revenue Growth

illumin self-service revenue increased by 64% compared to Q3 2023, reaching $8.4 million and representing 23% of total revenue.

Adjusted EBITDA Increase

Adjusted EBITDA rose by 200% compared to the same period in 2023.

Programmatic Revenue Growth

Programmatic revenue grew by 39% during the quarter.

Managed Services Revenue Growth

Managed services revenue experienced year-over-year growth for the first time in over a year.

Negative Updates

Net Loss for the Quarter

Reported a net loss of $1.1 million compared to a profit of $800,000 in the same period last year, mainly due to a net foreign exchange loss and lower income taxes.

Cash and Cash Equivalents Decrease

Cash and cash equivalents decreased to $51.4 million from $55.5 million at the end of 2023, primarily due to share repurchases and investments.

Higher Operating Expenses

Total operating expenses for the third quarter were approximately $18 million, up from $16.8 million during the same period in 2023.

Company Guidance

During the third quarter 2024 earnings call for ILLM.TO, the company reported a record total revenue of $36.3 million, marking a 23% increase on a year-over-year basis. The illumin self-service business was a significant contributor, with revenue reaching $8.4 million—a 64% rise from Q3 2023—and representing 23% of the total company revenue. Programmatic revenue also grew by 39%, while managed services revenue saw a 3% increase, marking the first year-over-year growth for managed services in over a year. Adjusted EBITDA witnessed a substantial 200% improvement compared to the same period in 2023, driven by enhanced sales initiatives targeting higher spend customers and improvements in the platform's reporting and automation tools. The company onboarded 29 new illumin self-service clients, benefiting from integrations with walled gardens and CTV support. Despite higher operating expenses, the gross margin remained consistent at 47%. The call concluded with an optimistic outlook for solid fourth-quarter revenue growth, attributed to recent organizational and strategic changes.

illumin Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures

illumin Holdings Sees 17% Revenue Growth in Q1 2025, Bolstered by Exchange Services

Positive

May 9, 2025

illumin Holdings reported a 17% increase in first-quarter revenue for 2025, reaching $29.1 million, driven by a significant 148% rise in Exchange service revenue. Despite a decrease in Managed service revenue due to geopolitical and macroeconomic uncertainties, the company successfully onboarded 18 new Self-service clients, indicating a strategic focus on high-spend clients and long-term growth. The company continues to invest in its Self-service and Exchange platforms while managing costs and maintaining liquidity, aiming to enhance marketing and sales performance and product differentiation in a competitive market.

Spark’s Take on TSE:ILLM Stock

According to Spark, TipRanks’ AI Analyst, TSE:ILLM is a Neutral.

illumin Holdings is on a recovery path with positive revenue growth and a stronger financial position, though it faces challenges from operational inefficiencies and inconsistent cash flow. Technical indicators suggest the stock is in a bearish phase, and the valuation is high, raising concerns about overvaluation. The lack of recent earnings call data and corporate events means these factors don’t contribute to the current assessment.

To see Spark’s full report on TSE:ILLM stock, click here.

Financial Disclosures

illumin Holdings to Announce Q1 2025 Financial Results

Neutral

Apr 22, 2025

illumin Holdings Inc. has announced that it will release its first quarter 2025 financial results on May 9, 2025, before the market opens. A live webcast will be held on the same day, where the CEO and CFO will discuss the results, followed by a Q&A session. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Spark’s Take on TSE:ILLM Stock

According to Spark, TipRanks’ AI Analyst, TSE:ILLM is a Neutral.

illumin Holdings presents a mixed outlook. The company is recovering financially with revenue growth and a strong balance sheet, which are significant positives. However, technical indicators suggest bearish momentum, and the high P/E ratio raises concerns about overvaluation. The recent partnership with Adsquare provides a strategic boost, but consistent profitability remains crucial for sustained growth.

To see Spark’s full report on TSE:ILLM stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.