Network Media (NTE) AI Stock Analysis

• Market Cap: C$1.71M
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -7.90%
• EPS Growth: 93.35%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Entertainment
• EPS (TTM): <0.01
• Shares Outstanding: 18,974,707
• 10 Day Avg. Volume: 5,630
• 30 Day Avg. Volume: 14,773
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 1.54
• 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: 52 Neutral
• Price Target: C$0.09 ▲(1.11% Upside)

Network Media's overall stock score reflects a challenging financial and market environment. The most significant factors are the mixed financial performance with strong cash flow but negative profitability, and bearish technical indicators suggesting a downtrend. Valuation concerns further weigh down the score, with a negative P/E ratio and no dividend yield.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates improved cash generation, enhancing financial stability and enabling reinvestment in growth opportunities.

Gross Profit Margin

A healthy gross profit margin reflects efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Revenue Streams

Diverse revenue streams reduce dependency on any single source, providing resilience against market fluctuations and supporting sustainable growth.

Negative Factors

Negative Profitability

Negative profitability indicates operational inefficiencies, which can hinder long-term growth and shareholder value creation if not addressed.

Revenue Decline

Declining revenue growth suggests challenges in market demand or competitive positioning, potentially impacting future earnings and market share.

Negative Return on Equity

Negative return on equity indicates that the company is not generating positive returns for shareholders, which could deter investment and affect capital raising.

Network Media Business Overview & Revenue Model

Company Description

Network Media (NTE) is a leading digital media company that specializes in the creation, distribution, and monetization of multimedia content across various platforms. The company operates primarily in the entertainment and marketing sectors, offering services that include content production, digital marketing solutions, and media distribution. NTE focuses on leveraging cutting-edge technology to enhance viewer engagement and brand visibility, catering to a diverse clientele ranging from independent creators to large corporations.

How the Company Makes Money

Network Media generates revenue through multiple streams, including advertising sales, subscription services, and content licensing. The company partners with brands to create sponsored content and advertisements that are integrated into its media offerings, thus generating income from advertisers. Additionally, NTE offers subscription-based services that provide exclusive access to premium content, contributing a steady stream of revenue. Content licensing deals with other media platforms and networks also play a crucial role in its earnings, allowing NTE to monetize its original productions beyond its own distribution channels. Strategic partnerships with technology firms enhance its advertising capabilities, optimizing revenue potential.

Network Media Financial Statement Overview

Summary

Network Media faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows moderate leverage but negative returns on equity, indicating inefficiencies in generating shareholder value. Cash flow improvements are a positive aspect, suggesting potential for recovery if revenue and profitability issues are addressed. Strategic focus on revenue growth and cost management will be crucial for future stability and growth.

Income Statement

Network Media's income statement shows a challenging period with declining revenue and negative net income in the TTM. The gross profit margin improved to 36.27% from 29.94% in the previous year, indicating better cost management. However, the net profit margin remains negative at -9.54%, reflecting ongoing profitability issues. Revenue growth has been negative, with a significant decline of 18.73% in the TTM, highlighting a need for strategic adjustments to reverse this trend.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 0.47, which is manageable but has increased from the previous year. The return on equity is negative at -11.22%, indicating that the company is not generating returns for its shareholders. The equity ratio stands at 52.68%, suggesting a stable capital structure, but the negative ROE is a concern for long-term sustainability.

Cash Flow

Cash flow analysis shows a positive trend with a 22.07% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.21, suggesting that operating cash flow is not yet sufficient to cover net losses. The free cash flow to net income ratio is 0.90, showing that the company is generating cash despite negative net income, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.63M	11.23M	7.13M	12.43M	3.53M	9.92M
Gross Profit	5.36M	3.36M	1.63M	10.44M	1.71M	9.39M
EBITDA	3.82M	1.62M	3.05M	8.20M	861.27K	7.75M
Net Income	-123.36K	-1.91M	-320.94K	597.38K	-2.50M	1.52M
Balance Sheet
Total Assets	18.08M	18.08M	19.83M	20.56M	18.54M	14.12M
Cash, Cash Equivalents and Short-Term Investments	3.56M	3.02M	2.28M	708.29K	2.79M	685.73K
Total Debt	3.20M	3.18M	3.50M	4.37M	2.44M	1.81M
Total Liabilities	9.42M	9.11M	9.27M	9.98M	9.08M	4.90M
Stockholders Equity	8.66M	8.97M	10.56M	10.58M	9.45M	9.22M
Cash Flow
Free Cash Flow	3.12M	1.10M	4.67M	-3.71M	-297.78K	3.79M
Operating Cash Flow	3.12M	1.73M	4.92M	5.32M	5.89M	9.94M
Investing Cash Flow	-2.87M	-213.02K	-1.36M	-9.03M	-6.19M	-6.15M
Financing Cash Flow	271.81K	-771.24K	-2.00M	1.72M	2.23M	-4.29M

Network Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 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:NTE, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NTE.

Network Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	73 Outperform	C$64.46M	18.36	5.78%	―	-0.34%	-10.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTE	52 Neutral	C$1.71M	-13.04	-1.44%	―	-7.90%	93.35%
WILD	50 Neutral	C$386.68M	-3.75	―	―	16.65%	1.41%
OAM	46 Neutral	C$33.58M	-2.96	-22.90%	―	45.36%	-200.67%
CJR.B	40 Underperform	C$6.98M	-0.02	―	―	-11.27%	57.50%

Network Media Corporate Events

Network Media Group Strengthens Board with New Appointment

Network Media Group Inc. has appointed Trevor Treweeke to its board of directors, bringing his extensive experience in capital markets and corporate strategy to the company. This strategic move is expected to enhance Network Media’s operations and industry positioning, particularly as it navigates the challenges and opportunities in the documentary film and television content business.

Network Media Group Returns to Profitability in Q3 2025

Network Media Group announced a return to profitability in the third quarter of 2025, with revenues of $2.85 million and a net income of $135,853, compared to a net loss in the same quarter of the previous year. The company highlighted the success of its documentary slate, including Emmy and Critics Choice nominations for ‘Sly Lives!’ and the delivery of several feature documentaries, which underscores its focus on quality and independent financing. The results reflect Network’s strategic emphasis on sustainable growth through creativity and collaboration, positioning it strongly in the content production industry.

Network Media Group Announces Leadership Change as Chairman Retires

Network Media Group Inc. announced the retirement of Ali Pejman as Chairman of the Board of Directors, marking the end of a significant era of leadership. Pejman, who joined the board in 2019, played a crucial role in guiding the company through the challenges of the global pandemic and labor disruptions. Under his leadership, Network Media expanded its intellectual property, leading to the production of acclaimed documentaries and series, including Emmy-nominated and award-winning projects. His departure is acknowledged with gratitude by the company’s CEO, who appreciates Pejman’s vision and investment during a pivotal period in the company’s history.

Network Media Group Announces Board Resignation

Network Media Group Inc. announced the resignation of Tim Gamble from its board of directors, a position he held since September 2021. The departure marks a change in the company’s leadership structure, with CEO Derik Murray expressing gratitude for Gamble’s contributions. This change may impact the company’s strategic direction as it continues to produce acclaimed content in the film and digital media industry.

Network Media Completes Convertible Debenture Offering and Debt Settlement

Network Media Group Inc. has successfully closed a non-brokered private placement offering of convertible debentures, raising CAD$650,000, which will be used for general administrative purposes and debt settlement. Additionally, the company has settled CAD$350,000 of debt owed to certain directors by issuing 1,150,000 common shares, a transaction approved by the TSX Venture Exchange and reviewed by the company’s independent director, highlighting a strategic move to manage financial obligations without creating new control persons.

Network Media Group Announces Convertible Debenture Offering and Debt Settlement

Network Media Group Inc. has announced a non-brokered private placement offering of convertible debentures to raise CAD$650,000, with the debentures bearing a 12% annual interest and maturing in 24 months. Additionally, the company will settle CAD$350,000 of outstanding debt by issuing 1,150,000 common shares to certain directors, a transaction subject to TSX Venture Exchange approval. These strategic financial moves aim to strengthen Network Media’s financial position without creating new control persons or insiders, reflecting careful compliance with securities regulations.