Stingray Digit SV (RAY.A) AI Stock Analysis

• Market Cap: C$610.36M
• Dividend Yield: 3.35%
• Average Volume (3M): 23.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 9.94%
• EPS Growth: -147.16%
• Country: CA
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 70
• Industry: Broadcasting
• EPS (TTM): -0.25
• Shares Outstanding: 52,969,430
• 10 Day Avg. Volume: 16,665
• 30 Day Avg. Volume: 23,278
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.63
• Price to Cash Flow (P/CF): 4.30
• P/FCF Ratio: 4.80
• 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: C$11.13
• Price Target Upside: 24.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Stingray Digit SV shows a mixed financial picture with strong revenue growth but challenges in profitability and high leverage. The technical indicators are favorable, suggesting a strong upward trend. Despite a negative P/E ratio, the dividend yield provides some value to investors. Recent corporate events, including record revenues and strategic expansion, further boost the stock's attractiveness. Overall, the stock scores moderately well, reflecting a balance of positive momentum and strategic growth against financial challenges.

Stingray Digit SV Business Overview & Revenue Model

Company Description

Stingray Digit SV (RAY.A) is a leading global provider of music, media, and technology solutions, catering to both businesses and consumers. The company operates in sectors including media, technology, and entertainment, offering a diverse range of products and services such as digital music and video content, in-store media solutions, and music broadcasting services. Stingray's offerings are designed to enhance customer experience across various platforms, including television, radio, and digital applications.

How the Company Makes Money

Stingray Digit SV generates revenue through a multifaceted business model that includes subscription services, advertising, and licensing fees. The company's key revenue streams come from providing digital music and video content to consumers through subscription-based platforms, as well as offering in-store media solutions to businesses that aim to enhance customer engagement through tailored music and visual content. Additionally, Stingray earns licensing fees by providing its music content to television and radio broadcasters. Strategic partnerships with telecom operators, broadcast companies, and retail businesses further bolster its revenue by expanding its distribution network and customer base.

Stingray Digit SV Financial Statement Overview

Summary

Stingray Digit SV exhibits steady revenue growth, but profitability remains a concern due to recent losses. The financial structure shows high leverage, which could limit strategic flexibility. While cash flow generation is robust, it must be managed carefully to support ongoing operations and debt obligations. Overall, the company faces challenges in balancing growth, profitability, and financial stability.

Income Statement

The company has shown volatility in its net income, swinging from profits to losses over recent periods. Despite a consistent revenue growth trend, with a notable increase in gross profit margins, the net profit margin remains negative in the TTM (Trailing-Twelve-Months), indicating profitability challenges. The EBITDA margin also decreased significantly in the latest TTM period, reflecting reduced operating efficiency.

Balance Sheet

The balance sheet presents a moderate financial position with a relatively high debt-to-equity ratio, reflecting increased leverage, which may pose risks. However, the equity ratio remains stable, indicating some resilience. The return on equity has been adversely affected by recent net losses, impacting overall shareholder returns.

Cash Flow

The company maintains a strong operating cash flow, with a positive operating cash flow to net income ratio in the TTM period, suggesting good cash generation capability. However, the free cash flow growth rate has slowed, indicating potential challenges in maintaining liquidity and funding operations without increasing debt.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
374.55M	345.43M	323.94M	282.63M	249.47M	306.72M
	Gross Profit
187.82M	118.58M	111.67M	87.23M	83.43M	116.34M
	EBIT
62.09M	0.00	78.69M	51.69M	43.13M	76.04M
	EBITDA
56.11M	60.78M	94.66M	91.59M	116.74M	72.81M
	Net Income Common Stockholders
-17.53M	-13.74M	30.12M	33.29M	45.10M	13.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.25M	9.61M	15.45M	14.56M	9.04M	2.51M
	Total Assets
836.57M	811.57M	895.20M	883.70M	822.84M	867.99M
	Total Debt
390.13M	386.70M	412.24M	411.96M	365.66M	394.62M
	Net Debt
370.88M	377.09M	396.79M	397.40M	356.62M	392.10M
	Total Liabilities
570.51M	562.98M	608.93M	610.17M	548.14M	594.10M
	Stockholders Equity
266.06M	248.58M	286.27M	273.53M	274.69M	273.90M
Cash Flow		Free Cash Flow
90.40M	104.48M	71.49M	66.61M	90.81M	73.77M
	Operating Cash Flow
103.23M	118.53M	86.95M	83.66M	104.25M	88.14M
	Investing Cash Flow
-18.02M	-16.64M	-20.61M	-18.63M	5.43M	-17.95M
	Financing Cash Flow
-73.20M	-107.72M	-65.45M	-59.51M	-103.15M	-72.36M

Stingray Digit SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY.A, the sentiment is Positive. The current price of 8.95 is above the 20-day moving average (MA) of 8.74, above the 50-day MA of 8.58, and above the 200-day MA of 7.75, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RAY.A.

Stingray Digit SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	$8.50B	11.40	38.85%	3.71%	3.76%	14.27%
RCI.B	75 Outperform	$19.90B	11.14	16.66%	5.70%	6.71%	96.70%
CMG	66 Neutral	C$660.32M	26.74	33.92%	2.50%	32.49%	-0.20%
RAY.A	64 Neutral	C$610.36M	―	-6.14%	3.35%	9.94%	-147.16%
BCE	61 Neutral	$30.08B	182.60	1.80%	12.59%	-1.07%	-92.15%
Sector *	59 Neutral	$27.83B	1.88	-18.16%	4.00%	2.13%	-44.45%
CJR.B	51 Neutral	$24.93M	―	175.81%	―	-15.32%	-85.65%

Stingray Digit SV Corporate Events

Stingray Group Declares Quarterly Dividend for Shareholders

Stingray Group Inc. announced a quarterly dividend of $0.075 per share for its various classes of shares, payable in June 2025. This decision reflects the company’s dividend policy, which is influenced by factors like cash flow and business growth opportunities, and underscores its commitment to returning value to shareholders.

Stingray Advertising Leads Canadian In-Store Audio Revolution

Stingray Advertising is at the forefront of transforming in-store audio advertising in Canada, as highlighted in the 2025 In-Store Audio Playbook by IAB Canada and Leger. The research underlines the growing significance of in-store audio as a retail media channel, with findings demonstrating its effectiveness in influencing consumer behavior and driving sales. Non-endemic advertisers benefit from increased foot traffic and online visits, showcasing the potential of in-store audio to enhance consumer engagement and deliver tangible results for brands.

Stingray Expands FAST Portfolio with New Channel Offerings

Stingray has expanded its Free Ad-Supported Streaming TV (FAST) portfolio by adding four new channels: Cozy Café, Stargaze, Movie Music, and Cityscapes, available on platforms like LG Channels and Samsung TV Plus across the US and Canada. This move is part of Stingray’s strategy to broaden its reach and innovate within the entertainment industry, offering diverse and high-quality content to cater to varied audience tastes, thereby enhancing its market presence and stakeholder engagement.

Stingray Group Achieves Record Revenues in Q3 2025

Stingray Group Inc. reported strong financial results for the third quarter of fiscal 2025, with revenues reaching a record $108.2 million, up 7.9% from the previous year, and adjusted EBITDA increasing by 9.0% to $42.1 million. The company’s growth was driven by its FAST channel sales, aided by a pilot project with TV manufacturer VIZIO, positioning Stingray favorably in the market and showcasing its capability to outperform expectations.

Stingray Group Inc. to Announce Q3 2025 Financial Results

Stingray Group Inc. announced the release of its financial results for the third quarter of fiscal 2025, scheduled for February 4, 2025. The announcement highlights the company’s transparency and commitment to stakeholders by providing detailed insights into its financial performance, which is crucial for its operations and market positioning.

Stingray’s Samsung TV Karaoke Wins CES Innovation Award 2025

Stingray has announced that its collaboration with Samsung has earned the prestigious CES Innovation Award 2025 in the Content & Entertainment category for the Samsung TV Karaoke feature. This innovation, powered by the Stingray Karaoke app, transforms home entertainment by offering a smart karaoke suite that functions without expensive equipment and provides a vast library of songs and customization options. The award highlights Stingray’s commitment to enhancing entertainment technology and its ability to deliver accessible and exceptional experiences globally.