Stingray Digit SV (RAY.A) AI Stock Analysis

• Market Cap: C$979.64M
• Dividend Yield: 2.19%
• Average Volume (3M): 34.56K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.60
• Revenue Growth: 12.69%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.32
• Shares Outstanding: 53,846,620
• 10 Day Avg. Volume: 24,316
• 30 Day Avg. Volume: 34,557
• PEG Ratio: -0.05
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 6.81
• 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$14.67
• Price Target Upside: 1.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: C$16.00 ▲(10.96% Upside)

Stingray Digit SV's strong financial performance and strategic growth initiatives, including the acquisition of TuneIn, are key strengths. The technical indicators support a bullish outlook, and the valuation is fair with an attractive dividend yield. High leverage is a risk, but the company's strategic moves and financial health suggest potential for continued growth.

Positive Factors

Strategic Acquisition

The acquisition of TuneIn Holdings is expected to expand Stingray's global digital audio footprint, enhancing its competitive position and revenue potential.

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, supporting long-term financial health and strategic goals.

Advertising Revenue Increase

Significant growth in advertising revenue enhances Stingray's cash generation ability and diversifies its revenue streams, strengthening financial stability.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Decline in International Revenue

A decline in international revenue suggests challenges in global market penetration, which could hinder overall growth prospects.

Higher Operating Expenses

Rising operating expenses can erode profit margins and reduce cash flow, potentially impacting the company's long-term profitability.

Stingray Digit SV Business Overview & Revenue Model

Company Description

Stingray Group Inc. operates as a music, media, and technology company worldwide. The company offers Stingray Music, a multiplatform music service that gives listeners free access to curated music channels on television (TV), web, and mobile; Stingray Naturescape, a channel in 4K resolution; Stingray Now 4K, a curated 4K TV channel; and Stingray Festival 4K, a television channel that broadcasts exclusively in native 4K and Dolby Digital audio. It also provides Stingray Qello, an over-the-top streaming service on TV, mobile, and the web; Stingray Classica, a TV channel dedicated to classical music, including operas, ballets, concerts, and documentaries; Stingray iConcerts, a source for various live concerts; and Stingray DJAZZ, a TV channel dedicated to jazz and jazz-related genres, such as soul, blues, funk, gospel, hip-hop, fusion, reggae, Latin, swing, and bebop. In addition, the company offers karaoke services comprising The Voice, Yokee Piano, Yokee Karaoke, Yokee Guitar, Piano Academy, The Piano Keyboard, Stingray Kids' Karaoke, and Yokee Music, as well as Stingray Karaoke, a video on demand and TV app. Further, it provides music videos TV channels that include Stingray Country, Stingray cmusic, PalmarèsADISQ par Stingray, Stingray Hits!, Stingray Vibe, Stingray Loud, Stingray Retro, Stingray LiteTV, and Stingray Juicebox; and operates approximately 100 radio stations across Canada, as well as offers advertising solutions. The company distributes its products and services through various platforms that include digital cable TV, satellite TV, IPTV, OTT, the internet, mobile devices, game consoles, and connected cars. It serves cable and telecom companies, retailers, small and medium businesses, and directly to consumers. The company was formerly known as Stingray Digital Group Inc. and changed its name to Stingray Group Inc. in December 2018. Stingray Group Inc. was founded in 2007 and is headquartered in Montreal, Canada.

How the Company Makes Money

Stingray Digit SV generates revenue through multiple key streams, primarily from subscription services, advertising, and licensing agreements. The company's subscription model allows users to access its vast library of music and video content for a recurring fee, contributing a significant portion of its revenue. Additionally, Stingray partners with businesses such as broadcasters and retail outlets, offering music and video content tailored to their needs, for which it charges licensing fees. Advertising revenue also plays a crucial role, as the company monetizes its free streaming services through ads targeted at users. Strategic partnerships with telecom providers and other media companies further enhance its revenue potential, allowing for bundled offerings and expanded distribution channels.

Stingray Digit SV Financial Statement Overview

Summary

Stingray Digit SV demonstrates strong financial performance with consistent revenue and cash flow growth, supported by robust profit margins. However, high leverage poses a risk that needs careful management.

Income Statement

The company shows strong revenue growth with a TTM increase of 5.0%, supported by healthy gross and net profit margins of 59.4% and 11.7% respectively. EBIT and EBITDA margins are robust at 20.8% and 29.2%, indicating efficient operations. However, the net profit margin has shown volatility in past years, which could pose a risk.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.28, indicating significant leverage. Return on equity is strong at 17.2%, suggesting effective use of equity to generate profits. The equity ratio stands at 34.0%, showing moderate financial stability. High leverage remains a potential risk.

Cash Flow

Cash flow performance is strong with a free cash flow growth rate of 4.9% in the TTM. The operating cash flow to net income ratio is healthy at 1.03, and the free cash flow to net income ratio is 0.86, indicating good cash conversion. Consistent cash flow growth supports financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	413.13M	386.89M	345.43M	323.94M	282.63M	249.47M
Gross Profit	256.21M	100.83M	87.95M	111.67M	87.23M	83.43M
EBITDA	118.86M	102.08M	60.28M	94.66M	91.59M	116.74M
Net Income	51.89M	36.44M	-13.74M	30.12M	33.29M	45.10M
Balance Sheet
Total Assets	848.49M	816.66M	811.57M	895.20M	883.70M	822.84M
Cash, Cash Equivalents and Short-Term Investments	15.14M	13.98M	9.61M	15.45M	14.56M	9.04M
Total Debt	358.37M	360.16M	386.70M	412.24M	409.35M	365.66M
Total Liabilities	559.62M	549.82M	562.98M	608.93M	610.17M	548.14M
Stockholders Equity	288.86M	266.83M	248.58M	286.27M	273.53M	274.69M
Cash Flow
Free Cash Flow	102.31M	89.98M	104.48M	71.49M	66.61M	90.81M
Operating Cash Flow	118.42M	105.04M	118.53M	86.95M	83.66M	104.25M
Investing Cash Flow	-16.21M	-17.40M	-16.64M	-20.61M	-18.63M	5.43M
Financing Cash Flow	-95.68M	-83.36M	-107.72M	-65.45M	-59.51M	-103.15M

Stingray Digit SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.42 is above the 20-day moving average (MA) of 14.25, above the 50-day MA of 13.03, and above the 200-day MA of 10.26, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.36 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
RAY.A	79 Outperform	C$979.64M	18.90	19.09%	2.19%	12.69%	―
CGO	64 Neutral	C$604.22M	7.01	10.16%	5.98%	-2.14%	4.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BAMI	54 Neutral	C$768.42M	-0.23	-38.53%	―	-59.51%	-545.36%
WILD	50 Neutral	C$384.54M	-3.73	―	―	16.65%	1.41%
CGX	43 Neutral	C$678.81M	-19.80	―	―	18.50%	31.15%
CJR.B	40 Underperform	C$6.98M	-0.02	―	―	-11.27%	57.50%

Stingray Digit SV Corporate Events

Stingray Expands Calgary Presence with CHUP-FM Acquisition

Stingray announced its subsidiary, Stingray Radio, will acquire CHUP-FM in Calgary, Alberta, pending CRTC approval. This acquisition will enhance Stingray’s presence in Calgary, complementing its existing radio stations and reinforcing its commitment to local radio. The move is expected to strengthen Stingray’s portfolio and market position in Canada.

Stingray Group Inc. Reports Strong Q2 2026 Results Amid Strategic Growth

Stingray Group Inc. reported strong financial results for the second quarter of fiscal 2026, with a 21% increase in revenues and a significant rise in net income. The company’s strategic acquisitions, including TuneIn Holdings, and expansion in the FAST channel market have bolstered its growth, positioning Stingray as a leader in the industry. The company also achieved remarkable growth in its advertising and in-car entertainment segments, reflecting its successful execution of strategic initiatives.

Stingray Acquires TuneIn to Expand Digital Audio and Advertising Reach

Stingray Group Inc. has announced the acquisition of TuneIn Holdings, Inc., a leader in live audio streaming and ad monetization, for up to $175 million. This strategic acquisition is expected to expand Stingray’s digital audio presence, enhance its advertising capabilities, and solidify its position in the digital audio advertising market by combining TuneIn’s extensive listener base and content partnerships with Stingray’s distribution capabilities.

Stingray Expands U.S. Presence with DMI Acquisition

Stingray has acquired DMI, a leader in music branding and in-store audio advertising, expanding its U.S. retail media network by 8,500 locations to a total of 33,500. This acquisition strengthens Stingray’s position as a dominant force in the U.S. in-store audio advertising market, particularly in the pharmacy sector, by incorporating DMI’s prestigious client portfolio and expertise. The move not only enhances Stingray’s service offerings but also solidifies its leadership in the pharmacy audio advertising space, offering unparalleled reach and value to its clients.

Just For Laughs and Stingray Partner to Launch Global Comedy Streaming Channels

Just For Laughs and Stingray have announced a strategic partnership to launch Free Ad-Supported Streaming TV (FAST) channels featuring premium comedy content globally. This collaboration combines Just For Laughs’ extensive comedy library with Stingray’s expertise in channel creation and distribution, aiming to make high-quality comedy accessible to a worldwide audience and setting a new standard in the industry.

Stingray Group to Announce Q2 Fiscal 2026 Financial Results

Stingray Group Inc. is set to release its financial results for the second quarter of fiscal 2026 on November 11, 2025. The announcement will be followed by a conference call on November 12, 2025, to discuss the results. This release is significant as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

Stingray Revolutionizes In-Car Entertainment with Advanced Karaoke Experience in BYD Vehicles

Stingray has announced the launch of an advanced in-car karaoke experience for BYD vehicles, featuring new scoring modes and integrated Singing Machine microphones. This innovation, which includes real-time pitch correction and a wide range of vocal effects, aims to enhance in-car entertainment by transforming journeys into interactive musical experiences. The collaboration with BYD marks a significant step in redefining in-car entertainment, offering passengers an opportunity to sing and connect during their travels.