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Stingray Digit SV (TSE:RAY.A)
TSX:RAY.A

Stingray Digit SV (RAY.A) AI Stock Analysis

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Stingray Digit SV

(TSX:RAY.A)

Rating:64Neutral
Price Target:
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 (RAY.A) vs. iShares MSCI Canada ETF (EWC)

Stingray Digit SV Business Overview & Revenue Model

Company DescriptionStingray Digit SV (RAY.A) is a leading provider in the digital media and entertainment industry, offering a diverse range of music, video, and multimedia content services. The company operates across various sectors including music television channels, in-store media solutions, and digital music streaming. Stingray's core products and services are designed to enhance consumer and business experiences through innovative audio and video content delivery platforms.
How the Company Makes MoneyStingray Digit SV generates revenue primarily through subscription fees, advertising, and licensing agreements. The company's subscription model includes fees from both individual consumers and businesses who access its music and video streaming services. Advertising revenue is derived from the sale of ad space across its digital platforms and media channels. Additionally, Stingray earns income through licensing its content to third-party platforms and businesses, thereby expanding its reach and monetizing its media assets. Strategic partnerships with telecommunications providers and retail companies further bolster its revenue streams by integrating Stingray's offerings into their services and locations.

Stingray Digit SV Earnings Call Summary

Earnings Call Date:Feb 04, 2025
(Q3-2025)
|
% Change Since: 1.10%|
Next Earnings Date:Jun 10, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in adjusted EBITDA and revenue, driven by the success of the FAST channel business and strategic acquisitions. Despite challenges in retail media advertising and international revenue decline, the overall sentiment remains positive due to strong financial performance and strategic positioning for future growth.
Q3-2025 Updates
Positive Updates
Strong Adjusted EBITDA and Revenue Growth
Stingray achieved an adjusted EBITDA of $42.1 million and unprecedented revenues of $108 million, marking a 7.9% increase year-over-year.
FAST Channel Business Success
The FAST channel business contributed significantly to the revenue growth, with partnerships established with major TV manufacturers like LG, Vizio, and Samsung. Samsung TV Karaoke, powered by the Stingray Karaoke app, won the 2025 CES Innovation Award.
Strategic Acquisition of Loupe Art
Stingray acquired Loupe Art, enhancing its presence on connected TVs and expanding its offering for businesses, particularly in the digital signage space.
Radio Revenue Increase
Radio revenues increased by 4% to $36 million, supported by strong digital sales and retail media.
Secured Additional Financing
Stingray secured an additional $80 million in financing, offering greater flexibility to explore strategic acquisitions.
Negative Updates
Decline in Revenues from Other Countries
Revenues in other countries decreased by 3.7% year-over-year to $11.7 million, primarily due to reduced subscription revenues.
Lower Retail Media Advertising Sales
Sales in the retail media advertising segment were lower, partly due to a significant onetime order in the third quarter of 2024.
Company Guidance
During the Stingray Group Inc's Q3 2025 Results Conference Call, the company provided several key financial metrics and strategic updates. For the third quarter of fiscal 2025, Stingray reported a strong adjusted EBITDA of $42.1 million and unprecedented revenues of $108 million, marking a 7.9% year-over-year revenue growth. This growth was primarily driven by the FAST channel business, higher equipment and installation sales related to digital signage, and improved radio revenues, despite lower sales in the retail media advertising segment. The company highlighted the success of its partnership with Samsung, which saw the Stingray Karaoke app power the award-winning Samsung TV Karaoke product. Stingray also made a strategic acquisition of Loupe Art, enhancing its presence in the connected TV space. Looking forward, the company aims to enhance monetization of its audio retail media network, which spans over 30,000 locations across North America, and continue its growth in in-car entertainment, notably with the Stingray Karaoke catalog. Additionally, Stingray secured $80 million in financing, bringing its revolving credit facility to $500 million, providing liquidity for strategic acquisitions. Adjusted net income rose to $23.4 million, or $0.34 per share, reflecting strong operational performance.

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
46
Neutral
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
55
Neutral
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
63
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
374.55M345.43M323.94M282.63M249.47M306.72M
Gross Profit
187.82M118.58M111.67M87.23M83.43M116.34M
EBIT
62.09M0.0078.69M51.69M43.13M76.04M
EBITDA
56.11M60.78M94.66M91.59M116.74M72.81M
Net Income Common Stockholders
-17.53M-13.74M30.12M33.29M45.10M13.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.25M9.61M15.45M14.56M9.04M2.51M
Total Assets
836.57M811.57M895.20M883.70M822.84M867.99M
Total Debt
390.13M386.70M412.24M411.96M365.66M394.62M
Net Debt
370.88M377.09M396.79M397.40M356.62M392.10M
Total Liabilities
570.51M562.98M608.93M610.17M548.14M594.10M
Stockholders Equity
266.06M248.58M286.27M273.53M274.69M273.90M
Cash FlowFree Cash Flow
90.40M104.48M71.49M66.61M90.81M73.77M
Operating Cash Flow
103.23M118.53M86.95M83.66M104.25M88.14M
Investing Cash Flow
-18.02M-16.64M-20.61M-18.63M5.43M-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
Negative
Last Price8.25
Price Trends
50DMA
8.49
Negative
100DMA
8.41
Negative
200DMA
7.91
Positive
Market Momentum
MACD
-0.09
Positive
RSI
45.27
Neutral
STOCH
63.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY.A, the sentiment is Negative. The current price of 8.25 is below the 20-day moving average (MA) of 8.41, below the 50-day MA of 8.49, and above the 200-day MA of 7.91, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RAY.A.

Stingray Digit SV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$8.99B12.0637.69%3.32%-1.11%8.17%
TSCMG
75
Outperform
C$581.08M25.6129.19%2.84%32.49%-0.20%
74
Outperform
$20.18B11.1116.65%5.36%1.50%193.09%
64
Neutral
C$561.74M-6.14%3.63%9.94%-147.16%
TSBCE
63
Neutral
$27.73B70.682.83%13.06%-1.23%-78.01%
61
Neutral
$14.35B5.84-4.31%3.69%2.75%-35.67%
45
Neutral
$18.95M175.81%-14.72%-99.07%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RAY.A
Stingray Digit SV
8.25
0.89
12.09%
TSE:BCE
BCE
29.82
-12.82
-30.07%
TSE:CJR.B
Corus Entertainment
0.09
-0.40
-81.63%
TSE:QBR.B
Quebecor
39.72
11.90
42.78%
TSE:RCI.B
Rogers Communication
36.42
-15.29
-29.56%
TSE:CMG
Computer Modelling
6.96
-5.68
-44.94%

Stingray Digit SV Corporate Events

Financial Disclosures
Stingray Group to Announce Q4 Fiscal 2025 Financial Results
Neutral
Apr 30, 2025

Stingray Group Inc. announced it will release its financial results for the fourth quarter of fiscal 2025 on June 10, 2025, with a subsequent conference call on June 11, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

Spark’s Take on TSE:RAY.A Stock

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

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.

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

Dividends
Stingray Group Declares Quarterly Dividend for Shareholders
Positive
Mar 26, 2025

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.

Business Operations and Strategy
Stingray Advertising Leads Canadian In-Store Audio Revolution
Positive
Feb 20, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Stingray Expands FAST Portfolio with New Channel Offerings
Positive
Feb 5, 2025

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.

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.