Stingray Dgt Vary SV (RAY.B) AI Stock Analysis

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Stingray Dgt Vary SV

(TSX:RAY.B)

Rating:50Neutral

Price Target:―

The overall score reflects challenges in profitability and a bearish technical outlook. While the company shows strong revenue growth and cash flow generation, high leverage and negative net income weigh heavily on financial performance. The technical indicators suggest a current downtrend, and valuation concerns persist with a negative P/E ratio. The 4% dividend yield provides some support but does not fully offset the risks.

Stingray Dgt Vary SV (RAY.B) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$560.43M

Dividend Yield3.79%

Average Volume (3M)256.00

Price to Earnings (P/E)―

Beta (1Y)0.38

Revenue Growth9.94%

EPS Growth-147.16%

CountryCA

Employees1,000

SectorCommunication Services

Sector Strength83

IndustryBroadcasting

Share Statistics

EPS (TTM)0.23

Shares Outstanding2,306,409

10 Day Avg. Volume530

30 Day Avg. Volume256

Financial Highlights & Ratios

PEG Ratio-1.24

Price to Book (P/B)2.17

Price to Sales (P/S)0.00

P/FCF Ratio6.46

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Stingray Dgt Vary SV Business Overview & Revenue Model

Company DescriptionStingray 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 MoneyStingray Digital Group Inc. generates revenue through multiple channels. The primary sources include subscription fees from its music streaming services, which cater to both individual consumers and businesses. The company also earns from licensing and advertising within its media content offerings. Additionally, Stingray provides in-store media solutions and digital signage services to businesses, creating another significant revenue stream. Partnerships with cable and satellite providers further enhance its distribution reach and contribute to its earnings. These various revenue streams are supported by Stingray's extensive music library and technology platforms, allowing it to offer tailored solutions to diverse market segments.

Stingray Dgt Vary SV Earnings Call Summary

Earnings Call Date:Feb 04, 2025

(Q3-2025)

% Change Since: -2.46%|

Next Earnings Date:Jun 10, 2025

Earnings Call Sentiment Positive

Stingray's Q3 2025 earnings call reflected strong performance with record revenues and strategic growth initiatives, though there were challenges in international revenues and retail media sales. The sentiment is generally positive as highlights outweigh the lowlights.

Q3-2025 Updates

Positive Updates

Record Revenue and Growth

Stingray achieved unprecedented revenues of $108 million with a 7.9% year-over-year growth, primarily driven by the FAST channel business and SVOD.

Partnership with Samsung

Samsung TV Karaoke, powered by the Stingray Karaoke app, won the 2025 CES Innovation Award in the content and entertainment category, highlighting a successful partnership.

Strategic Acquisition of Loupe Art

Stingray acquired Loupe Art, a leading visual streaming service, enhancing their offering in the digital signage space.

Financing for Growth

Stingray secured an additional $80 million in financing, with a $500 million revolving credit facility, providing liquidity and flexibility for strategic acquisitions.

Increased Adjusted EBITDA

Adjusted EBITDA grew 9% to $42.1 million, with an adjusted EBITDA margin reaching 38.9%.

Radio Revenue Improvement

Radio revenues rose 4% to $36 million, supported by strong digital sales and retail media.

Net Income Growth

Stingray reported a net income of $15.7 million, up from $9.1 million in the previous year, due to higher operating results and a lower unrealized loss on derivatives.

Negative Updates

Decline in International Revenues

Revenues in other countries decreased by 3.7% year-over-year, primarily due to reduced subscription revenues.

Lower Retail Media Advertising Sales

Retail media advertising sales were lower, impacted by a large onetime order in the previous year.

Decreased Adjusted Free Cash Flow

Adjusted free cash flow amounted to $28.6 million, down from $32.1 million, due to nonrecurring recovery of income taxes in the previous year.

Company Guidance

During Stingray Group Inc.'s Q3 2025 earnings call, the company reported a strong fiscal performance with an adjusted EBITDA of $42.1 million and revenues reaching $108 million, marking a 7.9% increase year-over-year. This growth was driven by a 14.1% rise in U.S. revenues to $42.3 million, due to higher FAST channel revenues, and a 6.2% increase in Canadian revenues, totaling $54.2 million, bolstered by enhanced digital signage sales and improved radio revenues. The Broadcasting and Commercial Music segment saw a 10% revenue increase to $72.2 million, while radio revenues rose 4% to $36 million. Notably, the company secured an additional $80 million in financing, enhancing liquidity for strategic acquisitions. The call emphasized Stingray's focus on expanding its FAST channel offerings and retail media advertising, projecting a 40% growth in these areas, while also highlighting ongoing partnerships with major TV manufacturers like Samsung and the acquisition of Loupe Art to bolster its smart TV and digital signage presence.

Stingray Dgt Vary SV Financial Statement Overview

Summary

Stingray Dgt Vary SV exhibits revenue growth and strong gross profit margins but faces profitability challenges with negative net income in recent periods. High leverage presents financial risk, though cash flow generation remains robust. Strategic focus on improving operating efficiency and reducing debt could enhance financial stability and performance.

Income Statement

Neutral

The company has shown revenue growth with a TTM revenue increase from the previous year, but profitability metrics like the EBIT margin and net profit margin are concerning. The net profit margin is negative in the latest TTM data, reflecting a net loss. The gross profit margin is strong, indicating effective cost management at the production level, but operational expenses are likely impacting overall profitability.

Balance Sheet

Positive

The debt-to-equity ratio remains relatively high, signaling significant leverage which could pose risks if not managed carefully. However, the equity ratio is reasonable, indicating a stable asset base supported by equity. The return on equity is negative in the latest TTM, reflecting the profitability challenges, which impact shareholder returns.

Cash Flow

Positive

The company demonstrates strong operating cash flow relative to net income, suggesting good cash-generating ability despite net losses. Free cash flow is positive and has grown, highlighting effective capital expenditure control. However, sustainability of this positive cash flow in light of ongoing net losses is a potential concern.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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 Dgt Vary SV Technical Analysis

Technical Analysis Sentiment

Negative

Last Price7.92

Price Trends

50DMA

7.91

Positive

100DMA

8.09

Negative

200DMA

7.69

Positive

Market Momentum

MACD

0.03

Positive

RSI

46.15

Neutral

STOCH

>-0.01

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY.B, the sentiment is Negative. The current price of 7.92 is below the 20-day moving average (MA) of 8.15, above the 50-day MA of 7.91, and above the 200-day MA of 7.69, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RAY.B.

Stingray Dgt Vary 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
Sector *	61 Neutral	$14.35B	5.84	-4.31%	3.69%	2.75%	-35.67%
RAY.B	50 Neutral	C$560.43M	―	-6.14%	3.79%	9.94%	-147.16%
CJREF		$13.86M	―		―	―	―
WLDBF		$321.60M	―	-3581.90%	―	―	―
CGO	74 Outperform	C$641.15M	7.30	10.38%	5.47%	0.06%	115.11%
RAY.A	64 Neutral	C$561.74M	―	-6.14%	3.63%	9.94%	-147.16%
TVA.B	54 Neutral	C$37.16M	―	-6.62%	―	-2.38%	59.61%

* Communication Services Sector Average

Performance Comparison

TSE:RAY.B

Stingray Dgt Vary SV

7.92

0.75

10.46%

CJREF

Corus Entertainment

0.07

-0.19

-73.08%

WLDBF

WildBrain

1.46

0.74

102.78%

TSE:CGO

Cogeco Inc. SV

66.13

19.44

41.64%

TSE:RAY.A

Stingray Digit SV

8.44

0.92

12.23%

TSE:TVA.B

TVA Group Inc B NV

0.86

-0.44

-33.85%

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.