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Stingray Dgt Vary SV (TSE:RAY.B)
TSX:RAY.B
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Stingray Dgt Vary SV
(TSX:RAY.B)
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Rating:78Outperform
Price Target:
C$17.50
▲(15.74% Upside)
Stingray Dgt Vary SV's strong financial performance and strategic acquisitions, particularly the TuneIn acquisition, are significant positives. The bullish technical indicators further support the stock's potential. However, the high leverage and overbought technical signals suggest caution in the short term.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective business strategies, supporting long-term financial health and market expansion.
Strategic Acquisition
The acquisition of TuneIn enhances Stingray's global footprint and digital offerings, potentially increasing revenue streams and competitive positioning.
Dividend Increase
Increasing dividends reflect management's confidence in cash flow sustainability and commitment to returning value to shareholders, enhancing investor appeal.
Negative Factors
High Leverage
Significant leverage may limit financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.
Decline in Radio Revenue
Declining radio revenue suggests challenges in this segment, potentially impacting overall revenue diversification and growth prospects.
Decrease in International Revenue
A drop in international revenue indicates potential market challenges abroad, which could hinder global expansion and revenue diversification.
Stingray Dgt Vary SV (RAY.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$776.33M
Dividend Yield2.1%
Average Volume (3M)321.00
Price to Earnings (P/E)16.6
Beta (1Y)0.03
Revenue Growth12.69%
EPS GrowthN/A
CountryCA
Employees1,000
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)0.17
Shares Outstanding1,195,677
10 Day Avg. Volume210
30 Day Avg. Volume321
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)2.30
Price to Sales (P/S)1.58
P/FCF Ratio6.81
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 ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Stingray Dgt Vary SV Business Overview & Revenue Model
Company DescriptionStingray Digital Group Inc. (RAY.B) is a leading business-to-business provider of multi-platform digital media solutions, primarily focusing on the music, video, and radio sectors. The company offers a wide range of products and services, including music and video content delivery, customized music solutions for businesses, and an array of interactive services for various digital platforms. Stingray caters to a diverse client base, including retail, hospitality, and fitness sectors, enhancing customer experiences through its extensive catalog of licensed content and innovative technology.
How the Company Makes MoneyStingray generates revenue through multiple streams, primarily by licensing its music and video content to businesses across various industries. This includes subscription-based models where clients pay for access to Stingray's extensive catalog of audio and video content. Additionally, the company earns revenue by providing customized music solutions, which may include tailor-made playlists and branding services for businesses. Strategic partnerships with content creators and distributors further enhance Stingray's offerings, allowing the company to provide exclusive content and services while expanding its reach in the digital media marketplace.
Stingray Dgt Vary SV Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in the Broadcast and Commercial Music segments, a significant acquisition of TuneIn, and an increase in dividends, indicating a positive outlook. However, there were declines in radio revenue and international revenue.Q2-2026 Updates
Positive Updates
Strong Organic Growth
Stingray achieved organic growth of 16.7% in Broadcast and Recurring Commercial Music, driven by increasing FAST channel sales. Advertising revenue grew by 55%, surpassing the 40% target.
Record Revenue and EBITDA
Consolidated revenue grew by 21% to $113 million, and adjusted EBITDA improved by 16.3% to $39.5 million.
TuneIn Acquisition
Stingray announced the acquisition of TuneIn Holdings for up to $175 million. TuneIn serves 75 million active listeners and generates $110 million in revenue and $30 million in EBITDA annually.
Dividend Increase
Stingray's Board approved a 13.3% increase in the quarterly dividend, raising it from $0.075 to $0.085, reflecting strong financial performance.
Expansion in Retail Media
Acquisition of DMI expanded Stingray's U.S. retail network by 8,500 Walgreens locations, reaching 33,000 locations across North America.
Negative Updates
Decline in Radio Revenue
Radio revenues declined by 0.9% to $32.4 million due to lower national airtime sales.
Decrease in International Revenue
Revenues in other countries decreased by 16.2% to $9.8 million, mainly due to lower subscription revenues.
Company Guidance
During Stingray Group's Q2 2026 conference call, notable guidance was provided surrounding the company's impressive financial performance and strategic acquisitions. The company reported a record 21% increase in consolidated sales to $113 million, with adjusted EBITDA improving by $16.3 million to $39.5 million. Stingray's organic growth in Broadcast and Recurring Commercial Music reached 16.7%, driven by a significant 55% rise in advertising revenue, exceeding their 40% target. The acquisition of TuneIn Holdings, valued at up to $175 million, is anticipated to enhance Stingray's global digital audio and video footprint with expected synergies of $10 million. TuneIn is projected to generate $110 million in annual revenue and $30 million in U.S. EBITDA. Stingray also announced a 13.3% increase in its quarterly dividend, reflecting confidence in future cash flow generation. The company projects its debt-EBITDA ratio to be around 2.8 post-acquisition, with plans to reduce it below 2 by December of the next year.Stingray Dgt Vary SV Financial Statement Overview
Summary
Stingray Dgt Vary SV shows strong revenue growth and profitability with healthy margins. However, reliance on debt and historical volatility in growth rates present potential risks.Income Statement
Stingray Dgt Vary SV shows strong revenue growth with a TTM increase of 1.7% and consistent profitability, evidenced by a healthy gross profit margin of 44.1% and a net profit margin of 11.7%. The EBIT and EBITDA margins are robust at 20.8% and 29.2% respectively, indicating efficient operational management. However, the volatility in revenue growth over the years suggests potential market challenges.78
Positive
Balance Sheet
The company's balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 1.28, which has improved from previous periods. The return on equity is strong at 17.2%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, indicating a higher reliance on debt financing, which could pose risks if market conditions worsen.65
Positive
Cash Flow
Stingray Dgt Vary SV demonstrates solid cash flow management with a free cash flow growth rate of 8.4% in the TTM. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio of 86.1% suggests efficient conversion of earnings into cash. Nonetheless, fluctuations in free cash flow growth in prior years highlight potential volatility.72
Positive
| 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 Dgt Vary SV Technical Analysis
Positive
15.12
Price Trends
11.70
Positive
10.94
Positive
9.68
Positive
Market Momentum
1.10
Negative
70.64
Negative
54.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY.B, the sentiment is Positive. The current price of 15.12 is above the 20-day moving average (MA) of 13.33, above the 50-day MA of 11.70, and above the 200-day MA of 9.68, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 70.64 is Negative, neither overbought nor oversold. The STOCH value of 54.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RAY.B.
Stingray Dgt Vary SV Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$776.33M | 16.60 | 19.09% | 2.10% | 12.69% | ― | |
74 Outperform | C$776.33M | 16.92 | 19.09% | 2.11% | 12.69% | ― | |
64 Neutral | C$618.97M | 7.18 | 10.16% | 5.88% | -2.14% | 4.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | C$25.92M | -1.42 | -5.50% | ― | -6.56% | 46.49% | |
47 Neutral | $301.58M | -3.74 | ― | ― | 16.65% | 1.41% | |
41 Neutral | $7.98M | -0.02 | ― | ― | -11.27% | 57.50% |
* Communication Services Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.