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Stingray Group
(TSX:RAY)
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Rating:57Neutral
Price Target:
C$16.00
▲(4.30% Upside)
Action:Reiterated
Date:08/10/26
The score is driven mainly by middling financial performance: strong cash generation and improving revenue trends are weighed down by FY2026 profit deterioration and materially higher leverage. The latest earnings call was a positive offset due to upbeat growth and margin improvement objectives plus synergy momentum, while technical indicators are broadly neutral and valuation is pressured by a negative P/E despite a modest dividend yield.
Positive Factors
Revenue Growth Momentum
Substantial and sustained top-line expansion driven by acquisitions (TuneIn) and FAST channel sales implies enlarging scale and stronger recurring revenue mix. Durable revenue momentum supports investment capacity, pricing power with distributors, and longer-term profit recovery as integrations mature.
Negative Factors
Material Increase in Leverage
Much higher leverage raises refinancing, interest‑rate and covenant risk and limits financial flexibility. Even with management targeting deleveraging, elevated net debt constrains capital allocation, amplifies downside in an economic slowdown, and lengthens recovery time after acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
Substantial and sustained top-line expansion driven by acquisitions (TuneIn) and FAST channel sales implies enlarging scale and stronger recurring revenue mix. Durable revenue momentum supports investment capacity, pricing power with distributors, and longer-term profit recovery as integrations mature.
Read all positive factors
Stingray Group (RAY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.03B
Dividend Yield1.36%
Average Volume (3M)34.56K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth32.20%
EPS Growth-184.28%
CountryCA
Employees1,000
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.42
Shares Outstanding54,057,392
10 Day Avg. Volume24,316
30 Day Avg. Volume34,557
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)4.64
Price to Sales (P/S)2.08
P/FCF Ratio11.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.70Price Target Upside41.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.11
Revenue Forecast (FY)C$649.78M
Stingray Group Business Overview & Revenue Model
Company Description
Stingray Group Inc. operates as a music, media, and technology company in Canada, the United States, and internationally. It operates through Broadcasting and Commercial Music and Radio segments. The company offers music, digital, and advertising ...
How the Company Makes Money
Stingray primarily makes money by licensing and distributing its music and video content through multiple channels and pricing models. A key revenue stream comes from distribution relationships with television service providers (e.g., cable, satel...
Stingray Group Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call communicated strong top-line momentum and operational wins: sizable consolidated and U.S. revenue growth, major gains in the Broadcasting & Commercial Music segment, meaningful programmatic traction (including unique audio-on-CTV inventory) and improving adjusted profitability and free cash flow. At the same time, management acknowledged margin compression this quarter (driven by lower-margin backfill sales, Singing Machine timing and TuneIn mix), a drop in reported net income, temporary operating cash flow timing headwinds, and higher leverage following buybacks and acquisitions. Management provided clear explanations and near-term remediation (expected margin improvement in Q2/Q3, Singing Machine ramp, ongoing synergies). Overall, positives (large revenue and adjusted-EBITDA gains, strong programmatic momentum and synergy progression) outweigh the near-term challenges and one-time/timing effects.Positive Updates
Record Consolidated Revenue Growth
Total revenues of $158.0M in Q1 FY2027, up 65.2% YoY from $95.6M, driven by TuneIn acquisition and FAST channel sales; reported organic growth of 27.5% YoY.
Negative Updates
Adjusted EBITDA Margin Compression
Consolidated adjusted EBITDA margin declined to 31.8% in Q1 FY2027 from 35.2% in Q1 FY2026, attributed to lower gross margins on TuneIn and Singing Machine sales and a shift in product mix (backfill rev-share lower).
Read all updates
Q1-2027 Updates
Positive
Negative
Record Consolidated Revenue Growth
Total revenues of $158.0M in Q1 FY2027, up 65.2% YoY from $95.6M, driven by TuneIn acquisition and FAST channel sales; reported organic growth of 27.5% YoY.
Read all positive updates
Company Guidance
Management guided to another year of double‑digit organic revenue growth in FY2027, highlighting Q1 results of revenue up 65.2% (to $158M) with organic growth of 27.5%, Broadcast & Commercial Music revenue more than doubling to $126M and Radio at $32M (down 6.5%); consolidated adjusted EBITDA was $50.3M (up 49.3%) with a Q1 adjusted EBITDA margin of 31.8% and an objective to return to roughly 35% for the year. They reported adjusted net income of $27.9M ($0.40/diluted share) versus reported net income of $6.6M ($0.10), Q1 adjusted free cash flow of $32.5M, operating cash flow of $4.8M, cash of $21.9M and credit facilities of $569.5M, with net debt of $547.6M and leverage at ~2.53x (targeting <2.0x by end of FY2027). Key operational metrics and guidance included TuneIn revenue synergies at a $45M run rate 9 months post‑close and positive synergies near USD35M (market target USD20–40M, expected to exceed USD40M), programmatic peak sales of $550k/day (≈$260M annualized), FAST channel revenue growth ~70% in Q1, and a note that Singing Machine will shift to positive EBITDA when shipments begin in Q2; management said it is comfortable with consensus revenue and EBITDA for FY2027 and FY2028.Stingray Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
40
Negative
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 471.57M | 386.89M | 345.43M | 323.94M | 282.63M |
| Gross Profit | 93.44M | 100.83M | 87.95M | 89.66M | 68.82M |
| EBITDA | 132.38M | 102.08M | 60.28M | 111.67M | 92.67M |
| Net Income | -28.57M | 36.44M | -13.74M | 30.12M | 33.29M |
Balance Sheet | |||||
| Total Assets | 1.03B | 816.66M | 811.57M | 895.20M | 883.70M |
| Cash, Cash Equivalents and Short-Term Investments | 20.75M | 13.98M | 9.61M | 15.45M | 14.56M |
| Total Debt | 547.41M | 360.16M | 386.70M | 412.24M | 409.35M |
| Total Liabilities | 815.52M | 549.82M | 562.98M | 608.93M | 610.17M |
| Stockholders Equity | 211.54M | 266.83M | 248.58M | 286.27M | 273.53M |
Cash Flow | |||||
| Free Cash Flow | 85.83M | 89.98M | 104.48M | 71.49M | 66.61M |
| Operating Cash Flow | 93.39M | 105.04M | 118.53M | 86.95M | 83.66M |
| Investing Cash Flow | -231.87M | -17.40M | -16.64M | -20.61M | -18.63M |
| Financing Cash Flow | 145.10M | -83.36M | -107.72M | -65.45M | -59.51M |
Stingray Group Technical Analysis
Positive
15.34
Price Trends
15.34
Positive
14.99
Positive
14.68
Positive
Market Momentum
0.07
Positive
53.06
Neutral
66.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY, the sentiment is Positive. The current price of 15.34 is below the 20-day moving average (MA) of 15.54, above the 50-day MA of 15.34, and above the 200-day MA of 14.68, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RAY.
Stingray Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$795.73M | -32.72 | 27.72% | ― | -1.88% | 72.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | C$1.03B | -37.12 | -10.74% | 1.38% | 32.20% | -184.28% | |
55 Neutral | C$556.20M | -1.63 | -43.86% | 6.44% | -4.64% | -491.61% | |
52 Neutral | C$298.42M | 0.73 | -3531.06% | ― | -14.24% | ― | |
46 Neutral | C$521.62M | -3.33 | -72.77% | ― | ― | ― | |
40 Underperform | C$7.98M | -0.02 | 45.72% | ― | -15.93% | -329.69% |
* Communication Services Sector Average
TSE:RAY
Stingray Group
15.59
6.01
62.72%
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Stingray Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Stingray to Unveil Q1 Fiscal 2027 Results on August 10
Neutral
Aug 8, 2026
Stingray Group Inc. plans to release its financial results for the first quarter of fiscal 2027, covering the period ended June 30, 2026, before markets open on August 10, 2026. Company management will host a conference call that same morning to d...
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.