Stingray Group (RAY) AI Stock Analysis

• Market Cap: C$1.02B
• Dividend Yield: 2.19%
• Average Volume (3M): 34.56K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.49
• Revenue Growth: 12.69%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.38
• Shares Outstanding: 53,902,300
• 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$20.50
• Price Target Upside: 34.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): C$476.20M

• Rating: 74 Outperform
• Price Target: C$19.50 ▲(27.87% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

Score is driven primarily by solid financial performance (strong margins and cash generation) and a constructive earnings update highlighting accelerating monetization and synergy realization. Technicals support the uptrend but look overextended (overbought signals), while valuation is only moderately attractive and leverage remains the key risk to monitor.

Positive Factors

High margins & cash generation

Sustained high gross and EBITDA margins support durable free cash flow generation and internal funding of growth initiatives. Strong cash conversion (OCF to net income ~1.03 and positive FCF growth) underpins capital flexibility for deleveraging, buybacks, or reinvestment over the medium term.

Diversified recurring revenue streams

A multi-channel revenue model—wholesale TV carriage, commercial B2B subscriptions, programmatic advertising and consumer apps—creates stable recurring cash flows and lowers single-market dependency. This diversification improves resilience to regional or format-specific demand shocks over several quarters.

Acquisition synergies & monetization runway

Early, measurable TuneIn synergies and explicit $20–40M revenue/$10–15M cost targets provide a clear multi-quarter upside path. Realized synergies accelerate monetization of new inventory and support margin recovery and deleveraging if management executes the cross-sell and cost programs as planned.

Negative Factors

High leverage / elevated net debt

Material acquisition-driven debt raises refinancing and covenant risks and constrains strategic optionality. Management’s target to reduce leverage below 2.0x is positive but execution-dependent; failure to deleverage within the stated timeframe could limit investments and increase interest burden over multiple quarters.

Margin pressure from lower-margin mix

Acquisitions and a shift toward programmatic/backfill inventory have compressed consolidated margins. If the company cannot fully migrate revenue to higher-margin channels or realize projected synergy savings, persistent margin dilution could erode cash flow and slow progress on deleveraging over several quarters.

Execution & timing risk for automotive revenue

OEM and in-car integrations offer structural upside but require long lead times tied to vehicle production cycles and partner rollouts. Delays or slower adoption push out revenue and synergy timelines, making realized benefits and related cash flows uncertain across the 6–18 month horizon.

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 services to enterprise brands, including audio and video channels, radio stations, subscription video-on-demand content, free and ad-supported TV (FAST) channels, karaoke products and music apps, and in-car and on-board infotainment content. It also provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback, as well as delivers digital audio messaging and audio advertising. In addition, the company offers subscription video on demand, such as Qello Concerts by Stingray, Stingray Classica, Stingray DJAZZ, Stingray Karaoke, Stingray Naturescape, ZenLIFE by Stingray, and The Coda Collection. It also offers FAST channels, including Stingray Music, Qello Concerts by Stingray, Stingray Classica, Stingray DJAZZ, Stingray CMusic, Stingray Karaoke, Stingray Naturescape, Stingray Holidayscapes, ZenLIFE by Stingray, Ultimate Trivia by Stingray, Stingray Cozy Café, Stingray Stargaze, Stingray Cityscapes, Movie Music by Stingray, Loupe Art, and EarthDay 365. The company distributes its products and services through various platforms, including digital cable TV, satellite TV, IPTV, OTT, the internet, mobile devices, game consoles, and connected cars. It serves cable and telecom companies, retailers, and small and medium businesses, as well as direct 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 Group Financial Statement Overview

Summary

Strong profitability and operating efficiency (TTM gross margin 59.4%, EBITDA margin 29.2%) and solid cash conversion (operating cash flow to net income 1.03; free cash flow growth 4.9%). The main constraint is balance-sheet leverage (debt-to-equity 1.28; equity ratio 34.0%), which elevates risk despite good ROE (17.2%).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	429.75M	386.89M	345.43M	323.94M	282.63M	249.47M
Gross Profit	356.34M	100.83M	87.95M	111.67M	87.23M	83.43M
EBITDA	110.34M	102.08M	60.28M	94.66M	91.59M	116.74M
Net Income	43.70M	36.44M	-13.74M	30.12M	33.29M	45.10M
Balance Sheet
Total Assets	1.15B	816.66M	811.57M	895.20M	883.70M	822.84M
Cash, Cash Equivalents and Short-Term Investments	17.33M	13.98M	9.61M	15.45M	14.56M	9.04M
Total Debt	543.62M	360.16M	386.70M	412.24M	409.35M	365.66M
Total Liabilities	866.47M	549.82M	562.98M	608.93M	610.17M	548.14M
Stockholders Equity	285.17M	266.83M	248.58M	286.27M	273.53M	274.69M
Cash Flow
Free Cash Flow	102.63M	89.98M	104.48M	71.49M	66.61M	90.81M
Operating Cash Flow	116.16M	105.04M	118.53M	86.95M	83.66M	104.25M
Investing Cash Flow	-216.10M	-17.40M	-16.64M	-20.61M	-18.63M	5.43M
Financing Cash Flow	98.30M	-83.36M	-107.72M	-65.45M	-59.51M	-103.15M

Stingray Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAY, the sentiment is Neutral. The current price of 15.25 is below the 20-day moving average (MA) of 16.26, below the 50-day MA of 15.28, and above the 200-day MA of 11.76, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RAY.

Stingray Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY	74 Outperform	C$1.02B	23.71	19.09%	2.19%	12.69%	―
CGO	62 Neutral	C$709.80M	8.39	10.16%	5.98%	-2.14%	4.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CGX	47 Neutral	$669.72M	-16.65	―	―	18.50%	31.15%
BAMI	46 Neutral	C$666.83M	-0.19	-38.53%	―	-59.51%	-545.36%
WILD	43 Neutral	C$282.02M	-10.04	―	―	16.65%	1.41%
CJR.B	40 Underperform	C$6.98M	-0.02	―	―	-11.27%	57.50%