Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $115.12M
• Dividend Yield: 11.34%
• Average Volume (3M): 58.62K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.87
• Revenue Growth: -0.11%
• EPS Growth: N/A
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 0.09
• Shares Outstanding: 15,130,156
• 10 Day Avg. Volume: 45,201
• 30 Day Avg. Volume: 58,622
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.39
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 7.13
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $13.00
• Price Target Upside: 85.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $7.00 ▼(-0.14% Downside)

Townsquare Media's overall stock score reflects significant financial challenges, with declining revenues and high leverage. Despite these issues, the company shows potential in its digital segment and offers a high dividend yield, suggesting some value for income-focused investors. Technical indicators are mixed, and while the earnings call provided some positive insights, concerns about broadcast revenue and external advertising challenges persist.

Positive Factors

Digital Revenue Growth

The growth in digital revenue indicates a successful shift towards more sustainable and scalable business models, enhancing long-term revenue potential.

Townsquare Interactive Profit Growth

The significant profit growth and margin expansion in Townsquare Interactive demonstrate strong operational efficiency and a robust business model in the SaaS segment.

Debt Reduction

Reducing debt levels improves financial stability and lowers interest expenses, enhancing the company's long-term financial health and flexibility.

Negative Factors

Broadcast Revenue Decline

The decline in broadcast revenue highlights challenges in traditional media, potentially impacting overall revenue and necessitating strategic shifts.

Search Engine Referral Traffic Decline

Reduced search engine traffic affects digital ad revenue, indicating vulnerabilities in digital marketing strategies that need addressing for sustained growth.

High Leverage and Negative Equity

High leverage and negative equity pose financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Townsquare Media Business Overview & Revenue Model

Company Description

Townsquare Media (TSQ) is a leading local media and entertainment company that operates a portfolio of radio stations, digital assets, and live events. The company primarily focuses on small to mid-sized markets across the United States, providing a range of services including broadcast radio, digital advertising, and content creation. Townsquare Media's core products include its radio broadcasting services, digital marketing solutions, and event production, which cater to both local audiences and advertisers seeking to engage with them.

How the Company Makes Money

Townsquare Media generates revenue through multiple streams, primarily from advertising sales across its radio stations and digital platforms. The company offers local and national advertisers opportunities to reach targeted audiences through traditional radio ads, digital display advertising, and sponsored content. Additionally, Townsquare Media monetizes its digital assets through programmatic advertising and partnerships with various advertisers. The company also generates income from live events, including concerts and festivals, which attract sponsorships and ticket sales. Significant partnerships with brands and advertisers enhance its revenue potential, and the company's focus on local content and community engagement drives advertiser interest and loyalty.

Townsquare Media Financial Statement Overview

Summary

Townsquare Media faces significant financial challenges, with declining revenues, volatile profitability, and a heavily leveraged balance sheet. Despite strong operating cash flows, the negative equity position and inconsistent free cash flow generation pose substantial risks.

Income Statement

Townsquare Media's income statement reveals a challenging financial position. The company's revenue has declined over the years, with a notable drop from 2022 to 2023. The net profit margin has been inconsistent, swinging from positive to negative, indicating volatile profitability. Gross profit margin is not directly calculable as gross profit equals total revenue, but net income fluctuations suggest margin pressures. Recent EBIT and EBITDA margins have been weak, reflecting operational challenges.

Balance Sheet

The balance sheet shows significant leverage, with a negative stockholders' equity in the latest year, highlighting solvency challenges. The debt-to-equity ratio cannot be calculated due to negative equity, underscoring financial risk. The equity ratio is also negative, indicating the company is more debt-financed. Overall, the balance sheet signals financial instability and high leverage risk.

Cash Flow

Cash flow statements offer some positive aspects, despite the overall financial struggles. The operating cash flow to net income ratio is favorable, suggesting good cash flow generation relative to reported earnings. However, free cash flow has been inconsistent, with recent declines. Financing activities have consistently been cash outflows, impacting liquidity. The cash flow analysis indicates moderate performance with room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	329.43M	450.98M	454.23M	463.08M	417.96M	371.34M
Gross Profit	87.00M	450.98M	125.03M	138.15M	129.66M	88.99M
EBITDA	82.58M	41.36M	9.01M	72.70M	101.39M	-60.44M
Net Income	34.99M	-12.70M	-44.96M	12.34M	16.74M	-80.55M
Balance Sheet
Total Assets	545.73M	580.41M	652.05M	744.52M	726.31M	768.50M
Cash, Cash Equivalents and Short-Term Investments	3.18M	32.99M	61.05M	43.42M	50.51M	83.23M
Total Debt	490.08M	53.20M	552.00M	578.56M	587.66M	595.80M
Total Liabilities	572.82M	608.86M	642.14M	675.44M	676.73M	667.75M
Stockholders Equity	-30.12M	-31.86M	6.41M	65.52M	46.26M	97.26M
Cash Flow
Free Cash Flow	31.17M	31.31M	52.85M	29.36M	48.72M	16.30M
Operating Cash Flow	48.19M	48.75M	67.83M	50.19M	61.14M	31.49M
Investing Cash Flow	-7.84M	-9.93M	-3.57M	-37.76M	-10.64M	-14.04M
Financing Cash Flow	-65.86M	-67.38M	-46.62M	-19.51M	-83.23M	-18.89M

Townsquare Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSQ, the sentiment is Negative. The current price of 7.01 is below the 20-day moving average (MA) of 7.01, below the 50-day MA of 7.26, and below the 200-day MA of 7.69, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 14.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSQ.

Townsquare Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWAG	61 Neutral	$34.88M	―	-7.18%	―	38.49%	-558.25%
Sector *	60 Neutral	$47.27B	4.55	-11.27%	4.14%	1.88%	-40.90%
TSQ	55 Neutral	$115.12M	3.47	74.55%	11.34%	-0.11%	―
ADV	51 Neutral	$619.30M	―	-36.12%	―	-10.21%	-81.84%
MCHX	46 Neutral	$87.47M	―	-13.93%	―	-2.64%	6.48%
HHS	45 Neutral	$27.58M	―	-14.09%	―	-6.49%	89.87%
FLNT	45 Neutral	$49.26M	―	-115.36%	―	-12.84%	63.95%