Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $110.70M
• Dividend Yield: 11.71%
• Average Volume (3M): 72.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -0.16%
• EPS Growth: 57.03%
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 89
• Industry: Advertising Agencies
• EPS (TTM): -0.12
• Shares Outstanding: 15,036,210
• 10 Day Avg. Volume: 82,971
• 30 Day Avg. Volume: 72,209
• PEG Ratio: -0.05
• Price to Book (P/B): -2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.49
• 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: $17.00
• Price Target Upside: 151.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $7.50 ▲( 10.78% Upside)

Townsquare Media's overall stock score of 50 reflects significant financial challenges, including high leverage and declining revenues. However, the digital segment's growth and strategic refinancing efforts provide a counterbalance, offering potential for future improvement. The stock presents a mixed risk-reward profile, with technical indicators suggesting a neutral trend and valuation metrics showing both challenges and opportunities.

Positive Factors

Digital Business Contribution

Digital diversification is supporting profitability with 57% of revenues and 62% of profits coming from digital businesses.

Dividend Yield

Management's confidence in the business trajectory is reflected in the $0.80 annual dividend, offering an 11.2% yield.

Negative Factors

Debt Levels

Leverage is elevated at 4.67x as of quarter end, which could be a concern despite the company's efforts to reduce debt.

Townsquare Media Business Overview & Revenue Model

Company Description

Townsquare Media (TSQ) is a leading media and entertainment company that primarily operates in small and mid-sized markets across the United States. The company specializes in local radio broadcasting and digital media, offering a diverse range of content that includes music, news, and entertainment. Townsquare Media owns and operates numerous radio stations and also provides digital marketing services to local businesses through its Townsquare Interactive division. Additionally, it produces live events, enhancing its portfolio with experiential offerings.

How the Company Makes Money

Townsquare Media generates revenue through a combination of traditional advertising and digital marketing services. Its radio broadcasting segment earns money from selling advertising space to local and national clients. The company also monetizes its digital properties by providing digital marketing and advertising solutions through Townsquare Interactive, which includes services such as website design, search engine optimization, and social media management for local businesses. Live events contribute to the company's earnings by selling tickets, sponsorships, and merchandise. Partnerships with other media and technology companies also play a role in enhancing its content distribution and advertising capabilities.

Townsquare Media Financial Statement Overview

Summary

Townsquare Media faces significant financial challenges, highlighted by declining revenues, volatile profitability, and a heavily leveraged balance sheet. While operating cash flows remain relatively strong, the negative equity position and inconsistent free cash flow generation pose substantial risks. The company needs to address its debt levels and improve profitability to stabilize its financial position.

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
447.95M	450.98M	454.23M	463.08M	417.96M	371.34M
	Gross Profit
103.20M	450.98M	125.03M	138.15M	129.66M	88.99M
	EBIT
55.97M	21.69M	-19.14M	88.83M	74.48M	40.73M
	EBITDA
17.70M	41.36M	9.01M	72.70M	101.39M	-60.44M
	Net Income Common Stockholders
-39.11M	0.00	-44.96M	12.34M	16.74M	-80.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.30M	32.99M	61.05M	43.42M	50.51M	83.23M
	Total Assets
0.00	580.41M	652.05M	744.52M	726.31M	768.50M
	Total Debt
0.00	53.20M	552.00M	578.56M	587.66M	595.80M
	Net Debt
22.30M	20.21M	490.95M	535.14M	537.15M	512.57M
	Total Liabilities
0.00	608.86M	642.14M	675.44M	676.73M	667.75M
	Stockholders Equity
208.34M	-28.44M	6.41M	65.52M	46.26M	97.26M
Cash Flow		Free Cash Flow
32.04M	31.31M	52.85M	29.36M	48.72M	16.30M
	Operating Cash Flow
49.42M	48.75M	67.83M	50.19M	61.14M	31.49M
	Investing Cash Flow
-10.78M	-9.93M	-3.57M	-37.76M	-10.64M	-14.04M
	Financing Cash Flow
-54.81M	-67.38M	-46.62M	-19.51M	-83.23M	-18.89M

Townsquare Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 6.77 is below the 20-day moving average (MA) of 6.91, below the 50-day MA of 7.18, and below the 200-day MA of 8.72, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 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
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%
SWAG	56 Neutral	$23.07M	―	-12.15%	―	17.04%	-2188.42%
MCHX	55 Neutral	$73.32M	―	-16.55%	―	-2.67%	21.65%
ADV	54 Neutral	$363.23M	―	-42.89%	―	-13.81%	-433.86%
TSQ	50 Neutral	$110.70M	―	74.55%	11.71%	-0.16%	57.03%
HHS	46 Neutral	$34.98M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	38 Underperform	$32.24M	―	-123.16%	―	-15.07%	33.40%

Townsquare Media Corporate Events

Townsquare Media Holds Annual Stockholders Meeting

On May 1, 2025, Townsquare Media, Inc. held its Annual Meeting of Stockholders, where key decisions were made. Stockholders approved the election of Gary Ginsberg and Steven Price as directors for three-year terms and ratified BDO USA, P.C. as the independent registered public accounting firm for 2025, indicating continued stability and strategic direction for the company.