Townsquare Media (TSQ) AI Stock Analysis

• Market Cap: $118.55M
• Dividend Yield: 10.97%
• Average Volume (3M): 142.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -0.16%
• EPS Growth: 57.03%
• Country: US
• Employees: 2,049
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): -0.12
• Shares Outstanding: 15,036,210
• 10 Day Avg. Volume: 111,397
• 30 Day Avg. Volume: 142,057
• PEG Ratio: 0.41
• Price to Book (P/B): -4.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.73
• Enterprise Value/Market Cap: 5.33
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 6.20
• 1Y Price Target: $13.00
• Price Target Upside: 79.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $9.50 ▲(31.03%Upside)

Townsquare Media's overall stock score reflects a challenging financial position, with significant leverage and declining revenues. However, the company's strategic shift towards digital growth and high dividend yield provide a positive outlook. Technical indicators suggest moderate recovery potential, and corporate governance remains stable. The digital-first strategy and optimistic earnings guidance are key strengths supporting the score.

Positive Factors

Digital Business Growth

The continued growth of the pair of digital businesses has diversified the revenue and profit base away from the radio operations and enabled the company to benefit from the shift in spending by its local business clients to digital platforms from traditional.

Financial Stability

The company continues to work towards debt reduction and is able to execute on that, while continuing to grow the dividend which does help to signal confidence in the business.

Investment Rating

Analyst reaffirms OUTPERFORM investment rating, indicating a positive outlook on the company's performance.

Negative Factors

Debt Concerns

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 diversified media, entertainment, and digital marketing services company primarily serving small and mid-sized markets across the United States. The company operates in multiple sectors, including local radio broadcasting, live events, and digital marketing solutions. With a portfolio of radio stations, Townsquare Media connects with audiences through music, news, and entertainment programming, while its live events division hosts concerts, festivals, and community events. Additionally, through its digital marketing services, the company offers a suite of solutions aimed at helping local businesses grow their online presence and engage with customers.

How the Company Makes Money

Townsquare Media generates revenue through several key streams. The primary source of income is advertising sales, both from its local radio stations and digital platforms. The company sells advertising slots on its radio stations to local and national advertisers, leveraging its reach and local market influence. Additionally, Townsquare Media monetizes its digital platforms through targeted online advertising and digital marketing services, helping businesses with website design, search engine optimization, social media management, and other digital solutions. Another significant revenue stream comes from live events, where the company earns through ticket sales, sponsorships, and merchandise. Partnerships with local businesses and national brands further enhance its revenue potential by driving advertising sales and event sponsorships.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.98M	454.23M	463.08M	417.96M	371.34M
Gross Profit	450.98M	125.03M	138.15M	129.66M	88.99M
EBITDA	41.36M	9.01M	72.70M	101.39M	-60.44M
Net Income	-12.70M	-44.96M	12.34M	16.74M	-80.55M
Balance Sheet
Total Assets	580.41M	652.05M	744.52M	726.31M	768.50M
Cash, Cash Equivalents and Short-Term Investments	32.99M	61.05M	43.42M	50.51M	83.23M
Total Debt	53.20M	552.00M	578.56M	587.66M	595.80M
Total Liabilities	608.86M	642.14M	675.44M	676.73M	667.75M
Stockholders Equity	-28.44M	6.41M	65.52M	46.26M	97.26M
Cash Flow
Free Cash Flow	31.31M	52.85M	29.36M	48.72M	16.30M
Operating Cash Flow	48.75M	67.83M	50.19M	61.14M	31.49M
Investing Cash Flow	-9.93M	-3.57M	-37.76M	-10.64M	-14.04M
Financing Cash Flow	-67.38M	-46.62M	-19.51M	-83.23M	-18.89M

Townsquare Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Positive
• 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 7.25 is below the 20-day moving average (MA) of 7.85, below the 50-day MA of 7.26, and below the 200-day MA of 8.11, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.50 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 *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
MCHX	61 Neutral	$90.00M	―	-16.55%	―	-2.67%	21.65%
SWAG	60 Neutral	$28.72M	―	-12.15%	―	17.04%	-2188.42%
TSQ	58 Neutral	$118.55M	―	74.55%	10.97%	-0.16%	57.03%
ADV	53 Neutral	$486.47M	―	-42.89%	―	-13.81%	-433.86%
HHS	47 Neutral	$25.11M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	45 Neutral	$50.85M	―	-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.