Urban One (UONE) AI Stock Analysis

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Urban One

(NASDAQ:UONE)

47Neutral

Urban One faces significant financial and operational challenges, including declining revenues, high leverage, and mixed technical indicators. Despite positive cash flow and debt reduction efforts, profitability issues and negative valuation metrics weigh heavily on the stock's outlook. The overall score reflects these pressures, with earnings call insights highlighting critical areas for improvement.

Urban One (UONE) vs. S&P 500 (SPY)

Market Cap

$35.99M

Dividend YieldN/A

Average Volume (3M)17.20K

Price to Earnings (P/E)―

Beta (1Y)0.50

Revenue Growth-5.86%

EPS Growth-4497.25%

CountryUS

Employees962

SectorCommunication Services

Sector Strength77

IndustryBroadcasting

Share Statistics

EPS (TTM)-2.24

Shares Outstanding6,573,049

10 Day Avg. Volume12,486

30 Day Avg. Volume17,202

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.15

Price to Cash Flow (P/CF)-9.20

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Urban One Business Overview & Revenue Model

Company DescriptionUrban One, Inc. (UONE) is a diversified media company primarily serving African-American and urban audiences. Founded in 1980, it operates across several sectors including radio broadcasting, cable television networks, digital media, and event production. The company's core offerings include owning and operating radio stations, producing original television programming, and delivering online content through its digital platforms. Urban One is committed to providing culturally relevant content and entertainment that resonates with its audience.

How the Company Makes MoneyUrban One makes money through multiple revenue streams primarily driven by advertising sales across its radio, television, and digital media platforms. The company owns and operates numerous radio stations, making it one of the largest radio broadcasting companies targeting African-American audiences. Advertising revenue from these stations is a significant contributor to its earnings. Additionally, Urban One generates income from its cable television networks, such as TV One, where it earns through advertising and affiliate fees from cable operators. The company's digital presence also supports its revenue model by attracting advertising partners seeking to reach urban audiences online. Furthermore, Urban One leverages event production, producing and hosting events that generate ticket sales and sponsorship deals. Strategic partnerships and collaborations with other media companies enhance its ability to monetize content and expand its reach.

Urban One Financial Statement Overview

Summary

Urban One is facing financial difficulties with declining revenues and profitability, as reflected in negative margins and net losses. The balance sheet is marked by high leverage, which increases financial risk. While cash flow generation is positive, it has weakened, suggesting challenges in sustaining operational liquidity. Overall, the company needs to address profitability and leverage to improve financial health.

Income Statement

Negative

Urban One's revenue has declined over the TTM (Trailing-Twelve-Months), with a revenue decrease from $477.69 million in 2023 to $449.67 million in 2024. The company is facing profitability challenges, evidenced by negative EBIT and EBITDA margins of -16.8% and -3.0%, respectively. The gross profit margin remains relatively stable at 68.6%, but the net profit margin has turned negative at -23.4%. These factors indicate pressure on profitability and efficiency.

Balance Sheet

Neutral

The company has a high debt-to-equity ratio of 3.57, reflecting significant leverage that could pose financial risk. Stockholders' equity has decreased, and the equity ratio is at 18.1%. ROE is negative, impacted by a net loss, indicating challenges in generating returns for shareholders. The balance sheet reflects high leverage and a need for improved equity and asset management.

Cash Flow

Neutral

Operating cash flow is positive at $37.48 million, but has decreased from the previous year. However, free cash flow remains positive at $30.00 million, indicating some cash generation ability. The operating cash flow to net income ratio is negative due to net losses, highlighting potential cash flow challenges amidst profitability issues.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
449.67M	477.69M	484.60M	441.46M	376.34M	436.93M
	Gross Profit
308.29M	340.67M	361.97M	322.39M	272.52M	308.20M
	EBIT
-75.52M	-31.57M	152.39M	118.54M	120.76M	87.10M
	EBITDA
-13.43M	145.24M	181.49M	183.65M	89.62M	167.61M
	Net Income Common Stockholders
-105.39M	2.05M	34.34M	36.79M	-6.57M	2.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.96M	233.09M	75.40M	152.22M	73.86M	33.55M
	Total Assets
1.02B	1.21B	1.34B	1.26B	1.20B	1.45B
	Total Debt
649.03M	749.27M	773.24M	859.92M	887.79M	925.73M
	Net Debt
639.07M	516.18M	697.83M	707.70M	813.93M	892.18M
	Total Liabilities
779.38M	920.59M	979.42M	1.26B	1.20B	1.25B
	Stockholders Equity
239.64M	274.06M	333.77M	254.12M	186.90M	183.07M
Cash Flow		Free Cash Flow
30.00M	29.47M	35.30M	73.86M	69.59M	53.36M
	Operating Cash Flow
37.48M	64.64M	67.06M	80.15M	73.87M	58.51M
	Investing Cash Flow
-9.25M	95.36M	-28.68M	1.71M	-3.41M	8.36M
	Financing Cash Flow
-124.23M	-28.31M	-95.22M	-3.50M	-30.14M	-49.20M

Urban One Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.35

Price Trends

50DMA

1.39

Negative

100DMA

1.46

Negative

200DMA

1.64

Negative

Market Momentum

MACD

0.01

Negative

RSI

50.74

Neutral

STOCH

44.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UONE, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.39, and below the 200-day MA of 1.64, indicating a bearish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UONE.

Urban One Risk Analysis

Urban One disclosed 36 risk factors in its most recent earnings report. Urban One reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Urban One Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$25.97B	3.12	-10.67%	4.37%	2.16%	-43.01%
SIRI	48 Neutral	$7.08B	―	-37.33%	5.34%	-2.84%	-249.80%
UONE	47 Neutral	$35.99M	―	-47.37%	―	-5.86%	-4497.25%
BBGI	44 Neutral	$9.45M	3.37	-3.98%	―	-2.76%	92.67%
CMLS	43 Neutral	$17.58M	―	-193.00%	―	-2.07%	-138.25%
IHRT	42 Neutral	$175.37M	―	86.54%	―	2.76%	9.71%

* Communication Services Sector Average

Performance Comparison

UONE

Urban One

1.35

-0.87

-39.19%

BBGI

Beasley Broadcast Group

4.80

-9.52

-66.48%

CMLS

Cumulus Media

0.31

-2.81

-90.06%

SIRI

Sirius XM Holdings

20.02

-10.88

-35.21%

IHRT

iHeartMedia

1.15

-1.03

-47.25%

Urban One Earnings Call Summary

Earnings Call Date: Mar 27, 2025 | % Change Since: -6.90% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed sentiment with notable achievements in political advertising and debt reduction but significant challenges in revenue declines across Cable TV, Digital, and Radio segments, along with increased net losses and subscriber churn.

Highlights

Political Advertising Boost

The company saw strong performance in political advertising, which significantly boosted Q4 adjusted EBITDA to $103.5 million.

Radio Broadcast Segment Growth

Net revenue for the Radio Broadcast segment was $47.7 million, an increase of 14.5% year-over-year.

Debt Reduction Strategy

The company repurchased $15.4 million of its 2028 notes, reducing the balance to $584.575 million at year-end. An additional $17 million was repurchased in January 2025.

Strong Liquidity Position

Urban One ended the year with approximately $137 million of cash on hand.

Lowlights

Decline in Cable TV Revenue

Cable Television segment revenue decreased by 15.9%, with a 21.4% decline in advertising revenue.

Radio Business Challenges

The radio business saw significant downdrafts with Q1 pacings currently down 13.6%.

Digital Segment Revenue Decline

Net revenues for the Digital segment were down 3.1% in Q4, driven by decreased advertiser demand and lower streaming revenue.

Net Loss Increase

The company reported a net loss of $35.7 million or $0.78 per share, compared to a net loss of $11 million or $0.23 per share in the previous year.

Subscriber Churn

Cable TV affiliate revenue was down by 9.9% due to increased subscriber churn, resulting in a $3.3 million loss.

Impairment Charges

The company recorded $24.2 million in noncash impairment charges, including $4 million associated with the TV One brand name.

Adjusted EBITDA Guidance Reduction

Guidance for 2025 adjusted EBITDA is $75 million, down from $103.5 million in 2024.

Company Guidance

During Urban One's fourth quarter earnings call for fiscal year 2024, the company presented a mixed outlook for 2025, guiding to an adjusted EBITDA of $75 million, down from $103.5 million in 2024. This reduction is largely attributed to anticipated declines in political advertising and continued challenges in their radio segment, which saw a Q1 pacing decline of 13.6% but expected improvement to a 1.7% decline in Q2. The company highlighted a strong liquidity position with around $137 million in cash and emphasized ongoing cost containment efforts, including a 5% reduction in workforce, saving approximately $5 million annually. Cable TV faced headwinds with a 15.9% revenue decline in Q4, but churn is reportedly stabilizing. Urban One's strategy for 2025 focuses on cost containment and debt reduction, with $117 million in cash as of the call and significant debt repurchases in the past year, totaling around $160 million.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.