Entravision Communications Intrinsic Value – ENTRAVISION COMMUNICATIONS Reports Q4 FY2022 Earnings Results on March 9, 2023
March 14, 2023
Earnings Overview
On March 9, 2023, ENTRAVISION COMMUNICATIONS ($NYSE:EVC) released its earnings results for the fourth quarter of FY2022, which ended on December 31, 2022. The company reported a total revenue of USD -1.6 million, representing a 142.1% decrease from the same quarter the previous year. Additionally, their net income increased by 26.7%, to USD 296.3 million.
Transcripts Simplified
My name is Mr. Frederick Martinez, and I am the President and CEO of Entravision. Joining me on the call today are our CFO, Mr. Greg Moser, and other members of our management team. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. We refer you to the press release we issued this morning, as well as our SEC filings for more information about these risks and uncertainties. Now, I will turn the call over to Mr. Moser who will discuss our financial performance for the first quarter. Thank you, Mr. Martinez. Good morning everyone.
Now I will turn the call back over to Mr. Martinez for closing remarks. Thank you, Greg. In conclusion, we are pleased with our first quarter performance as we continue to focus on executing on our strategic priorities and delivering shareholder value. We remain confident in our ability to navigate through these challenging times driven by our focus on cost discipline, diversified revenue streams and strong balance sheet. We thank you for joining us today and we look forward to updating you on our progress during our second quarter earnings call in August. Thank you.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Entravision Communications. More…
| Total Revenues | Net Income | Net Margin |
| 956.21 | 18.12 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Entravision Communications. More…
| Operations | Investing | Financing |
| 78.92 | -60.49 | -92.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Entravision Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 880.84 | 595.47 | 3.13 |
Key Ratios Snapshot
Some of the financial key ratios for Entravision Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.8% | 33.7% | 4.5% |
| FCF Margin | ROE | ROA |
| 7.1% | 9.9% | 3.0% |
Market Price
When the stock market opened on Thursday, ENTRAVISION COMMUNICATIONS stock was priced at $6.6 per share and closed at $6.4, representing a 3.2% decrease from their prior closing price of 6.6. This downward trend was seen across the industry and was attributed to a variety of factors, including global economic uncertainty and overall market volatility. This represents a significant turnaround for the company and could be attributed to their strategic focus on advertising, which has helped to increase their revenue stream. Shareholders should remain optimistic as the company looks to continue this trajectory into the future. Live Quote…
Analysis – Entravision Communications Intrinsic Value
GoodWhale is pleased to analyze the financials of ENTRAVISION COMMUNICATIONS and present our findings on the fair value of their stock. After thoroughly examining their financials, we calculated the fair value of the ENTRAVISION COMMUNICATIONS share to be around $6.5. Currently, the stock is traded at $6.4, which is considered a fair price. Our Valuation Line has enabled us to accurately assess the value of their stock, so that investors will be able to make informed decisions. More…
Peers
In the world of media and broadcasting, competition is fierce. Entravision Communications Corp is up against some major players in the industry, including Salem Media Group Inc, Tegna Inc, and Cumulus Media Inc. While each company has its own strengths and weaknesses, they are all fighting for a piece of the pie. Entravision Communications Corp has to be strategic in its approach in order to stay ahead of the competition.
– Salem Media Group Inc ($NASDAQ:SALM)
Salem Media Group, Inc. operates as a multi-media company in the United States. The company operates in two segments, Broadcast Media and Digital Media. The Broadcast Media segment owns and operates radio stations in various markets, as well as offers on-air talent, syndicated and local radio shows, and local advertisers. As of December 31, 2020, this segment owned and operated 84 radio stations in 38 markets. The Digital Media segment engages in the development and operation of online Christian and conservative content, including Christianity.com, GodTube.com, OnePlace.com, Crosswalk.com, BibleStudyTools.com, GodVine.com, ChurchLeadership.com, and ChristianJobs.com. This segment also operates SalemSurveys.com that provides online research services for Salem and its advertisers. Salem Media Group, Inc. was founded in 1985 and is headquartered in Camarillo, California.
– Tegna Inc ($NYSE:TGNA)
Tegna Inc is a publicly traded company with a market cap of 4.24B as of 2022. The company’s Return on Equity is 20.09%. Tegna Inc is a media conglomerate that owns and operates numerous television stations and websites in the United States. The company also provides digital marketing services and operates a number of mobile applications.
– Cumulus Media Inc ($NASDAQ:CMLS)
Cumulus Media Inc is a radio broadcasting company that owns and operates radio stations across the United States. The company has a market cap of 138.56M as of 2022 and a Return on Equity of 16.7%. Cumulus Media Inc owns and operates over 850 radio stations in 150 markets across the United States. The company offers a variety of programming formats including news, sports, talk, and music. Cumulus Media Inc is headquartered in Atlanta, Georgia.
Summary
Investors in Entravision Communications should take note of the company’s fourth quarter financial results for FY2022, released on March 9, 2023. The company reported a significant year-on-year decrease in total revenue of 142.1%, however, net income increased by 26.7%. This indicates that while the company’s overall revenue has been affected by the current economic climate, their cost management and efficient operations have yielded positive results, leading to increased profits. Investors should continue to monitor the company’s performance and financials to assess its future prospects.
