Townsquare Media Intrinsic Value Calculation – TownSquare Media Reports Strong Q2 Earnings for FY2023
August 13, 2023
☀️Earnings Overview
On August 9, 2023, TOWNSQUARE MEDIA ($NYSE:TSQ) reported their earnings for the second quarter of FY2023, ending on June 30, 2023. Their total revenue was USD 121.2 million, a marginal decrease of 0.6% year-over-year. However, their reported net income for this quarter was USD -3.2 million, in comparison to a net income of USD 4.4 million in the same quarter of the previous year.
Market Price
On Wednesday, TownSquare Media reported strong Q2 earnings for FY2023. Despite the strong fiscal report, the stock opened at $10.4 and closed at a significant dip of $9.0, representing a 19.7% plunge from its previous closing price of 11.3. This decrease can be attributed to investors’ expectations of the company’s ability to maintain its profitability in the long run. Despite the setback, TownSquare Media remains confident in its ability to remain profitable and continue its growth in the next few quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Townsquare Media. More…
| Total Revenues | Net Income | Net Margin |
| 465.25 | 0.1 | 7.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Townsquare Media. More…
| Operations | Investing | Financing |
| 58.59 | -4.86 | -26.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Townsquare Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 704.11 | 654.73 | 2.9 |
Key Ratios Snapshot
Some of the financial key ratios for Townsquare Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.9% | 21.5% | 6.1% |
| FCF Margin | ROE | ROA |
| 9.3% | 33.0% | 2.5% |
Analysis – Townsquare Media Intrinsic Value Calculation
As a part of our analysis, GoodWhale has evaluated the financials of TOWNSQUARE MEDIA. After our proprietary Valuation Line, we have estimated the intrinsic value of TOWNSQUARE MEDIA’s share to be around $11.2. Presently, TOWNSQUARE MEDIA’s stock is trading at $9.0, which implies a 19.6% undervaluation of the stock. This is a fair price considering its current intrinsic value. More…
Peers
The company was founded in 2010 and is headquartered in Greenwich, Connecticut. Townsquare Media Inc’s competitors include Digital Brand Media & Marketing Group Inc, Hylink Digital Solution Co Ltd, and Totaligent Inc.
– Digital Brand Media & Marketing Group Inc ($OTCPK:DBMM)
Digital Brand Media & Marketing Group Inc is a publicly traded company with a market capitalization of $14.02 million as of early 2021. The company focuses on digital marketing and branding solutions, including web design, social media marketing, and search engine optimization. In 2020, the company posted a return on equity of 1.47%.
– Hylink Digital Solution Co Ltd ($SHSE:603825)
Hylink Digital Solution Co Ltd is a Chinese technology company that specializes in providing online advertising and marketing solutions. The company has a market capitalization of 4.23 billion as of 2022 and a return on equity of 7.36%. Hylink was founded in 2003 and is headquartered in Beijing, China. The company’s clients include some of the largest brands in China, such as Baidu, Alibaba, and Tencent.
– Totaligent Inc ($OTCPK:TGNT)
Totaligent Inc. is a publicly traded company with a market capitalization of $7.45 million as of 2022. The company has a negative return on equity of 149.7%. Totaligent Inc. is engaged in the provision of environmental, health, and safety consulting services. The company offers a range of services, including environmental due diligence, environmental site assessments, environmental remediation, and health and safety compliance.
Summary
Townsquare Media‘s Q2 FY2023 earnings report, released on August 9th, showed that total revenue was USD 121.2 million, a decrease of 0.6% compared to the same period last year. The market reacted to this news by sending the stock price down on the same day. This could be an indication of investor caution and a sign that Townsquare Media’s performance is not meeting expectations. As such, investors should keep an eye on the company’s upcoming quarterly reports to determine if there is potential for long-term growth.
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