(EVC) Entravision Communications - Overview
Sector: Communication Services | Industry: Advertising Agencies | Exchange: NYSE (USA) | Market Cap: 744m USD | Total Return: 439.7% in 12m
Industry Rotation: -5.7
Avg Turnover: 25.2M
Rev. Trend: -77.0%
Warnings
High Debt/EBITDA (21.8) with thin interest coverage (-0.5)
Interest Coverage Ratio -0.5 is critical
Altman Z'' -6.69 < 1.0 - financial distress zone
Tailwinds
Supp Ema8, Leader, Tailwind
Entravision Communications (EVC) is a diversified media and advertising technology firm operating through its Media and Advertising Technology & Services (ATS) segments. The company maintains a traditional portfolio of television and radio stations while scaling a global digital advertising infrastructure. Its technical offerings include Smadex, a programmatic demand-side platform (DSP) for mobile app developers, and Adwake, a performance-based marketing agency.
The company’s business model centers on monetizing audience reach across linear and digital channels, specifically targeting the U.S. Hispanic market and high-growth international regions. In the broadcasting sector, local media companies like Entravision often leverage long-term affiliate agreements with major networks to secure consistent content streams and advertising inventory.
The ATS segment expands Entravision’s capabilities into mobile user acquisition, Connected TV (CTV) advertising, and digital retargeting across platforms such as Meta and TikTok. This shift toward digital services reflects a broader industry trend where traditional broadcasters integrate automated ad-tech to capture shifting consumer attention on streaming and mobile devices.
For a detailed breakdown of these business segments and historical performance metrics, consider reviewing the comprehensive data available on ValueRay.
- Loss of Meta authorized sales partner contract impacts digital revenue
- Political ad spend volatility drives cyclical fluctuations in media segment
- Smadex platform performance dictates margins within advertising technology services
- Hispanic market demographic growth influences long-term radio and television demand
| Net Income: -18.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 4.92 > 1.0 |
| NWC/Revenue: 11.99% < 20% (prev 33.21%; Δ -21.21% < -1%) |
| CFO/TA 0.11 > 3% & CFO 47.4m > Net Income -18.1m |
| Net Debt (101.6m) to EBITDA (4.66m): 21.80 < 3 |
| Current Ratio: 1.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (96.4m) vs 12m ago 5.98% < -2% |
| Gross Margin: 23.14% > 18% (prev 0.33%; Δ 2.28k% > 0.5%) |
| Asset Turnover: 126.7% > 50% (prev 86.88%; Δ 39.86% > 0%) |
| Interest Coverage Ratio: -0.49 > 6 (EBITDA TTM 4.66m / Interest Expense TTM 14.8m) |
| A: 0.15 (Total Current Assets 230.3m - Total Current Liabilities 164.0m) / Total Assets 436.4m |
| B: -1.69 (Retained Earnings -735.5m / Total Assets 436.4m) |
| C: -0.02 (EBIT TTM -7.20m / Avg Total Assets 436.1m) |
| D: -1.98 (Book Value of Equity -736.3m / Total Liabilities 371.4m) |
| Altman-Z'' = -6.69 = D |
| DSRI: 1.11 (Receivables 128.1m/79.2m, Revenue 552.7m/378.6m) |
| GMI: 1.43 (GM 23.14% / 33.19%) |
| AQI: 0.82 (AQ_t 0.32 / AQ_t-1 0.39) |
| SGI: 1.46 (Revenue 552.7m / 378.6m) |
| TATA: -0.15 (NI -18.1m - CFO 47.4m) / TA 436.4m) |
| Beneish M = -2.48 (Cap -4..+1) = BBB |
Over the past week, the price has changed by +7.47%, over one month by +171.43%, over three months by +226.35% and over the past year by +439.71%.
| Analysts Target Price | 3.5 | -63.2% |
P/S = 1.3671
P/B = 11.4477
P/EG = 6.4286
Revenue TTM = 552.7m USD
EBIT TTM = -7.20m USD
EBITDA TTM = 4.66m USD
Long Term Debt = 142.2m USD (from longTermDebt, last quarter)
Short Term Debt = 30.5m USD (from shortTermDebt, last quarter)
Debt = 172.7m USD (corrected: LT Debt 142.2m + ST Debt 30.5m)
Net Debt = 101.6m USD (recalculated: Debt 172.7m - CCE 71.1m)
Enterprise Value = 845.2m USD (743.7m + Debt 172.7m - CCE 71.1m)
Interest Coverage Ratio = -0.49 (Ebit TTM -7.20m / Interest Expense TTM 14.8m)
EV/FCF = 21.55x (Enterprise Value 845.2m / FCF TTM 39.2m)
FCF Yield = 4.64% (FCF TTM 39.2m / Enterprise Value 845.2m)
FCF Margin = 7.10% (FCF TTM 39.2m / Revenue TTM 552.7m)
Net Margin = -3.27% (Net Income TTM -18.1m / Revenue TTM 552.7m)
Gross Margin = 23.14% ((Revenue TTM 552.7m - Cost of Revenue TTM 424.8m) / Revenue TTM)
Gross Margin QoQ = 23.98% (prev 22.62%)
Tobins Q-Ratio = 1.94 (Enterprise Value 845.2m / Total Assets 436.4m)
Interest Expense / Debt = 1.92% (Interest Expense 3.31m / Debt 172.7m)
Taxrate = 30.38% (5.39m / 17.8m)
NOPAT = -5.01m (EBIT -7.20m * (1 - 30.38%)) [loss with tax shield]
Current Ratio = 1.40 (Total Current Assets 230.3m / Total Current Liabilities 164.0m)
Debt / Equity = 2.66 (Debt 172.7m / totalStockholderEquity, last quarter 65.0m)
Debt / EBITDA = 21.80 (Net Debt 101.6m / EBITDA 4.66m)
Debt / FCF = 2.59 (Net Debt 101.6m / FCF TTM 39.2m)
Total Stockholder Equity = 72.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.15% (Net Income -18.1m / Total Assets 436.4m)
RoE = -25.09% (Net Income TTM -18.1m / Total Stockholder Equity 72.1m)
RoCE = -3.36% (EBIT -7.20m / Capital Employed (Equity 72.1m + L.T.Debt 142.2m))
RoIC = -2.07% (negative operating profit) (NOPAT -5.01m / Invested Capital 241.8m)
WACC = 10.44% (E(743.7m)/V(916.4m) * Re(12.55%) + D(172.7m)/V(916.4m) * Rd(1.92%) * (1-Tc(0.30)))
Discount Rate = 12.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 87.41 | Cagr: 4.04%
[DCF] Terminal Value 62.05% ; FCFF base≈30.6m ; Y1≈21.3m ; Y5≈11.0m
[DCF] Fair Price = 0.58 (EV 149.3m - Net Debt 101.6m = Equity 47.8m / Shares 82.7m; r=10.44% [WACC]; 5y FCF grow -35.57% → 3.0% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: N/A | # QB: 0
Revenue Correlation: -77.03 | Revenue CAGR: -22.08% | SUE: N/A | # QB: 0