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Spanish Broadcasting System Inc
SBSA : NASDAQ : Services
$3.31 | %
Today's Range: 3.29 - 3.45
Avg. Daily Volume: 7,800
11/21/14 - 3:59 PM ET

Financial Analysis


SPANISH BROADCASTING SYS INC's gross profit margin for the second quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SPANISH BROADCASTING SYS INC has very weak liquidity. Currently, the Quick Ratio is 0.31 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 258.47% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)40.8936.07
EBITDA ($mil)9.8712.71
EBIT ($mil)8.6111.39
Net Income ($mil)-3.231.25


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)24.0224.17
Total Assets ($mil)457.18464.66
Total Debt ($mil)277.97279.55
Equity ($mil)-63.6940.19


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin24.1335.23
EBITDA Margin24.1235.23
Operating Margin21.0531.58
Sales Turnover0.330.32
Return on Assets-21.080.25
Return on Equity0.0-21.76
Debt Q2 FY14 Q2 FY13
Current Ratio0.340.94
Debt/Capital1.30.87
Interest Expense12.389.94
Interest Coverage0.71.15


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)6.516.51
Div / share0.00.0
EPS-0.44-0.17
Book value / share-9.796.18
Institutional Own % n/a n/a
Avg Daily Volume7837.08689.0

Valuation


SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SBSA NM Peers 34.95   SBSA 3.41 Peers 35.61

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

SBSA's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SBSA is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SBSA NA Peers 18.81   SBSA NA Peers 1.42

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SBSA NM Peers 6.73   SBSA -34.16 Peers 50.07

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SBSA's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SBSA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SBSA 0.15 Peers 3.63   SBSA 2.89 Peers 12.91

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SBSA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SBSA significantly trails its peers on the basis of sales growth

 

 

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